Commerce Dept. awards $20.6M for cybersecurity support, with ASRC Federal Data Networkx as sole contractor

Contract Overview

Contract Amount: $20,576,726 ($20.6M)

Contractor: Asrc Federal Data Networx, LLC

Awarding Agency: Department of Commerce

Start Date: 2020-11-15

End Date: 2025-11-14

Contract Duration: 1,825 days

Daily Burn Rate: $11.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CONTRACT SERVICES PURCHASE NEW CYBERSECURITY PROFESSIONAL SUPPORT SERVICES

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $20.6 million to ASRC FEDERAL DATA NETWORX, LLC for work described as: CONTRACT SERVICES PURCHASE NEW CYBERSECURITY PROFESSIONAL SUPPORT SERVICES Key points: 1. Contract value of $20.6 million over five years suggests a significant investment in cybersecurity. 2. Sole-source award raises questions about competition and potential for overpayment. 3. The contract's duration of 1825 days (5 years) indicates a long-term need for these services. 4. Cybersecurity professional support is critical for protecting sensitive government data and systems. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract is managed by the U.S. Patent and Trademark Office, a key component of the Commerce Department.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more detailed service descriptions and comparable contract data. However, the sole-source nature of the award warrants scrutiny. Without competitive bidding, it's difficult to ascertain if the $20.6 million represents a fair market price for the cybersecurity professional support services. The contract's duration of five years means that any inefficiencies or overpricing could have a substantial long-term impact on taxpayer funds.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities or when circumstances prevent a full and open competition. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and service levels. It also raises concerns about whether alternative, potentially more cost-effective solutions were overlooked.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This contract's $20.6 million value, awarded without competition, suggests taxpayers may not have received the best possible value.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from enhanced cybersecurity posture. Federal agencies gain improved protection for sensitive intellectual property and operational data. The contract supports the USPTO's mission to foster innovation and economic growth. Workforce implications include the employment of cybersecurity professionals by ASRC Federal Data Networkx, LLC. Geographic impact is primarily within Maryland, where the contractor is located, but the services protect national assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition may reduce incentives for the contractor to innovate or improve service efficiency.
The broad NAICS code (541519) could indicate a wide scope of services, making performance monitoring complex.
Contract duration of five years means potential for long-term financial commitment without regular re-evaluation of market rates.

Positive Signals

Contract addresses a critical need for cybersecurity professional support, enhancing national security.
ASRC Federal Data Networkx, LLC is a known entity in the federal contracting space.
The contract is awarded to a specific entity within the Department of Commerce, indicating a focused approach to a particular need.

Sector Analysis

The cybersecurity services market is a rapidly growing sector within the broader IT services industry, driven by increasing digital threats and the need for robust data protection. Federal spending in this area is substantial, with agencies across the government investing heavily in solutions to safeguard sensitive information. This contract for professional support services fits within this trend, addressing the need for specialized expertise in managing and defending complex IT infrastructures. Comparable spending benchmarks are difficult to establish precisely due to the varied nature of cybersecurity services, but the $20.6 million over five years for a single entity suggests a significant, ongoing requirement.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The award to ASRC Federal Data Networkx, LLC, a larger entity, suggests that subcontracting opportunities for small businesses may exist, but they are not mandated by the contract's structure. The impact on the small business ecosystem would depend on ASRC Federal's subcontracting strategy. Without specific set-aside goals, small businesses may not directly benefit from this particular award unless they are part of the prime contractor's supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Commerce and the U.S. Patent and Trademark Office. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding the specific services rendered and performance metrics would be crucial for effective accountability. The Inspector General for the Department of Commerce may have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract, particularly given its significant value and sole-source nature.

Related Government Programs

Cybersecurity Services
IT Professional Services
Department of Commerce IT Spending
Patent and Trademark Office Operations
Federal Cybersecurity Initiatives

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for cost overruns
Limited transparency on specific services

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $20.6 million to ASRC FEDERAL DATA NETWORX, LLC. CONTRACT SERVICES PURCHASE NEW CYBERSECURITY PROFESSIONAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL DATA NETWORX, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $20.6 million.

What is the period of performance?

Start: 2020-11-15. End: 2025-11-14.

What specific cybersecurity professional support services are included under this contract?

The contract details indicate 'CONTRACT SERVICES PURCHASE NEW CYBERSECURITY PROFESSIONAL SUPPORT SERVICES' under NAICS code 541519 (Other Computer Related Services). However, the provided data does not specify the exact nature of these services. This could range from threat analysis, vulnerability assessments, incident response, security architecture design, to implementation of security controls. Without a more detailed statement of work, it is difficult to ascertain the precise scope. The broad classification suggests a comprehensive need for expert cybersecurity assistance to protect the U.S. Patent and Trademark Office's digital assets and infrastructure.

Why was this contract awarded on a sole-source basis?

The data explicitly states the contract type as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. Without further justification from the awarding agency (Department of Commerce, U.S. Patent and Trademark Office), the exact reason for the sole-source designation remains unclear. This lack of competition is a significant factor in assessing the contract's value for money.

How does the $20.6 million contract value compare to similar cybersecurity support contracts?

Directly comparing the $20.6 million value is challenging without knowing the specific services and labor categories involved. However, for a five-year contract (1825 days), this equates to an average annual value of approximately $4.1 million. This figure falls within the range of significant federal IT support contracts. The sole-source nature, however, prevents a direct benchmark against competitively awarded contracts, which typically yield lower prices due to market competition. The value should be assessed against the criticality and complexity of the cybersecurity needs of the USPTO.

What is ASRC Federal Data Networkx, LLC's track record with federal cybersecurity contracts?

ASRC Federal Data Networkx, LLC is a known federal contractor. While the provided data does not detail their specific cybersecurity contract history, the company generally operates within the federal IT and data services space. A comprehensive review would involve examining their past performance evaluations (e.g., CPARS), other relevant contract awards, and any reported issues or successes in delivering cybersecurity services to government agencies. Their presence suggests they have the necessary clearances and experience to handle sensitive government IT operations.

What are the potential risks associated with a sole-source cybersecurity contract of this magnitude?

The primary risk is the potential for inflated costs due to the absence of competitive bidding, meaning taxpayers may be overpaying for the services. Another risk is a potential lack of innovation or service improvement, as the contractor faces less pressure to outperform competitors. Furthermore, if the contractor's performance falters, the government's options for switching providers are limited and potentially costly due to the sole-source nature. Ensuring robust oversight and clear performance metrics becomes even more critical in sole-source situations.

How does this contract align with the U.S. Patent and Trademark Office's overall mission and IT strategy?

The U.S. Patent and Trademark Office (USPTO) is responsible for granting patents and registering trademarks, processes that generate and manage vast amounts of sensitive intellectual property data. Protecting this data from cyber threats is paramount to its mission. Cybersecurity professional support is therefore directly aligned with ensuring the integrity, confidentiality, and availability of these critical systems and data. This contract likely supports the USPTO's ongoing efforts to modernize its IT infrastructure and maintain a strong security posture in the face of evolving cyber threats.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR, BELTSVILLE, MD, 20705

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,803,127

Exercised Options: $20,576,726

Current Obligation: $20,576,726

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,842,093

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline