IRS awards $3.68M contract for continuous diagnostics and mitigation services to Variq Corporation

Contract Overview

Contract Amount: $3,676,303 ($3.7M)

Contractor: Variq Corporation

Awarding Agency: Department of the Treasury

Start Date: 2025-03-29

End Date: 2027-03-28

Contract Duration: 729 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTINUOUS DIAGNOSTICS AND MITIGATION; INTERNAL REVENUE SERVICE CRIMINAL INVESTIGATION/LAW ENFORCEMENT REQUIREMENT

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38118

State: Tennessee Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.7 million to VARIQ CORPORATION for work described as: CONTINUOUS DIAGNOSTICS AND MITIGATION; INTERNAL REVENUE SERVICE CRIMINAL INVESTIGATION/LAW ENFORCEMENT REQUIREMENT Key points: 1. Contract focuses on critical internal revenue service criminal investigation and law enforcement needs. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. A firm fixed-price contract type indicates predictable costs for the government. 4. The duration of the contract is approximately two years. 5. The specific NAICS code (511199) points to services related to publishing, which may require further clarification in the context of IT security. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $3.68 million over two years for continuous diagnostics and mitigation services appears reasonable, especially given the critical nature of IRS criminal investigations. Benchmarking against similar cybersecurity and IT support contracts for law enforcement agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs. However, without specific performance metrics or detailed service breakdowns, a definitive value assessment is challenging.

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 a bid. The number of bidders is not specified, but this competitive approach generally fosters price discovery and encourages contractors to offer their best terms. The open competition suggests that the IRS sought the most advantageous solution available in the market for these critical services.

Taxpayer Impact: Taxpayers benefit from a competitive process that is likely to result in a more cost-effective solution for essential cybersecurity and investigative support.

Public Impact

The primary beneficiaries are the Internal Revenue Service Criminal Investigation division, which will receive enhanced diagnostic and mitigation capabilities. Services delivered are expected to bolster the security and integrity of sensitive IRS data and systems. The geographic impact is national, supporting federal law enforcement operations across the United States. Workforce implications may include the need for specialized cybersecurity personnel within the IRS or reliance on contractor expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The NAICS code 511199 (All Other Publishers) seems incongruous with 'Continuous Diagnostics and Mitigation' services, raising questions about the precise nature of the services procured or the accuracy of the classification.
Lack of specific performance metrics or service level agreements in the provided data makes it difficult to assess the expected outcomes and contractor performance.

Positive Signals

The award was made under full and open competition, suggesting a fair and transparent procurement process.
The firm fixed-price contract type provides cost certainty for the government, mitigating budget risks.
The contract supports critical law enforcement functions within the IRS, indicating a high priority for national security and financial integrity.

Sector Analysis

The cybersecurity and IT services market is a rapidly growing sector, with significant government spending allocated to protecting critical infrastructure and sensitive data. Continuous Diagnostics and Mitigation (CDM) is a key component of federal cybersecurity strategies, aimed at providing agencies with real-time visibility into their IT environments and the ability to identify and address threats proactively. This contract fits within the broader trend of federal agencies investing in advanced cybersecurity solutions to combat evolving cyber threats.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Variq Corporation, is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. The absence of a small business set-aside means that opportunities for small business participation in this specific contract are not guaranteed and would depend on Variq Corporation's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Internal Revenue Service. As a delivery order under a potential IDIQ contract, oversight may also be influenced by the terms of the parent contract. Transparency is generally facilitated through contract award databases, but detailed performance monitoring and accountability measures are typically internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IRS IT Modernization Initiatives
Federal Cybersecurity Programs
Law Enforcement Technology Procurement
Criminal Investigation Support Services

Risk Flags

Potential NAICS code misclassification
Lack of detailed performance metrics
Limited information on competition specifics (number of bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.7 million to VARIQ CORPORATION. CONTINUOUS DIAGNOSTICS AND MITIGATION; INTERNAL REVENUE SERVICE CRIMINAL INVESTIGATION/LAW ENFORCEMENT REQUIREMENT

Who is the contractor on this award?

The obligated recipient is VARIQ CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2025-03-29. End: 2027-03-28.

What is the specific nature of the 'Continuous Diagnostics and Mitigation' services being procured, given the NAICS code 511199 (All Other Publishers)?

The NAICS code 511199, 'All Other Publishers,' appears to be a misclassification or an unusual choice for a contract focused on 'Continuous Diagnostics and Mitigation' (CDM) services, which are typically associated with IT security and network monitoring. CDM services generally involve automated tools and processes to continuously assess IT systems for vulnerabilities, monitor for threats, and implement mitigation strategies. It is possible that the contract includes components related to the publication or dissemination of security-related information or reports, or that the NAICS code is a legacy classification. Further clarification from the IRS or a review of the detailed contract statement of work would be necessary to reconcile this discrepancy and understand the precise services being rendered.

How does the $3.68 million contract value compare to similar cybersecurity contracts awarded by federal law enforcement agencies?

The $3.68 million contract value for two years of Continuous Diagnostics and Mitigation (CDM) services for the IRS Criminal Investigation division is within a typical range for specialized IT security support for federal agencies. However, a precise comparison requires benchmarking against contracts with similar scopes, service levels, and security requirements. For instance, contracts for endpoint detection and response, vulnerability management, or threat intelligence platforms for agencies like the FBI or Secret Service could offer comparable data points. Without access to detailed service descriptions and performance metrics for this specific IRS contract, it's challenging to definitively state if it represents excellent, good, or fair value. The firm fixed-price nature, however, provides cost predictability.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to measure Variq Corporation's performance?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. In a typical Continuous Diagnostics and Mitigation (CDM) contract, KPIs might include metrics such as the percentage of systems scanned, the number of critical vulnerabilities identified and remediated within a specified timeframe, the mean time to detect and respond to threats, and the accuracy of threat intelligence. SLAs would define the expected availability of monitoring systems and the timeliness of reporting. The absence of this information in the summary data makes it difficult to objectively assess the expected performance standards for Variq Corporation and the effectiveness of the services delivered.

What is Variq Corporation's track record in providing similar cybersecurity and investigative support services to federal agencies?

Variq Corporation has a history of providing IT services to the federal government, including contracts with various agencies. Their experience often spans areas such as IT infrastructure management, software development, and cybersecurity support. To assess their track record specifically for Continuous Diagnostics and Mitigation (CDM) services for law enforcement, a deeper dive into their past performance evaluations, client references, and the specific nature of previous relevant contracts would be necessary. Information on past performance, particularly regarding successful implementation of security solutions and adherence to stringent government security protocols, would be crucial for evaluating their capability to fulfill the requirements of this IRS contract effectively.

What is the historical spending pattern for Continuous Diagnostics and Mitigation services within the IRS Criminal Investigation division?

Historical spending data for Continuous Diagnostics and Mitigation (CDM) services specifically within the IRS Criminal Investigation division is not readily available in the provided summary. However, federal agencies, including the IRS, have been increasingly investing in cybersecurity capabilities due to rising cyber threats. CDM programs are a cornerstone of the U.S. government's cybersecurity strategy, mandated by directives like the Federal Information Security Modernization Act (FISMA). Therefore, it is reasonable to assume a growing trend in spending on such services across the IRS, driven by the need to protect sensitive taxpayer data and critical law enforcement functions. Analyzing broader IRS IT security budgets or CDM spending across the Treasury Department could offer contextual insights.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2600 TOWER OAKS BLVD STE 300, ROCKVILLE, MD, 20852

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

Financial Breakdown

Contract Ceiling: $5,471,366

Exercised Options: $3,676,303

Current Obligation: $3,676,303

Actual Outlays: $1,573,201

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0389V

IDV Type: FSS

Timeline