DoD's $39.8M cybersecurity contract with TEKSYNAP CORPORATION shows fair value despite limited competition

Contract Overview

Contract Amount: $39,855,125 ($39.9M)

Contractor: Teksynap Corporation

Awarding Agency: Department of Defense

Start Date: 2018-08-20

End Date: 2023-07-31

Contract Duration: 1,806 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CYBERSECURITY&COMPUTER NETWORK DEFENSE

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.9 million to TEKSYNAP CORPORATION for work described as: CYBERSECURITY&COMPUTER NETWORK DEFENSE Key points: 1. Value for money appears reasonable given the specialized nature of cybersecurity services. 2. Competition was limited, potentially impacting price discovery and overall value. 3. Risk indicators are moderate, with performance context suggesting a need for ongoing oversight. 4. This contract positions TEKSYNAP as a key provider within the Defense Threat Reduction Agency's IT infrastructure. 5. The contract's duration and cost structure warrant close monitoring for efficiency.

Value Assessment

Rating: fair

The contract's total value of approximately $39.8 million over its period of performance suggests a moderate investment for cybersecurity and network defense services. Benchmarking against similar contracts is challenging due to the specific nature of the services and the limited competition. However, the cost-plus-fixed-fee structure allows for flexibility while aiming to control costs. Further analysis of the fixed fee component relative to the scope of work would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while a competitive process was intended, specific sources were excluded. The exact number of bidders is not detailed, but the 'exclusion of sources' suggests a narrower field than full and open competition. This limited competition may have influenced the final pricing and potentially reduced the incentive for aggressive bidding.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the lowest possible prices that a broader, more inclusive bidding process could have yielded.

Public Impact

The Department of Defense benefits from enhanced cybersecurity and computer network defense capabilities. Services delivered are critical for protecting sensitive military networks and data. The geographic impact is primarily within the operational areas of the Defense Threat Reduction Agency. Workforce implications include specialized IT and cybersecurity roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
The cost-plus-fixed-fee contract type requires careful monitoring to ensure cost control.
The 'exclusion of sources' clause warrants scrutiny to ensure fairness and necessity.

Positive Signals

The contract addresses a critical national security need for cybersecurity.
TEKSYNAP CORPORATION is providing specialized services to a key defense agency.
The contract duration indicates a sustained effort in network defense.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on cybersecurity and computer network defense. The federal cybersecurity market is substantial and growing, driven by increasing threats. This contract represents a portion of the Department of Defense's significant investment in maintaining secure and resilient networks. Comparable spending benchmarks in this niche are difficult to establish precisely due to the specialized nature of the services and the specific agency requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The focus remains on larger, potentially specialized contractors capable of meeting the complex cybersecurity requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency's contracting officers and program managers. Accountability measures are embedded within the contract's performance work statement and reporting requirements. Transparency is facilitated through contract award data, though detailed performance metrics may be internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Cybersecurity Services
Computer Network Defense
IT Infrastructure Support
Defense Threat Reduction Agency Contracts

Risk Flags

Limited competition may impact price.
Cost-plus-fixed-fee requires diligent oversight.
Cybersecurity is a high-stakes domain.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.9 million to TEKSYNAP CORPORATION. CYBERSECURITY&COMPUTER NETWORK DEFENSE

Who is the contractor on this award?

The obligated recipient is TEKSYNAP CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $39.9 million.

What is the period of performance?

Start: 2018-08-20. End: 2023-07-31.

What is TEKSYNAP CORPORATION's track record with federal contracts, particularly within the Department of Defense?

TEKSYNAP CORPORATION has a history of securing federal contracts, primarily with the Department of Defense. Their contract portfolio often centers around IT services, cybersecurity, and network defense. While specific performance details for each contract are not publicly available in detail, their continued award of contracts, including this significant one with the Defense Threat Reduction Agency (DTRA), suggests a satisfactory performance history and capability to meet DoD requirements. Further investigation into past performance reviews and any reported issues would provide a more comprehensive understanding of their track record.

How does the value of this contract compare to similar cybersecurity contracts awarded by the DoD?

Direct comparison of this $39.8 million contract to similar cybersecurity contracts is challenging due to the specificity of services and the 'exclusion of sources' competition. However, the total contract value over its multi-year period is substantial, reflecting the critical nature of cybersecurity for the DoD. Contracts for advanced network defense and threat reduction can range widely, from a few million to tens or even hundreds of millions of dollars, depending on scope, duration, and technology involved. The cost-plus-fixed-fee structure also influences the overall financial picture compared to fixed-price contracts. This contract appears to be within a reasonable range for specialized, long-term cybersecurity support for a major defense agency.

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

Key risks include potential cost overruns due to the cost-plus-fixed-fee structure, the possibility of inadequate cybersecurity measures if performance falters, and the implications of limited competition on price and innovation. Mitigation strategies likely involve rigorous oversight by DTRA contracting officers, detailed performance metrics within the contract, regular reporting requirements, and potentially independent security audits. The fixed fee component provides some cost certainty, but continuous monitoring of expenditures and performance against the statement of work is crucial to manage risks effectively.

How effective has TEKSYNAP CORPORATION been in delivering cybersecurity and computer network defense services under this contract?

Assessing the effectiveness of TEKSYNAP CORPORATION's service delivery requires access to internal performance metrics and evaluations by the Defense Threat Reduction Agency (DTRA), which are not publicly disclosed. However, the fact that the contract was awarded and has progressed through its period of performance suggests that DTRA has found their services to be adequate or satisfactory to meet their cybersecurity needs. Continued funding and task orders indicate ongoing reliance on their capabilities. A definitive judgment on effectiveness would necessitate a review of DTRA's performance assessments and any incident reports related to network security during the contract's tenure.

What are the historical spending patterns for cybersecurity and network defense within the Defense Threat Reduction Agency?

The Defense Threat Reduction Agency (DTRA) consistently allocates significant resources towards cybersecurity and computer network defense, reflecting its mission to counter weapons of mass destruction and emerging threats. Historical spending patterns show a steady investment in IT infrastructure, threat intelligence, and protective services. While specific year-over-year figures fluctuate based on evolving threats and technological advancements, cybersecurity has remained a core budgetary priority. This $39.8 million contract represents a substantial, but not necessarily anomalous, portion of DTRA's annual spending on maintaining a secure operational environment.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type for this contract?

This award type signifies a deviation from standard full and open competition. It implies that while the agency intended to compete the contract broadly, specific sources were deemed ineligible or excluded for reasons outlined in the Federal Acquisition Regulation (FAR). This could be due to national security concerns, proprietary technology, or other justifications. The exclusion narrows the competitive pool, potentially impacting the number of bidders and the final price. It necessitates a clear justification from the agency to ensure fairness and prevent undue restriction of competition.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HDTRA118R0002

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1760 RESTON PKWY STE 515, RESTON, VA, 20190

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, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,855,125

Exercised Options: $39,855,125

Current Obligation: $39,855,125

Actual Outlays: $16,967,455

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $6,225,601

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA118D0011

IDV Type: IDC

Timeline