DoD's $106M Cyber Ops Contract to ICF Inc. Raises Questions on Competition and Value

Contract Overview

Contract Amount: $106,070,758 ($106.1M)

Contractor: ICF Incorporated, L.L.C.

Awarding Agency: Department of Defense

Start Date: 2017-06-16

End Date: 2021-05-31

Contract Duration: 1,445 days

Daily Burn Rate: $73.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::CT::IGF DEFENSE CYBER OPERATIONS RESEARCH AND SUPPORTING ELEMENTS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $106.1 million to ICF INCORPORATED, L.L.C. for work described as: IGF::CT::IGF DEFENSE CYBER OPERATIONS RESEARCH AND SUPPORTING ELEMENTS Key points: 1. Significant spending on cyber operations research, with a large portion awarded to a single contractor. 2. The contract's duration and cost raise questions about long-term value and potential for cost overruns. 3. Lack of competition suggests potential for inflated pricing and limited innovation. 4. The R&D sector focus highlights critical national security needs but demands rigorous oversight.

Value Assessment

Rating: questionable

The contract's total value of over $106 million over nearly four years, awarded on a cost-plus basis, makes direct pricing comparisons difficult. Without competitive bidding, it's hard to ascertain if this represents a fair market price for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition on a contract of this magnitude likely results in a higher cost to taxpayers than if multiple vendors had vied for the work.

Public Impact

Taxpayers may be overpaying for cyber operations research due to the absence of competitive bidding. National security could be impacted if the lack of competition stifles innovation in critical cyber defense capabilities. The long contract duration raises concerns about the government's ability to adapt to evolving cyber threats with this specific vendor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences, specifically supporting cyber operations. Spending in this area is crucial for national security, but often involves complex, specialized services where competitive benchmarking can be challenging.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature likely precluded opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure that ICF Incorporated is delivering value and that costs are reasonable. The Department of Defense should have robust internal controls and performance metrics in place.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $106.1 million to ICF INCORPORATED, L.L.C.. IGF::CT::IGF DEFENSE CYBER OPERATIONS RESEARCH AND SUPPORTING ELEMENTS

Who is the contractor on this award?

The obligated recipient is ICF INCORPORATED, L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $106.1 million.

What is the period of performance?

Start: 2017-06-16. End: 2021-05-31.

What specific cyber operations research was conducted, and how did it directly benefit national security objectives?

The contract details do not specify the exact nature of the cyber operations research. However, given the agency (Department of the Army) and the sector, it likely involved developing new strategies, tools, or techniques to defend against cyber threats, enhance intelligence gathering, or improve offensive cyber capabilities. The benefit to national security would be in strengthening the nation's overall cyber defense posture and operational effectiveness in cyberspace.

Given the sole-source award, what mechanisms were in place to ensure ICF Incorporated's pricing remained competitive and fair?

As a sole-source, cost-plus contract, traditional competitive pricing mechanisms were absent. Oversight likely relied on detailed cost proposals, audits, and negotiation. The government would typically require justification for labor rates, overhead, and other direct costs. However, without a competitive baseline, verifying the 'fairness' of the price is inherently more difficult and relies heavily on the government's negotiation and auditing capabilities.

How does the performance of this contract compare to similar R&D efforts in the cyber domain, particularly those that were competed?

Direct comparison is challenging due to the sole-source nature and lack of publicly available performance metrics for this specific contract. However, competed contracts in similar R&D areas often yield lower overall costs and faster innovation cycles due to vendor competition. The government's ability to track and evaluate the effectiveness of the research outcomes against established benchmarks would be crucial for assessing value, especially in a non-competed scenario.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W911QX17R0006

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: ICF International, Inc.

Address: 1902 RESTON METRO PLZ, RESTON, VA, 20190

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $120,817,074

Exercised Options: $117,524,186

Current Obligation: $106,070,758

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $2,206,073

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2017-06-16

Current End Date: 2021-05-31

Potential End Date: 2021-05-31 00:00:00

Last Modified: 2025-12-31

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