State Dept. awards $180M for Security Tech Services to Obsidian Solutions Group, with full and open competition

Contract Overview

Contract Amount: $180,088,451 ($180.1M)

Contractor: Obsidian Solutions Group LLC

Awarding Agency: Department of State

Start Date: 2016-09-30

End Date: 2026-04-19

Contract Duration: 3,488 days

Daily Burn Rate: $51.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: COUNTERMEASURES AND SECURITY TECHNOLOGY SERVICES (CSTS) IGF::OT::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $180.1 million to OBSIDIAN SOLUTIONS GROUP LLC for work described as: COUNTERMEASURES AND SECURITY TECHNOLOGY SERVICES (CSTS) IGF::OT::IGF Key points: 1. Significant contract value of $180M over 8 years. 2. Obsidian Solutions Group LLC is the sole awardee. 3. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. Engineering Services sector, NAICS 541330.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly. Benchmarking CPFF contracts in this sector is challenging without detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests an initial exclusion followed by open competition. This method can impact price discovery if the initial exclusion was not fully justified.

Taxpayer Impact: Taxpayer funds are being used for critical security technology services. The CPFF structure necessitates robust oversight to ensure cost efficiency.

Public Impact

Ensures continued provision of essential security technology services for the Department of State. Supports national security objectives through advanced technological solutions. Potential for innovation and improved security posture. Contract duration of nearly 9 years suggests long-term strategic importance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type carries inherent cost risk.
Long contract duration may not adapt well to rapidly evolving tech.
Limited information on specific performance metrics and value realization.

Positive Signals

Awarded under full and open competition.
Addresses critical national security needs.
Significant investment in advanced technology.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to countermeasures and security technology. Spending in this area is crucial for government agencies to maintain robust defense and operational capabilities.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary awardee is Obsidian Solutions Group LLC, and further analysis would be needed to determine its size status and any subcontracting opportunities for small businesses.

Oversight & Accountability

The CPFF contract type requires diligent oversight from the Department of State to manage costs effectively and ensure the contractor delivers on technical requirements. Regular performance reviews and audits are essential.

Related Government Programs

Engineering Services
Department of State Contracting
Department of State Programs

Risk Flags

Cost overrun risk due to CPFF structure.
Potential for vendor lock-in given the long contract duration.
Lack of transparency on specific service details and performance metrics.
Effectiveness of 'EXCLUSION OF SOURCES' followed by open competition needs scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $180.1 million to OBSIDIAN SOLUTIONS GROUP LLC. COUNTERMEASURES AND SECURITY TECHNOLOGY SERVICES (CSTS) IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is OBSIDIAN SOLUTIONS GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $180.1 million.

What is the period of performance?

Start: 2016-09-30. End: 2026-04-19.

What specific security technologies and services are being procured under this contract, and how do they align with current and future threats?

The contract details 'COUNTERMEASURES AND SECURITY TECHNOLOGY SERVICES (CSTS)'. Without further breakdown, it's difficult to ascertain the exact technologies. However, given the agency (Dept. of State) and the sector, it likely includes advanced surveillance, cyber defense, physical security systems, and potentially counter-terrorism technologies. Alignment with threats would depend on the specific threat landscape assessments conducted by the State Department.

How will the Department of State ensure cost control and value for money given the Cost Plus Fixed Fee (CPFF) contract structure?

The Department of State must implement rigorous oversight mechanisms. This includes detailed cost tracking, regular audits of contractor expenses, performance-based milestone payments, and clear definition of the fixed fee's basis. Benchmarking against similar CPFF contracts and market rates for the services provided will be crucial for validating costs.

What is the potential impact of the 'EXCLUSION OF SOURCES' clause in the 'FULL AND OPEN COMPETITION' award on overall market competitiveness and innovation?

The 'EXCLUSION OF SOURCES' clause, even when followed by full and open competition, can raise questions about initial market research and potential barriers to entry. If the exclusion was based on specific, justifiable criteria, it might streamline the process. However, it could also limit the pool of potential bidders initially, potentially impacting price discovery and the introduction of novel solutions from excluded firms.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SAQMMA16R0013

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1320 CENTRAL PARK BLVD STE 304, FREDERICKSBURG, VA, 22401

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $234,846,313

Exercised Options: $230,266,813

Current Obligation: $180,088,451

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline