Treasury's $14.4M cybersecurity contract awarded to Iron Vine Security LLC under full and open competition

Contract Overview

Contract Amount: $14,426,167 ($14.4M)

Contractor: Iron Vine Security LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-01-03

End Date: 2026-06-30

Contract Duration: 1,639 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CYBERSECURITY ASSESSMENTS AND COMPLIANCE (CA&C)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $14.4 million to IRON VINE SECURITY LLC for work described as: CYBERSECURITY ASSESSMENTS AND COMPLIANCE (CA&C) Key points: 1. Value for money appears fair given the 4-year duration and the specialized nature of cybersecurity assessments. 2. Competition dynamics indicate a robust bidding process, likely leading to competitive pricing. 3. Risk indicators are moderate, with performance dependent on contractor expertise and government oversight. 4. Performance context is within the critical cybersecurity domain for financial institutions. 5. Sector positioning is within IT services, specifically cybersecurity consulting and compliance. 6. The contract type is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract's total value of $14.4 million over approximately four years suggests a reasonable annual spend for specialized cybersecurity services. Benchmarking against similar government contracts for cybersecurity assessments and compliance reveals that this pricing falls within expected ranges. The use of labor hours allows for flexibility, but requires diligent monitoring to ensure efficient resource utilization and prevent cost overruns. The specific services procured are critical for regulatory compliance within the financial sector.

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 bids. The presence of 8 bidders suggests a healthy level of competition for this cybersecurity service requirement. A competitive bidding process generally leads to better price discovery and ensures that the government receives offers from a diverse range of qualified contractors, potentially driving down costs and improving service quality.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that encourages lower bids and better value. This approach maximizes the opportunity to secure high-quality cybersecurity services at the most advantageous prices for the government.

Public Impact

The Office of the Comptroller of the Currency (OCC) benefits from enhanced cybersecurity assessments and compliance monitoring. Services delivered include critical cybersecurity evaluations and adherence to regulatory standards for financial institutions. The geographic impact is primarily within the District of Columbia, where the OCC is headquartered. Workforce implications include the employment of cybersecurity professionals by Iron Vine Security LLC and potentially internal government staff involved in oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on contractor expertise necessitates strong government oversight to ensure quality and adherence to standards.
The dynamic nature of cybersecurity threats requires continuous adaptation of assessment methodologies.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
The contract duration of over four years allows for sustained support and relationship building.
Specialized cybersecurity services are crucial for protecting sensitive financial data.

Sector Analysis

The cybersecurity services market is a rapidly growing segment within the broader IT sector, driven by increasing digital threats and regulatory mandates. Government spending in this area is substantial, with agencies like the Department of the Treasury prioritizing robust cybersecurity measures to protect critical infrastructure and sensitive data. This contract fits within the trend of agencies outsourcing specialized cybersecurity functions to expert firms to ensure compliance and enhance threat detection and response capabilities.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. The award to Iron Vine Security LLC, a company whose size is not specified in the provided data, suggests that the primary focus was on securing specialized expertise. Further analysis would be needed to determine if opportunities for small business participation were missed or if subcontracting plans were considered.

Oversight & Accountability

Oversight of this contract is likely managed by the Office of the Comptroller of the Currency (OCC) contracting officers and program managers. Accountability measures would include performance reviews, adherence to contract deliverables, and compliance with cybersecurity standards. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Cybersecurity Services
IT Consulting
Compliance Services
Financial Sector IT Spending
Department of the Treasury IT Contracts

Risk Flags

Potential for contractor personnel turnover impacting institutional knowledge.
Reliance on contractor's interpretation of complex cybersecurity regulations.
Need for strong government oversight to ensure quality and prevent vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $14.4 million to IRON VINE SECURITY LLC. CYBERSECURITY ASSESSMENTS AND COMPLIANCE (CA&C)

Who is the contractor on this award?

The obligated recipient is IRON VINE SECURITY LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $14.4 million.

What is the period of performance?

Start: 2022-01-03. End: 2026-06-30.

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

Assessing the track record of Iron Vine Security LLC requires examining their past performance on federal contracts, particularly those involving cybersecurity assessments and compliance for agencies with similar missions to the OCC. This would involve reviewing past performance evaluations, any documented issues or successes, and the types and scale of services previously rendered. A history of successful, on-time, and within-budget performance on comparable contracts would indicate a lower performance risk for this current award. Conversely, a history of negative past performance or unresolved issues would raise concerns about the contractor's ability to meet the current contract's requirements effectively and efficiently.

How does the pricing structure of this contract compare to market rates for similar cybersecurity assessment services?

To compare the pricing structure, one would need to analyze the labor categories, hourly rates, and estimated hours billed under this contract against industry benchmarks for cybersecurity professionals with comparable experience and certifications. Government databases like the Federal Procurement Data System (FPDS) and commercial market research reports can provide data on average rates for penetration testers, security analysts, and compliance auditors. If the rates under this contract are significantly higher than market averages without clear justification (e.g., highly specialized skills, unique security clearances), it could indicate a potential value-for-money concern. Conversely, rates at or below market averages, especially given the competitive award, would suggest good value.

What are the primary risks associated with the performance of this cybersecurity contract?

The primary risks associated with this cybersecurity contract include the dynamic and evolving nature of cyber threats, which could render current assessment methodologies outdated. There's also a risk related to the contractor's ability to maintain a high level of expertise and retain qualified personnel throughout the contract's duration. Government oversight effectiveness is another key risk factor; insufficient oversight could lead to missed vulnerabilities or non-compliance. Furthermore, the reliance on contractor-provided information for compliance assessments introduces a risk of inaccurate or incomplete reporting. Finally, potential security breaches originating from the contractor's systems or personnel, though unlikely with proper safeguards, represent a critical risk.

How effective are the cybersecurity assessments and compliance services likely to be in protecting the OCC's systems?

The effectiveness of these services hinges on several factors. The thoroughness and frequency of the assessments, the expertise of the Iron Vine Security LLC team, and the clarity of the compliance requirements are paramount. If the assessments are comprehensive, identify key vulnerabilities, and lead to actionable remediation plans that are diligently implemented by the OCC, then the services are likely to be highly effective. The contract's duration allows for iterative improvements and adaptation to new threats. However, effectiveness is also dependent on the OCC's internal capacity to act on the findings and integrate the contractor's recommendations into their overall security posture.

What has been the historical spending trend for cybersecurity assessments and compliance services by the Department of the Treasury?

Analyzing historical spending trends for cybersecurity assessments and compliance within the Department of the Treasury reveals a consistent and likely increasing investment in these areas over the past decade. Factors driving this trend include the escalating sophistication of cyber threats, the increasing digitization of financial data, and evolving regulatory requirements (e.g., NIST, CMMC). Agencies within Treasury, including the OCC, are mandated to maintain robust cybersecurity postures. Therefore, spending in this category is expected to remain significant and potentially grow as technology and threat landscapes evolve, reflecting a strategic priority for the department.

What is the potential impact of this contract on the overall cybersecurity posture of the financial sector regulated by the OCC?

This contract directly contributes to strengthening the cybersecurity posture of entities regulated by the Office of the Comptroller of the Currency (OCC). By ensuring the OCC itself has robust internal cybersecurity assessment and compliance capabilities, it enhances its ability to oversee and enforce security standards among financial institutions. The insights gained from these assessments can inform regulatory guidance and best practices shared with the industry. A stronger cybersecurity framework within the OCC indirectly bolsters the resilience of the financial sector against cyber threats, protecting sensitive customer data and maintaining confidence in the financial system.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2031JW22Q00022

Offers Received: 8

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $18,630,462

Exercised Options: $14,426,167

Current Obligation: $14,426,167

Actual Outlays: $12,305,869

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D00HF

IDV Type: FSS

Timeline