Agriculture Dept Awards $12.6M for Splunk Software, Limiting Competition

Contract Overview

Contract Amount: $12,613,100 ($12.6M)

Contractor: Wolftek Mission Group, LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-05-20

End Date: 2027-05-19

Contract Duration: 729 days

Daily Burn Rate: $17.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SPLUNK ENTERPRISE SOFTWARE LICENSES FOR CYBERSECURITY AND PRIVACY OPERATIONS CENTER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $12.6 million to WOLFTEK MISSION GROUP, LLC for work described as: SPLUNK ENTERPRISE SOFTWARE LICENSES FOR CYBERSECURITY AND PRIVACY OPERATIONS CENTER Key points: 1. Significant investment in cybersecurity software for critical operations. 2. Sole-source award raises questions about price discovery and value. 3. Contract duration of two years suggests ongoing operational needs. 4. Limited competition may lead to higher costs for taxpayers.

Value Assessment

Rating: questionable

The contract value of $12.6M for Splunk Enterprise licenses over two years is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar cybersecurity software solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition scenario. This approach bypasses the standard competitive bidding process, potentially impacting price negotiation and ensuring the best value for the government.

Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for the software licenses, as there was no market pressure to drive down costs.

Public Impact

Enhances cybersecurity posture for the Department of Agriculture. Supports privacy operations, crucial for handling sensitive data. Potential for vendor lock-in due to specialized software. Ensures continuity of essential IT services for the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Sole-source award
Lack of price benchmark

Positive Signals

Supports critical cybersecurity functions
Addresses privacy operations needs

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services.' Spending on cybersecurity software is a growing area across federal agencies, with significant investments often made to protect sensitive data and infrastructure.

Small Business Impact

The contract does not indicate any specific set-asides or participation goals for small businesses. The award to WOLFTEK MISSION GROUP, LLC, suggests a focus on specialized capabilities rather than broad small business engagement.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' justification requires thorough review by oversight bodies to ensure it was appropriate and that the government received fair value. Transparency in sole-source awards is key to accountability.

Related Government Programs

Other Computer Related Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Limited competition may lead to inflated costs.
Lack of transparency in price justification.
Potential for vendor lock-in.
No clear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $12.6 million to WOLFTEK MISSION GROUP, LLC. SPLUNK ENTERPRISE SOFTWARE LICENSES FOR CYBERSECURITY AND PRIVACY OPERATIONS CENTER

Who is the contractor on this award?

The obligated recipient is WOLFTEK MISSION GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2025-05-20. End: 2027-05-19.

What specific cybersecurity threats or privacy concerns necessitate the sole-source acquisition of Splunk Enterprise?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only a specific vendor can meet. For Splunk Enterprise, this could relate to its advanced data analysis, threat intelligence integration, or specific compliance requirements within the Department of Agriculture's cybersecurity and privacy operations center that are not readily available from other providers.

How was the $12.6 million price determined without competitive bidding?

In sole-source procurements, agencies often rely on historical pricing, commercial price lists, or independent government cost estimates to determine a fair and reasonable price. However, without the pressure of competition, the government may not achieve the lowest possible price. A detailed price analysis, including cost breakdowns and profit margins, should have been conducted.

What is the long-term strategy for cybersecurity software procurement beyond this contract?

Agencies should have a strategic roadmap for technology acquisition, including plans for future contract vehicles, potential re-competition, or exploring alternative solutions. This contract's duration and sole-source nature raise questions about whether the agency has considered market research for future needs or if Splunk is the only viable long-term solution.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20405 EXCHANGE ST STE 300, ASHBURN, VA, 20147

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, 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: $19,589,302

Exercised Options: $12,613,100

Current Obligation: $12,613,100

Actual Outlays: $6,093,285

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline