State Department awards $64.4M IT security compliance contract to Iron Vine Security LLC

Contract Overview

Contract Amount: $64,440,591 ($64.4M)

Contractor: Iron Vine Security LLC

Awarding Agency: Department of State

Start Date: 2020-09-30

End Date: 2026-09-29

Contract Duration: 2,190 days

Daily Burn Rate: $29.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 21

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE CALL IS FOR INFORMATION TECHNOLOGY SECURITY COMPLIANCE (ITSC) SERVICES.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $64.4 million to IRON VINE SECURITY LLC for work described as: THE CALL IS FOR INFORMATION TECHNOLOGY SECURITY COMPLIANCE (ITSC) SERVICES. Key points: 1. Contract focuses on critical IT security compliance services for the State Department. 2. Awarded to Iron Vine Security LLC, a single vendor for this specific call. 3. The contract duration extends over five years, indicating a long-term need. 4. Services are categorized under 'Other Computer Related Services', suggesting a broad scope. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. This award represents a significant investment in maintaining federal IT security posture.

Value Assessment

Rating: fair

The contract value of $64.4 million over five years averages approximately $12.88 million annually. Benchmarking this against similar IT security compliance contracts is challenging without more specific service details. However, the Time and Materials pricing structure, while flexible, can lead to higher costs if not closely managed compared to fixed-price contracts. The number of bids received (21) suggests some level of market interest, but the final price relative to estimated value is not provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating it was open to a broad range of potential offerors. Twenty-one bids were received, suggesting a competitive process. However, the specific details of the competition, such as the number of proposals evaluated or the evaluation criteria, are not detailed here. A competitive process with multiple bidders generally supports price discovery and potentially better value.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. The 21 bids indicate that the government explored multiple options, aiming for the best value.

Public Impact

The primary beneficiary is the Department of State, which receives essential IT security compliance services. These services are crucial for protecting sensitive government data and ensuring the integrity of IT systems. The contract supports the operational readiness and security posture of the agency's information technology infrastructure. Geographic impact is likely national, supporting the State Department's global operations. Workforce implications may include specialized IT security professionals employed by Iron Vine Security LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not meticulously managed and monitored.
Lack of specific performance metrics or Service Level Agreements (SLAs) in the provided data makes it difficult to assess performance outcomes.
The broad 'Other Computer Related Services' NAICS code could encompass a wide range of activities, potentially leading to scope creep if not clearly defined.

Positive Signals

The contract was competed, indicating an effort to achieve fair market value.
A significant number of bids (21) suggests a healthy market for these services and a robust competition.
The five-year duration indicates a stable, long-term commitment to IT security, which is positive for agency operations.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT security and compliance services. The market for IT security is substantial and growing, driven by increasing cyber threats and regulatory requirements. Comparable spending benchmarks for IT security compliance services vary widely based on scope, complexity, and agency size. The State Department's need for these services aligns with broader federal initiatives to enhance cybersecurity across all agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the primary award went to Iron Vine Security LLC, the competitive nature of the award (21 bids) suggests that small businesses may have participated in the bidding process. However, without specific subcontracting plans or set-aside information, the direct impact on the small business ecosystem is unclear. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures are usually embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Information Security Modernization Act (FISMA) Compliance
Department of State IT Modernization Initiatives
Cybersecurity Service Contracts
IT Consulting Services
Government IT Security Audits

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for robust oversight to manage scope and prevent inefficiencies.
Broad NAICS code may require clear definition of services to avoid ambiguity.
Performance metrics and SLAs not detailed, making outcome assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $64.4 million to IRON VINE SECURITY LLC. THE CALL IS FOR INFORMATION TECHNOLOGY SECURITY COMPLIANCE (ITSC) SERVICES.

Who is the contractor on this award?

The obligated recipient is IRON VINE SECURITY LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $64.4 million.

What is the period of performance?

Start: 2020-09-30. End: 2026-09-29.

What is the track record of Iron Vine Security LLC in performing similar IT security compliance services for federal agencies?

Information regarding Iron Vine Security LLC's specific track record for IT security compliance services with federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar government contracts. Understanding their experience with the specific compliance frameworks relevant to the Department of State (e.g., NIST, CMMC if applicable) would be crucial. Without this historical data, it's difficult to definitively gauge their capability and reliability for this particular task. Further due diligence would involve searching federal procurement databases and agency performance review systems.

How does the average annual cost of this contract compare to similar IT security compliance contracts awarded by other federal agencies?

The average annual cost for this contract is approximately $12.88 million ($64.4M / 5 years). To benchmark this effectively, we would need to compare it against contracts for similar IT security compliance services awarded by agencies of comparable size and complexity, considering factors like the scope of services, security requirements, and contract type. For instance, comparing it to contracts for cybersecurity assessments, compliance monitoring, or security control implementation for agencies like the Department of Defense or Homeland Security would provide context. The Time and Materials (T&M) nature of this contract also complicates direct comparisons with fixed-price awards. A detailed analysis would involve identifying comparable contracts and adjusting for differences in service scope and duration.

What are the primary risks associated with a Time and Materials (T&M) contract for IT security compliance services?

The primary risk with a Time and Materials (T&M) contract for IT security compliance is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and associated costs, plus a fixed fee or percentage. If the scope of work is not tightly defined, or if project management is weak, the contractor may incur more hours than anticipated, leading to a higher final cost for the government. This necessitates robust oversight, detailed tracking of hours, and clear definition of tasks to prevent scope creep and ensure efficient service delivery. Without stringent monitoring, the government may end up paying more than the actual value of the services rendered.

What specific IT security compliance frameworks or standards does this contract likely address?

Given the nature of IT security compliance for a federal agency like the Department of State, this contract likely addresses a range of established frameworks and standards. Key among these would be the National Institute of Standards and Technology (NIST) Special Publications, particularly those related to cybersecurity risk management (e.g., NIST SP 800-53), security controls, and continuous monitoring. It may also involve compliance with the Federal Information Security Modernization Act (FISMA), which mandates federal agencies to develop, document, and implement an information security program. Depending on the specific systems and data involved, other standards related to data privacy, access control, and incident response could also be relevant. The 'Other Computer Related Services' NAICS code suggests a broad scope, potentially encompassing audits, assessments, policy development, and implementation support for these various compliance requirements.

How does the number of bids received (21) influence the potential value for taxpayers?

Receiving 21 bids for this contract is a strong positive signal for taxpayer value. A higher number of bidders generally indicates a more competitive marketplace, which tends to drive down prices as companies vie for the award. This increased competition allows the government to potentially secure services at a more favorable cost. Furthermore, a larger pool of bidders increases the likelihood that the government will find a contractor offering the best combination of price and technical capability. It suggests that the contracting process was accessible and that multiple capable firms were interested, reducing the risk of a suboptimal award due to limited options.

What is the significance of the contract being awarded under Simplified Acquisition Procedures (SAP)?

Awarding the contract under Simplified Acquisition Procedures (SAP) means it falls within the threshold for streamlined procurement processes, typically for purchases valued between the micro-purchase threshold and the SAP threshold (currently $250,000 up to $10 million, though agencies can use SAP for higher dollar value contracts under certain conditions, like this BPA Call). SAP aims to increase efficiency and reduce administrative burden for both the government and contractors. For this $64.4 million contract, it likely represents a 'BPA Call' (Blanket Purchase Agreement Call), suggesting it was issued under an existing BPA that was itself competed. This approach can expedite the acquisition process while still allowing for competition among pre-qualified vendors on the BPA.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 21

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1029 VERMONT AVE NW, STE 700, WASHINGTON, DC, 20005

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $85,523,952

Exercised Options: $72,750,857

Current Obligation: $64,440,591

Actual Outlays: $24,663,031

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 19AQMM20A0585

IDV Type: BPA

Timeline