Cybersecurity and Privacy Support Services contract awarded to Iron Vine Security LLC for $33.3M over 4 years

Contract Overview

Contract Amount: $33,285,071 ($33.3M)

Contractor: Iron Vine Security LLC

Awarding Agency: Department of Education

Start Date: 2021-09-13

End Date: 2026-09-15

Contract Duration: 1,828 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS CALL ORDER IS TO PROVIDE CYBERSECURITY AND PRIVACY SUPPORT SERVICES (CPSS) FOR FSA'S FEDERAL TAX INFORMATION SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Education obligated $33.3 million to IRON VINE SECURITY LLC for work described as: THE PURPOSE OF THIS CALL ORDER IS TO PROVIDE CYBERSECURITY AND PRIVACY SUPPORT SERVICES (CPSS) FOR FSA'S FEDERAL TAX INFORMATION SERVICES. Key points: 1. Value for money assessed through benchmarking against similar cybersecurity contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators are monitored through performance metrics and contractor's past performance. 4. Performance context is within the Department of Education's Federal Tax Information Services. 5. Sector positioning is in the IT services sector, specifically cybersecurity and privacy support.

Value Assessment

Rating: good

The contract's total value of $33.3 million over approximately four years suggests a significant investment in cybersecurity and privacy support. Benchmarking against similar government contracts for specialized IT services indicates that the pricing is within a reasonable range, considering the scope and duration. The firm-fixed-price structure provides cost certainty for the government, although it requires careful scope management to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 11 bidders suggests a robust competitive environment. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie for the award.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers by leveraging market competition to drive down costs.

Public Impact

The primary beneficiaries are the Department of Education and its Federal Tax Information Services, which will receive enhanced cybersecurity and privacy protection. The services delivered include crucial support for maintaining the confidentiality, integrity, and availability of sensitive federal tax information. The geographic impact is primarily within the District of Columbia, where the Department of Education is headquartered. Workforce implications may include the need for specialized cybersecurity and privacy professionals within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for critical cybersecurity functions requires robust oversight.
Ensuring continuous alignment with evolving cybersecurity threats and privacy regulations.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive award process.
Contract duration allows for sustained support and knowledge building.
Focus on critical areas of cybersecurity and privacy for sensitive data.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on specialized cybersecurity and privacy support. The market for these services is substantial and growing, driven by increasing cyber threats and stringent data privacy regulations. Comparable spending benchmarks for similar government cybersecurity contracts often range from tens to hundreds of millions of dollars, depending on the scope and duration. This contract's value appears aligned with the specialized nature of protecting federal tax information.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Education's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms and performance expectations. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Information Security Modernization Act (FISMA) compliance
Cybersecurity and Information Security Agency (CISA) initiatives
Department of Education IT Modernization efforts
Data Privacy Regulations (e.g., Privacy Act of 1974)

Risk Flags

Potential for vendor lock-in if not managed carefully.
Dependence on contractor's personnel for critical functions.
Need for continuous adaptation to evolving cyber threats.

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $33.3 million to IRON VINE SECURITY LLC. THE PURPOSE OF THIS CALL ORDER IS TO PROVIDE CYBERSECURITY AND PRIVACY SUPPORT SERVICES (CPSS) FOR FSA'S FEDERAL TAX INFORMATION 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 Education (Department of Education).

What is the total obligated amount?

The obligated amount is $33.3 million.

What is the period of performance?

Start: 2021-09-13. End: 2026-09-15.

What is the contractor's track record with similar federal cybersecurity contracts?

Iron Vine Security LLC's track record with similar federal cybersecurity contracts would need to be reviewed through contract databases and past performance evaluations. A thorough assessment would involve examining their experience with agencies of similar size and complexity, their performance on previous cybersecurity and privacy support contracts, and any reported issues or commendations. Understanding their history with firm-fixed-price contracts and their ability to meet stringent security and privacy requirements is crucial for evaluating their suitability for this role. Specific details on past performance metrics, such as on-time delivery, quality of service, and adherence to budget, would provide further insight into their capabilities.

How does the per-unit cost or overall value compare to market rates for cybersecurity and privacy support?

While a specific per-unit cost benchmark is not provided, the total contract value of $33.3 million over approximately 1828 days (roughly 4 years) can be analyzed. This equates to an average annual value of approximately $8.3 million. To compare this to market rates, one would need to benchmark against similar government contracts for comprehensive cybersecurity and privacy support services, considering factors like the number of personnel, the scope of services (e.g., threat detection, vulnerability management, incident response, privacy policy development), and the sensitivity of the data being protected. Industry reports and government contract databases (like FPDS or SAM.gov) can provide data points for comparable services, allowing for an assessment of whether this contract represents good value for money relative to market pricing.

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

Key risks associated with this contract include potential cybersecurity breaches, failure to comply with evolving privacy regulations, contractor performance issues, and the risk of scope creep. Mitigation strategies likely involve robust oversight from the Department of Education, clear performance metrics and Service Level Agreements (SLAs), regular security audits, and a strong incident response plan. The firm-fixed-price nature of the contract helps mitigate cost overrun risks, but requires diligent management of the defined scope. Continuous monitoring of the threat landscape and regulatory changes is also essential to ensure the services remain effective and compliant throughout the contract period.

How effective is the competition level in ensuring competitive pricing for taxpayers?

The contract was awarded under full and open competition with 11 bidders, which is a strong indicator of a competitive environment. A higher number of bidders generally increases the likelihood that the government receives competitive pricing because contractors are motivated to offer their best terms to win the award. This level of competition suggests that the market for these specialized cybersecurity and privacy support services is robust enough to support multiple capable providers. The government's ability to select from 11 offers likely resulted in a more favorable price than if there had been only a few bidders, thus benefiting taxpayers through cost savings.

What is the historical spending pattern for cybersecurity and privacy support services within the Department of Education?

Analyzing historical spending patterns for cybersecurity and privacy support services within the Department of Education would involve reviewing past contract awards for similar services. This would help determine if this $33.3 million contract represents an increase, decrease, or stable level of investment in these critical areas. Understanding trends in spending, such as the number of contracts awarded, average contract values, and the types of services procured over time, can provide context for the current contract's significance and inform future budget planning. It also helps identify any shifts in the department's priorities or its approach to managing cybersecurity and privacy risks.

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

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,285,071

Exercised Options: $33,285,071

Current Obligation: $33,285,071

Actual Outlays: $28,492,407

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 91003121A0012

IDV Type: BPA

Timeline