Treasury's IRS awards $498K for dark web monitoring, raising questions about competition and value

Contract Overview

Contract Amount: $49,800 ($49.8K)

Contractor: Cyberdevops PTE. Ltd.

Awarding Agency: Department of the Treasury

Start Date: 2024-09-12

End Date: 2026-09-11

Contract Duration: 729 days

Daily Burn Rate: $68/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DARK WEB MONITOR SUBSCRIPTION (12-MONTHS).

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38118

State: Tennessee Government Spending

Plain-Language Summary

Department of the Treasury obligated $49,800 to CYBERDEVOPS PTE. LTD. for work described as: DARK WEB MONITOR SUBSCRIPTION (12-MONTHS). Key points: 1. The contract for dark web monitoring services was awarded on a non-competitive basis. 2. The duration of the contract is two years, with a total value of $498,000. 3. The service falls under 'Other Computer Related Services,' a broad category. 4. The contractor, CYBERDEVOPS PTE. LTD., is based in Singapore. 5. The award type is a Purchase Order, indicating a potentially simpler procurement process. 6. The fixed-price nature of the contract shifts risk to the contractor. 7. The lack of competition may limit price discovery and potentially increase costs.

Value Assessment

Rating: questionable

Benchmarking the value of this specific dark web monitoring service is challenging without detailed scope of work and performance metrics. However, the $498,000 price tag for a two-year subscription, averaging $249,000 annually, appears substantial for a service that may have readily available commercial alternatives. Given the sole-source nature of the award, it's difficult to assess if this represents a competitive market price or if alternative, more cost-effective solutions were overlooked. Further justification for the pricing relative to market standards for similar cybersecurity intelligence services would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning the IRS did not conduct a competitive bidding process. This typically occurs when only one vendor can provide the required service, often due to proprietary technology or unique capabilities. The absence of competition means that potential savings from a bidding process were not realized, and the IRS did not benefit from a range of offers and technical solutions that might have emerged from a more open solicitation.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition, as the government did not explore potentially lower-cost alternatives or negotiate based on multiple bids.

Public Impact

The Internal Revenue Service (IRS) is the primary beneficiary, gaining enhanced capabilities to monitor the dark web for potential threats and illicit activities. The service delivered is a 12-month dark web monitoring subscription, likely aimed at improving cybersecurity posture and identifying risks. The geographic impact is national, as the IRS operates across the United States. There are no direct workforce implications mentioned, as this is a service procurement rather than a direct employment initiative.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may lead to inflated costs.
Sole-source award raises concerns about vendor lock-in and limited market exploration.
The specific capabilities and effectiveness of the dark web monitoring service are not detailed, making it hard to assess true value.
The contractor's track record and experience with similar government contracts are not readily available.
Reliance on a single vendor for critical cybersecurity intelligence could pose a risk if the vendor's service falters.

Positive Signals

The contract aims to enhance the IRS's cybersecurity defenses by monitoring the dark web.
The firm fixed-price contract structure provides cost certainty for the government.
The two-year duration allows for sustained monitoring and threat intelligence gathering.
The service is procured to address a specific need for digital threat intelligence.

Sector Analysis

The cybersecurity market is a rapidly growing sector, with significant government investment in protecting critical infrastructure and sensitive data. Dark web monitoring is a specialized niche within this sector, focused on identifying threats, data breaches, and illicit activities occurring on hidden parts of the internet. The IRS's need for such a service aligns with broader government efforts to combat cybercrime and protect taxpayer information. Comparable spending benchmarks for similar dark web intelligence services can vary widely based on the depth of coverage, data sources, and analytical capabilities provided.

Small Business Impact

This contract does not appear to involve any small business set-asides or subcontracting requirements. The award was made directly to CYBERDEVOPS PTE. LTD., and there is no indication of efforts to engage small businesses in fulfilling this requirement. This means that the potential economic benefits for the small business ecosystem associated with this particular procurement are likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury's internal procurement and financial management controls. The IRS contracting office is responsible for ensuring the contractor meets the terms of the Purchase Order. Transparency is limited due to the sole-source nature of the award; however, the contract details are publicly available through federal procurement databases. There is no specific mention of Inspector General involvement at this stage, but the IG could investigate if performance issues or improprieties arise.

Related Government Programs

Cybersecurity Services
Information Technology Services
Threat Intelligence Platforms
Dark Web Monitoring Solutions
Federal Information Security Management Act (FISMA) Compliance

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing due to non-competitive nature.
Limited transparency on service scope and performance metrics.
Contractor's government contracting experience not readily available.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $49,800 to CYBERDEVOPS PTE. LTD.. DARK WEB MONITOR SUBSCRIPTION (12-MONTHS).

Who is the contractor on this award?

The obligated recipient is CYBERDEVOPS PTE. LTD..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $49,800.

What is the period of performance?

Start: 2024-09-12. End: 2026-09-11.

What is the specific scope of services included in the "DARK WEB MONITOR SUBSCRIPTION (12-MONTHS)" and how does it align with the IRS's cybersecurity needs?

The provided data does not detail the specific scope of services for the dark web monitoring subscription. Typically, such services involve continuous monitoring of various dark web forums, marketplaces, and communication channels for mentions of the IRS, its employees, taxpayer data, or other sensitive information. This can include identifying potential data breaches, phishing attempts, or threats related to tax fraud. The alignment with IRS needs would depend on the agency's specific threat landscape and risk assessment, which are not detailed here. A comprehensive understanding requires access to the contract's statement of work (SOW) to evaluate the depth of monitoring, types of threats covered, and reporting mechanisms.

How does the $498,000 contract value compare to similar dark web monitoring services procured by other federal agencies?

Direct comparison of the $498,000 contract value for 12 months of dark web monitoring is difficult without knowing the exact scope and depth of services provided by CYBERDEVOPS PTE. LTD. However, annual costs for comprehensive dark web intelligence services can range significantly, from tens of thousands to hundreds of thousands of dollars, depending on the vendor, the breadth of monitoring (e.g., number of sources, languages covered), the sophistication of analytics, and the level of human intelligence integration. Agencies like the Department of Defense or Homeland Security may procure similar services, but contract values can differ based on specific mission requirements and scale. The sole-source nature of this award prevents a direct market price comparison through competitive bids.

What is CYBERDEVOPS PTE. LTD.'s track record and experience in providing cybersecurity and dark web monitoring services, particularly to government entities?

Information regarding CYBERDEVOPS PTE. LTD.'s specific track record and experience in providing cybersecurity and dark web monitoring services, especially to government entities, is not detailed in the provided data. As the company is based in Singapore and the contract was awarded on a sole-source basis, further due diligence would typically involve reviewing past performance evaluations, contract history with federal agencies, and any relevant certifications or industry recognition. Without this information, it is challenging to assess their established expertise and reliability for fulfilling the IRS's critical cybersecurity intelligence needs.

What are the potential risks associated with awarding a sole-source contract for dark web monitoring, and how are these mitigated?

The primary risks associated with a sole-source award for dark web monitoring include potentially higher costs due to the lack of competition, limited innovation, and vendor lock-in. Without competitive pressure, the vendor may have less incentive to offer the most cost-effective solution or to continuously improve their services. Mitigation strategies could involve rigorous negotiation of terms and pricing, establishing clear performance metrics and service level agreements (SLAs), and conducting thorough market research beforehand to ensure a sole-source justification is truly warranted. Regular performance reviews and contingency planning for potential vendor failure are also crucial.

What are the historical spending patterns of the IRS on cybersecurity and threat intelligence services?

The provided data does not include historical spending patterns of the IRS on cybersecurity and threat intelligence services. To assess this contract's place within the agency's budget, one would need to examine past contract awards for similar services, overall IT security budgets, and trends in federal spending on cybersecurity. Understanding historical context is crucial for evaluating whether this $498,000 award represents an increase, decrease, or consistent level of investment in dark web monitoring capabilities.

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 - END USER

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 21 TAN QUEE LAN STREET #02-04 HERITAGE PLACE, SINGAPORE

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

Financial Breakdown

Contract Ceiling: $124,500

Exercised Options: $49,800

Current Obligation: $49,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline