GSA Awards $221M for Dynamic Network Defense, Competition Impacted by Evolving Needs

Contract Overview

Contract Amount: $220,881,706 ($220.9M)

Contractor: Mantech Advanced Systems International, Inc.

Awarding Agency: General Services Administration

Start Date: 2019-09-04

End Date: 2024-04-30

Contract Duration: 1,700 days

Daily Burn Rate: $129.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: DYNAMIC AND EVOLVING FEDERAL ENTERPRISE NETWORK DEFENSE GROUP E DEFEND E PREVIOUSLY UNDER PIID 47QFCA18F0076

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $220.9 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC. for work described as: DYNAMIC AND EVOLVING FEDERAL ENTERPRISE NETWORK DEFENSE GROUP E DEFEND E PREVIOUSLY UNDER PIID 47QFCA18F0076 Key points: 1. Significant contract value of $221M highlights substantial investment in network defense. 2. Competition method is 'Full and Open', but evolving needs may limit effective price discovery. 3. Risk of cost overruns exists due to 'Cost Plus Award Fee' structure. 4. IT sector spending on cybersecurity and network defense is a growing priority.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure allows for flexibility but can lead to higher costs if not managed tightly. Benchmarking is difficult without specific performance data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While the contract was awarded under full and open competition, the dynamic and evolving nature of enterprise network defense may have constrained the scope and thus the competitive landscape over time. This can impact the government's ability to achieve the lowest possible price.

Taxpayer Impact: Taxpayer funds are being invested in critical national security infrastructure. The effectiveness of the spending hinges on achieving defined performance objectives within the fee structure.

Public Impact

Enhances federal cybersecurity capabilities to protect critical infrastructure. Supports advanced threat detection and response mechanisms. Ensures continuity of essential government services through robust network defense.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Evolving nature of defense needs may lead to scope creep.
Cost Plus Award Fee structure can incentivize higher spending.
Limited visibility into specific performance metrics impacting award fees.

Positive Signals

Full and open competition provides a broad base for potential bidders.
Contract addresses a critical and high-priority government function.
Long-term contract duration allows for sustained capability development.

Sector Analysis

This contract falls within the IT sector, specifically focusing on cybersecurity and network defense. Federal spending in this area has seen significant growth due to increasing cyber threats. Benchmarks for similar large-scale network defense contracts vary widely based on scope and technology.

Small Business Impact

The data indicates this contract was not awarded to a small business. While large prime contractors often utilize small business subcontractors, there is no direct indication of small business participation in this specific award.

Oversight & Accountability

The 'Cost Plus Award Fee' structure requires robust oversight to ensure performance objectives are met and costs are controlled. The General Services Administration (GSA) is responsible for managing this contract, necessitating clear performance metrics and regular reviews.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost overruns due to 'Cost Plus Award Fee' structure.
Difficulty in benchmarking due to the dynamic and evolving nature of the service.
Risk of contractor incentivization towards higher costs for award fees.
Lack of direct small business participation indicated in the award.
Evolving requirements may lead to scope creep and increased contract value.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $220.9 million to MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC.. DYNAMIC AND EVOLVING FEDERAL ENTERPRISE NETWORK DEFENSE GROUP E DEFEND E PREVIOUSLY UNDER PIID 47QFCA18F0076

Who is the contractor on this award?

The obligated recipient is MANTECH ADVANCED SYSTEMS INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $220.9 million.

What is the period of performance?

Start: 2019-09-04. End: 2024-04-30.

How effectively are the evolving defense needs being translated into measurable performance objectives that justify the contract's cost and award fees?

Assessing the effectiveness requires a deep dive into the contract's performance work statement (PWS) and the award fee criteria. Without access to these details and the contractor's performance reports, it's challenging to determine if evolving needs are being met efficiently. The 'Cost Plus Award Fee' structure implies a focus on achieving specific outcomes, but the clarity and measurability of these outcomes are key.

What specific risks are associated with the 'Cost Plus Award Fee' structure in the context of dynamic cybersecurity threats?

The primary risk is that the contractor may be incentivized to incur higher costs to achieve higher award fees, especially if performance metrics are not tightly defined or if the evolving threat landscape allows for justification of increased expenditures. This can lead to cost overruns and reduced value for taxpayer money if not rigorously monitored and controlled by the contracting agency.

How does the 'dynamic and evolving' nature of the requirement impact the long-term cost-effectiveness of this contract compared to fixed-price alternatives?

The dynamic nature necessitates flexibility, which Cost Plus Award Fee contracts can provide, potentially leading to better adaptation to new threats. However, this flexibility comes at the cost of price certainty. Fixed-price contracts offer better cost control but may struggle to adapt quickly to unforeseen technological shifts or emerging threats, potentially becoming less effective over time.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID08190050

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mantech International Corporation

Address: 2251 CORPORATE PARK DRIVE, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $278,245,449

Exercised Options: $226,004,230

Current Obligation: $220,881,706

Actual Outlays: $-247,982

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $36,945,178

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0041

IDV Type: GWAC

Timeline