Air Force Awards $52.7M F-15QA Cybersecurity Systems Contract to D7, LLC
Contract Overview
Contract Amount: $52,686,059 ($52.7M)
Contractor: D7, LLC
Awarding Agency: Department of Defense
Start Date: 2020-10-01
End Date: 2026-09-30
Contract Duration: 2,190 days
Daily Burn Rate: $24.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: QATAR F-15QA CYBERSECURITY SYSTEMS
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80920
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $52.7 million to D7, LLC for work described as: QATAR F-15QA CYBERSECURITY SYSTEMS Key points: 1. Contract awarded to D7, LLC for cybersecurity systems for Qatar's F-15QA aircraft. 2. The contract is a definitive contract with a cost-plus-fixed-fee pricing structure. 3. This award is not available for competition, raising potential concerns about price discovery. 4. The sector is Information Technology, specifically computer-related services.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to benchmark pricing against similar contracts to assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract is sole-source, meaning it was not subject to competitive bidding. This limits price discovery and may result in a higher cost to the government than if multiple vendors had competed.
Taxpayer Impact: The sole-source nature of this contract raises concerns about taxpayer value, as the absence of competition may lead to inflated prices.
Public Impact
Enhances the cybersecurity posture of Qatar's F-15QA fighter jets. Supports a key foreign military sales program, strengthening international partnerships. Potential for increased costs due to lack of competitive bidding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus-fixed-fee contract type
- Lack of transparency in pricing
Positive Signals
- Supports critical defense capabilities for an allied nation
- Addresses essential cybersecurity needs
Sector Analysis
This contract falls within the IT sector, specifically under 'Other Computer Related Services'. Spending in this area is substantial across the government, supporting a wide range of digital infrastructure and security needs.
Small Business Impact
The contract was awarded to D7, LLC, and there is no indication of small business participation in this specific award. Further analysis would be needed to determine if subcontracting opportunities exist.
Oversight & Accountability
As a sole-source award, this contract warrants close oversight to ensure costs are reasonable and performance meets requirements. The Department of the Air Force is responsible for monitoring this contract.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Cost-plus-fixed-fee contract type can lead to cost overruns.
- Lack of transparency regarding specific cybersecurity threats addressed.
- Potential for higher costs to taxpayers due to non-competitive nature.
Tags
other-computer-related-services, department-of-defense, co, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.7 million to D7, LLC. QATAR F-15QA CYBERSECURITY SYSTEMS
Who is the contractor on this award?
The obligated recipient is D7, 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 $52.7 million.
What is the period of performance?
Start: 2020-10-01. End: 2026-09-30.
What is the justification for the sole-source award, and how was the fixed fee determined to ensure a fair price?
The justification for a sole-source award typically involves unique capabilities or urgent needs that only one vendor can meet. The fixed fee in a Cost Plus Fixed Fee contract is negotiated upfront and represents the contractor's profit. Determining fairness involves reviewing the contractor's proposed costs, market research, and historical pricing data, though this is more challenging without competition.
What are the specific cybersecurity risks being addressed by these systems, and how does this contract mitigate them?
The specific cybersecurity risks are not detailed in the provided data but likely pertain to protecting the F-15QA aircraft's digital systems from cyber threats, espionage, and disruption. These systems are crucial for maintaining operational integrity and mission success in a complex threat environment. The contract aims to mitigate these risks by providing specialized cybersecurity solutions tailored to the aircraft's architecture.
How will the effectiveness of these cybersecurity systems be measured and validated throughout the contract period?
Effectiveness is typically measured through performance metrics, testing, and operational feedback. This could include penetration testing, vulnerability assessments, incident response times, and successful threat mitigation. The Department of the Air Force would establish specific Key Performance Indicators (KPIs) and conduct regular reviews to ensure the systems are performing as expected and adequately protecting the F-15QA aircraft.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA873020R0044
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1755 TELSTAR DR STE 500, COLORADO SPRINGS, CO, 80920
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,186,059
Exercised Options: $53,186,059
Current Obligation: $52,686,059
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-07-30
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