DoD's $55.3M Cyber Operations Contract with 22nd Century Technologies Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $55,345,180 ($55.3M)
Contractor: 22ND Century Technologies, Inc.
Awarding Agency: Department of Defense
Start Date: 2015-09-23
End Date: 2022-12-31
Contract Duration: 2,656 days
Daily Burn Rate: $20.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF DEFENSE CYBER OPERATIONS (DCO) MISSION SERVICES FOR 33 NWS, LAFB
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78243
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $55.3 million to 22ND CENTURY TECHNOLOGIES, INC. for work described as: IGF::CT::IGF DEFENSE CYBER OPERATIONS (DCO) MISSION SERVICES FOR 33 NWS, LAFB Key points: 1. The contract awarded to 22nd Century Technologies, Inc. for Cyber Operations Mission Services is a significant expenditure. 2. Competition was initially limited, raising questions about price discovery and potential value for taxpayers. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method warrants further examination regarding its effectiveness. 4. The sector is IT services, specifically Computer Systems Design, a common area for federal contracting.
Value Assessment
Rating: questionable
Benchmarking the $55.3M contract value against similar Computer Systems Design Services contracts is difficult without more granular data on specific services rendered. The duration and number of orders suggest a substantial, ongoing requirement, but the lack of clear competitive history makes value assessment challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract utilized 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources were excluded. This method can limit the pool of potential bidders and may impact the government's ability to secure the most competitive pricing.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible value for the $55.3M spent on these critical cyber operations services.
Public Impact
Taxpayers may have overpaid due to restricted competition in a critical defense sector. The effectiveness of cyber operations services is paramount for national security, making contract oversight crucial. The long duration (2015-2022) suggests a sustained need, highlighting the importance of competitive pricing over time.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises value concerns
- Lack of transparency in source exclusion
- Potential for inflated pricing
Positive Signals
- Contract addressed critical cyber operations needs
- Long-term engagement indicates sustained requirement
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Federal spending in this area is substantial, driven by the increasing need for cybersecurity and digital infrastructure modernization across all agencies. Benchmarks vary widely based on service complexity and duration.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or if opportunities were missed.
Oversight & Accountability
The contract's long duration and the nature of the services necessitate robust oversight to ensure performance, cost control, and adherence to the terms of the limited competition. The 'exclusion of sources' clause requires particular scrutiny.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for non-competitive pricing
- Lack of transparency in source exclusion
- Questionable value for taxpayer dollars
- Need for enhanced oversight due to limited competition
Tags
computer-systems-design-services, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.3 million to 22ND CENTURY TECHNOLOGIES, INC.. IGF::CT::IGF DEFENSE CYBER OPERATIONS (DCO) MISSION SERVICES FOR 33 NWS, LAFB
Who is the contractor on this award?
The obligated recipient is 22ND CENTURY TECHNOLOGIES, 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 $55.3 million.
What is the period of performance?
Start: 2015-09-23. End: 2022-12-31.
What specific criteria were used to exclude sources in the competition, and how did this exclusion impact the final price and service quality?
The specific criteria for excluding sources are not detailed in the provided data. However, excluding potential bidders typically limits the competitive landscape, which can lead to higher prices if the remaining bidders face less pressure to offer their best terms. It may also impact the range of innovative solutions available. A thorough review of the solicitation documents and justification for exclusion is necessary to assess the full impact.
How does the $55.3M expenditure compare to industry benchmarks for similar cyber operations mission support services, considering the contract's duration and scope?
Direct comparison to industry benchmarks is challenging without detailed service descriptions and performance metrics. However, for a contract spanning approximately seven years (2015-2022) with 8 orders totaling $55.3M, the average annual spend is roughly $7.9M. This figure needs to be evaluated against the complexity and criticality of the cyber operations supported, as well as the specific technologies and expertise required.
What measures were in place to ensure the effectiveness and efficiency of the cyber operations services provided under this contract, especially given the limited competition?
Effectiveness and efficiency measures typically involve performance metrics, service level agreements (SLAs), and regular reporting. Given the limited competition, enhanced oversight and independent verification of performance would be critical. The Department of Defense likely has internal quality assurance processes, but the specific mechanisms for this contract, particularly concerning the 'exclusion of sources,' require detailed examination to ensure accountability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: FA877314R8001
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 EXECUTIVE DR STE 285, SOMERSET, NJ, 08873
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $59,333,930
Exercised Options: $56,840,961
Current Obligation: $55,345,180
Actual Outlays: $15,540,560
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-09-23
Current End Date: 2022-12-31
Potential End Date: 2023-08-31 00:00:00
Last Modified: 2025-04-22
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