OPM's $209M Cyber and Network Vendor Support Contract Awarded to Bering Straits Professional Services

Contract Overview

Contract Amount: $20,906,993 ($20.9M)

Contractor: Bering Straits Professional Services, LLC

Awarding Agency: Office of Personnel Management

Start Date: 2025-01-06

End Date: 2030-01-05

Contract Duration: 1,825 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AS PART OF OPMS MODERNIZATION EFFORT, THE OCIO IS ESTABLISHING A COMBINED CYBER AND NETWORK VENDOR SUPPORTED SERVICES CONTRACT ENTERPRISE CYBER, INFRASTRUCTURE, AND NETWORK OPERATIONS SUPPORT SERVICES (ECIOSS). ECIOSS IS A FOUNDATIONAL, STRATEGIC CON

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $20.9 million to BERING STRAITS PROFESSIONAL SERVICES, LLC for work described as: AS PART OF OPMS MODERNIZATION EFFORT, THE OCIO IS ESTABLISHING A COMBINED CYBER AND NETWORK VENDOR SUPPORTED SERVICES CONTRACT ENTERPRISE CYBER, INFRASTRUCTURE, AND NETWORK OPERATIONS SUPPORT SERVICES (ECIOSS). ECIOSS IS A FOUNDATIONAL, STRATEGIC CON Key points: 1. Contract aims to modernize OPMS by consolidating cyber and network vendor support. 2. Focus on enterprise cyber, infrastructure, and network operations support services. 3. Long-term contract (5 years) indicates a strategic need for sustained support. 4. Awarded through full and open competition, suggesting a robust vetting process. 5. Firm Fixed Price contract type helps control costs and provides budget certainty. 6. The contract is a definitive contract, allowing for task orders over its duration. 7. This initiative aligns with broader government efforts to enhance cybersecurity posture.

Value Assessment

Rating: good

The total contract value of $209,069,922.84 over five years averages to approximately $41.8 million annually. This figure needs to be benchmarked against similar large-scale IT support contracts for cyber and network operations. Given the strategic importance and scope, the pricing appears reasonable, but a detailed cost breakdown and comparison to industry benchmarks for comparable services would provide a clearer picture of value for money. The firm fixed price structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple vendors were likely considered, and the exclusion of specific sources was justified. The presence of 13 bids suggests a healthy level of competition for this significant IT services contract. This competitive process is expected to drive better pricing and service quality.

Taxpayer Impact: A competitive award process for a contract of this magnitude is beneficial for taxpayers, as it typically leads to more cost-effective solutions and encourages innovation among bidders.

Public Impact

The Office of Personnel Management (OPM) will benefit from enhanced cybersecurity and network infrastructure. Services delivered will support the modernization of the OPMS system. The contract impacts IT operations within the District of Columbia, OPM's primary location. Workforce implications may include the integration of vendor personnel into OPM's IT support structure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed carefully over the contract's duration.
Dependence on a single vendor for critical cyber and network functions carries inherent risks.
Ensuring continuous alignment with evolving cybersecurity threats and technologies will be crucial.

Positive Signals

Consolidation of services can lead to streamlined operations and potential efficiencies.
Firm Fixed Price contract provides cost predictability for OPM.
Long-term nature of the contract allows for deep integration and specialized knowledge development.
Awarded through full and open competition, suggesting a strong initial selection process.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management and cybersecurity. The market for such services is substantial, driven by increasing digital transformation and the critical need for robust cybersecurity measures across federal agencies. OPM's initiative to consolidate vendor support reflects a trend towards strategic sourcing and enterprise-wide solutions to manage complex IT environments efficiently.

Small Business Impact

The data indicates that neither small business set-aside nor subcontracting was a primary driver for this award (ss: false, sb: false). This suggests the contract was awarded based on best value and technical capability rather than specific small business participation goals. While this may limit direct opportunities for small businesses on the prime contract, it does not preclude them from potential subcontracting roles if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight will likely be managed by OPM's OCIO, responsible for the OPMS modernization effort. Accountability measures will be embedded within the definitive contract's task order structure and performance metrics. Transparency is expected through standard government contracting reporting mechanisms. The Inspector General's office may conduct audits or investigations as deemed necessary.

Related Government Programs

OPM IT Modernization Programs
Federal Cybersecurity Initiatives
Network Operations and Management Contracts
Enterprise IT Support Services

Risk Flags

Vendor performance risk
Cybersecurity threat evolution
Technology obsolescence
Contract management complexity

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $20.9 million to BERING STRAITS PROFESSIONAL SERVICES, LLC. AS PART OF OPMS MODERNIZATION EFFORT, THE OCIO IS ESTABLISHING A COMBINED CYBER AND NETWORK VENDOR SUPPORTED SERVICES CONTRACT ENTERPRISE CYBER, INFRASTRUCTURE, AND NETWORK OPERATIONS SUPPORT SERVICES (ECIOSS). ECIOSS IS A FOUNDATIONAL, STRATEGIC CON

Who is the contractor on this award?

The obligated recipient is BERING STRAITS PROFESSIONAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2025-01-06. End: 2030-01-05.

What is the track record of Bering Straits Professional Services, LLC with federal contracts, particularly in cybersecurity and network operations?

Bering Straits Professional Services, LLC has a history of performing federal contracts. A thorough review of their past performance, especially on contracts of similar scope and complexity related to cybersecurity, network operations, and IT infrastructure management, is essential. Analyzing their performance metrics, client feedback, and any past issues or commendations on previous government awards would provide insight into their capability to successfully execute this significant OPM contract. Understanding their experience with firm-fixed-price contracts and large-scale enterprise support is also critical for assessing their suitability.

How does the annual cost of this contract compare to industry benchmarks for similar enterprise cyber and network support services?

The annual cost for this contract averages approximately $41.8 million ($209M / 5 years). To benchmark this effectively, one would need to compare it against data from similar-sized federal or large commercial contracts providing comprehensive cyber, infrastructure, and network operations support. Factors such as the scope of services, number of users/systems supported, geographic coverage, and specific technology stacks are crucial for a valid comparison. Without access to proprietary benchmarking data or detailed service level agreements, a precise comparison is difficult, but the figure represents a substantial investment in critical IT functions.

What are the primary risks associated with consolidating cyber and network vendor support under a single enterprise contract?

Consolidating critical functions like cyber and network support under one vendor introduces several risks. A primary concern is vendor lock-in, where OPM might become overly dependent on Bering Straits Professional Services, potentially limiting flexibility and negotiation power in the future. Another risk is the concentration of failure; if the vendor experiences significant operational issues or a security breach, it could have a widespread impact across OPM's systems. Ensuring the vendor maintains cutting-edge expertise across rapidly evolving cyber and network domains, and that performance standards are rigorously enforced through the contract's task order structure, are key mitigation strategies.

What specific performance metrics will be used to evaluate the success of the ECIOSS contract?

While the provided data doesn't detail specific performance metrics, typical evaluations for such contracts focus on key performance indicators (KPIs) related to system uptime, network availability, incident response times (for cyber threats), resolution times for network issues, security compliance adherence, and overall service availability. The firm-fixed-price nature suggests that meeting defined service levels and deliverables will be paramount. OPM will likely establish specific metrics within the definitive contract's task orders, tied to Service Level Agreements (SLAs), to ensure the vendor meets its obligations effectively and efficiently.

How has OPM's spending on IT support services evolved leading up to this consolidated contract award?

This consolidated contract represents a strategic shift by OPM to streamline its IT support. Historically, OPM may have managed multiple, disparate contracts for cyber, network, and infrastructure support. The move to ECIOSS suggests an effort to achieve economies of scale, improve coordination, and potentially reduce administrative overhead associated with managing numerous vendor relationships. Analyzing OPM's historical spending patterns across various IT support categories over the past 5-10 years would reveal the extent of fragmentation and the potential cost savings or efficiency gains anticipated from this consolidation.

What is the potential impact of this contract on OPM's internal IT workforce?

The ECIOSS contract, by bringing in external vendor support for cyber and network operations, could have several impacts on OPM's internal IT workforce. It may lead to a shift in roles, with internal staff potentially focusing more on strategic planning, oversight, requirements definition, and integration, rather than day-to-day operational tasks. There could be a need for retraining or upskilling existing staff to manage the vendor relationship and understand the integrated systems. Depending on the scope of services transferred, there might also be implications for staffing levels, though consolidation often aims for efficiency rather than outright reduction.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 24322624R0006

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3301 C ST STE 400, ANCHORAGE, AK, 99503

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

Financial Breakdown

Contract Ceiling: $93,881,071

Exercised Options: $40,276,030

Current Obligation: $20,906,993

Actual Outlays: $11,982,840

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline