DoD's Space Force Cyber Defense Contract Awarded to Deloitte for $64M, Spanning 5 Years

Contract Overview

Contract Amount: $64,028,270 ($64.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2021-09-28

End Date: 2026-05-30

Contract Duration: 1,705 days

Daily Burn Rate: $37.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS ACQUISITION PROVIDES CYBER DEFENSE ENGINEERING AND TRAINING SERVICES FOR US SPACE FORCE MISSION SYSTEMS.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $64.0 million to DELOITTE CONSULTING LLP for work described as: THIS ACQUISITION PROVIDES CYBER DEFENSE ENGINEERING AND TRAINING SERVICES FOR US SPACE FORCE MISSION SYSTEMS. Key points: 1. Value for money assessed through competitive bidding and firm-fixed-price structure. 2. Competition dynamics indicate a robust market for specialized cyber defense services. 3. Risk indicators include contract duration and the critical nature of space systems. 4. Performance context is set against the backdrop of evolving cyber threats to national security. 5. Sector positioning highlights the increasing importance of cyber resilience in defense technology.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty for the government. Benchmarking against similar cyber defense contracts is challenging due to the specialized nature of Space Force mission systems. However, the competitive award suggests a reasonable price was achieved. The total value of over $64 million over nearly five years reflects the complexity and criticality of the services required.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 6 bidders suggests a healthy level of competition for this specialized service. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition process helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

US Space Force mission systems benefit from enhanced cyber defense capabilities. Specialized engineering and training services are delivered to protect critical space assets. The geographic impact is primarily within the Department of Defense infrastructure supporting Space Force operations. Workforce implications include the need for highly skilled cyber defense professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Dependence on a single contractor for critical cyber defense services over an extended period.
Potential for scope creep or cost overruns if requirements evolve significantly.
The inherent risks associated with protecting sensitive space mission systems from sophisticated cyber threats.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Firm-fixed-price contract type provides cost predictability.
Contractor's established presence and experience in consulting services.

Sector Analysis

The defense sector, particularly within space systems, faces escalating cyber threats. This contract falls within the engineering services sub-sector, focusing on specialized cyber defense. The market for such services is growing as nations increasingly rely on space-based assets for communication, navigation, and intelligence, making their cyber resilience paramount. Comparable spending benchmarks are difficult to pinpoint due to the unique nature of Space Force requirements, but significant investment in cyber defense across the DoD is a consistent trend.

Small Business Impact

This contract was not specifically set aside for small businesses, and the awardee is a large corporation. There is no explicit information provided regarding subcontracting plans for small businesses. The focus on specialized cyber defense engineering may limit opportunities for broad small business participation unless specific subcontracting goals are mandated and met.

Oversight & Accountability

Oversight is likely managed by the contracting officer's representative (COR) within the Department of the Air Force, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are embedded in the firm-fixed-price structure and performance requirements. Transparency is facilitated through the federal procurement data system, though detailed performance metrics are typically not public.

Related Government Programs

DoD Cyber Security Initiatives
Space Force Mission Support Contracts
Engineering and Technical Services
Information Technology Services

Risk Flags

Critical infrastructure protection
Extended contract duration
Cybersecurity risks
Specialized technical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.0 million to DELOITTE CONSULTING LLP. THIS ACQUISITION PROVIDES CYBER DEFENSE ENGINEERING AND TRAINING SERVICES FOR US SPACE FORCE MISSION SYSTEMS.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $64.0 million.

What is the period of performance?

Start: 2021-09-28. End: 2026-05-30.

What is Deloitte Consulting LLP's track record with similar cyber defense contracts for the Department of Defense or other federal agencies?

Deloitte Consulting LLP has a significant and extensive track record of performing complex IT, engineering, and consulting services for various federal agencies, including the Department of Defense. They are a major federal contractor with numerous awards across different agencies and mission areas. While specific details on past cyber defense contracts for Space Force mission systems are not publicly itemized here, Deloitte's broad experience in cybersecurity, cloud computing, data analytics, and systems engineering suggests a strong capability to handle such requirements. Their past performance is generally well-documented through federal procurement databases, often reflecting successful execution of large-scale, high-value contracts. However, a deeper dive into specific past performance reviews and contract close-outs would be necessary for a comprehensive assessment of their suitability for this particular role.

How does the per-unit cost or overall value of this contract compare to similar cyber defense services procured by the government?

Directly comparing the per-unit cost or overall value of this $64 million, nearly five-year contract for Space Force cyber defense services to 'similar' contracts is challenging due to the highly specialized and unique nature of the requirements. Cyber defense for space mission systems involves a distinct set of technical challenges and security protocols compared to general IT or cyber services for other domains. The contract's firm-fixed-price structure and full and open competition award suggest that the pricing was vetted against market rates for comparable, albeit not identical, high-level engineering and security services. Without access to detailed cost breakdowns or a broader dataset of highly specialized space cyber defense contracts, a precise benchmark is difficult. However, the competitive bidding process implies that the awarded price was considered reasonable within the context of the services sought.

What are the primary risk indicators associated with this contract, and how are they being mitigated?

The primary risk indicators for this contract include the critical nature of the services (protecting Space Force mission systems), the extended duration (nearly five years), and the inherent complexities of cyber defense against sophisticated adversaries. Dependence on a single contractor for such vital functions poses a risk if performance falters or if the contractor faces unforeseen challenges. Mitigation strategies likely include robust contract oversight by the COR, clearly defined performance metrics and deliverables, and potentially phased performance reviews. The firm-fixed-price structure helps mitigate cost overrun risks. Furthermore, the initial full and open competition suggests a thorough vetting of the contractor's capabilities, aiming to select a vendor with a proven ability to manage these risks effectively.

How effective is the current contract structure (firm-fixed-price, full and open competition) in ensuring program effectiveness for cyber defense?

The firm-fixed-price (FFP) structure is generally effective in ensuring program effectiveness by incentivizing the contractor to control costs and deliver the defined scope of work efficiently. For cyber defense, this means the contractor is motivated to meet performance standards within the agreed budget. The full and open competition award process is crucial for program effectiveness as it allows the government to select the most capable and cost-effective provider from a pool of qualified bidders. This competitive pressure encourages high performance and innovation. However, the effectiveness also hinges on the clarity and completeness of the contract's Statement of Work (SOW) and the government's ability to monitor performance and adapt to evolving cyber threats, which can be a challenge with FFP contracts if requirements change significantly.

What are the historical spending patterns for cyber defense engineering and training services within the US Space Force or Department of Defense?

Historical spending patterns for cyber defense engineering and training services within the US Space Force and the broader Department of Defense have shown a consistent and significant upward trend over the past decade. This is driven by the increasing reliance on digital systems, the proliferation of cyber threats, and the recognition of cyber warfare as a critical domain. Specific allocations for Space Force mission systems, while a newer category as the service itself is relatively new, are part of this larger DoD cybersecurity investment. Budgets for cyber defense have grown substantially, reflecting the strategic importance placed on securing critical infrastructure, including space assets. While precise historical figures for this specific contract's lineage are not detailed here, the overall trend indicates a sustained and growing commitment to funding these types of services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA251821R0009

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $109,374,028

Exercised Options: $64,943,949

Current Obligation: $64,028,270

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $27,641,021

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20DU344

IDV Type: IDC

Timeline