DoD's $11M Secure Mobile Device Gateway contract awarded to Apriva ISS LLC raises questions on competition and value

Contract Overview

Contract Amount: $11,009,218 ($11.0M)

Contractor: Apriva ISS LLC

Awarding Agency: Department of Defense

Start Date: 2015-08-01

End Date: 2017-11-30

Contract Duration: 852 days

Daily Burn Rate: $12.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF SECURE MOBILE DEVICE GATEWAY (SMDG)

Place of Performance

Location: SCOTTSDALE, MARICOPA County, ARIZONA, 85251

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to APRIVA ISS LLC for work described as: IGF::CT::IGF SECURE MOBILE DEVICE GATEWAY (SMDG) Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Lack of competition suggests potential risks in contractor performance and innovation. 3. The contract duration of 852 days (approx. 2.3 years) is substantial for a telecommunications service. 4. Fixed-price contract type offers some cost certainty but may not incentivize efficiency. 5. The specific service (Telecommunications Resellers) is critical for secure mobile communications. 6. Awarded to a single vendor, raising concerns about market concentration for this specific service.

Value Assessment

Rating: questionable

Benchmarking the value for this specific 'Secure Mobile Device Gateway' is challenging due to its sole-source nature. Without competitive bids, it's difficult to ascertain if the $11 million awarded represents a fair market price. The fixed-price contract type provides some cost control, but the absence of competition means there's less pressure on the contractor to offer the most cost-effective solution. Comparing this to similar, competitively bid mobile gateway services would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning only one vendor, Apriva ISS LLC, was considered. This approach bypasses the standard competitive bidding process, which typically involves multiple companies submitting proposals. The lack of competition means that taxpayers did not benefit from the potential cost savings and innovation that can arise from a bidding war among qualified vendors. It also limits the government's ability to explore alternative solutions or technologies.

Taxpayer Impact: The sole-source award means taxpayers may have paid a premium compared to what a competitive process might have yielded. It also reduces transparency in pricing and service delivery.

Public Impact

Provides secure mobile device gateway services, likely for Department of Defense personnel. Enhances the security of mobile communications for sensitive government operations. Supports the operational readiness and data protection of military and civilian staff. The geographic impact is likely nationwide, supporting deployed personnel and various DoD facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to higher costs.
Lack of competition may reduce incentives for innovation and service improvement.
Limited transparency in pricing due to the absence of multiple bids.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Apriva ISS LLC is a known entity in the secure communications space.
The service addresses a critical need for secure mobile device access within the DoD.

Sector Analysis

The telecommunications resellers market, categorized under NAICS code 517911, involves companies that provide telecommunications services without owning the network infrastructure. This contract falls within the broader IT and telecommunications sector, which is a significant area of federal spending. The DoD's reliance on secure mobile solutions highlights the growing importance of cybersecurity and resilient communication networks. Comparable spending in this sector often involves large-scale network infrastructure, software development, and managed services.

Small Business Impact

There is no indication that this contract included small business set-asides or subcontracting requirements. The award to Apriva ISS LLC, a single entity, does not provide direct opportunities for small businesses to participate as prime contractors. Further investigation would be needed to determine if Apriva ISS LLC has any subcontracting plans that would involve small businesses in the delivery of these services.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Information Systems Agency (DISA) and potentially the Department of Defense Inspector General. As a sole-source award, scrutiny might be higher to ensure the justification for not competing was valid and that the pricing is reasonable. Transparency is limited due to the lack of a competitive process, making it harder for the public to assess value.

Related Government Programs

DoD Secure Communications Contracts
Mobile Device Management Solutions
Telecommunications Services for Government

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited innovation incentives

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to APRIVA ISS LLC. IGF::CT::IGF SECURE MOBILE DEVICE GATEWAY (SMDG)

Who is the contractor on this award?

The obligated recipient is APRIVA ISS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2015-08-01. End: 2017-11-30.

What specific security features does the Secure Mobile Device Gateway (SMDG) provide, and how do they align with current DoD cybersecurity requirements?

The provided data does not detail the specific security features of the Secure Mobile Device Gateway (SMDG). However, given its purpose within the Department of Defense (DoD), it is expected to provide robust security measures such as end-to-end encryption, multi-factor authentication, secure data transmission protocols, and potentially device integrity checks. These features would need to align with stringent DoD cybersecurity mandates, including those outlined in directives like DoD Instruction 8500.01 (Cybersecurity) and NIST (National Institute of Standards and Technology) frameworks. The effectiveness of these features would be crucial for protecting sensitive government information from unauthorized access, interception, and cyber threats, especially considering the mobile nature of the devices it supports.

What was the justification for awarding this contract on a sole-source basis, and were alternative vendors or solutions considered?

The justification for awarding this contract on a sole-source basis is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, or urgent and compelling needs where competition is not feasible. For this contract, the Defense Information Systems Agency (DISA) would have had to document why Apriva ISS LLC was the only viable option. Without this documentation, it's impossible to confirm if alternative vendors or solutions were genuinely considered or if the justification was robust enough to warrant bypassing the competitive process.

How does the $11 million contract value compare to similar secure mobile gateway services procured by other federal agencies or the private sector?

Direct comparison of the $11 million contract value for Apriva ISS LLC's Secure Mobile Device Gateway (SMDG) is difficult without more specific service details and a competitive benchmark. However, the sole-source nature of this award inherently limits our ability to assess its market competitiveness. Generally, sole-source contracts can be more expensive than competitively bid ones. To perform a true comparison, one would need to identify similar secure mobile gateway solutions procured competitively by other agencies or large private sector organizations, analyze their contract values, service scopes, user bases, and contract types (e.g., firm-fixed-price vs. cost-plus) to establish a relevant benchmark for value-for-money.

What is Apriva ISS LLC's track record with the federal government, particularly in providing secure mobile communication solutions?

Apriva ISS LLC has a history of contracting with the federal government, particularly in the realm of secure communications and payment processing. While the provided data focuses on this specific $11 million contract, Apriva has been involved in other government contracts related to secure mobile solutions and payment systems. Their experience suggests a familiarity with government requirements for security and reliability. However, a comprehensive assessment of their track record would involve reviewing past performance evaluations, any past issues or disputes, and the overall success of their previous government engagements to gauge their capability and reliability in delivering secure mobile communication services.

What are the potential risks associated with a sole-source award for critical infrastructure like a secure mobile device gateway?

Sole-source awards for critical infrastructure like a secure mobile device gateway carry several potential risks. Firstly, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer the most cost-effective solution. Secondly, it can stifle innovation, as the government is locked into one vendor's technology without exploring potentially superior or more advanced alternatives that might emerge from a competitive market. Thirdly, there's an increased dependency on a single vendor, which can create vulnerabilities if that vendor experiences financial difficulties, operational issues, or decides to discontinue the service. Finally, the absence of competitive benchmarking makes it harder to ensure the service remains aligned with evolving market standards and best practices.

How does the 'Telecommunications Resellers' classification (NAICS 517911) apply to this contract, and what does it imply about the service provided?

The classification 'Telecommunications Resellers' (NAICS 517911) indicates that Apriva ISS LLC is providing telecommunications services without owning the underlying network infrastructure. This means they likely lease capacity from major telecommunications carriers (like AT&T, Verizon, etc.) and bundle these services, adding value through management, security, billing, or specialized features. For this 'Secure Mobile Device Gateway' contract, it implies that Apriva is managing the connectivity and security layers for mobile devices, ensuring they can securely access DoD networks and resources, rather than building the physical network itself. This model allows for flexibility and potentially faster deployment of services.

Industry Classification

NAICS: Information › Other Telecommunications › Telecommunications Resellers

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HC101315R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8501 N SCOTTSDALE RD STE 110, PARADISE VALLEY, AZ, 85253

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,774,107

Exercised Options: $11,009,218

Current Obligation: $11,009,218

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline