DoD awards $38.7M for cyber ops support, with 6 bidders and a firm fixed price contract
Contract Overview
Contract Amount: $38,723,754 ($38.7M)
Contractor: Octo Metric LLC
Awarding Agency: Department of Defense
Start Date: 2022-01-14
End Date: 2027-01-13
Contract Duration: 1,825 days
Daily Burn Rate: $21.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: EO14042 DEFENSIVE CYBER OPERATIONS PROGRAM MANAGEMENT SUPPORT SERVICES
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $38.7 million to OCTO METRIC LLC for work described as: EO14042 DEFENSIVE CYBER OPERATIONS PROGRAM MANAGEMENT SUPPORT SERVICES Key points: 1. Contract value of $38.7M over 5 years suggests significant investment in cyber defense capabilities. 2. Full and open competition after exclusion of sources indicates a deliberate procurement strategy. 3. The firm fixed price contract type aims to control costs and provide predictable spending. 4. Performance is located in Virginia, a key hub for defense and cybersecurity activities. 5. The contract is for computer systems design services, aligning with modern defense needs. 6. A total of 6 bidders participated, suggesting a reasonably competitive landscape for this specialized service.
Value Assessment
Rating: good
The contract's firm fixed price structure is a positive indicator for cost control. Benchmarking against similar cyber operations support contracts would provide a clearer picture of value for money. The total award of $38.7M over five years, averaging approximately $7.7M annually, appears reasonable for specialized IT support within the defense sector. However, without specific per-unit cost data or detailed service level agreements, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was intended to be broad, specific criteria or circumstances led to the exclusion of certain potential bidders. Six bidders participated, indicating a moderate level of competition for this specialized service. The exclusion of sources warrants further investigation to understand its impact on price discovery and overall market reach.
Taxpayer Impact: The moderate competition level, despite exclusions, likely helped achieve a fair price. However, understanding the reasons for source exclusion is crucial to ensure taxpayers received the best possible value and that the exclusion did not unduly limit competitive pressure.
Public Impact
The Department of Defense benefits from enhanced defensive cyber operations capabilities. Services delivered include computer systems design and program management support for cyber operations. The geographic impact is concentrated in Virginia, supporting the local tech and defense ecosystem. Workforce implications include skilled IT professionals and cyber specialists employed by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Exclusion of Sources' in the competition type requires scrutiny to ensure fairness and maximize taxpayer value.
- Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
- The specific nature of 'Defensive Cyber Operations' is sensitive, potentially limiting public transparency.
Positive Signals
- Firm Fixed Price contract type provides cost certainty for the government.
- Multiple bidders (6) indicate a degree of market interest and potential for competitive pricing.
- The contract duration of 5 years allows for sustained support and potential for contractor expertise development.
Sector Analysis
This contract falls within the broader IT and professional services sector, specifically focusing on cybersecurity and defense. The market for cybersecurity services is rapidly growing, driven by increasing threats and the digitization of critical infrastructure. Comparable spending benchmarks would involve analyzing other DoD contracts for similar cyber support services, as well as broader government IT services procurements. The $38.7M award is a significant but not extraordinary sum for a 5-year specialized IT support contract within the defense sector.
Small Business Impact
The contract indicates that small business participation was not a primary set-aside consideration, as 'sb' is false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary contractor, OCTO METRIC LLC, is likely a larger entity, and the focus of this procurement was on specialized capabilities rather than small business development. Further analysis of subcontracting plans would be needed to determine the actual impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are embedded within the contract's performance standards and delivery schedules, enforced through the firm fixed price structure. Transparency is limited due to the sensitive nature of cyber operations, but contract awards and basic details are publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- DoD Cyber Command Support Services
- Information Technology Support Services
- Defense Cybersecurity Program Management
- Computer Systems Design Services
- Federal IT Services Contracts
Risk Flags
- Potential for limited competition due to 'Exclusion of Sources'.
- Cybersecurity is a high-risk, rapidly evolving field.
- Contract performance in sensitive cyber operations requires stringent oversight.
Tags
it, defense, cybersecurity, program-management, computer-systems-design, firm-fixed-price, full-and-open-competition-after-exclusion-of-sources, department-of-defense, defense-information-systems-agency, virginia, octo-metric-llc, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.7 million to OCTO METRIC LLC. EO14042 DEFENSIVE CYBER OPERATIONS PROGRAM MANAGEMENT SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is OCTO METRIC 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 $38.7 million.
What is the period of performance?
Start: 2022-01-14. End: 2027-01-13.
What is the track record of OCTO METRIC LLC in performing similar federal contracts, particularly within the Department of Defense?
OCTO METRIC LLC has a history of performing federal contracts, primarily in IT and professional services. While specific details on past performance for 'Defensive Cyber Operations Program Management Support Services' are not provided in the summary data, their award by the Defense Information Systems Agency (DISA) suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance reviews and any reported issues on previous DoD contracts, would be necessary for a comprehensive assessment. Their ability to secure this $38.7M contract indicates a level of trust and capability recognized by the agency, but a thorough review of their performance metrics on prior engagements is crucial for evaluating their reliability and effectiveness in this specific role.
How does the awarded price of $38.7M compare to market rates for similar cybersecurity program management support services?
Benchmarking the $38.7M award against market rates requires detailed analysis of the specific services rendered, the labor categories involved, and the geographic location. The contract is for 5 years, averaging approximately $7.7M annually. Given that it's for specialized defensive cyber operations support within the DoD, this figure appears within a reasonable range for high-demand, skilled services. However, without granular data on the number of personnel, their skill levels, and specific deliverables, a precise comparison is difficult. Factors like the firm fixed price structure and the competitive bidding process (6 bidders) suggest that the price was negotiated to be competitive. Further analysis would involve comparing this contract's value to other similar contracts awarded by DISA or other defense agencies for comparable services.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Primary risks include potential performance shortfalls in critical cyber defense operations, contractor personnel security issues, and the evolving nature of cyber threats requiring constant adaptation. The 'Exclusion of Sources' in the procurement process could also pose a risk if it limited competition unduly, potentially impacting price or innovation. Mitigation strategies likely include robust contract oversight by DISA, defined performance metrics and service level agreements (though not detailed here), and stringent personnel security vetting. The firm fixed price contract type helps mitigate cost overrun risks for the government. However, the inherent complexity and rapid evolution of cyber threats mean that continuous monitoring and adaptive management are essential risk mitigation components.
How effective is the current competition level (6 bidders) in ensuring optimal value for taxpayers?
A competition level of 6 bidders is generally considered healthy and suggests a reasonable degree of market interest and capability for this specialized service. This level of competition typically provides sufficient pressure to drive competitive pricing and encourage contractors to offer their best value propositions. The 'Full and Open Competition After Exclusion of Sources' caveat is important; if the exclusions were substantial or unjustified, the effective competition might be lower than indicated. However, assuming the exclusions were based on legitimate technical or security requirements, 6 bidders provide a solid basis for price discovery and ensuring that taxpayers benefit from a competitive marketplace, rather than a situation with only one or two bidders.
What is the historical spending pattern for defensive cyber operations support services within the Department of Defense?
Historical spending on defensive cyber operations (DCO) support services within the DoD has been on a significant upward trend over the past decade, reflecting the increasing criticality of cybersecurity in modern warfare and national security. Agencies like DISA consistently require substantial investment in maintaining and enhancing their cyber defenses. While the specific $38.7M award to OCTO METRIC LLC is a single data point, it aligns with broader trends of increased federal IT and cybersecurity spending. Analyzing historical data for similar contracts, including their value, duration, and competition levels, would reveal patterns of sustained investment in this area, driven by evolving threat landscapes and technological advancements.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1175 PEACHTREE ST NE STE 1000 FL 10, ATLANTA, GA, 30361
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,635,158
Exercised Options: $47,031,537
Current Obligation: $38,723,754
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $35,959,608
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 75N98119D00087
IDV Type: GWAC
Timeline
Start Date: 2022-01-14
Current End Date: 2027-01-13
Potential End Date: 2027-01-13 00:00:00
Last Modified: 2026-01-08
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