DoD's $80.4M Tanium SME Support Contract Awarded to World Wide Technology LLC

Contract Overview

Contract Amount: $80,452,500 ($80.5M)

Contractor: World Wide Technology LLC

Awarding Agency: Department of Defense

Start Date: 2019-01-31

End Date: 2022-02-27

Contract Duration: 1,123 days

Daily Burn Rate: $71.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ARAD TANIUM SME SUPPORT AND SUBSCRIPTIONS.

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63146

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $80.5 million to WORLD WIDE TECHNOLOGY LLC for work described as: ARAD TANIUM SME SUPPORT AND SUBSCRIPTIONS. Key points: 1. Contract value of $80.4 million over its period of performance. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Duration of 1123 days indicates a long-term need for these services. 5. The primary agency is the Department of Defense, with the Air Force as the specific service. 6. The North American Industry Classification System (NAICS) code 334111 points to electronic computer manufacturing. 7. No small business set-aside was utilized for this contract.

Value Assessment

Rating: good

The contract value of $80.4 million for Tanium SME support and subscriptions over approximately three years appears reasonable given the nature of enterprise-level cybersecurity software and support. Benchmarking against similar large-scale cybersecurity contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, as it caps the government's expenditure.

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 two bids suggests a moderate level of competition for this requirement. While two bidders participated, further details on the bidding process and the number of proposals received would be needed to fully assess the competitiveness and its impact on price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to lower overall costs for the government.

Public Impact

The Department of Defense, specifically the Air Force, benefits from enhanced cybersecurity capabilities through Tanium's services and subscriptions. This contract supports the operational readiness and security posture of critical Air Force systems. The services provided likely impact a significant portion of the Air Force's IT infrastructure nationwide. Workforce implications may include the need for specialized IT security personnel to manage and utilize the Tanium platform effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized cybersecurity solutions.
Ensuring effective utilization and return on investment for the $80.4M expenditure.
Cybersecurity threats are constantly evolving, requiring continuous adaptation of the Tanium platform and services.

Positive Signals

Awarded through full and open competition, promoting market-based pricing.
Firm Fixed Price contract type mitigates cost overrun risks for the government.
Long contract duration suggests a stable and ongoing requirement for critical cybersecurity capabilities.

Sector Analysis

The cybersecurity market is a rapidly growing sector within the broader IT industry, driven by increasing digital threats and the need for robust defense mechanisms. Contracts for advanced endpoint security solutions like Tanium are crucial for government agencies to protect sensitive data and critical infrastructure. The $80.4 million awarded to World Wide Technology LLC for Tanium SME support and subscriptions represents a significant investment in this vital area, aligning with broader government efforts to enhance cybersecurity resilience.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The primary awardee, World Wide Technology LLC, is a large business. This means the direct impact on the small business ecosystem through this specific contract is likely minimal, unless WWT engages small businesses as subcontractors for specialized support.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are not detailed in the provided data.

Related Government Programs

Cybersecurity Software and Services
Endpoint Detection and Response (EDR)
IT Infrastructure Support
Department of Defense IT Modernization Programs
Air Force Network Security

Risk Flags

Potential for vendor lock-in
Evolving cybersecurity threat landscape
Ensuring effective utilization of advanced technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.5 million to WORLD WIDE TECHNOLOGY LLC. ARAD TANIUM SME SUPPORT AND SUBSCRIPTIONS.

Who is the contractor on this award?

The obligated recipient is WORLD WIDE TECHNOLOGY LLC.

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 $80.5 million.

What is the period of performance?

Start: 2019-01-31. End: 2022-02-27.

What is the track record of World Wide Technology LLC in delivering similar cybersecurity support and subscription services to the federal government?

World Wide Technology LLC (WWT) has a significant track record of serving the federal government, including the Department of Defense, across a broad range of IT solutions. While specific details on their performance for Tanium SME support are not provided, WWT is known for its expertise in network integration, cybersecurity, and cloud solutions. They often partner with major technology vendors to deliver complex solutions. Their past performance on similar large-scale federal contracts would be a key indicator of their capability to meet the requirements of this $80.4 million award. Agencies typically review past performance evaluations, such as those in the Contractor Performance Assessment Reporting System (CPARS), to assess a contractor's reliability and ability to execute.

How does the $80.4 million contract value compare to other federal spending on similar Tanium support and subscriptions?

Comparing the $80.4 million contract value requires access to broader federal spending data on Tanium or comparable endpoint security solutions. However, for a three-year period (approximately 1123 days), this figure suggests a substantial deployment and ongoing support requirement, indicative of a large agency like the Air Force. Federal spending on cybersecurity solutions has been steadily increasing, with enterprise-level platforms often costing tens of millions of dollars annually for large organizations. Without specific benchmarks for Tanium's enterprise-level support contracts across different agencies, it's challenging to definitively state if this represents high or low value. However, the firm fixed-price nature and competitive award process suggest an effort to manage costs effectively.

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

Key risks for this contract include potential vendor lock-in, ensuring the effective utilization of the Tanium platform to achieve desired cybersecurity outcomes, and the ever-evolving threat landscape requiring continuous adaptation. Mitigation strategies are partly addressed by the contract structure: the Firm Fixed Price (FFP) shifts cost overrun risk to World Wide Technology LLC. The competitive award process aims to secure a capable vendor at a reasonable price. Ongoing risk mitigation would involve active program management by the Air Force, regular performance reviews, and ensuring the Tanium solution remains current and effective against emerging threats. The long duration also presents a risk of technology obsolescence if not managed proactively.

How effective is the Tanium platform in meeting the Department of Defense's cybersecurity needs, and what is the expected program effectiveness?

Tanium is widely recognized as a leading platform for endpoint security and systems management, designed to provide real-time visibility and control over large, complex networks. For the Department of Defense (DoD), its effectiveness lies in its ability to rapidly detect, assess, and remediate vulnerabilities and threats across millions of endpoints. The expected program effectiveness hinges on the successful implementation and ongoing utilization of Tanium's capabilities for asset inventory, vulnerability management, threat hunting, and patch deployment. The $80.4 million investment suggests a high expectation of effectiveness in bolstering the Air Force's cybersecurity posture, reducing its attack surface, and improving incident response times. Actual effectiveness will depend on proper configuration, integration with existing security tools, and skilled personnel.

What are the historical spending patterns for Tanium support and subscriptions within the Department of the Air Force or DoD?

Historical spending patterns for Tanium within the DoD, and specifically the Air Force, are not detailed in the provided data. However, the award of an $80.4 million contract suggests a significant and likely growing requirement for such advanced endpoint security solutions. Agencies often consolidate their cybersecurity tools and services over time to achieve economies of scale and improve management. If Tanium has been a successful solution for the Air Force in the past, it's plausible that this contract represents a continuation or expansion of previous spending. Analyzing prior contracts for Tanium or similar solutions would reveal trends in investment and adoption within the DoD.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: World Wide Technology Holding CO., Inc.

Address: 1 WORLD WIDE WAY, SAINT LOUIS, MO, 63146

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $107,430,000

Exercised Options: $80,452,500

Current Obligation: $80,452,500

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F400GA

IDV Type: FSS

Timeline