Criterion Systems LLC Awarded $57.5M for IT Services, Highlighting Need for Coordinated NNSA Technology Investments
Contract Overview
Contract Amount: $57,496,573 ($57.5M)
Contractor: Criterion Systems, L.L.C.
Awarding Agency: Department of Energy
Start Date: 2024-01-23
End Date: 2025-01-31
Contract Duration: 374 days
Daily Burn Rate: $153.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE OCIO HAS THE RESPONSIBILITY TO FOSTER A CULTURE OF INFORMATION SHARING AND ENSURE THAT INVESTMENTS IN INFORMATION TECHNOLOGY (IT) SYSTEMS AND PROJECTS ACROSS THE NNSA ARE COORDINATED, HAVE THE NECESSARY CYBERSECURITY PROTECTION, AND ARE IN ALIGNM
Place of Performance
Location: VIENNA, FAIRFAX County, VIRGINIA, 22182
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $57.5 million to CRITERION SYSTEMS, L.L.C. for work described as: THE OCIO HAS THE RESPONSIBILITY TO FOSTER A CULTURE OF INFORMATION SHARING AND ENSURE THAT INVESTMENTS IN INFORMATION TECHNOLOGY (IT) SYSTEMS AND PROJECTS ACROSS THE NNSA ARE COORDINATED, HAVE THE NECESSARY CYBERSECURITY PROTECTION, AND ARE IN ALIGNM Key points: 1. Contract supports the NNSA's OCIO in fostering information sharing and coordinating IT investments. 2. Focus on cybersecurity protection for IT systems and projects across the agency. 3. The award signifies a commitment to modernizing and securing critical federal IT infrastructure. 4. This contract addresses the need for integrated IT solutions to support national security missions. 5. Performance period extends through January 2025, indicating ongoing IT support requirements. 6. The fixed-price contract type suggests a defined scope and cost control measures.
Value Assessment
Rating: good
The contract value of $57.5 million over approximately one year appears reasonable for comprehensive IT services supporting a federal agency like the NNSA. Benchmarking against similar large-scale IT support contracts for federal entities suggests this falls within expected ranges, especially considering the critical nature of national security IT infrastructure. The firm fixed-price structure provides cost certainty for the government, assuming the scope of work is well-defined and achievable within the allocated budget.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the procurement process generally leads to better pricing and service offerings for the government. This approach ensures that the government selects the most capable and cost-effective solution available in the market.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and encourages innovation among contractors vying for the award.
Public Impact
Federal employees within the NNSA will benefit from improved IT systems and enhanced information sharing capabilities. Services delivered will support the operational efficiency and cybersecurity posture of critical national security IT infrastructure. The geographic impact is national, as NNSA operates across various sites, requiring coordinated IT support. Workforce implications include potential support roles for IT professionals and cybersecurity specialists.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial requirements are not precisely defined, leading to cost overruns.
- Reliance on a single contractor for critical IT services could pose a risk if performance issues arise.
- Ensuring continuous cybersecurity updates and adaptation to evolving threats requires vigilant oversight.
Positive Signals
- The firm fixed-price contract provides cost predictability for the government.
- Full and open competition suggests a robust selection process, likely yielding a capable vendor.
- The contract duration allows for sustained support and potential for relationship building with the contractor.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on IT services and support. The federal IT services market is substantial, with agencies consistently investing in modernization, cybersecurity, and cloud migration. The NNSA's requirement for coordinated IT investments and cybersecurity protection aligns with broader government-wide initiatives to enhance digital infrastructure and defend against cyber threats. Comparable spending benchmarks for large federal IT service contracts often range in the tens to hundreds of millions of dollars annually, depending on the scope and complexity.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Criterion Systems, L.L.C. may be a small business itself, the procurement was conducted under full and open competition, not a small business set-aside. This means large businesses were also eligible to bid. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting this critical IT requirement.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers responsible for NNSA IT initiatives. Accountability measures are inherent in the firm fixed-price contract type, which ties payment to deliverables. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics and oversight reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- NNSA Information Technology Modernization Programs
- Department of Energy Cybersecurity Initiatives
- Federal Civilian IT Services Contracts
- IT Support Services for National Security Agencies
Risk Flags
- Cybersecurity Risk
- Performance Dependency
- Scope Management
- Contractor Capability
Tags
it-services, department-of-energy, nnsa, firm-fixed-price, full-and-open-competition, large-contract, cybersecurity, it-infrastructure, computer-related-services, virginia, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $57.5 million to CRITERION SYSTEMS, L.L.C.. THE OCIO HAS THE RESPONSIBILITY TO FOSTER A CULTURE OF INFORMATION SHARING AND ENSURE THAT INVESTMENTS IN INFORMATION TECHNOLOGY (IT) SYSTEMS AND PROJECTS ACROSS THE NNSA ARE COORDINATED, HAVE THE NECESSARY CYBERSECURITY PROTECTION, AND ARE IN ALIGNM
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 $57.5 million.
What is the period of performance?
Start: 2024-01-23. End: 2025-01-31.
What is Criterion Systems, L.L.C.'s track record with the Department of Energy and other federal agencies for similar IT service contracts?
Assessing Criterion Systems, L.L.C.'s past performance is crucial. A review of federal procurement databases (like FPDS or SAM.gov) would reveal their history of contract awards, performance ratings, and any past issues or disputes. For contracts of this magnitude, agencies typically conduct thorough past performance evaluations. Understanding their experience with large-scale IT service delivery, cybersecurity implementation, and support for complex organizations like the NNSA provides insight into their capability to meet the current contract's requirements. Positive past performance indicates a lower risk of delivery failure or cost overruns.
How does the $57.5 million contract value compare to similar IT service contracts awarded by the NNSA or other Department of Energy components?
To benchmark the value, one would compare this $57.5 million award against other firm fixed-price contracts for comprehensive IT services awarded to similar-sized companies or for comparable scope within the federal government over the past 1-3 years. Factors like contract duration (approximately one year here), specific services included (e.g., network management, cybersecurity, software development, help desk support), and the agency's complexity influence pricing. If similar contracts for comparable services and durations are in the $40-$70 million range, this award appears competitive. Significantly higher or lower values might warrant further investigation into the scope or market conditions.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Key risks include potential cybersecurity vulnerabilities if the contractor's security protocols are inadequate, performance failures leading to disruptions in NNSA operations, and cost overruns if the scope is not tightly managed, despite the fixed-price nature. Mitigation strategies typically involve rigorous contractor vetting, clearly defined performance standards and Service Level Agreements (SLAs), regular performance reviews, robust cybersecurity audits, and contingency planning. The government's oversight team plays a critical role in monitoring performance and enforcing contract terms to mitigate these risks.
How effectively does this contract support the NNSA's stated goal of fostering a culture of information sharing and coordinating IT investments?
The effectiveness hinges on the specific tasks and deliverables outlined in the contract Statement of Work (SOW). If the SOW includes requirements for developing integrated IT platforms, implementing standardized data management solutions, enhancing network interoperability, and providing training on collaborative tools, then it directly supports information sharing. For coordinating investments, the contract should ideally involve the contractor in IT portfolio management, technology roadmapping, and ensuring new IT projects align with agency-wide strategic goals and cybersecurity standards. Regular reporting and collaboration between the contractor and the NNSA OCIO are essential indicators of success.
What is the historical spending trend for IT services within the NNSA or the Department of Energy over the last five years?
Analyzing historical spending provides context for the current award. If NNSA's IT spending has been steadily increasing, this $57.5 million contract might represent a continuation or scaling of existing efforts. Conversely, if spending has been declining, this award could signify a shift in priorities or a consolidation of services. Understanding trends in areas like cybersecurity, cloud migration, and IT infrastructure upgrades within the NNSA's budget over the past five years would reveal whether this contract aligns with or deviates from established patterns, potentially indicating strategic shifts or efficiency gains.
What specific IT services are included under this contract, and how do they align with the NNSA's strategic technology objectives?
The provided data snippet mentions 'Other Computer Related Services' (NA: 541519) and the OCIO's responsibility for IT systems and projects. A detailed breakdown of the contract's Statement of Work (SOW) is necessary to understand the specific services. These could range from network infrastructure management, cybersecurity operations, software development and maintenance, cloud services, data analytics, to end-user support. Aligning these services with NNSA's strategic objectives, such as enhancing nuclear security, modernizing infrastructure, or improving operational efficiency, is key to evaluating the contract's overall value and impact.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 89233124QNA000339
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: $57,496,573
Exercised Options: $57,496,573
Current Obligation: $57,496,573
Actual Outlays: $56,717,257
Subaward Activity
Number of Subawards: 86
Total Subaward Amount: $21,325,981
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA23D0037
IDV Type: FSS
Timeline
Start Date: 2024-01-23
Current End Date: 2025-01-31
Potential End Date: 2025-01-31 00:00:00
Last Modified: 2024-11-27
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