As a result of the OPM breach, and what is sure to be seen as a cyber defense boom for security providers, the US federal government expects to spend over $500m on post-hack benefits by 2020 (emphasis added):
The General Services Administration on Tuesday evening put forth a request for quotes on a blanket purchase agreement that will help the agency prescreen contractors interested in providing protection services to future hack victims. GSA estimated the value of the forthcoming contracts to be $500 million, but noted the final total could exceed that amount.
“As the nature and complexity of data breaches have evolved during the past five years, governmentwide federal agencies have had increasing requirements for identity monitoring data breach response and protection services,” GSA wrote. “These services are critical to responding to cyber security events, and in mitigating the risk of identity theft or compromised government security and operations.”
GSA developed the RFQ in consultation with the Office of Management and Budget, the Office of Personnel Management, Defense Department, Homeland Security Department and Federal Trade Commission. The breach of 21.5 million individuals’ background investigation data maintained by OPM will serve as the first task order of the BPA. Naval Sea Systems Command released the RFQ for that specific contract Tuesday.