DoD's $14.1M cybersecurity support contract awarded to Data Intelligence LLC for 3 years

Contract Overview

Contract Amount: $14,142,223 ($14.1M)

Contractor: Data Intelligence LLC

Awarding Agency: Department of Defense

Start Date: 2023-03-01

End Date: 2026-02-28

Contract Duration: 1,095 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CYBERSECURITY & RISK MANAGEMENT FRAMEWORK (RMF) VALIDATION AND INFORMATION SYSTEMS SECURITY SERVICES SUPPORT

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19111

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to DATA INTELLIGENCE LLC for work described as: CYBERSECURITY & RISK MANAGEMENT FRAMEWORK (RMF) VALIDATION AND INFORMATION SYSTEMS SECURITY SERVICES SUPPORT Key points: 1. Contract focuses on critical cybersecurity validation and information systems security. 2. Awarded via full and open competition, indicating a competitive marketplace. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. Performance period spans three years, suggesting a need for sustained support. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, with a cybersecurity specialization. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this $14.1 million contract is challenging without more specific details on the scope of services. However, the Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control. While CPFF can be appropriate for research and development or when costs are uncertain, it requires robust oversight to ensure the government receives good value and the contractor is incentivized to manage expenses efficiently. Comparing this to similar cybersecurity support contracts would require detailed service level agreements and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests that while the competition was broad, specific sources may have been excluded for defined reasons. The presence of 9 bidders indicates a healthy level of competition for this type of specialized cybersecurity support. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down costs and encouraged multiple firms to offer their best solutions and pricing for essential cybersecurity services.

Public Impact

The Department of the Navy benefits from enhanced cybersecurity posture and information systems security. Critical infrastructure and sensitive data within the Department of Defense are better protected. The contract supports the ongoing operational readiness and security of naval information systems. Workforce implications may include specialized cybersecurity professionals employed by Data Intelligence LLC and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type necessitates vigilant oversight to prevent cost overruns.
The exclusion of sources in an otherwise full and open competition warrants understanding the rationale.
The duration of the contract (3 years) requires sustained performance monitoring.

Positive Signals

Awarded through a competitive process, indicating market interest and potential for value.
Focus on cybersecurity is critical for national security and data protection.
The contract is a delivery order, suggesting it aligns with a broader strategic procurement vehicle.

Sector Analysis

The cybersecurity services market is a rapidly growing and critical sector within the broader IT and defense industries. This contract falls under engineering services (NAICS 541330) but is highly specialized in cybersecurity. The total contract value of $14.1 million over three years represents a significant investment in maintaining robust information security for the Department of Defense. Comparable spending benchmarks would typically be found within large IDIQ vehicles for professional engineering and IT support services, where cybersecurity is a key component.

Small Business Impact

The provided data does not indicate if this contract included specific small business set-asides or subcontracting goals. As a delivery order under a potentially larger IDIQ, the subcontracting opportunities would depend on the terms of the base contract. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. The Cost Plus Fixed Fee structure necessitates close monitoring of costs, performance, and adherence to the contract's scope of work. Transparency is generally maintained through contract reporting mechanisms, though specific details of ongoing oversight are not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Cybersecurity Support Contracts
Information Systems Security Services
Risk Management Framework (RMF) Validation
Naval IT and Engineering Services

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Effectiveness of Source Exclusions
Performance Monitoring Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to DATA INTELLIGENCE LLC. CYBERSECURITY & RISK MANAGEMENT FRAMEWORK (RMF) VALIDATION AND INFORMATION SYSTEMS SECURITY SERVICES SUPPORT

Who is the contractor on this award?

The obligated recipient is DATA INTELLIGENCE 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 $14.1 million.

What is the period of performance?

Start: 2023-03-01. End: 2026-02-28.

What is the specific scope of 'Cybersecurity & Risk Management Framework (RMF) Validation and Information Systems Security Services Support' provided under this contract?

The contract details indicate support for RMF validation and information systems security services. This typically involves assessing systems against security controls, identifying vulnerabilities, recommending remediation, and ensuring compliance with federal cybersecurity mandates like RMF. Services likely include security control assessments, penetration testing, vulnerability management, security plan development, and continuous monitoring to maintain the security posture of DoD information systems. The exact deliverables and service levels would be defined in the Statement of Work (SOW) associated with this delivery order.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing arrangements for similar cybersecurity services?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a predetermined fixed fee representing profit. This contrasts with Fixed Price contracts, where the price is set regardless of costs, or Cost Plus Incentive Fee (CPIF), which adjusts the fee based on performance against targets. CPFF is often used when the scope of work is not precisely defined or involves significant uncertainty, such as in R&D. For cybersecurity services, Fixed Price or CPIF might be preferred if performance metrics and scope are well-defined, as they can offer better cost control incentives. However, CPFF can be suitable for complex, evolving security needs where flexibility is paramount, provided robust oversight is in place.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' award type?

While 'Full and Open Competition' aims for the widest possible participation, the 'After Exclusion of Sources' clause indicates that certain potential offerors were intentionally excluded. The risks depend on the justification for these exclusions. If the exclusions were based on legitimate technical requirements or past performance issues, the competition might still be robust. However, if the exclusions were arbitrary or improperly justified, it could limit competition, potentially leading to higher prices or less innovative solutions. Understanding the specific reasons for exclusion is crucial for assessing the true level of competition and its impact on value for money.

What is the historical spending pattern for cybersecurity support services within the Department of the Navy?

Historical spending on cybersecurity support within the Department of the Navy has been substantial and is on an upward trend, reflecting the increasing threat landscape and the critical need to protect naval networks and data. While specific figures for this exact service category are not provided, the Navy, like the broader DoD, consistently allocates significant portions of its budget to cybersecurity. This includes funding for RMF compliance, threat detection, incident response, and system hardening. The trend indicates a sustained demand for these services, often fulfilled through a mix of large IDIQ contracts and specific delivery orders like this one.

How does Data Intelligence LLC's track record influence the assessment of this contract's risk?

Assessing Data Intelligence LLC's track record requires examining their past performance on similar government contracts, particularly within the DoD and for cybersecurity services. Key factors include their history of meeting deadlines, delivering quality work, managing costs effectively (especially on CPFF contracts), and their overall compliance record. A strong track record with positive past performance reviews would mitigate risks associated with contract execution. Conversely, a history of cost overruns, missed deadlines, or quality issues would increase the perceived risk for this $14.1 million award, necessitating heightened oversight from the Department of the Navy.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6600120R0004

Offers Received: 9

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2 EVES DR STE 250, MARLTON, NJ, 08053

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,260,197

Exercised Options: $19,087,443

Current Obligation: $14,142,223

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600121D0103

IDV Type: IDC

Timeline