SEVATEC LLC awarded $22M for NOAA cyber security services under full and open competition

Contract Overview

Contract Amount: $22,013,444 ($22.0M)

Contractor: Sevatec LLC

Awarding Agency: Department of Commerce

Start Date: 2016-07-11

End Date: 2019-01-08

Contract Duration: 911 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL,CT::IGF CYBER SECURITY SERVICES

Place of Performance

Location: FAIRMONT, MARION County, WEST VIRGINIA, 26554

State: West Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $22.0 million to SEVATEC LLC for work described as: IGF::CL,CT::IGF CYBER SECURITY SERVICES Key points: 1. Contract value represents a significant investment in safeguarding critical NOAA data and systems. 2. The 'full and open competition' indicates a broad market solicitation, potentially driving competitive pricing. 3. A firm-fixed-price contract type suggests predictable costs for the government, shifting cost risk to the contractor. 4. The contract duration of 911 days (approx. 2.5 years) allows for sustained cyber security support. 5. This award falls within the 'Computer Systems Design Services' NAICS code, a common category for IT support. 6. The award was a single delivery order, suggesting it was part of a larger contract vehicle or program.

Value Assessment

Rating: good

The total award of $22,013,443.60 for cyber security services over approximately 2.5 years appears reasonable given the scope of protecting NOAA's systems. Benchmarking against similar large-scale cyber security contracts for federal agencies suggests that pricing within this range is typical for comprehensive support. The firm-fixed-price structure further supports value by locking in costs, assuming the contractor can deliver efficiently.

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 the solicitation was broadly advertised to all eligible offerors. While the 'exclusion of sources' phrasing might suggest specific initial limitations, the 'full and open' aspect implies a robust competitive process. The fact that it was a single delivery order suggests it was competed as part of a larger contract or program, and the number of bidders would provide further insight into the actual level of competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services. This approach ensures that the government explores the widest possible range of solutions and contractors, maximizing the potential for cost savings and innovation.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and its mission-critical operations, which rely on secure data and systems. Services delivered include computer systems design and related support, crucial for maintaining the integrity and availability of NOAA's cyber infrastructure. The geographic impact is national, as NOAA's operations span across the United States and its territories, requiring robust cyber defenses nationwide. Workforce implications include potential employment opportunities for cyber security professionals and IT specialists, both within the contractor's organization and potentially through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific details of the 'exclusion of sources' in the competition type warrant further investigation to ensure no eligible small businesses were unduly excluded.
Without knowing the number of bids received, it's difficult to fully assess the intensity of the competition and its impact on pricing.
The contract's reliance on a single delivery order might indicate a need for more granular performance monitoring to ensure consistent service delivery.

Positive Signals

The use of 'full and open competition' suggests a commitment to leveraging the broadest possible market for services.
A firm-fixed-price contract type provides cost certainty for the government, which is a positive indicator for budget management.
The contract duration allows for the development of a stable and effective cyber security posture for NOAA.

Sector Analysis

Cyber security services represent a rapidly growing sector within the broader IT services market. Federal spending in this area has been consistently increasing due to rising cyber threats. This contract for computer systems design services, specifically focused on cyber security, fits within the government's ongoing efforts to modernize and secure its digital infrastructure. Comparable spending benchmarks for federal cyber security contracts often range from tens to hundreds of millions of dollars annually, depending on the agency's size and complexity.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. This suggests that the competition was likely geared towards larger, established firms capable of handling complex cyber security requirements. There is no explicit information on subcontracting plans for small businesses, which would be a key area to explore for potential small business engagement.

Oversight & Accountability

Oversight for this contract would typically fall under the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. The Department of Commerce's Office of Inspector General (OIG) would also have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Cyber Security Services
IT Services
Computer Systems Design Services
Federal Information Security Management Act (FISMA) Compliance
Department of Commerce IT Modernization

Risk Flags

Competition Type Ambiguity
Lack of Bidder Count
Potential for Scope Creep
Evolving Cyber Threat Landscape

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $22.0 million to SEVATEC LLC. IGF::CL,CT::IGF CYBER SECURITY SERVICES

Who is the contractor on this award?

The obligated recipient is SEVATEC LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2016-07-11. End: 2019-01-08.

What was the specific nature of the 'exclusion of sources' in the 'full and open competition after exclusion of sources' award type?

The designation 'full and open competition after exclusion of sources' is somewhat unusual and warrants clarification. Typically, 'full and open competition' means all responsible sources are permitted to submit an offer. The 'exclusion of sources' phrase might indicate that prior to the final solicitation, certain sources were considered and then excluded based on specific criteria, or it could refer to a specific procurement regulation that allows for exclusion under certain circumstances while still maintaining a broadly competitive process. Without further context or the specific solicitation documents, it is difficult to definitively state the reason for this exclusion. However, the 'full and open' aspect suggests that despite any initial exclusions, the final award was made after a process open to a wide range of potential bidders, aiming to achieve the best value for the government.

How does the $22 million contract value compare to other cyber security contracts awarded by NOAA or similar agencies?

The $22 million contract value for SEVATEC LLC's cyber security services for NOAA is a substantial award, reflecting the critical nature of protecting federal data. To benchmark this effectively, one would compare it to other contracts for similar services (e.g., network security, data protection, incident response) awarded by agencies of comparable size and mission scope, such as other bureaus within the Department of Commerce, or agencies like NASA or the Department of the Interior. For instance, contracts for comprehensive cyber security support for large federal agencies often range from $10 million to over $100 million annually, depending on the scope and duration. A $22 million award over approximately 2.5 years ($8.8 million per year) appears to be within the mid-to-upper range for specialized IT security services, suggesting a significant scope of work.

What are the key performance indicators (KPIs) used to measure the success of this cyber security contract?

While the specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data, typical KPIs for federal cyber security service contracts include metrics related to threat detection and response times, vulnerability remediation rates, compliance with security standards (e.g., NIST, FISMA), system uptime and availability, and the number of security incidents successfully prevented or mitigated. Performance is usually assessed through regular reporting by the contractor, site visits, and potentially independent audits. The success of the contract hinges on SEVATEC LLC's ability to maintain the integrity, confidentiality, and availability of NOAA's information systems against evolving cyber threats.

What is SEVATEC LLC's track record with federal cyber security contracts?

SEVATEC LLC, now part of Peraton, has a notable track record in providing IT and cyber security services to various U.S. federal agencies. Prior to its acquisition, SEVATEC was known for its work in areas such as cyber security operations, threat intelligence, and secure IT infrastructure. Their past performance often includes supporting agencies like the Department of Defense, intelligence community, and civilian agencies. Examining their contract history would reveal the types of services rendered, contract values, and client agencies. A positive track record typically involves successful contract completions, positive past performance reviews, and a demonstrated ability to meet complex security requirements, which likely contributed to their ability to win this significant NOAA contract.

What are the potential risks associated with a firm-fixed-price contract for cyber security services?

While firm-fixed-price (FFP) contracts offer cost certainty for the government, they also carry potential risks, particularly in dynamic fields like cyber security. One primary risk is that the contractor may cut corners on quality or scope to maintain profitability if unforeseen technical challenges or scope creep occur, potentially leading to less robust security. Conversely, if the scope is significantly underestimated by the contractor, they might incur substantial losses, potentially impacting their financial stability and ability to perform. For cyber security, the rapidly evolving threat landscape means that initial assumptions about required resources or technologies could become outdated, placing pressure on the contractor. Effective government oversight is crucial to mitigate these risks by ensuring the contractor is meeting all performance requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Octo Consulting Group LLC

Address: 2815 OLD LEE HWY, FAIRFAX, VA, 22031

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,527,725

Exercised Options: $22,527,725

Current Obligation: $22,013,444

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $308,262

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS06F0683Z

IDV Type: GWAC

Timeline