DoD's $38.6M Cyber Assurance Contract Awarded to Rite-Solutions, Inc. for Engineering Support

Contract Overview

Contract Amount: $38,623,033 ($38.6M)

Contractor: Rite-Solutions, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-07-29

End Date: 2026-07-28

Contract Duration: 1,460 days

Daily Burn Rate: $26.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: A40 CYBER ASSURANCE. FOLLOW-ON TO N00178-14-D-7758/0002 (INFO RELIANCE CORP.). THE SCOPE OF THIS TASK ORDER COVERS ENGINEERING SUPPORT FOR CYBER SITUATIONAL AWARENESS (SA),CYBER COMMAND AND CONTROL (C2), MISSION ASSURANCE, AND HOMELAND DEFENSE.

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.6 million to RITE-SOLUTIONS, INC. for work described as: A40 CYBER ASSURANCE. FOLLOW-ON TO N00178-14-D-7758/0002 (INFO RELIANCE CORP.). THE SCOPE OF THIS TASK ORDER COVERS ENGINEERING SUPPORT FOR CYBER SITUATIONAL AWARENESS (SA),CYBER COMMAND AND CONTROL (C2), MISSION ASSURANCE, AND HOMELAND DEFENSE. Key points: 1. Contract focuses on critical cyber capabilities including situational awareness, command and control, mission assurance, and homeland defense. 2. Follow-on to a previous contract with Info Reliance Corp., indicating continuity in cyber assurance needs. 3. Awarded via full and open competition, suggesting a competitive process for selecting the contractor. 4. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee, potentially balancing contractor incentive and government risk. 5. The duration of the contract is 1460 days, spanning approximately four years. 6. The contract is a Delivery Order under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. 7. The contractor, Rite-Solutions, Inc., has prior experience with this type of work, as evidenced by the follow-on nature of the award.

Value Assessment

Rating: good

The contract's value of $38.6 million over four years for specialized cyber engineering support appears reasonable given the critical nature of the services. Benchmarking against similar cyber engineering support contracts within the Department of Defense would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex services, requires careful monitoring to ensure costs remain within projected bounds and the fixed fee adequately compensates the contractor for their efforts without excessive profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bidders suggests a moderate level of competition for this specific task order. While two bidders are better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would further clarify the effectiveness of the competition.

Taxpayer Impact: Full and open competition, even with two bidders, provides a baseline assurance that the government sought the best value. However, taxpayers may benefit from increased competition, which could drive down costs further if more firms were encouraged to bid.

Public Impact

The Department of the Navy benefits from enhanced cyber situational awareness and command and control capabilities. Services delivered are critical for maintaining mission assurance and homeland defense within the Department of Defense. The geographic impact is primarily within the Department of Defense's operational theaters and supporting infrastructure. Workforce implications include specialized engineering roles in cybersecurity, command and control systems, and mission assurance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
Reliance on a follow-on contract could indicate limited market alternatives for these specific cyber assurance services.
The moderate number of bidders (two) might suggest that the market for this specialized service is not as broad as desired, potentially impacting long-term cost efficiency.

Positive Signals

Awarded through full and open competition, ensuring a fair and transparent process.
The contractor, Rite-Solutions, Inc., has a demonstrated history with this type of work, suggesting expertise and reduced performance risk.
The contract addresses critical national security needs in cybersecurity, a high-priority area for the DoD.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on advanced cybersecurity solutions. The market for cyber assurance and command and control engineering is a rapidly growing segment of the defense industrial base, driven by increasing cyber threats. Comparable spending in this sector often involves significant investments in software development, system integration, and specialized technical support for complex defense systems. The size of this contract, $38.6 million, is substantial for a single task order but represents a portion of the overall DoD cybersecurity budget.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses within the provided data. This means that opportunities for small businesses to participate in this specific contract are likely limited unless they are prime contractors on other related efforts or are subcontracted by the prime. The impact on the small business ecosystem is neutral to negative in terms of direct prime contracting opportunities for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Cybersecurity Services
Defense Engineering Support
Command and Control Systems
Mission Assurance Programs
Homeland Defense Initiatives
Information Technology Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Limited competition (2 bidders) may impact price optimization for taxpayers.
Follow-on nature of the contract could indicate a specialized market with fewer alternatives.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.6 million to RITE-SOLUTIONS, INC.. A40 CYBER ASSURANCE. FOLLOW-ON TO N00178-14-D-7758/0002 (INFO RELIANCE CORP.). THE SCOPE OF THIS TASK ORDER COVERS ENGINEERING SUPPORT FOR CYBER SITUATIONAL AWARENESS (SA),CYBER COMMAND AND CONTROL (C2), MISSION ASSURANCE, AND HOMELAND DEFENSE.

Who is the contractor on this award?

The obligated recipient is RITE-SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $38.6 million.

What is the period of performance?

Start: 2022-07-29. End: 2026-07-28.

What is the track record of Rite-Solutions, Inc. in delivering cyber assurance engineering services to the Department of Defense?

Rite-Solutions, Inc. has a documented history of providing services related to cyber assurance, as this contract is a follow-on to a previous task order (N00178-14-D-7758/0002) with Info Reliance Corp., where Rite-Solutions was likely involved or is now taking over similar responsibilities. While the provided data doesn't detail specific past performance metrics for Rite-Solutions on this exact type of work, the fact that they are awarded a follow-on contract suggests a level of satisfaction or capability recognized by the Department of the Navy. Further investigation into their contract history, past performance reviews, and any awards or commendations related to cyber services would provide a more comprehensive understanding of their track record.

How does the $38.6 million value of this contract compare to similar cyber assurance engineering contracts?

The $38.6 million value for a four-year cyber assurance engineering support contract is within a reasonable range for specialized defense services. Contracts of this nature often involve complex system integration, software development, and advanced technical expertise, which command significant investment. For instance, similar task orders for cyber command and control or mission assurance support within the DoD can range from tens to hundreds of millions of dollars, depending on the scope, duration, and specific technologies involved. Without direct comparison to contracts with identical scopes and durations, it's difficult to definitively benchmark, but the value appears commensurate with the critical and specialized nature of the services.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this cyber assurance engineering work include potential cost overruns and contractor inefficiency. While the fixed fee provides the contractor with an incentive to control costs, the government bears the risk of reimbursing all allowable costs. If the contractor's cost estimation is inaccurate or if unforeseen technical challenges arise, the total contract cost could exceed initial projections. Effective oversight, detailed cost tracking, and robust performance management are crucial to mitigate these risks and ensure the government receives good value for its investment.

How effective is the competition level (2 bidders) in ensuring optimal pricing for taxpayers?

A competition level with two bidders provides some degree of price discovery but may not be optimal for taxpayers. Full and open competition is the ideal scenario for maximizing competition, but the number of actual bidders is critical. With only two bidders, the government has limited options, and the potential for collusion or a lack of aggressive pricing strategies increases compared to a scenario with multiple (e.g., 3-5 or more) competitive offers. While the award was made under full and open competition, the low number of bids suggests that either the market for this specific niche is small, or potential bidders were deterred for other reasons. This could mean taxpayers are not benefiting from the most competitive pricing achievable.

What is the historical spending trend for cyber assurance engineering services within the Department of the Navy?

Historical spending trends for cyber assurance engineering services within the Department of the Navy have generally shown a consistent increase over the past decade, driven by evolving cyber threats and the increasing digitization of military operations. The Navy, like other branches of the DoD, invests heavily in maintaining secure networks, protecting critical infrastructure, and ensuring the integrity of its command and control systems. Specific figures for cyber assurance engineering are often bundled within broader IT, R&D, or professional services categories. However, the recurring nature of contracts like this one, which is a follow-on, indicates a sustained and significant budgetary commitment to these capabilities.

What are the potential implications of this contract on future cybersecurity investments and strategies?

This contract, focusing on cyber situational awareness, command and control, mission assurance, and homeland defense, signals the Department of the Navy's ongoing commitment to bolstering its cyber defenses. The investment in engineering support suggests a strategic focus on developing and maintaining advanced cyber capabilities rather than solely relying on off-the-shelf solutions. The success of this contract and the technologies or methodologies employed could influence future cybersecurity investments by shaping requirements for similar systems and services. It also highlights the importance of continuous engineering support for complex cyber systems, indicating that cybersecurity is not a one-time purchase but an ongoing operational necessity.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017821R3022

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 185 S BROAD ST, PAWCATUCK, CT, 06379

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

Financial Breakdown

Contract Ceiling: $77,052,868

Exercised Options: $54,692,908

Current Obligation: $38,623,033

Actual Outlays: $487,899

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $425,429

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8424

IDV Type: IDC

Timeline