DoD awards $5.25M for cybersecurity services to Zantech IT Services, Inc. under a 2-year contract

Contract Overview

Contract Amount: $5,253,584 ($5.3M)

Contractor: Zantech IT Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2026-09-26

Contract Duration: 729 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CYBERSECURITY SERVICES

Place of Performance

Location: ADELPHI, PRINCE GEORGES County, MARYLAND, 20783

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to ZANTECH IT SERVICES, INC. for work described as: CYBERSECURITY SERVICES Key points: 1. Contract value appears reasonable for the scope of cybersecurity services over two years. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely monitored. 4. Performance is benchmarked against similar IT services contracts within the DoD. 5. This contract falls within the broader IT services sector, specifically cybersecurity. 6. The award is a delivery order against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The total award of $5.25 million over two years for cybersecurity services is within a reasonable range for federal contracts of this nature. While specific per-unit cost data is not available, the fixed fee component of the Cost Plus Fixed Fee (CPFF) contract provides a degree of cost certainty for the government. Benchmarking against similar IT support and cybersecurity contracts awarded by the Department of Defense suggests that the overall value is competitive, assuming the scope of work is comparable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 11 bidders suggests a robust competitive environment for this cybersecurity services requirement. A high number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by fostering a market where multiple companies vie for the contract, driving down prices and improving service quality.

Public Impact

The Department of Defense benefits from enhanced cybersecurity posture and protection of its digital assets. Services delivered include critical cybersecurity functions to safeguard sensitive information and systems. The contract's geographic impact is primarily within the operational areas of the Department of the Army. Workforce implications may include the employment of cybersecurity professionals by Zantech IT Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage potential cost escalations.
The duration of the contract (729 days) necessitates ongoing performance monitoring to ensure objectives are met.

Positive Signals

Awarded under full and open competition with 11 bidders, indicating a healthy market.
Zantech IT Services, Inc. is a known entity providing IT services to the government.
The contract is a delivery order against a potentially larger IDIQ, suggesting a structured procurement process.

Sector Analysis

The federal cybersecurity market is a rapidly growing sector driven by increasing digital threats and the need to protect critical infrastructure and sensitive data. This contract for cybersecurity services fits within the broader IT services industry, which is a significant area of federal spending. Comparable spending benchmarks for cybersecurity services vary widely based on scope, but this award of approximately $5.25 million over two years is a moderate-sized contract within this domain.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no explicit subcontracting requirements for small businesses were mandated in this specific award. The prime contractor, Zantech IT Services, Inc., is not identified as a small business. This means the direct economic impact on the small business ecosystem from this particular contract is likely limited, though the prime contractor may engage small businesses as subcontractors at their discretion.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Army, likely through contracting officers and technical representatives who will monitor performance, costs, and adherence to contract terms. Accountability measures are built into the CPFF structure, requiring justification for costs incurred. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal.

Related Government Programs

DoD Cybersecurity Services
IT Professional Services
Information Technology Support Services
Cybersecurity Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Performance metrics and quality assurance need to be rigorously defined and tracked for effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to ZANTECH IT SERVICES, INC.. CYBERSECURITY SERVICES

Who is the contractor on this award?

The obligated recipient is ZANTECH IT SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-09-26.

What is Zantech IT Services, Inc.'s track record with federal cybersecurity contracts?

Zantech IT Services, Inc. has a history of performing IT and cybersecurity-related services for various federal agencies. While specific details on past cybersecurity contract performance require deeper analysis of contract databases and performance reports, their presence as a bidder and awardee in this space suggests experience. Reviewing past performance evaluations (e.g., CPARS) would provide more granular insights into their reliability, quality of service, and adherence to schedules and budgets on previous federal engagements. Their ability to win this competitive award indicates a level of confidence from the procuring agency in their capabilities.

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

The Cost Plus Fixed Fee (CPFF) contract type allows the contractor to recover all allowable costs plus a fixed fee representing profit. This contrasts with Fixed Price contracts, where the price is set regardless of actual costs, and Cost Plus Incentive Fee (CPIF) contracts, which include incentives for meeting or exceeding performance targets. For cybersecurity services, where the scope can sometimes be less defined or evolve, CPFF can offer flexibility. However, it carries a higher risk of cost growth for the government compared to Fixed Price contracts, necessitating robust oversight to control expenditures and ensure value for money. Other agencies might opt for Time and Materials (T&M) or Firm-Fixed-Price (FFP) contracts depending on the clarity of the SOW and risk tolerance.

What are the key performance indicators (KPIs) typically used to assess the effectiveness of cybersecurity services contracts like this one?

Key performance indicators (KPIs) for cybersecurity services contracts often include metrics related to threat detection and response times, vulnerability management (e.g., time to patch critical vulnerabilities), incident resolution rates, compliance with security standards (e.g., NIST, CMMC), and the number of security incidents successfully prevented or mitigated. For this specific contract, the Department of the Army would likely define specific KPIs in the Performance Work Statement (PWS). These could range from maintaining specific uptime for security systems to achieving certain scores on penetration tests or audits. Regular reporting on these KPIs allows the government to monitor contractor performance and ensure the cybersecurity posture is being effectively maintained or improved.

What is the historical spending trend for cybersecurity services within the Department of the Army?

Historical spending on cybersecurity services within the Department of the Army has shown a consistent upward trend over the past decade, mirroring the increasing reliance on digital systems and the escalating threat landscape. The Army, like other branches of the DoD, invests heavily in protecting its networks, data, and weapon systems from cyber threats. This spending encompasses a wide range of services, including threat intelligence, network defense, incident response, vulnerability assessments, and security operations center (SOC) support. While this specific $5.25 million award is a single data point, it aligns with the broader pattern of significant and sustained investment in cybersecurity capabilities by the Army to maintain operational readiness and national security.

How does the competition level (11 bidders) impact the potential for cost savings or better service quality for this contract?

A competition level involving 11 bidders is generally considered robust and is highly likely to positively impact both cost savings and service quality. With numerous companies vying for the contract, the government benefits from a wider range of proposed solutions and pricing structures. This intense competition typically drives down the offered prices as contractors seek to be the most cost-effective while still meeting the technical requirements. Furthermore, a competitive environment encourages contractors to offer higher quality services and innovative approaches to differentiate themselves. The government can leverage this by selecting not only the lowest-priced offer but also the one that represents the best overall value, considering technical merit, past performance, and price.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W911QX24R0011

Offers Received: 11

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 8300 BOONE BLVD, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $16,491,469

Exercised Options: $7,094,595

Current Obligation: $5,253,584

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA132

IDV Type: IDC

Timeline