NIWC Atlantic Awards $6.86M Contract for Defensive Cyberspace Operations, Lacking Competition

Contract Overview

Contract Amount: $6,861,111 ($6.9M)

Contractor: Intelligent Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2026-09-25

Contract Duration: 364 days

Daily Burn Rate: $18.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: NAVAL INFORMATION WARFARE CENTER (NIWC) ATLANTIC IS DELIVERING DEFENSIVE CYBERSPACE OPERATIONS (DCO) FOR A RANGE OF DEPARTMENT OF DEFENSE (DOD) AND FEDERAL NETWORKS, AIMING TO ALIGN WITH AN ORGANIZATION THAT PROVIDES DCO SERVICES.

Place of Performance

Location: DILLINGHAM, DILLINGHAM County, ALASKA, 99576

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $6.9 million to INTELLIGENT TECHNOLOGY, LLC for work described as: NAVAL INFORMATION WARFARE CENTER (NIWC) ATLANTIC IS DELIVERING DEFENSIVE CYBERSPACE OPERATIONS (DCO) FOR A RANGE OF DEPARTMENT OF DEFENSE (DOD) AND FEDERAL NETWORKS, AIMING TO ALIGN WITH AN ORGANIZATION THAT PROVIDES DCO SERVICES. Key points: 1. The contract focuses on critical Defensive Cyberspace Operations (DCO) for DoD and federal networks. 2. Intelligent Technology, LLC is the sole awardee, raising concerns about competitive pricing. 3. The award is a Definitive Contract with a Cost Plus Fixed Fee structure. 4. The contract duration is one year, with a potential for extension. 5. The North American Industry Classification System (NAICS) code is 541330 (Engineering Services).

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. Without competitive benchmarks, assessing the fairness of the fixed fee and overall pricing is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for essential cybersecurity services may result in the government paying more than necessary, impacting overall federal budget efficiency.

Public Impact

Ensures continued protection of vital federal and DoD networks against cyber threats. Supports national security by maintaining the integrity of sensitive government systems. Potential for increased costs due to the absence of competitive bidding. Highlights a reliance on a single vendor for critical cybersecurity functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of transparency in pricing
Potential for cost overruns

Positive Signals

Provides essential cybersecurity services
Supports critical government infrastructure
Experienced contractor in the field

Sector Analysis

This contract falls under Engineering Services, specifically related to IT and defense cybersecurity. Spending in this sector is high due to increasing cyber threats, but competitive bidding is crucial for cost-effectiveness.

Small Business Impact

The awardee, Intelligent Technology, LLC, is not identified as a small business. The contract does not appear to have specific provisions for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is performing effectively and that costs are reasonable. Further justification for the lack of competition should be scrutinized.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competitive pricing.
Cost Plus Fixed Fee contract type can lead to cost overruns.
Lack of transparency regarding the justification for sole-sourcing.
Potential for vendor lock-in.
No identified small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.9 million to INTELLIGENT TECHNOLOGY, LLC. NAVAL INFORMATION WARFARE CENTER (NIWC) ATLANTIC IS DELIVERING DEFENSIVE CYBERSPACE OPERATIONS (DCO) FOR A RANGE OF DEPARTMENT OF DEFENSE (DOD) AND FEDERAL NETWORKS, AIMING TO ALIGN WITH AN ORGANIZATION THAT PROVIDES DCO SERVICES.

Who is the contractor on this award?

The obligated recipient is INTELLIGENT TECHNOLOGY, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $6.9 million.

What is the period of performance?

Start: 2025-09-26. End: 2026-09-25.

What is the specific justification for awarding this contract on a sole-source basis, and what steps are being taken to ensure fair pricing?

The justification for a sole-source award typically involves unique capabilities or urgent needs. Without competitive bidding, the government must rely on robust cost analysis and negotiation to ensure fair pricing. Regular performance reviews and audits are essential to monitor expenditures and prevent potential cost overruns associated with the Cost Plus Fixed Fee structure.

How does the government plan to mitigate the risks associated with relying on a single vendor for critical cybersecurity operations?

Mitigation strategies may include stringent performance metrics, regular security audits, and contingency planning for service disruptions. The government could also explore options for developing alternative solutions or fostering competition in future contract renewals to reduce dependency on a single provider and enhance overall cybersecurity resilience.

What is the expected long-term impact on federal cybersecurity capabilities if this sole-source trend continues in critical areas?

A continued trend of sole-source awards in critical cybersecurity areas could stifle innovation and lead to higher costs due to a lack of market competition. It may also create vulnerabilities if the sole provider faces operational issues or if their technology becomes outdated. Diversifying vendors and encouraging competition are vital for maintaining a robust and adaptable federal cybersecurity posture.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 104 MAIN ST STE 201, DILLINGHAM, AK, 99576

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,572,466

Exercised Options: $16,333,490

Current Obligation: $6,861,111

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline