DoD awards $70.6M for Cisco hardware, software, and support to Sirius Federal LLC

Contract Overview

Contract Amount: $70,599,102 ($70.6M)

Contractor: Sirius Federal LLC

Awarding Agency: Department of Defense

Start Date: 2019-09-13

End Date: 2023-09-12

Contract Duration: 1,460 days

Daily Burn Rate: $48.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO PROCURE CISCO HARDWARE, SOFTWARE, AND SUPPORT.

Place of Performance

Location: CROFTON, ANNE ARUNDEL County, MARYLAND, 21114

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $70.6 million to SIRIUS FEDERAL LLC for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO PROCURE CISCO HARDWARE, SOFTWARE, AND SUPPORT. Key points: 1. Contract value of $70.6M over four years suggests significant investment in IT infrastructure. 2. Full and open competition indicates a potentially competitive bidding process. 3. Firm Fixed Price contract type aims to control costs and manage contractor risk. 4. Delivery Order award type is common for established IT hardware and software procurements. 5. Contract performance period of four years allows for sustained IT support and upgrades. 6. The North American Industry Classification System (NAICS) code 334111 points to computer manufacturing, though the service is IT support.

Value Assessment

Rating: good

The contract value of $70.6 million over four years for Cisco hardware, software, and support appears reasonable given the scope. While specific per-unit pricing is not detailed, the firm fixed-price structure suggests an effort to contain costs. Benchmarking against similar large-scale IT infrastructure procurements would provide a more precise value assessment, but the duration and nature of the services indicate a substantial, yet potentially well-managed, investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of four bidders (no) indicates a degree of competition, which is generally favorable for price discovery and achieving competitive pricing. The specific details of the bidding process, such as the number of proposals received and their relative strengths, would offer further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through a competitive bidding process, ensuring that the government receives the best value for its investment.

Public Impact

The Department of Defense benefits from updated and supported Cisco IT infrastructure, crucial for its operations. Services delivered include the provision of hardware, software, and ongoing support for these IT components. The geographic impact is likely widespread within the Department of Defense, supporting various installations and units. Workforce implications may include the need for IT personnel to manage and integrate the new Cisco systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Cisco products, limiting future flexibility.
Reliance on a single vendor for critical hardware and software could pose supply chain risks.
The scope of 'support' is broad and may require detailed performance metrics to ensure adequate service levels.

Positive Signals

Firm Fixed Price contract helps manage budget predictability.
Full and open competition suggests a robust procurement process.
Long-term support contract ensures continuity of IT operations.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on network hardware, software, and associated support services. The IT sector is a significant area of federal spending, with agencies constantly needing to update and maintain their technological infrastructure. Comparable spending benchmarks would involve looking at other large-scale IT procurements for network equipment and maintenance across various federal agencies, particularly those with similar operational complexities to the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Sirius Federal LLC, is likely a large business, and the contract's value suggests it is not geared towards small business participation through set-asides. Further analysis would be needed to determine if any subcontracting opportunities exist within the prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) and the Department of Defense contracting officers. Accountability measures are embedded within the firm fixed-price contract terms, requiring Sirius Federal LLC to deliver specified hardware, software, and support. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Department of Defense Enterprise IT initiatives
Network Infrastructure Modernization Programs
Cybersecurity Hardware and Software Procurements

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Risk of vendor lock-in with Cisco products.
Dependence on contractor's ability to manage supply chain for hardware.
Ensuring adequate performance and responsiveness for support services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $70.6 million to SIRIUS FEDERAL LLC. THE PURPOSE OF THIS REQUIREMENT IS TO PROCURE CISCO HARDWARE, SOFTWARE, AND 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 $70.6 million.

What is the period of performance?

Start: 2019-09-13. End: 2023-09-12.

What is the track record of Sirius Federal LLC in fulfilling similar large-scale IT contracts for the Department of Defense?

Assessing the track record of Sirius Federal LLC requires a review of their past performance on similar contracts. This would involve examining contract databases for previous awards to Sirius Federal LLC, particularly those involving Cisco hardware, software, and support for federal agencies, especially the Department of Defense. Key performance indicators to look for include on-time delivery, adherence to budget, quality of service, and any reported contract disputes or terminations. A history of successful contract completion would indicate a lower risk for this current award, while a pattern of issues might raise concerns about Sirius Federal LLC's capacity to meet the requirements of this $70.6 million contract.

How does the per-unit cost of the Cisco hardware and software compare to market rates or other government contracts?

Determining the per-unit cost comparison requires access to the detailed pricing breakdown within the contract, which is not publicly available in the provided data. However, a general assessment can be made by comparing the total contract value ($70.6 million) against the expected quantity and type of Cisco hardware and software. If the contract specifies a large quantity of standard Cisco equipment, market research and comparison with other government contracts (e.g., through GSA schedules or other agency procurements) could reveal if the pricing is competitive. Without specific unit costs, it's difficult to definitively benchmark value, but the firm fixed-price nature suggests an attempt to lock in prices.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract include potential vendor lock-in with Cisco products, supply chain disruptions affecting hardware delivery, and ensuring adequate service levels for the 'support' component. Mitigation strategies are likely embedded in the contract's terms and conditions. For vendor lock-in, the government might have clauses allowing for interoperability or future transitions. Supply chain risks are managed through delivery schedules and potentially penalties for delays. Service level agreements (SLAs) within the support component would define performance expectations and remedies for non-performance, thereby mitigating risks related to service quality.

How effective is the firm fixed-price contract type in ensuring value for money for this IT procurement?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money by shifting cost risk to the contractor. For this $70.6 million award, FFP means Sirius Federal LLC is obligated to deliver the specified Cisco hardware, software, and support for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to be efficient and manage their expenses. It also provides budget certainty for the Department of Defense. However, the effectiveness hinges on the accuracy of the initial cost estimates and the clarity of the contract's scope; if the scope is poorly defined, it could lead to change orders or disputes.

What is the historical spending trend for similar Cisco hardware, software, and support contracts within the Department of Defense?

Analyzing historical spending trends for similar contracts within the Department of Defense would involve querying federal procurement databases for awards related to Cisco products and support services over several fiscal years. This would help identify patterns in contract values, durations, and awarded contractors. Understanding these trends can reveal whether spending on such IT infrastructure is increasing, decreasing, or remaining stable, and whether this $70.6 million award is consistent with past investments or represents a significant shift. It also helps in benchmarking the current award against previous procurements.

What are the implications of awarding this contract under 'full and open competition' with four bidders for future IT procurements?

Awarding this contract under 'full and open competition' with four bidders suggests a healthy level of market interest and capability for providing Cisco solutions. This outcome implies that the procurement strategy was effective in attracting multiple qualified vendors. For future IT procurements, this positive signal could encourage more vendors to participate, potentially leading to even greater competition and better pricing. It also provides the Department of Defense with valuable market intelligence regarding vendor capabilities and pricing structures, which can inform subsequent acquisition strategies.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $70,599,102

Exercised Options: $70,599,102

Current Obligation: $70,599,102

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC11B

IDV Type: GWAC

Timeline