SEC cybersecurity contract awarded to Iron Vine Security LLC for $22.8M over 9 years

Contract Overview

Contract Amount: $22,784,452 ($22.8M)

Contractor: Iron Vine Security LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2017-06-01

End Date: 2026-09-30

Contract Duration: 3,408 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS NESS TCP CYBER SECURITY

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $22.8 million to IRON VINE SECURITY LLC for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS NESS TCP CYBER SECURITY Key points: 1. Contract value appears reasonable given the extended duration and critical nature of cybersecurity services. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The contract's duration and scope present moderate performance and execution risks. 4. This contract supports the SEC's ongoing efforts to protect sensitive financial data. 5. Cybersecurity services are a critical component of the IT sector, with increasing demand. 6. The use of a Time and Materials contract type may require close monitoring to control costs.

Value Assessment

Rating: good

The contract's total value of $22.8 million over approximately 9 years averages to about $2.5 million annually. This is a substantial but not excessive amount for comprehensive cybersecurity services for a federal agency like the SEC. Benchmarking against similar large-scale cybersecurity contracts for federal agencies suggests this pricing is within a competitive range, especially considering the specialized nature of the services and the extended period of performance. The Time and Materials pricing structure, while flexible, necessitates diligent oversight to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The SEC received 6 bids, which suggests a robust competitive environment for this type of service. A higher number of bids generally correlates with better price discovery and a greater likelihood of securing favorable terms and pricing for the government. The agency's approach to competition appears to have yielded a good number of interested parties.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and services, leading to potentially lower costs and higher quality outcomes compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Securities and Exchange Commission (SEC) and its mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation. The services delivered are critical for maintaining the cybersecurity posture of the SEC's IT infrastructure, safeguarding sensitive financial data and systems. The geographic impact is primarily within the District of Columbia, where the SEC is headquartered, but the security of its systems has national implications. The contract supports a specialized workforce in the cybersecurity sector, contributing to the demand for skilled IT professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Time and Materials (T&M) contract type if not closely managed.
Reliance on a single contractor for critical cybersecurity functions over a long period could pose a risk if performance degrades.
The dynamic nature of cybersecurity threats requires continuous adaptation, which may strain the scope of this contract over time.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely secured favorable terms.
The extended contract duration provides stability and continuity for essential cybersecurity services.
The contract supports a critical government function, aligning with national security and economic stability objectives.

Sector Analysis

The cybersecurity sector is a rapidly growing and critical segment of the IT industry, driven by increasing digital threats and the need for robust data protection across all sectors, including government. Federal spending on cybersecurity has been steadily increasing as agencies grapple with sophisticated cyberattacks. This contract fits within the broader federal IT spending landscape, specifically addressing the unique cybersecurity needs of financial regulatory bodies. Comparable spending benchmarks for cybersecurity services for large federal agencies often range in the millions annually, depending on the scope and complexity.

Small Business Impact

This contract was not specifically set aside for small businesses, and the contractor, IRON VINE SECURITY LLC, is not identified as a small business in the provided data. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though larger prime contractors are often encouraged or required to meet small business subcontracting goals on other federal contracts.

Oversight & Accountability

Oversight for this contract would typically fall under the Securities and Exchange Commission's contracting officers and program managers. The agency's Office of Inspector General (OIG) would also have jurisdiction to investigate potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and detailed oversight activities are often internal.

Related Government Programs

SEC IT Modernization Efforts
Federal Cybersecurity Initiatives
Financial Sector Cybersecurity
GSA IT Schedule Contracts
Cybersecurity Services for Civilian Agencies

Risk Flags

Potential for cost overruns due to T&M contract type.
Long contract duration may not keep pace with rapid technological change in cybersecurity.
Dependence on a single vendor for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $22.8 million to IRON VINE SECURITY LLC. IGF::OT::IGF FOR OTHER FUNCTIONS NESS TCP CYBER SECURITY

Who is the contractor on this award?

The obligated recipient is IRON VINE SECURITY LLC.

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $22.8 million.

What is the period of performance?

Start: 2017-06-01. End: 2026-09-30.

What is the track record of Iron Vine Security LLC in performing similar cybersecurity contracts for the federal government?

Information regarding Iron Vine Security LLC's specific track record on federal cybersecurity contracts is not detailed in the provided data. However, the award of this significant contract by the SEC suggests they have met the agency's requirements and demonstrated capability. Further analysis would require examining past performance evaluations, other contract awards, and any reported issues or successes on previous government engagements. Understanding their experience with similar scale and scope of services, particularly within the financial regulatory domain, would be crucial for a comprehensive assessment of their reliability and expertise.

How does the annual cost of this contract compare to other federal cybersecurity contracts of similar scope?

The contract's total value of approximately $22.8 million over roughly 9 years equates to an average annual cost of about $2.5 million. This figure needs to be benchmarked against similar cybersecurity contracts awarded to federal agencies of comparable size and complexity. For instance, contracts supporting the IT infrastructure and security needs of large civilian agencies or financial institutions often fall within this range or higher, depending on the specific services (e.g., threat detection, incident response, vulnerability management, security operations center). The Time and Materials (T&M) nature of this contract means actual spending could fluctuate, making direct annual comparisons challenging without detailed service delivery data.

What are the primary risks associated with a Time and Materials contract for cybersecurity services?

The primary risk with a Time and Materials (T&M) contract for cybersecurity services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If not managed diligently through robust oversight, task order limitations, and clear performance expectations, this structure can lead to higher-than-anticipated costs for the government. For cybersecurity, where threats and required responses can be dynamic, T&M offers flexibility but demands stringent monitoring of hours worked and materials used to ensure value and prevent scope creep or inefficient resource allocation.

How effective is the SEC's current cybersecurity program, and how does this contract contribute to its overall effectiveness?

The effectiveness of the SEC's overall cybersecurity program is a complex metric that is not directly quantifiable from this contract data alone. However, awarding a significant, long-term contract for these services indicates the agency's commitment to maintaining and enhancing its security posture. This contract likely supports essential functions such as network monitoring, threat intelligence, incident response, and vulnerability management, which are foundational to any effective cybersecurity program. The agency's ability to attract competitive bids under full and open competition suggests a well-defined need and a structured approach to procuring these critical services, contributing to the program's operational effectiveness.

What has been the historical spending trend for cybersecurity services at the SEC over the past five years?

Historical spending data for cybersecurity services specifically at the SEC is not provided in this dataset. To assess historical trends, one would need to analyze the SEC's budget allocations and contract awards related to IT security over the past five years. Such an analysis would reveal whether spending has been increasing, decreasing, or remaining stable, and how this $22.8 million contract fits into that pattern. Generally, federal agencies have seen increasing cybersecurity expenditures due to evolving threat landscapes and regulatory requirements, and it is probable the SEC follows this trend.

What are the implications of awarding a 9-year contract for cybersecurity services in a rapidly evolving technological landscape?

Awarding a 9-year contract for cybersecurity services presents both opportunities and challenges. The extended duration offers stability, continuity of service, and allows the contractor to develop deep institutional knowledge of the SEC's systems. This can lead to more efficient and effective security operations. However, the rapid pace of technological change and the evolving nature of cyber threats pose a significant risk. The contract's terms, including potential for modifications, service level adjustments, and technology refresh clauses, become critical. Without flexibility built into the contract, the SEC might find itself locked into outdated technologies or less effective solutions, necessitating careful contract management and potential renegotiations.

Industry Classification

NAICS: Information › Newspaper, Periodical, Book, and Directory Publishers › All Other Publishers

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

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1400 I STREET NW, SUITE 925, WASHINGTON, DC, 20005

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,784,452

Exercised Options: $22,784,452

Current Obligation: $22,784,452

Actual Outlays: $16,132,090

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: SECHQ117A0014

IDV Type: BPA

Timeline