Justice Department renews Fortinet license and maintenance for $120,929, highlighting need for ongoing cybersecurity support

Contract Overview

Contract Amount: $120,929 ($120.9K)

Contractor: Alvarez LLC

Awarding Agency: Department of Justice

Start Date: 2020-04-30

End Date: 2020-04-30

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FORTINET LICENSE AND MAINTENANCE RENEWAL.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20531

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $120,929.1 to ALVAREZ LLC for work described as: FORTINET LICENSE AND MAINTENANCE RENEWAL. Key points: 1. The contract value of $120,929 for a one-year renewal suggests a stable, ongoing need for cybersecurity services. 2. The renewal indicates the chosen solution is meeting the agency's requirements, though direct performance metrics are not provided. 3. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a specific justification for limiting initial bidders. 4. The fixed-price contract type helps control costs, but the absence of detailed performance benchmarks limits value-for-money assessment. 5. The contract's focus on software licensing and maintenance points to a reliance on established technology rather than new development. 6. The small business status of the contractor, ALVAREZ LLC, is not specified, impacting potential small business subcontracting analysis.

Value Assessment

Rating: fair

The contract value of $120,929 for a one-year renewal of Fortinet licenses and maintenance appears reasonable for cybersecurity software and support. Without specific details on the number of licenses or the scope of maintenance, direct comparison to similar contracts is challenging. However, the fixed-price nature of the contract provides cost certainty for the agency. The value proposition hinges on the continued effectiveness of the Fortinet solution in protecting the Department of Justice's network infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This designation implies that while the competition was intended to be open, specific sources may have been excluded for a defined reason, possibly related to prior performance, specific technical requirements, or a phased approach. The number of bidders is not specified, making it difficult to fully assess the level of competition and its impact on price discovery. The 'exclusion of sources' aspect warrants further investigation into the justification provided.

Taxpayer Impact: The 'exclusion of sources' aspect could potentially limit competitive pricing if the exclusion was not strictly necessary or well-justified, potentially leading to higher costs for taxpayers than a truly open competition might yield.

Public Impact

The primary beneficiaries are the Department of Justice and its various components, which receive enhanced cybersecurity protection. The services delivered include the renewal of licenses and maintenance for Fortinet's cybersecurity solutions, ensuring up-to-date threat protection. The geographic impact is primarily within the District of Columbia, where the Department of Justice is headquartered. Workforce implications are minimal, as this contract supports existing IT infrastructure rather than requiring new personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the cybersecurity solution.
The 'exclusion of sources' in the competition process raises questions about the extent of true market competition and potential cost implications.
Limited information on the specific Fortinet products and services covered by the renewal hinders a comprehensive technical assessment.
The contract duration is only one year, suggesting a need for frequent re-competition or review, which can be administratively burdensome.

Positive Signals

The renewal signifies continued reliance on a specific cybersecurity vendor, suggesting satisfaction with the current solution's performance.
The fixed-price contract provides budget certainty for the agency.
The contract supports essential cybersecurity functions, crucial for protecting sensitive government data.
The renewal indicates a proactive approach to maintaining network security against evolving threats.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on cybersecurity software and maintenance. The market for cybersecurity solutions is highly dynamic and competitive, with numerous vendors offering a wide range of products and services. The Department of Justice, like other federal agencies, invests significantly in cybersecurity to protect critical infrastructure and sensitive data. Benchmarking this specific renewal against broader IT spending requires understanding the scale of Fortinet's market share and the typical pricing structures for enterprise-level cybersecurity solutions.

Small Business Impact

Information regarding small business participation is not explicitly provided for this contract. As the contract was awarded under 'full and open competition after exclusion of sources,' it is unclear if small businesses were considered or excluded from the initial bidding pool. Further analysis would be needed to determine if ALVAREZ LLC is a small business and if any subcontracting opportunities were mandated or utilized. The impact on the small business ecosystem is therefore indeterminate without more data.

Oversight & Accountability

Oversight for this contract would typically reside within the Office of Justice Programs at the Department of Justice. Accountability measures are inherent in the fixed-price contract structure, requiring the vendor to deliver specified services. Transparency is partially addressed through contract award data, but detailed performance reports or justifications for source exclusion are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Cybersecurity Spending
IT Services Contracts
Software Licensing and Maintenance
Department of Justice IT Procurement

Risk Flags

Limited Competition Justification
Lack of Performance Metrics
Potential Vendor Lock-in
Cybersecurity Reliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $120,929.1 to ALVAREZ LLC. FORTINET LICENSE AND MAINTENANCE RENEWAL.

Who is the contractor on this award?

The obligated recipient is ALVAREZ LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Office of Justice Programs).

What is the total obligated amount?

The obligated amount is $120,929.1.

What is the period of performance?

Start: 2020-04-30. End: 2020-04-30.

What specific Fortinet products and services are covered under this $120,929 renewal, and what is the justification for excluding other potential sources?

The provided data indicates this is a 'FORTINET LICENSE AND MAINTENANCE RENEWAL.' However, the specific products (e.g., firewalls, intrusion detection systems, specific software versions) and the exact scope of maintenance services (e.g., 24/7 support, hardware replacement, software updates) are not detailed. The contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests that while the competition was intended to be open, certain vendors were deliberately excluded. The justification for this exclusion is critical for understanding the competitive landscape. Common reasons include prior unsatisfactory performance by excluded vendors, unique compatibility requirements with existing systems, or a phased procurement strategy where specific vendors were pre-qualified. Without this justification, it's difficult to assess if the exclusion limited competition unfairly or was a necessary step for the agency's operational needs. The value of $120,929 for a one-year renewal implies a significant deployment of Fortinet solutions, underscoring the importance of understanding what is being renewed and why alternatives were not pursued.

How does the $120,929 renewal cost compare to previous years' spending on Fortinet licenses and maintenance for the Department of Justice?

The provided data only includes information for a single contract award of $120,929 for a renewal ending on April 30, 2020. To compare this cost to previous years, historical spending data for Fortinet licenses and maintenance by the Department of Justice would be required. This would involve searching federal procurement databases (like FPDS or USASpending) for prior contracts awarded to Fortinet or its resellers for similar services to the DOJ. Factors influencing year-over-year cost changes could include the number of licenses purchased, the specific product versions, the level of support included, changes in vendor pricing, and the overall scope of the cybersecurity needs. A significant increase or decrease could signal changes in the agency's security posture, technology refresh cycles, or negotiation effectiveness. Without this historical context, it is impossible to determine if the $120,929 represents an increase, decrease, or stable cost.

What is the track record of ALVAREZ LLC in providing IT services, particularly cybersecurity solutions, to federal agencies?

The provided data identifies ALVAREZ LLC as the contractor for this Fortinet license and maintenance renewal. To assess their track record, one would need to examine their contract history within federal procurement databases. Key areas of investigation would include the types of services they have provided, the agencies they have served, the contract values, and the duration of their engagements. Specifically for cybersecurity, it would be important to see if they have a history of successfully delivering similar software licensing, maintenance, or related IT support. Performance evaluations or past performance questionnaires from previous contracts, if publicly accessible, would offer valuable insights into their reliability, technical capabilities, and customer satisfaction. A review of any contract disputes, terminations, or negative performance reviews would also be crucial for a comprehensive understanding of their track record.

What are the potential risks associated with relying on a single vendor for cybersecurity licenses and maintenance, as suggested by this renewal?

Relying on a single vendor like Fortinet for cybersecurity licenses and maintenance, as indicated by this renewal, presents several potential risks. Firstly, it can lead to vendor lock-in, making it difficult and costly to switch to alternative solutions in the future, even if better or more cost-effective options emerge. Secondly, it concentrates risk; if Fortinet experiences a significant security vulnerability in its products or a disruption in its services, the Department of Justice's entire network security could be compromised. Thirdly, a lack of direct competition for renewals can reduce the incentive for the vendor to offer competitive pricing or innovative features, potentially leading to higher costs and less advanced protection over time. Finally, dependence on a single vendor can limit the agency's flexibility in integrating solutions from different providers, potentially creating gaps in overall security coverage if the vendor's offerings are not comprehensive.

Does the 'Other Computer Related Services' NAICS code (541519) adequately capture the scope of this cybersecurity renewal, and are there more specific codes that might be relevant?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that can encompass a wide range of IT services not classified elsewhere. For a cybersecurity license and maintenance renewal, this code might be considered adequate as a catch-all if the primary service is ongoing support and updates for existing software. However, more specific NAICS codes could potentially offer greater clarity. For instance, NAICS 541512 ('Computer Systems Design Services') might be relevant if the renewal involves integration or customization, while NAICS 541513 ('Computer Facilities Management Services') could apply if it includes the management of the security infrastructure. If the contract involved significant security consulting or analysis, NAICS 541611 ('Administrative Management and General Management Consulting Services') or even specific cybersecurity consulting codes (if available) might be more precise. The use of 541519 suggests that the service didn't fit neatly into more specialized IT categories, which could indicate a standard renewal or a lack of more granular classification options.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 141909

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 FORT EVANS RD NE STE 335, LEESBURG, VA, 20176

Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $120,929

Exercised Options: $120,929

Current Obligation: $120,929

Actual Outlays: $120,929

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD19B

IDV Type: GWAC

Timeline