Cybersecurity support services contract awarded to Criterion Systems, L.L.C. for over $189 million
Contract Overview
Contract Amount: $189,339,189 ($189.3M)
Contractor: Criterion Systems, L.L.C.
Awarding Agency: Department of Energy
Start Date: 2016-02-01
End Date: 2021-07-31
Contract Duration: 2,007 days
Daily Burn Rate: $94.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CL,CT::IGF NATIONAL NUCLEAR SECURITY ADMINISTRATION (DOE/NNSA) CYBER SECURITY SUPPORT SERVICES
Place of Performance
Location: NORTH LAS VEGAS, CLARK County, NEVADA, 89030
State: Nevada Government Spending
Plain-Language Summary
Department of Energy obligated $189.3 million to CRITERION SYSTEMS, L.L.C. for work described as: IGF::CL,CT::IGF NATIONAL NUCLEAR SECURITY ADMINISTRATION (DOE/NNSA) CYBER SECURITY SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of the contract is substantial, spanning over 2000 days. 4. The award value indicates a significant investment in cybersecurity infrastructure. 5. The services fall under Computer Facilities Management, a critical area for national security. 6. The contractor, Criterion Systems, L.L.C., has secured a large-value contract, indicating capability. 7. The contract was awarded by the Department of Energy, highlighting its importance to the agency's mission.
Value Assessment
Rating: good
The contract value of over $189 million for cybersecurity support services is substantial. Benchmarking this against similar large-scale IT support contracts within federal agencies is challenging without more granular data on the specific services provided. However, the firm fixed-price structure suggests an attempt to control costs. The contract's duration of over 5 years also implies a long-term need and potentially stable pricing over that period. Further analysis would require comparing the per-unit costs of specific services against industry benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this significant cybersecurity support services contract. A higher number of bidders might typically lead to more aggressive pricing, but the firm fixed-price nature of the contract already places cost control on the contractor.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers, potentially driving down costs.
Public Impact
The primary beneficiaries are the National Nuclear Security Administration (NNSA) and the Department of Energy, ensuring the security of their critical cyber infrastructure. Services delivered include computer facilities management, crucial for maintaining operational integrity and protecting sensitive data. The geographic impact is likely concentrated around the Nevada National Security Site (NV/SN), where the contractor's presence is noted. The contract supports a workforce skilled in cybersecurity and IT infrastructure management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if not managed tightly given the long duration.
- Reliance on a single contractor for critical cybersecurity functions could pose a risk if performance degrades.
- Ensuring continued technological relevance in a rapidly evolving cybersecurity landscape.
Positive Signals
- Firm fixed-price contract structure incentivizes contractor efficiency and cost control.
- Awarded through full and open competition, suggesting a competitive selection process.
- Long-term contract provides stability and predictability for essential cybersecurity services.
Sector Analysis
Cybersecurity is a rapidly growing sector within the broader IT services market, driven by increasing digital threats and the need to protect sensitive data and critical infrastructure. Federal spending in this area has been consistently high. This contract for computer facilities management services fits within the segment of IT infrastructure support, which is essential for agencies like the Department of Energy to maintain secure and operational systems. Comparable spending benchmarks would typically be found within large IT services contracts awarded to major defense and civilian agencies.
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 set-aside requirement. The primary contractor, Criterion Systems, L.L.C., is likely a mid-to-large-sized business. The absence of a small business set-aside means that opportunities for small business participation would depend on the prime contractor's subcontracting plan, if any, or their general procurement practices.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's contracting officer and program managers. Given the critical nature of cybersecurity, the Inspector General's office for the Department of Energy would likely have oversight jurisdiction to ensure compliance, prevent fraud, and assess performance. Transparency is facilitated through contract award databases, but detailed performance metrics and audit reports may not always be publicly accessible.
Related Government Programs
- Cybersecurity Services
- IT Infrastructure Management
- National Nuclear Security Administration Contracts
- Department of Energy IT Support
- Computer Facilities Management
Risk Flags
- Long contract duration may lead to technology obsolescence.
- Reliance on a single contractor for critical functions.
- Cybersecurity landscape is constantly evolving, requiring agile adaptation.
Tags
it, cybersecurity, department-of-energy, national-nuclear-security-administration, firm-fixed-price, full-and-open-competition, computer-facilities-management, nevada, large-contract, it-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $189.3 million to CRITERION SYSTEMS, L.L.C.. IGF::CL,CT::IGF 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 $189.3 million.
What is the period of performance?
Start: 2016-02-01. End: 2021-07-31.
What is the track record of Criterion Systems, L.L.C. in performing similar federal cybersecurity contracts?
Criterion Systems, L.L.C. has a history of securing federal contracts, particularly within the IT and cybersecurity domains. While this specific contract for over $189 million is substantial, the company has likely been involved in other significant federal IT projects. A deeper dive into their contract history would reveal their performance on previous engagements, including any awards, penalties, or contract modifications. Analyzing past performance ratings, such as those found in the Contractor Performance Assessment Reporting System (CPARS), would provide insights into their reliability, technical proficiency, and adherence to schedule and budget on prior federal work. Their ability to win and execute large contracts suggests a demonstrated capacity to manage complex IT requirements for government agencies.
How does the awarded value of $189 million compare to similar cybersecurity support contracts awarded by the Department of Energy or other agencies?
The $189 million award for cybersecurity support services is a significant sum, placing it among larger federal IT contracts. To benchmark effectively, one would need to compare it against contracts for similar scope and duration within the Department of Energy or other agencies with comparable cybersecurity needs, such as the Department of Defense or intelligence agencies. Factors like the specific services (e.g., network security, threat intelligence, incident response, facility management), the level of security clearance required, and the contract duration (over 5 years in this case) are crucial for a fair comparison. Without access to detailed service breakdowns and market rates for specific cybersecurity functions, a precise value-for-money assessment is difficult. However, the firm fixed-price nature suggests an effort to cap costs.
What are the primary risks associated with a long-term (over 5 years) cybersecurity support contract of this magnitude?
Long-term cybersecurity contracts of this magnitude carry several inherent risks. Firstly, the rapid evolution of cyber threats and technologies means that the services and solutions required today might be outdated in a few years, necessitating contract modifications or potentially leading to suboptimal performance if the contractor cannot adapt. Secondly, there's a risk of vendor lock-in, where the agency becomes heavily reliant on a single provider, making it difficult and costly to switch if performance issues arise or better solutions become available. Thirdly, the sheer size of the contract could make it a target for sophisticated cyberattacks or insider threats. Finally, ensuring consistent performance and accountability over an extended period requires robust oversight and performance management from the agency.
What is the expected effectiveness of these cybersecurity support services in enhancing the NNSA's overall security posture?
The effectiveness of these cybersecurity support services hinges on the specific tasks performed under the 'Computer Facilities Management Services' umbrella and the NNSA's ability to leverage them. If the contract ensures robust network monitoring, timely patching of vulnerabilities, secure data management, and effective incident response, it should significantly enhance the NNSA's security posture. The firm fixed-price nature incentivizes the contractor to deliver these services efficiently. However, true effectiveness also depends on the NNSA's internal cybersecurity policies, user training, and the integration of these contracted services with the agency's broader cybersecurity strategy. Without detailed performance metrics and outcomes, a definitive assessment of effectiveness is speculative.
How has federal spending on cybersecurity support services evolved over the past decade, and where does this contract fit in?
Federal spending on cybersecurity support services has seen a dramatic and consistent increase over the past decade, driven by escalating cyber threats, data breaches, and the digitization of government operations. Agencies across the board, from defense to civilian, have recognized cybersecurity as a critical mission enabler and a national security imperative. This $189 million contract for the NNSA fits within this trend of substantial federal investment in securing critical infrastructure and sensitive data. It represents a significant allocation within the Department of Energy's budget for IT security, reflecting the high-stakes nature of nuclear security and the need for advanced cyber defenses. The trend indicates continued growth in this spending category.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8330 BOONE BLVD STE 400, VIENNA, VA, 22182
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $265,402,288
Exercised Options: $265,402,288
Current Obligation: $189,339,189
Actual Outlays: $40,336,123
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: DENA0002615
IDV Type: BPA
Timeline
Start Date: 2016-02-01
Current End Date: 2021-07-31
Potential End Date: 2024-03-28 00:00:00
Last Modified: 2024-04-04
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