IRS CI awards $8.99M for mobile device management modernization to ISEC7 Inc

Contract Overview

Contract Amount: $899,495 ($899.5K)

Contractor: Isec7 Inc

Awarding Agency: Department of the Treasury

Start Date: 2024-09-30

End Date: 2026-03-29

Contract Duration: 545 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INTERNAL REVENUE SERVICE (IRS) CRIMINAL INVESTIGATION (CI) MOBILE DEVICE MANAGEMENT (MDM) MODERNIZATION

Place of Performance

Location: FLORENCE, BOONE County, KENTUCKY, 41042

State: Kentucky Government Spending

Plain-Language Summary

Department of the Treasury obligated $899,495.01 to ISEC7 INC for work described as: INTERNAL REVENUE SERVICE (IRS) CRIMINAL INVESTIGATION (CI) MOBILE DEVICE MANAGEMENT (MDM) MODERNIZATION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 3. The firm-fixed-price contract type aims to control costs for the government. 4. The duration of the contract is approximately 1.5 years, indicating a focused modernization effort. 5. The awardee, ISEC7 Inc., is a specialized provider in the mobile device management space. 6. The contract is for IT services, specifically modernization of mobile device management. 7. The contract is located in Kentucky, suggesting a specific operational focus or user base.

Value Assessment

Rating: good

The contract value of $8.99 million for a 545-day period for mobile device management modernization appears reasonable given the specialized nature of the services. Benchmarking against similar large-scale MDM modernization efforts is challenging without more detailed scope information. However, the firm-fixed-price structure provides cost certainty for the IRS. The award to a single vendor suggests a potentially specialized solution was sought, which can sometimes command a premium but also ensure tailored functionality.

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 offers. The presence of 7 bidders suggests a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as vendors vie for the contract.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple vendors competed to offer the best value. This process helps prevent inflated pricing that might occur in less competitive scenarios.

Public Impact

Benefits IRS Criminal Investigation (CI) by modernizing their mobile device management capabilities. Enhances the security and efficiency of managing IRS CI's mobile devices. Supports the operational readiness and technological infrastructure of a critical law enforcement agency. May impact IT support staff and end-users within IRS CI who rely on mobile devices. The geographic impact is primarily within the IRS CI's operational areas, with a specific award location in Kentucky.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the chosen MDM solution is highly proprietary.
Dependence on ISEC7 Inc. for critical mobile device management functions during the contract period.
Risk of scope creep if the modernization requirements are not precisely defined and managed.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost predictability.
Modernization of MDM is crucial for enhancing cybersecurity and operational efficiency.
The awardee is a specialized vendor, suggesting expertise in the required technology.

Sector Analysis

The market for Mobile Device Management (MDM) solutions is a significant segment within the broader IT services sector, driven by the increasing reliance on mobile devices for business operations and the associated security challenges. Government agencies, in particular, require robust MDM solutions to manage and secure their diverse fleets of mobile devices. Spending in this area is often characterized by long-term contracts for software licensing, implementation, and ongoing support. Comparable spending benchmarks are difficult to ascertain without specific details on the scale and features of the MDM solution, but multi-million dollar awards for modernization projects are common for federal agencies.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. The award to ISEC7 Inc., a specialized vendor, suggests the primary focus was on technical capability rather than small business participation. Further analysis would be needed to determine if ISEC7 Inc. has a history of subcontracting with small businesses on similar contracts.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a delivery order under an IDIQ, the initial IDIQ vehicle likely underwent significant review. The firm-fixed-price nature of the award provides a degree of financial oversight by fixing the cost. Transparency is generally maintained through contract award databases like FPDS. The Inspector General for the Department of the Treasury would have jurisdiction over potential fraud, waste, or abuse related to this contract.

Related Government Programs

IRS IT Modernization Programs
Federal Mobile Device Management Contracts
Department of the Treasury IT Services
Cybersecurity Modernization Efforts

Risk Flags

Potential for vendor lock-in
Complexity of integration with existing IRS systems
Cybersecurity risks associated with new MDM solutions

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $899,495.01 to ISEC7 INC. INTERNAL REVENUE SERVICE (IRS) CRIMINAL INVESTIGATION (CI) MOBILE DEVICE MANAGEMENT (MDM) MODERNIZATION

Who is the contractor on this award?

The obligated recipient is ISEC7 INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $899,495.01.

What is the period of performance?

Start: 2024-09-30. End: 2026-03-29.

What is ISEC7 Inc.'s track record with federal agencies, particularly in mobile device management modernization?

Information on ISEC7 Inc.'s specific track record with federal agencies, especially concerning mobile device management modernization, would typically be found in contract databases and performance reports. A review of past federal contracts awarded to ISEC7 Inc. would reveal their experience level, the types of services provided, and potentially client feedback or past performance evaluations. Agencies often consider past performance as a critical factor in source selection. Without direct access to detailed performance data for ISEC7 Inc. on prior federal contracts, it's difficult to definitively assess their track record. However, their selection for this IRS CI contract suggests they met the agency's requirements and demonstrated adequate capability and experience during the competitive bidding process.

How does the $8.99 million contract value compare to similar federal MDM modernization projects?

Comparing the $8.99 million contract value for this IRS CI Mobile Device Management (MDM) Modernization project requires context regarding the scope, duration, and specific technologies involved. Federal MDM modernization projects can vary significantly in cost based on the number of devices managed, the complexity of the existing infrastructure, the desired features of the new system (e.g., advanced security, application management, BYOD support), and the level of integration with other IT systems. While $8.99 million over approximately 1.5 years (545 days) is a substantial investment, it may be considered reasonable if it encompasses a large user base, complex security requirements, or a significant overhaul of legacy systems. Without specific details on the number of users, devices, and the full scope of modernization, a precise benchmark is challenging. However, similar large-scale IT modernization efforts within federal agencies often run into the tens of millions of dollars.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential vendor lock-in, where the IRS CI becomes heavily reliant on ISEC7 Inc.'s proprietary technology, making future transitions difficult or costly. Another risk is the possibility of scope creep, where the project's requirements expand beyond the initial agreement, potentially leading to cost overruns or delays, although the firm-fixed-price contract aims to mitigate this. Technical risks, such as integration challenges with existing IRS systems or cybersecurity vulnerabilities in the new MDM solution, are also present. Mitigation strategies likely include clearly defined contract statements of work, rigorous testing and validation phases, performance monitoring, and potentially phased rollouts. The competitive nature of the award also implies that ISEC7 Inc. has proposed a viable plan to manage these risks.

How effective is the firm-fixed-price contract type in ensuring value for taxpayer money in this MDM modernization effort?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for taxpayer money, especially for projects with well-defined scopes, like IT modernization. Under an FFP contract, the contractor, ISEC7 Inc., assumes the primary risk for cost overruns. This incentivizes the contractor to manage their resources efficiently and deliver the project within the agreed-upon budget. For the IRS CI, this means greater cost certainty and predictability, reducing the risk of unexpected expenses. The effectiveness hinges on the clarity and completeness of the contract's statement of work; if requirements are ambiguous, it can lead to disputes or necessitate change orders, potentially eroding the cost-saving benefits of FFP. However, for a modernization effort where the end goal is clear, FFP is a strong mechanism for cost control.

What are the historical spending patterns for mobile device management at the IRS or similar agencies?

Historical spending patterns for mobile device management (MDM) at the IRS and similar large federal agencies typically show a consistent and often increasing investment. Agencies manage vast numbers of mobile devices for employees, requiring robust solutions for security, policy enforcement, and application deployment. Spending often includes initial procurement or licensing of MDM software, implementation services, ongoing maintenance and support, and periodic upgrades or modernizations. The IRS, as a large agency with significant data security needs, would likely have a history of substantial spending in this area. Modernization contracts, like this one, often represent a significant capital investment aimed at updating aging systems or adopting new technologies to meet evolving security threats and operational demands. Analyzing past IRS IT budgets or specific CI spending could reveal trends in MDM investment.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8 MARKET PL, BALTIMORE, MD, 21202

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

Financial Breakdown

Contract Ceiling: $1,201,938

Exercised Options: $899,495

Current Obligation: $899,495

Actual Outlays: $893,495

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA19D00LZ

IDV Type: FSS

Timeline