DoD's $41.8M TANIUM contract for automated remediation and discovery shows fair value with a competitive landscape

Contract Overview

Contract Amount: $41,773,833 ($41.8M)

Contractor: EC America, Inc

Awarding Agency: Department of Defense

Start Date: 2022-02-28

End Date: 2024-09-26

Contract Duration: 941 days

Daily Burn Rate: $44.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AUTOMATED REMEDIATION AND DISCOVERY (ARAD) TANIUM

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $41.8 million to EC AMERICA, INC for work described as: AUTOMATED REMEDIATION AND DISCOVERY (ARAD) TANIUM Key points: 1. The contract's value appears reasonable when benchmarked against similar IT solutions. 2. Full and open competition suggests a healthy market with potential for price discovery. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is contextually aligned with the Department of the Air Force's IT modernization efforts. 5. This contract positions the DoD within the broader cybersecurity and endpoint management sector. 6. The duration of the contract indicates a sustained need for these capabilities.

Value Assessment

Rating: good

The contract's total value of approximately $41.8 million over its period of performance appears to be within a reasonable range for enterprise-level endpoint security and management solutions. Benchmarking against similar large-scale IT procurements for cybersecurity tools suggests that the pricing is competitive. The firm-fixed-price structure further supports value by locking in costs and shifting risk to the contractor. While specific per-unit cost data is not provided, the overall contract value aligns with industry expectations for comprehensive endpoint detection and response capabilities.

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 offers. The presence of multiple bidders, though the exact number is not specified, suggests a robust competitive environment. This level of competition is generally favorable for price discovery and ensures that the government receives proposals from various vendors vying for the contract, potentially leading to more innovative and cost-effective solutions.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it drives down prices through market forces and encourages a wider range of vendors to participate, preventing potential monopolies and ensuring better use of public funds.

Public Impact

The Department of Defense, specifically the Department of the Air Force, benefits from enhanced cybersecurity capabilities. Services delivered include automated remediation and discovery of threats on endpoints. The geographic impact is likely nationwide within Air Force installations and operations. Workforce implications include support for IT security personnel and potentially reduced manual effort in threat management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if TANIUM becomes deeply integrated into Air Force IT infrastructure.
Reliance on a single vendor for critical cybersecurity functions could pose a risk if the vendor experiences financial instability or service disruptions.
The effectiveness of 'automated remediation' needs continuous monitoring to ensure it does not inadvertently disrupt critical operations.

Positive Signals

The use of a well-established technology platform like TANIUM suggests a proven solution for endpoint management.
The firm-fixed-price contract type provides cost certainty for the government.
Full and open competition indicates a healthy market and potential for competitive pricing.
The contract duration suggests a long-term strategic investment in cybersecurity.

Sector Analysis

The cybersecurity market, particularly for endpoint detection and response (EDR) and security orchestration, automation, and response (SOAR) solutions, is a rapidly growing sector within the broader IT industry. This contract fits within the defense sector's increasing focus on advanced cyber capabilities to protect critical infrastructure and data. Comparable spending benchmarks in this area often involve multi-million dollar contracts for enterprise-wide deployments of similar technologies, reflecting the high demand and complexity of securing large government networks.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions. While the prime contractor is EC AMERICA, INC., there is no explicit information regarding subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem would depend on whether EC AMERICA, INC. actively seeks small business partners for specialized services or components, which is not detailed here.

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 facilitated by the contract's public availability through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Cybersecurity Software and Licenses
IT Professional Services
Endpoint Detection and Response (EDR)
Network Security
IT Infrastructure Modernization

Risk Flags

Potential for operational disruption due to automated remediation.
Reliance on a single vendor for critical cybersecurity functions.
Need for continuous monitoring and validation of automated processes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.8 million to EC AMERICA, INC. AUTOMATED REMEDIATION AND DISCOVERY (ARAD) TANIUM

Who is the contractor on this award?

The obligated recipient is EC AMERICA, INC.

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 $41.8 million.

What is the period of performance?

Start: 2022-02-28. End: 2024-09-26.

What is the track record of EC AMERICA, INC. in delivering similar IT solutions to the Department of Defense?

EC AMERICA, INC. has a history of performing IT-related contracts for various government agencies, including the Department of Defense. Their experience often involves providing software, hardware, and related services. For this specific contract, the award suggests they possess the necessary capabilities and past performance to meet the requirements for Automated Remediation and Discovery (ARAD) using the TANIUM platform. Further analysis of their contract history, including performance evaluations and any past issues, would provide a more comprehensive understanding of their reliability and expertise in delivering complex IT solutions within the defense sector.

How does the value of this contract compare to other TANIUM deployments in the federal government?

The $41.8 million contract value for the DoD's TANIUM deployment is significant and aligns with enterprise-level procurements of this technology. TANIUM is known for its comprehensive endpoint management and security capabilities, often deployed across large organizations. Federal spending on TANIUM licenses and services can range from hundreds of thousands to tens of millions of dollars, depending on the scope, number of endpoints, and duration of the contract. This specific award appears to be a substantial investment, reflecting a broad implementation within the Air Force, and is likely comparable to other large federal agency procurements of TANIUM for similar purposes, such as cybersecurity and IT operations.

What are the primary risks associated with the 'Automated Remediation and Discovery' aspect of this contract?

The primary risks associated with automated remediation and discovery (ARAD) using TANIUM involve the potential for unintended consequences. Automated actions, if not precisely configured or if encountering unforeseen system behaviors, could disrupt critical Air Force operations or inadvertently remove necessary system components. There's also a risk of false positives, where the system flags benign activities as malicious, leading to unnecessary remediation. Ensuring robust testing, validation, and human oversight protocols are in place is crucial to mitigate these risks. The effectiveness and safety of automated remediation are highly dependent on the quality of the rules, the accuracy of the discovery process, and the continuous monitoring by skilled personnel.

How effective is the TANIUM platform in meeting the DoD's cybersecurity and IT management needs?

The TANIUM platform is generally regarded as a highly effective solution for enterprise endpoint security and IT operations management. It provides capabilities for real-time visibility, control, and remediation across a vast number of endpoints, which is critical for large organizations like the Department of Defense. Its ability to perform automated discovery and remediation addresses key challenges in managing complex IT environments and responding to cyber threats rapidly. The DoD's decision to award a substantial contract for TANIUM suggests a strategic reliance on its capabilities to enhance cybersecurity posture, manage IT assets efficiently, and improve operational resilience against evolving threats.

What has been the historical spending trend for TANIUM or similar endpoint security solutions within the Department of the Air Force?

Historical spending on TANIUM and similar advanced endpoint security solutions within the Department of the Air Force has likely shown an increasing trend, mirroring the broader federal government's heightened focus on cybersecurity. While specific historical data for TANIUM within the Air Force isn't provided, agencies have increasingly invested in comprehensive endpoint solutions to combat sophisticated cyber threats. This includes platforms that offer integrated capabilities for detection, response, and management across diverse networks. The $41.8 million award signifies a significant, sustained investment, suggesting that previous spending may have been on smaller scales or for different components, and now represents a consolidation or expansion of TANIUM's role.

What is the potential impact of this contract on the broader cybersecurity market, particularly regarding competition?

This contract, awarded under full and open competition, reinforces TANIUM's position in the federal cybersecurity market and signals continued demand for advanced endpoint solutions. The significant value suggests that TANIUM is a key player capable of handling large-scale federal deployments. While this specific award benefits TANIUM and its prime contractor, the competitive nature of the procurement process encourages other vendors in the EDR and endpoint management space to innovate and refine their offerings to compete for future opportunities. It highlights the market's maturity and the government's commitment to leveraging sophisticated tools for national security.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arrow Electronics, Inc.

Address: 8444 WESTPARK DR STE 200, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $41,773,833

Exercised Options: $41,773,833

Current Obligation: $41,773,833

Parent Contract

Parent Award PIID: N6600119A0057

IDV Type: BPA

Timeline