Department of Energy awards $130.7M for Zscaler subscription and support, with 12 bids received
Contract Overview
Contract Amount: $130,684 ($130.7K)
Contractor: Colossal Contracting LLC
Awarding Agency: Department of Energy
Start Date: 2026-04-02
End Date: 2027-04-29
Contract Duration: 392 days
Daily Burn Rate: $333/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ZSCALER SUBSCRIPTION AND SUPPORT
Place of Performance
Location: LAKEWOOD, JEFFERSON County, COLORADO, 80228
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $130,684.26 to COLOSSAL CONTRACTING LLC for work described as: ZSCALER SUBSCRIPTION AND SUPPORT Key points: 1. Value for money appears reasonable given the competitive bidding process. 2. Strong competition dynamics indicated by 12 bidders, suggesting fair price discovery. 3. Risk indicators are moderate, with a firm-fixed-price contract mitigating cost overruns. 4. Performance context is a multi-year subscription and support for critical IT infrastructure. 5. Sector positioning is within IT services, specifically cybersecurity solutions.
Value Assessment
Rating: good
The contract's value of $130.7 million over approximately 3 years for Zscaler subscription and support appears competitive, especially considering the number of bidders. While specific per-unit cost benchmarks for Zscaler services are not provided, the firm-fixed-price structure helps control costs. The agency's selection of a well-established cybersecurity solution suggests a focus on reliable performance over the lowest possible price, which is a common trade-off in IT procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were allowed to bid. The participation of 12 bidders suggests a healthy level of competition for this cybersecurity service. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions being considered by the agency.
Taxpayer Impact: The robust competition ensures that taxpayer dollars are likely being used efficiently, as vendors vied to offer the best value. This process helps prevent inflated pricing and encourages innovation in service delivery.
Public Impact
The Department of Energy benefits from enhanced cybersecurity posture and operational continuity. Users within the Department of Energy gain access to secure and reliable IT services. The contract supports the agency's mission-critical functions by protecting sensitive data and systems. Workforce implications include ensuring IT personnel have the necessary tools for secure operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with long-term subscription services.
- Reliance on a single vendor for critical cybersecurity infrastructure.
- Need for ongoing monitoring of service performance and vendor responsiveness.
Positive Signals
- Use of a leading cybersecurity solution (Zscaler) known for its effectiveness.
- Firm-fixed-price contract provides cost certainty for the agency.
- Competitive bidding process suggests a fair market price was achieved.
Sector Analysis
The cybersecurity market is a rapidly growing and critical sector within the broader IT industry. Spending on cloud-based security solutions like Zscaler's is increasing as government agencies migrate to digital platforms and face evolving cyber threats. This contract aligns with the government's overall strategy to modernize IT infrastructure and enhance its cyber defenses, reflecting significant investment in this area across various federal agencies.
Small Business Impact
There is no explicit indication of small business set-asides for this particular contract. However, the prime contractor, COLOSSAL CONTRACTING LLC, may engage small businesses for subcontracting opportunities. The level of competition suggests that larger, established firms likely dominated the bidding pool, but the agency should ensure that subcontracting plans, if applicable, include provisions for small business participation to foster a diverse supplier ecosystem.
Oversight & Accountability
The Department of Energy's contracting office is responsible for oversight. The firm-fixed-price contract type provides a degree of cost control. Transparency is facilitated by the public nature of federal contract awards. Further oversight would typically involve performance reviews, regular reporting from the contractor, and potentially audits by the agency or the Inspector General's office to ensure compliance with terms and conditions.
Related Government Programs
- Federal Information Security Management Act (FISMA) compliance
- Cybersecurity Modernization Initiatives
- Cloud Computing Services Contracts
- Network Security Solutions
- IT Infrastructure Modernization
Risk Flags
- Contract duration may be shorter than typical multi-year cybersecurity strategies.
- Reliance on a single vendor for critical security functions.
- Need for robust performance monitoring and vendor management.
Tags
it-services, cybersecurity, zscaler, department-of-energy, firm-fixed-price, full-and-open-competition, cloud-security, network-security, subscription-services, delivery-order, colossal-contracting-llc, colorado
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $130,684.26 to COLOSSAL CONTRACTING LLC. ZSCALER SUBSCRIPTION AND SUPPORT
Who is the contractor on this award?
The obligated recipient is COLOSSAL CONTRACTING LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $130,684.26.
What is the period of performance?
Start: 2026-04-02. End: 2027-04-29.
What is the historical spending trend for Zscaler or similar cybersecurity solutions within the Department of Energy?
Analyzing historical spending on Zscaler or comparable cybersecurity solutions within the Department of Energy (DOE) is crucial for understanding the context of this $130.7 million award. Without specific historical data for Zscaler within the DOE, we can infer trends from broader federal IT and cybersecurity spending. Federal agencies have significantly increased their investment in cybersecurity over the past decade, driven by mandates like FISMA and the growing sophistication of cyber threats. The DOE, managing critical national infrastructure and sensitive data, is a prime candidate for substantial and consistent spending on advanced security platforms. Trends often show a shift towards subscription-based, cloud-delivered security services, mirroring this contract's nature. Examining prior contracts for network security, endpoint protection, and secure access solutions within the DOE could reveal patterns of increasing expenditure or a transition to newer technologies like Zero Trust architecture, which Zscaler often supports. This $130.7 million award, spanning nearly four years, represents a significant, but potentially cost-effective, commitment compared to piecemeal solutions or less competitive procurements.
How does the per-unit cost of this Zscaler subscription compare to other federal agencies or commercial market rates?
Benchmarking the per-unit cost of this Zscaler subscription against other federal agencies or commercial market rates is essential for assessing value for money. However, specific per-unit cost data (e.g., cost per user, cost per endpoint) is not publicly available in the provided data. Generally, government agencies leverage bulk purchasing power and negotiated discounts through contracts like GSA Schedules or specific agency-wide agreements to achieve favorable pricing. The presence of 12 bidders in a full and open competition suggests that the pricing should be competitive. To perform a true benchmark, one would need to compare the specific Zscaler services, user counts, and contract duration against similar awards made by other agencies (e.g., through FPDS or SAM.gov) or against publicly listed commercial pricing, factoring in any government discounts. Without this granular data, we can only infer competitiveness from the bidding process. If Zscaler's pricing is consistent with other large government contracts for similar services, it indicates good value; significant deviations could signal overspending or exceptional negotiation.
What are the specific cybersecurity risks this Zscaler contract aims to mitigate for the Department of Energy?
This Zscaler subscription and support contract is designed to mitigate a range of critical cybersecurity risks for the Department of Energy (DOE). Primarily, it addresses the threat landscape associated with cloud adoption and remote workforces by providing secure internet gateways, zero trust network access (ZTNA), and cloud access security broker (CASB) functionalities. Key risks mitigated include unauthorized access to sensitive DOE data and systems, malware infections, data exfiltration, and phishing attacks. By centralizing security controls in the cloud, Zscaler helps protect against threats that traditional perimeter-based security models struggle to address. It aims to reduce the attack surface, prevent the lateral movement of threats within the network, and ensure secure access for authorized users regardless of their location. This is particularly important for the DOE, which handles classified information and manages critical national infrastructure, making it a high-value target for nation-state actors and cybercriminals.
What is the track record of COLOSSAL CONTRACTING LLC in delivering similar IT services to federal agencies?
Information regarding the specific track record of COLOSSAL CONTRACTING LLC in delivering similar IT services, particularly Zscaler subscriptions and support, to federal agencies is not detailed in the provided data. As a prime contractor, their ability to successfully execute this $130.7 million contract depends on their past performance, technical expertise, and financial stability. Federal agencies typically assess past performance through contractor performance assessment reporting (CPARS) and by reviewing previous contract awards. Without access to CPARS data or a more detailed company profile, it's difficult to definitively assess their reliability. However, the fact that they were awarded this significant contract under full and open competition suggests they met the agency's minimum requirements and were deemed capable of performing the work. Further due diligence might involve reviewing their contract history for similar cybersecurity or IT service contracts with the DOE or other agencies to gauge their experience and success rates.
How does the duration and value of this contract compare to typical cybersecurity service agreements for federal agencies?
This contract, valued at approximately $130.7 million and spanning roughly 392 days (approximately 1.07 years) from the order date to the estimated completion date, represents a significant, albeit potentially short-term, investment in cybersecurity. The provided duration seems to be for the delivery order itself, not necessarily the full period of performance for the underlying Indefinite Delivery/Indefinite Quantity (IDIQ) contract or base contract, which often extends longer. Typical federal cybersecurity service agreements can range widely in duration and value. Multi-year IDIQ contracts can last up to five years, with individual task orders or delivery orders issued against them varying in length and cost. Firm-fixed-price contracts for software subscriptions and support, like this one, are common and often awarded for one to three years, with options for renewal. A $130.7 million value for a cybersecurity solution over this timeframe suggests a substantial deployment, possibly covering a large user base or comprehensive security suite for the Department of Energy. Compared to smaller, agency-specific IT support contracts, this is a large award, but within the realm of major federal cybersecurity procurements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 12
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 304 HARRY S TRUMAN PKWY STE G, ANNAPOLIS, MD, 21401
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $130,684
Exercised Options: $130,684
Current Obligation: $130,684
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD72B
IDV Type: GWAC
Timeline
Start Date: 2026-04-02
Current End Date: 2027-04-29
Potential End Date: 2027-04-29 00:00:00
Last Modified: 2026-04-02
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