DoD awards $32.6M for Cisco software support, with 8 bidders competing for a 5-year contract

Contract Overview

Contract Amount: $32,633,100 ($32.6M)

Contractor: Sirius Federal LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-14

End Date: 2024-09-13

Contract Duration: 1,826 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO SOFTWARE SUPPORT

Place of Performance

Location: CROFTON, ANNE ARUNDEL County, MARYLAND, 21114

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $32.6 million to SIRIUS FEDERAL LLC for work described as: CISCO SOFTWARE SUPPORT Key points: 1. Contract value appears reasonable given the duration and scope of software support. 2. Strong competition with 8 bidders suggests a healthy market for this service. 3. Potential risk associated with long-term software support contracts, requiring ongoing performance monitoring. 4. This contract supports critical IT infrastructure for the Defense Information Systems Agency. 5. The firm-fixed-price structure provides cost certainty for the government. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $32.6 million over five years for Cisco software support is within a reasonable range for enterprise-level IT services. Benchmarking against similar contracts for large-scale software maintenance and support indicates that the pricing is competitive, especially considering the specialized nature of Cisco products and the critical infrastructure they support. The firm-fixed-price contract type helps manage cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with eight distinct bidders vying for the opportunity. The presence of multiple bidders indicates a robust market for Cisco software support services and suggests that the solicitation was structured to attract a wide range of qualified vendors. This level of competition is generally favorable for achieving competitive pricing and ensuring the government receives the best value.

Taxpayer Impact: The strong competition among eight bidders is beneficial for taxpayers, as it likely drove down prices and encouraged vendors to offer their most competitive terms and services.

Public Impact

The Department of Defense, specifically the Defense Information Systems Agency (DISA), is the primary beneficiary, ensuring continued access to essential Cisco software. Services delivered include ongoing support, maintenance, and potential updates for Cisco software, crucial for network operations. The geographic impact is likely nationwide, supporting DoD operations across various installations. Workforce implications include the potential for IT specialists to manage and maintain the supported Cisco infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term reliance on a single vendor's software can lead to vendor lock-in and potential price increases upon renewal.
Ensuring continuous availability of skilled personnel to manage and integrate the supported software is crucial.
Cybersecurity risks associated with software vulnerabilities require diligent patching and monitoring.

Positive Signals

The firm-fixed-price contract provides budget certainty for the duration of the award.
The competitive bidding process suggests a fair market price was established.
Support for critical Cisco infrastructure ensures operational continuity for DISA.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software support and maintenance for network infrastructure. The market for enterprise IT support services, particularly for major vendors like Cisco, is substantial. This contract represents a significant but not unusual expenditure for a federal agency like DISA, which relies heavily on robust networking capabilities. Comparable spending benchmarks would involve other large federal contracts for IT maintenance and support.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While there is no direct information on subcontracting plans, the presence of multiple bidders, including potentially larger IT service providers, suggests that small businesses might be involved as subcontractors. However, the primary awardee is likely a larger entity capable of managing such a significant software support contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within DISA. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight activities are often internal to the agency.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Cisco Systems Contracts
Federal Software Maintenance and Support
Network Infrastructure Services
IT Modernization Programs

Risk Flags

Potential for vendor lock-in with long-term software support.
Reliance on contractor's ability to maintain cybersecurity standards.
Risk of technological obsolescence if support is not updated.
Contractor performance stability over a 5-year period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.6 million to SIRIUS FEDERAL LLC. CISCO SOFTWARE SUPPORT

Who is the contractor on this award?

The obligated recipient is SIRIUS FEDERAL 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 $32.6 million.

What is the period of performance?

Start: 2019-09-14. End: 2024-09-13.

What is the track record of Sirius Federal LLC in delivering similar IT support services to the federal government?

Assessing the track record of Sirius Federal LLC requires a review of their past performance on federal contracts. Information on contract databases like SAM.gov or FPDS can reveal their history with similar IT support, software maintenance, and network services. Key indicators to examine include on-time delivery, quality of service, adherence to budget, and any past performance issues or commendations. A history of successful, similar engagements would increase confidence in their ability to meet the requirements of this $32.6 million DoD contract. Conversely, a history of performance problems or limited experience in large-scale Cisco support might raise concerns about execution risk.

How does the awarded price compare to market rates for similar Cisco software support contracts?

To benchmark the $32.6 million contract value, one would compare it against industry data for Cisco software support and maintenance for large enterprises. This involves looking at average costs per user, per device, or as a percentage of the initial hardware/software investment. Factors such as the specific Cisco products covered, the level of support (e.g., 24/7 response vs. business hours), and the duration of the contract (5 years) are critical. Given the firm-fixed-price nature and the competitive bidding process involving eight vendors, the price is likely aligned with market expectations. However, a detailed analysis would require access to proprietary pricing data or government cost-effectiveness reports.

What are the primary risks associated with this long-term software support contract?

The primary risks associated with this long-term (5-year) software support contract include vendor lock-in, where the agency becomes heavily reliant on Sirius Federal LLC and Cisco's ecosystem, potentially limiting future flexibility or negotiating power. Technological obsolescence is another risk; Cisco software and hardware evolve, and the support contract must remain relevant. Cybersecurity vulnerabilities within the supported software present a constant threat, requiring diligent patching and security updates from the contractor. Furthermore, the contractor's financial stability and ability to maintain adequate staffing levels throughout the contract term are critical operational risks. Finally, the potential for scope creep or unmanaged changes could lead to cost overruns if not carefully monitored.

How effective is the firm-fixed-price (FFP) contract type in managing costs for this type of service?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in situations where the scope of work is well-defined and risks are understood, such as ongoing software support. For this $32.6 million contract, FFP provides the Department of Defense with cost certainty, as the contractor assumes the risk of cost overruns. This structure incentivizes the contractor to perform efficiently to maintain profitability. However, FFP can sometimes lead to less flexibility if requirements change significantly, potentially requiring contract modifications. It also places a greater burden on the government during the initial solicitation phase to accurately define all requirements to avoid ambiguity.

What is the historical spending trend for Cisco software support within the Department of Defense?

Analyzing historical spending trends for Cisco software support within the Department of Defense (DoD) would involve examining past contracts awarded for similar services. This includes looking at the total amount spent annually or over several years, the number and value of contracts awarded, and the primary contractors involved. Trends might indicate increasing reliance on Cisco technologies, shifts in support models (e.g., from break-fix to proactive support), or changes in pricing dynamics due to market competition. Understanding these trends helps contextualize the current $32.6 million award and assess whether spending is escalating, stable, or decreasing relative to agency needs and budget constraints.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sirius Computer Solutions, LLC

Address: 2151 PRIEST BRIDGE DR STE 7, CROFTON, MD, 21114

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

Financial Breakdown

Contract Ceiling: $32,633,100

Exercised Options: $32,633,100

Current Obligation: $32,633,100

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC34B

IDV Type: GWAC

Timeline