NR LABS LLC awarded $3.6M for Enterprise Security Operations Center support services by CFTC

Contract Overview

Contract Amount: $3,624,095 ($3.6M)

Contractor: NR Labs LLC

Awarding Agency: Commodity Futures Trading Commission

Start Date: 2025-06-13

End Date: 2026-06-12

Contract Duration: 364 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ENTERPRISE SECURITY OPERATIONS CENTER (ESOC) SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20581

State: District of Columbia Government Spending

Plain-Language Summary

Commodity Futures Trading Commission obligated $3.6 million to NR LABS LLC for work described as: ENTERPRISE SECURITY OPERATIONS CENTER (ESOC) SUPPORT SERVICES Key points: 1. The contract value of $3.6M over one year represents a significant investment in cybersecurity infrastructure. 2. Full and open competition suggests a potentially competitive bidding process, which can drive better pricing. 3. The 'Other Computer Related Services' NAICS code indicates a broad scope, requiring careful performance monitoring. 4. The contract is a BPA Call, suggesting it's part of a larger pre-competed agreement. 5. The single-year duration allows for periodic reassessment of needs and contractor performance. 6. The absence of small business set-aside or subcontracting requirements warrants further investigation into small business participation.

Value Assessment

Rating: good

The contract value of $3.6 million for one year of ESOC support services appears reasonable given the critical nature of cybersecurity operations. Benchmarking against similar contracts for ESOC support would provide a more precise value-for-money assessment. The labor hours contract type allows for flexibility but requires diligent oversight to ensure efficient resource utilization and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method is generally preferred for maximizing competition and achieving the best value for the government. The number of bidders is not specified, but the process itself suggests a potentially robust market for these services.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, ultimately reducing the risk of overpayment.

Public Impact

The Commodity Futures Trading Commission (CFTC) benefits from enhanced cybersecurity posture and protection of its sensitive data. Services delivered include support for the Enterprise Security Operations Center (ESOC), crucial for threat detection and response. The primary geographic impact is within the District of Columbia, where the CFTC is headquartered. The contract supports specialized IT security roles, potentially impacting the cybersecurity workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the broad 'Other Computer Related Services' NAICS code.
Need for clear performance metrics to ensure value for money under a labor hours contract.
Reliance on a single awardee for critical security operations requires robust contingency planning.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The BPA Call mechanism implies pre-negotiated terms and conditions, potentially streamlining execution.
The contract duration of one year allows for regular performance reviews and adjustments.

Sector Analysis

The cybersecurity services market is a rapidly growing sector driven by increasing digital threats and regulatory requirements. Contracts for Security Operations Center (SOC) support are essential for organizations to monitor, detect, and respond to cyber incidents. The total federal spending on IT services, including cybersecurity, runs into billions annually, with SOC support being a critical component for agencies like the CFTC to safeguard their information assets.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements. This suggests that the primary focus was on securing the best technical solution and price through open competition, rather than specifically promoting small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

Oversight will likely be managed by the Commodity Futures Trading Commission's contracting officers and program managers. Performance will be monitored against the terms of the BPA Call and the Statement of Work. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed spending breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Cybersecurity Services
IT Operations and Support
Managed Security Services
Enterprise IT Infrastructure

Risk Flags

Potential for scope creep
Reliance on labor hours requires diligent oversight
Need for clear performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Commodity Futures Trading Commission awarded $3.6 million to NR LABS LLC. ENTERPRISE SECURITY OPERATIONS CENTER (ESOC) SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NR LABS LLC.

Which agency awarded this contract?

Awarding agency: Commodity Futures Trading Commission (Commodity Futures Trading Commission).

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2025-06-13. End: 2026-06-12.

What is the track record of NR LABS LLC in providing similar ESOC support services to federal agencies?

A review of public contract databases indicates that NR LABS LLC has received federal contracts, though specific details regarding the scale and scope of their previous ESOC support services are not readily available in this summary. Further investigation into their past performance, client testimonials, and any past performance evaluations would be necessary to fully assess their capabilities and reliability for this critical function. Understanding their experience with similar government cybersecurity operations, including threat intelligence, incident response, and security monitoring, is crucial for evaluating the risk associated with this award.

How does the per-hour labor rate for this contract compare to market benchmarks for similar cybersecurity expertise?

The contract is awarded on a labor hours basis, meaning the cost is determined by the hours worked multiplied by pre-negotiated rates. Without access to the specific labor rates within the BPA Call, a direct comparison to market benchmarks is not possible from the provided data. However, the 'good' value rating suggests that the CFTC believes these rates are competitive. A thorough analysis would involve obtaining the detailed rate structure and comparing it against industry surveys and government cost-analysis data for comparable cybersecurity roles and experience levels in the Washington D.C. metropolitan area.

What are the key performance indicators (KPIs) used to measure the success of NR LABS LLC's ESOC support?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for ESOC support, KPIs would include metrics such as Mean Time to Detect (MTTD), Mean Time to Respond (MTTR), the number of security incidents detected and resolved, the accuracy of threat intelligence, and compliance with service level agreements (SLAs). Effective oversight requires clearly defined, measurable, achievable, relevant, and time-bound (SMART) KPIs outlined in the contract's Statement of Work to ensure the contractor is delivering effective and efficient security operations.

What is the historical spending pattern for ESOC support services at the CFTC?

The provided data focuses on a single contract award. To understand historical spending patterns for ESOC support at the CFTC, one would need to analyze contract awards over several fiscal years. This would involve identifying previous contracts for similar services, the contractors involved, their values, and the duration of those contracts. Such an analysis would reveal trends in spending, identify potential sole-source awards or shifts in competition, and provide context for the current $3.6 million award, indicating whether it represents an increase, decrease, or stable level of investment in ESOC support.

Are there any identified risks associated with NR LABS LLC's performance or the nature of ESOC support services?

Potential risks include the inherent complexity and criticality of ESOC operations, where any lapse in vigilance could have severe consequences. For NR LABS LLC specifically, risks could relate to their capacity to scale operations if needed, the retention of skilled personnel, and their ability to adapt to evolving cyber threats. The 'good' value rating and 'full and open' competition suggest these risks are considered manageable by the agency. However, continuous monitoring of performance metrics, threat landscape changes, and contractor responsiveness is essential to mitigate these risks throughout the contract period.

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

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1775 TYSONS BLVD FL 5, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,859,934

Exercised Options: $3,624,095

Current Obligation: $3,624,095

Actual Outlays: $1,590,204

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 9523ZY25A0001

IDV Type: BPA

Timeline