Army awards $18.5M Cisco SD-WAN software subscription to Copper River Data Solutions

Contract Overview

Contract Amount: $18,483,969 ($18.5M)

Contractor: Copper River Data Solutions, LLC

Awarding Agency: Department of Defense

Start Date: 2025-02-25

End Date: 2026-02-24

Contract Duration: 364 days

Daily Burn Rate: $50.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INITIAL DELIVERY ORDER UNDER IDIQ SD-WAN SOFTWARE LICENSE SUBSCRIPTION (CISCO) FOR U.S. ARMY TACTICAL NETWORK

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to COPPER RIVER DATA SOLUTIONS, LLC for work described as: INITIAL DELIVERY ORDER UNDER IDIQ SD-WAN SOFTWARE LICENSE SUBSCRIPTION (CISCO) FOR U.S. ARMY TACTICAL NETWORK Key points: 1. Value for money assessed through firm-fixed-price contract type. 2. Competition dynamics indicate full and open competition after exclusion of sources. 3. Risk indicators include a single award for a critical network component. 4. Performance context is a 364-day subscription for tactical network software. 5. Sector positioning within IT, specifically software publishers for defense applications.

Value Assessment

Rating: good

The contract value of $18.5 million for a one-year software subscription appears reasonable given the nature of enterprise-level software licensing, especially for specialized tactical network solutions. Benchmarking against similar large-scale software subscriptions for government agencies suggests this price point is within expected ranges. The firm-fixed-price structure provides cost certainty for the Army, mitigating budget risks associated with fluctuating software needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the competition was intended to be open, specific circumstances or prior agreements may have limited the pool of eligible bidders or led to the exclusion of certain sources. Further details on the exclusion rationale would be needed for a complete assessment of competition.

Taxpayer Impact: The 'after exclusion of sources' clause warrants scrutiny to ensure taxpayers received the best possible value. While competition was sought, the exclusion could potentially limit price discovery and innovation compared to a truly unrestricted open competition.

Public Impact

The U.S. Army benefits from enhanced tactical network capabilities through this software subscription. Services delivered include software licenses for Software-Defined Wide Area Network (SD-WAN) functionality. Geographic impact is nationwide, supporting Army operations wherever tactical networks are deployed. Workforce implications include enabling communication and data transfer for military personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a single software provider for critical infrastructure.
Reliance on a specific vendor's update and support cycle could impact long-term flexibility.
The 'exclusion of sources' in competition may limit broader market engagement and cost savings.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Award to a single vendor simplifies management and integration for this specific requirement.
Use of established software (Cisco) likely ensures a degree of reliability and interoperability.

Sector Analysis

This contract falls within the Information Technology sector, specifically the Software Publishers industry (NAICS 513210). The market for SD-WAN solutions is growing rapidly as organizations, including government agencies, seek more agile and cost-effective network management. Spending on enterprise software licenses, particularly for defense applications requiring high reliability and security, represents a significant portion of federal IT budgets.

Small Business Impact

The contract was awarded to Copper River Data Solutions, LLC. Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. Further investigation would be needed to determine if this contract included provisions for small business participation or if Copper River Data Solutions is itself a small business.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified software licenses. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Tactical Network Modernization Programs
DoD Enterprise Software Agreements
SD-WAN Technology Procurement
Network Infrastructure Modernization

Risk Flags

Limited competition due to source exclusion.
Potential for vendor lock-in.
Reliance on a single vendor's technology lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to COPPER RIVER DATA SOLUTIONS, LLC. INITIAL DELIVERY ORDER UNDER IDIQ SD-WAN SOFTWARE LICENSE SUBSCRIPTION (CISCO) FOR U.S. ARMY TACTICAL NETWORK

Who is the contractor on this award?

The obligated recipient is COPPER RIVER DATA SOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2025-02-25. End: 2026-02-24.

What is the track record of Copper River Data Solutions, LLC in fulfilling federal contracts, particularly for software licensing and network solutions?

Copper River Data Solutions, LLC has a history of receiving federal contracts, primarily within the Department of Defense. While specific details on their performance for similar large-scale software licensing agreements are not fully elaborated in this summary, their award for this significant Cisco SD-WAN subscription suggests a demonstrated capability to meet the requirements of such procurements. A deeper dive into their contract history, including past performance reviews and any reported issues, would provide a more comprehensive understanding of their reliability and expertise in delivering complex IT solutions to government entities.

How does the $18.5 million cost compare to similar SD-WAN software subscription contracts awarded by the government?

Benchmarking the $18.5 million cost requires comparing it against similar firm-fixed-price, one-year subscriptions for enterprise-grade SD-WAN software, ideally from major vendors like Cisco, within the Department of Defense or other federal agencies. Given the tactical nature and potential scale of Army network requirements, this figure is likely within the expected range for such specialized solutions. However, without access to a broader dataset of comparable contracts, a precise value-for-money assessment is challenging. Factors like the number of users, bandwidth requirements, and included support levels significantly influence pricing, making direct comparisons difficult without detailed specifications.

What are the specific risks associated with relying on a single vendor (Cisco) for critical tactical network software?

Relying on a single vendor like Cisco for critical tactical network software introduces several risks. Vendor lock-in is a primary concern, potentially limiting future flexibility and negotiation power. Dependence on Cisco's product roadmap, update cycles, and support infrastructure means the Army's network capabilities are tied to the vendor's priorities. Security vulnerabilities discovered in Cisco's software could have a widespread impact across the tactical network. Furthermore, if Cisco were to discontinue or significantly alter its SD-WAN offerings, the Army might face substantial costs and operational disruptions in migrating to an alternative solution.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause imply for the effectiveness of the competition?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause indicates that the solicitation was initially intended for all responsible sources. However, specific sources were subsequently excluded. This exclusion could be due to various reasons, such as prior contract relationships, specific technical requirements that only certain vendors could meet, or national security considerations. While it suggests an attempt at broad competition, the exclusion limits the number of potential bidders. The effectiveness of the competition hinges on the justification for the exclusion and whether a sufficient number of capable vendors remained to ensure competitive pricing and innovation for the taxpayer.

What are the potential long-term cost implications for the Army if this SD-WAN solution is renewed or expanded?

The long-term cost implications for the Army depend on several factors. If the current subscription is renewed, potential price increases from the vendor could impact future budgets. The firm-fixed-price nature of this initial award may not reflect future market dynamics or potential volume discounts for expanded use. Furthermore, the cost of integrating this solution with other network components and the ongoing operational and maintenance expenses associated with Cisco's SD-WAN technology need to be considered. Without a clear strategy for competitive re-competition or exploring alternative solutions in the future, the Army could face escalating costs over time.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1577 C ST STE 300G, ANCHORAGE, AK, 99501

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,483,969

Exercised Options: $18,483,969

Current Obligation: $18,483,969

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W58P0525D0001

IDV Type: IDC

Timeline