Department of Education's $124.8M IT security contract awarded to Blue Canopy Group, LLC

Contract Overview

Contract Amount: $124,765,261 ($124.8M)

Contractor: Blue Canopy Group, LLC

Awarding Agency: Department of Education

Start Date: 2014-09-30

End Date: 2018-09-30

Contract Duration: 1,461 days

Daily Burn Rate: $85.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF THIS CONTRACT WAS AWARD ON 09/30/2014 AS A FOLLOW ON FOR ED-FSA-09-A-0004 SECURITY AND PRIVACY THE DEPARTMENT OF EDUCATION (ED) OFFICE OF FEDERAL STUDENT AID (FSA) HAS A REQUIREMENT IN ACCORDANCE WITH THE FEDERAL INFORMATION SECURITY MANAGEMENT ACT (FISMA) TO PROVIDE A SECURE PLATFORM THAT WILL ADHERE TO PROVIDING OPERATIONS&MAINTENANCE (O&M) SECURITY FOR BOTH ITS APPLICATION AND INFRASTRUCTURE FRAMEWORK LOCATED AT ITS DATA CENTER(S). IN PERFORMANCE OF ITS MISSION, FEDERAL STUDENT AID (FSA) RELIES UPON INFORMATION TECHNOLOGY (IT) CAPABILITIES, THESE CAPABILITIES FORM A COMPLEX AND HIGHLY INTEGRATED IT INFRASTRUCTURE.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Education obligated $124.8 million to BLUE CANOPY GROUP, LLC for work described as: IGF::CT::IGF THIS CONTRACT WAS AWARD ON 09/30/2014 AS A FOLLOW ON FOR ED-FSA-09-A-0004 SECURITY AND PRIVACY THE DEPARTMENT OF EDUCATION (ED) OFFICE OF FEDERAL STUDENT AID (FSA) HAS A REQUIREMENT IN ACCORDANCE WITH THE FEDERAL INFORMATION SECURITY MANAGEMENT ACT (FISMA) TO PROVID… Key points: 1. Contract focuses on essential IT security and privacy operations for the Federal Student Aid (FSA) data center. 2. Follow-on contract indicates a continued need for these services, suggesting stable performance. 3. The contract's duration of four years suggests a significant, ongoing commitment to IT security. 4. Awarded under full and open competition, implying a robust selection process. 5. The fixed-price contract type helps manage cost certainty for the government. 6. Services are critical for maintaining the integrity and security of student financial aid data.

Value Assessment

Rating: good

The total award amount of $124.8 million over four years averages to approximately $31.2 million annually. Benchmarking this against similar IT security and system design contracts is challenging without more granular data on the specific services provided. However, the scale suggests a comprehensive security program. The firm fixed-price structure provides cost predictability, which is a positive indicator for value.

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.' While the specific details of the exclusion are not provided, the 'full and open' designation generally implies that all responsible sources were permitted to submit offers. The presence of two bids (no: 2) suggests a moderate level of competition for this significant IT security requirement.

Taxpayer Impact: A competitive process, even with a limited number of bidders, generally leads to better price discovery and potentially more favorable terms for taxpayers compared to sole-source awards.

Public Impact

Benefits students and families by ensuring the security and privacy of their financial aid information. Delivers essential operations and maintenance for the IT infrastructure supporting federal student aid programs. Impacts the Department of Education's ability to securely manage and process student loan and grant data. Supports the workforce involved in administering federal student financial aid programs by providing a secure IT environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single contractor for critical IT security functions could pose a risk if performance degrades.
The 'exclusion of sources' aspect, though part of a full and open competition, warrants understanding the rationale to ensure no undue restrictions.

Positive Signals

Follow-on nature suggests satisfaction with previous performance and continuity of essential services.
Firm fixed-price contract provides budget certainty and incentivizes contractor efficiency.
Awarded through full and open competition, indicating a structured and fair procurement process.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. The IT sector is characterized by rapid innovation and a constant need for robust security solutions. The market for IT security services is substantial, driven by increasing cyber threats and regulatory compliance requirements. This contract represents a significant investment in securing sensitive government data, aligning with national priorities for cybersecurity.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. Without set-aside goals, large businesses are likely the primary awardees, and their subcontracting plans would determine small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Education's contracting officers and program managers. The Inspector General's office may also conduct audits or investigations into contract performance and financial management. Transparency is facilitated through contract award databases like FPDS, though detailed performance metrics are often internal.

Related Government Programs

Federal Information Security Management Act (FISMA) compliance
IT Operations and Maintenance (O&M)
Cybersecurity Services
Data Center Security
Application Security

Risk Flags

Potential for vendor lock-in
Reliance on single contractor for critical functions
Need to understand 'exclusion of sources' rationale
Ensuring continuous compliance with evolving security threats

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $124.8 million to BLUE CANOPY GROUP, LLC. IGF::CT::IGF THIS CONTRACT WAS AWARD ON 09/30/2014 AS A FOLLOW ON FOR ED-FSA-09-A-0004 SECURITY AND PRIVACY THE DEPARTMENT OF EDUCATION (ED) OFFICE OF FEDERAL STUDENT AID (FSA) HAS A REQUIREMENT IN ACCORDANCE WITH THE FEDERAL INFORMATION SECURITY MANAGEMENT ACT (FISMA) TO PROVIDE A SECURE PLATFORM THAT WILL ADHERE TO PROVIDING OPERATIONS&MAINTENANCE (O&M) SECURITY FOR BOTH ITS APPLICATION AND INFRASTRUCTURE FRAMEWORK LOCATED AT ITS DATA CENTER(S). IN PERFORMANCE OF ITS MISSION, FEDERAL STUDENT

Who is the contractor on this award?

The obligated recipient is BLUE CANOPY GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $124.8 million.

What is the period of performance?

Start: 2014-09-30. End: 2018-09-30.

What specific security and privacy services are included under this contract?

The contract description indicates a requirement for 'Security and Privacy' operations and maintenance (O&M) for the Department of Education's (ED) Office of Federal Student Aid (FSA) application and infrastructure framework at its data centers. This is in accordance with the Federal Information Security Management Act (FISMA). While specific services are not itemized, typical components of such a contract would include vulnerability management, security monitoring, incident response, access control management, security policy enforcement, data protection, and ensuring compliance with relevant federal security standards and regulations. The goal is to provide a secure IT platform essential for FSA's mission.

How does the $124.8 million cost compare to similar IT security contracts for federal agencies?

Directly comparing the $124.8 million cost to similar contracts is difficult without knowing the exact scope, duration, and specific services rendered. However, for a four-year contract covering comprehensive IT security operations and maintenance for a major federal agency like the Department of Education's student aid division, this figure appears within a reasonable range. Large-scale cybersecurity and IT infrastructure support contracts for federal entities often run into tens or hundreds of millions of dollars, especially when they involve maintaining critical systems and sensitive data. The firm fixed-price nature also suggests an effort to control costs.

What are the key risks associated with this contract for the Department of Education?

Key risks include potential performance issues if the contractor, Blue Canopy Group, LLC, fails to deliver adequate security services, which could lead to data breaches or system disruptions impacting federal student aid operations. There's also a risk of cost overruns if the fixed-price contract doesn't adequately account for unforeseen technical challenges or scope creep, although the fixed-price structure aims to mitigate this. Over-reliance on a single vendor for critical security functions presents a vendor lock-in risk and potential challenges during contract transition. Ensuring continuous compliance with evolving FISMA requirements and cybersecurity threats is an ongoing risk.

What is the significance of this contract being a 'follow-on' to a previous award?

The fact that this contract is a 'follow-on' to ED-FSA-09-A-0004 indicates a continuity of services and suggests that the Department of Education was satisfied with the performance of the previous contract or the incumbent provider. Follow-on contracts often streamline the procurement process and ensure uninterrupted service delivery for essential functions. It implies that the requirements are well-understood and that the agency has established a working relationship with the contractor, potentially leading to greater efficiency and predictability in service provision.

How does the competition level (2 bidders) impact the value for taxpayers?

Having two bidders in a 'full and open competition after exclusion of sources' suggests a moderate level of competition. While more bidders generally lead to more competitive pricing, two offers still provide a basis for price negotiation and comparison. It indicates that the market has at least two capable providers interested in this type of work. The value for taxpayers depends on how effectively the contracting agency evaluated the proposals and negotiated the final price. A single bid would be a greater concern for price discovery and value.

What is the historical spending pattern for IT security at the Department of Education's Federal Student Aid office?

Analyzing historical spending requires access to detailed procurement data beyond this single award. However, the existence of this $124.8 million, four-year contract, described as a follow-on, suggests a consistent and significant investment in IT security by the FSA. Federal agencies, particularly those handling sensitive financial and personal data like FSA, typically allocate substantial budgets to cybersecurity due to increasing threats and regulatory mandates (like FISMA). This contract likely represents a continuation of a long-term commitment to maintaining robust IT security infrastructure and services.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc

Address: 11091 SUNSET HILLS ROAD, SUITE #777, RESTON, VA, 20190

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $248,118,787

Exercised Options: $134,557,881

Current Obligation: $124,765,261

Actual Outlays: $47,604,342

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HHSN316201200120W

IDV Type: GWAC

Timeline