Cybersecurity support services for NNSA awarded to Criterion Systems for over $70M, highlighting IT infrastructure management
Contract Overview
Contract Amount: $70,491,403 ($70.5M)
Contractor: Criterion Systems, L.L.C.
Awarding Agency: Department of Energy
Start Date: 2021-08-01
End Date: 2023-01-31
Contract Duration: 548 days
Daily Burn Rate: $128.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NATIONAL NUCLEAR SECURITY ADMINISTRATION (DOE/NNSA) CYBER SECURITY SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $70.5 million to CRITERION SYSTEMS, L.L.C. for work described as: NATIONAL NUCLEAR SECURITY ADMINISTRATION (DOE/NNSA) CYBER SECURITY SUPPORT SERVICES Key points: 1. The contract value of over $70 million for cybersecurity support services indicates a significant investment in protecting critical national infrastructure. 2. Full and open competition suggests a robust market for these specialized IT services, potentially leading to competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor, encouraging efficient service delivery. 4. The duration of the contract (548 days) allows for sustained support and integration of cybersecurity measures. 5. The focus on Computer Facilities Management Services points to the essential role of IT infrastructure in NNSA's operations. 6. The award to a single contractor, Criterion Systems, warrants a review of their capacity and past performance in similar engagements.
Value Assessment
Rating: good
The contract value of approximately $70.5 million over 548 days for cybersecurity support services appears reasonable given the critical nature of the work for the National Nuclear Security Administration. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that this pricing is within expected ranges for specialized cybersecurity and facilities management. The firm fixed-price structure further supports value by incentivizing contractor efficiency and cost control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This approach generally fosters a competitive environment, which can lead to better pricing and service quality for the government. The fact that it resulted in a single award to Criterion Systems suggests they offered the most advantageous proposal based on the evaluation criteria.
Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of innovative solutions, ensuring that government funds are used efficiently for essential cybersecurity services.
Public Impact
The primary beneficiaries are the National Nuclear Security Administration (NNSA) and the Department of Energy, receiving essential cybersecurity and IT infrastructure management. Services delivered include computer facilities management, crucial for maintaining the operational integrity of sensitive government systems. The geographic impact is centered in the District of Columbia, where the services are likely performed or managed. Workforce implications include the potential for skilled IT professionals to be employed by Criterion Systems to fulfill this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on contracts are not competitively procured.
- Ensuring continuous performance and knowledge transfer throughout the contract duration.
- Monitoring contractor performance to ensure adherence to strict cybersecurity protocols.
Positive Signals
- Awarded through full and open competition, indicating a healthy market.
- Firm fixed-price contract aligns incentives for efficient service delivery.
- Contract duration allows for sustained support and integration of services.
Sector Analysis
This contract falls within the broader Information Technology (IT) sector, specifically focusing on cybersecurity and computer facilities management. The federal IT market is substantial, with agencies consistently investing in securing their networks and infrastructure. This contract represents a significant portion of spending for specialized IT support within the Department of Energy, reflecting the growing demand for robust cybersecurity solutions to protect critical national assets.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Criterion Systems, L.L.C., is likely a mid-to-large-sized business, and their engagement does not inherently create opportunities for small business participation unless voluntarily pursued through their subcontracting plan.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Energy. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities may not be publicly detailed.
Related Government Programs
- NNSA Cybersecurity Services
- Department of Energy IT Support
- Federal Cybersecurity Contracts
- Computer Facilities Management Services
- Information Technology Infrastructure Support
Risk Flags
- Contractor Performance Risk
- Data Security Breach Risk
- Reliance on Single Vendor
- Potential for Scope Creep
Tags
it, cybersecurity, national-nuclear-security-administration, department-of-energy, district-of-columbia, full-and-open-competition, firm-fixed-price, delivery-order, computer-facilities-management-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $70.5 million to CRITERION SYSTEMS, L.L.C.. NATIONAL NUCLEAR SECURITY ADMINISTRATION (DOE/NNSA) CYBER SECURITY SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is CRITERION SYSTEMS, L.L.C..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $70.5 million.
What is the period of performance?
Start: 2021-08-01. End: 2023-01-31.
What is Criterion Systems, L.L.C.'s track record with federal cybersecurity contracts?
Criterion Systems, L.L.C. has a history of performing IT and cybersecurity-related services for various federal agencies. Their contract portfolio often includes areas such as network security, IT infrastructure management, and system integration. Analyzing their past performance on similar contracts, particularly those with the Department of Energy or other national security-focused organizations, would provide insight into their reliability, technical capabilities, and ability to manage complex projects. Specific details on past performance ratings, any contract disputes, or successful project completions would be crucial for a comprehensive assessment.
How does the awarded value compare to similar cybersecurity support contracts within the federal government?
The awarded value of approximately $70.5 million for 548 days of cybersecurity support services for the NNSA needs to be benchmarked against comparable federal contracts. Similar contracts for IT infrastructure management and cybersecurity support for agencies like the Department of Defense or other intelligence community components often range from tens to hundreds of millions of dollars, depending on the scope, duration, and criticality of the services. Factors such as the number of personnel, specific technologies deployed, and the level of security clearance required significantly influence pricing. This contract appears to be within the mid-to-high range for specialized IT support, reflecting the sensitive nature of NNSA's mission.
What are the primary risks associated with this cybersecurity support contract?
Key risks include potential performance failures by the contractor, leading to security vulnerabilities or disruptions in NNSA's IT operations. There's also a risk of cost overruns if the firm fixed-price structure is not managed effectively by the contractor, although this risk is primarily borne by them. Data breaches or unauthorized access to sensitive information represent a critical risk, necessitating stringent security protocols and contractor vetting. Furthermore, reliance on a single contractor could pose a risk if their capabilities diminish or if they face financial instability. Ensuring robust oversight and contingency planning is vital.
How effective is the firm fixed-price contract type in ensuring value for money in cybersecurity services?
The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money for well-defined services like cybersecurity support. It shifts the primary cost risk to the contractor, incentivizing them to manage their expenses efficiently and deliver services within the agreed-upon price. This structure encourages the contractor to focus on performance and cost control. However, for highly complex or evolving cybersecurity needs where requirements might change significantly, an FFP contract could potentially lead to scope creep issues or discourage innovation if not carefully managed. Clear performance metrics and service level agreements are crucial to maximizing value under an FFP arrangement.
What are the historical spending patterns for cybersecurity support services at NNSA or the Department of Energy?
Historical spending patterns for cybersecurity support services at NNSA and the broader Department of Energy typically show a consistent and often increasing trend, reflecting the growing threat landscape and the critical nature of their missions. Agencies like NNSA, responsible for nuclear security, require substantial and continuous investment in cybersecurity to protect sensitive data and infrastructure. Analyzing past contract awards, their values, and durations for similar services would reveal whether this $70.5 million award is an anomaly or part of a sustained spending trajectory. Understanding these patterns helps in assessing the long-term budgetary implications and the strategic importance placed on cybersecurity.
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 - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8180 GREENSBORO DR FL 9 STE 49, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $70,601,403
Exercised Options: $70,601,403
Current Obligation: $70,491,403
Actual Outlays: $67,989,278
Subaward Activity
Number of Subawards: 57
Total Subaward Amount: $26,027,681
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0032V
IDV Type: FSS
Timeline
Start Date: 2021-08-01
Current End Date: 2023-01-31
Potential End Date: 2023-01-31 00:00:00
Last Modified: 2024-09-24
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