Treasury's $68.8M cyber support contract with Noblis, Inc. awarded via full and open competition

Contract Overview

Contract Amount: $68,834,232 ($68.8M)

Contractor: Noblis, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2019-10-31

End Date: 2025-04-30

Contract Duration: 2,008 days

Daily Burn Rate: $34.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CYBER SECURITY SUPPORT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $68.8 million to NOBLIS, INC. for work described as: CYBER SECURITY SUPPORT Key points: 1. Contract provides essential cybersecurity support to the IRS, a critical function for tax administration. 2. Awarded through full and open competition, suggesting a robust market for these services. 3. The contract's duration and value indicate a significant, long-term commitment to cybersecurity. 4. Fixed-price contract type may offer cost certainty for the government. 5. Performance is in Virginia, a hub for federal contracting and cybersecurity expertise. 6. The contract's value is substantial, reflecting the complexity and importance of IRS cybersecurity needs.

Value Assessment

Rating: good

The contract value of $68.8 million over its period of performance appears reasonable for comprehensive cybersecurity support. Benchmarking against similar large-scale cybersecurity contracts for federal agencies suggests this is within expected ranges, considering the critical nature of IRS data. The firm fixed-price structure provides cost predictability. However, a detailed cost breakdown and comparison of specific labor rates and overhead would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This process generally fosters a competitive environment, encouraging vendors to offer their best pricing and technical solutions to win the contract. The presence of multiple bidders suggests a healthy market for cybersecurity support services, which is beneficial for government procurement.

Taxpayer Impact: Full and open competition typically leads to better pricing and innovation for taxpayers by ensuring the government receives competitive offers from a wide range of qualified contractors.

Public Impact

The Internal Revenue Service (IRS) benefits from enhanced cybersecurity posture, protecting sensitive taxpayer data. Citizens are indirectly protected through the safeguarding of their financial and personal information. The contract supports cybersecurity professionals in Virginia, contributing to the local economy and tech sector. Ensures the continuity and security of critical tax administration functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if cybersecurity threats evolve rapidly beyond the initial contract's defined services.
Reliance on a single contractor for a critical function could pose a risk if performance issues arise.
Ensuring continuous knowledge transfer and avoiding vendor lock-in will be important over the contract's life.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm fixed-price contract type provides cost certainty.
Long-term contract duration suggests a stable and ongoing need for these critical services.
Contractor Noblis, Inc. has a track record of federal contracting, implying experience.

Sector Analysis

Cybersecurity is a rapidly growing sector within the broader IT services market, driven by increasing digital threats and the need to protect sensitive data. Federal spending in this area has seen consistent growth. This contract fits within the 'Engineering Services' NAICS code (541330), often encompassing specialized technical and consulting services, including cybersecurity. Comparable federal cybersecurity contracts can range from tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false). While Noblis, Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. Further analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the IRS's program management office responsible for cybersecurity. The contract's performance metrics and deliverables would be monitored to ensure compliance. 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

IRS IT Modernization Programs
Department of Homeland Security Cybersecurity Initiatives
Federal Information Security Management Act (FISMA) Compliance
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Critical Infrastructure Protection
Sensitive Data Security
Long-Term Service Agreement
Sole-Source Potential (if renewals occur)

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $68.8 million to NOBLIS, INC.. CYBER SECURITY SUPPORT

Who is the contractor on this award?

The obligated recipient is NOBLIS, 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 $68.8 million.

What is the period of performance?

Start: 2019-10-31. End: 2025-04-30.

What is Noblis, Inc.'s track record with federal cybersecurity contracts?

Noblis, Inc. has a significant history of performing federal contracts, including those related to cybersecurity and IT services across various agencies. Their experience often involves providing technical expertise, research and development, and program management support. While this specific contract is for $68.8 million with the Treasury, Noblis has secured numerous other awards, demonstrating a capacity to handle large and complex government projects. Their portfolio typically includes work in areas such as data analytics, cloud computing, cybersecurity, and enterprise IT modernization. A review of their past performance on similar contracts would indicate their ability to meet the demanding requirements of federal cybersecurity operations, including adherence to security protocols and delivery timelines.

How does the value of this contract compare to similar cybersecurity support contracts for federal agencies?

The $68.8 million value for this cybersecurity support contract with the IRS is substantial and falls within the typical range for large-scale, multi-year federal cybersecurity engagements. Agencies like the Department of Defense, Department of Homeland Security, and other major civilian departments often award contracts in the tens to hundreds of millions of dollars for comprehensive cybersecurity services. These services can include threat detection, vulnerability management, incident response, security architecture, and compliance. Factors influencing the value include the scope of services, the criticality of the data being protected (IRS data is highly sensitive), the duration of the contract, and the level of expertise required. Given the IRS's mission and the sensitive nature of taxpayer information, a contract of this magnitude is commensurate with the risks and responsibilities involved.

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

Key risks include potential cybersecurity breaches despite the support, contractor performance issues, and over-reliance on a single vendor. Mitigation strategies involve robust oversight by the IRS program office, clearly defined performance metrics and Service Level Agreements (SLAs) within the contract, and regular performance reviews. The firm fixed-price nature helps mitigate cost overrun risks for the government. Furthermore, the initial award through full and open competition suggests a vetted contractor with proven capabilities. Continuous monitoring of the threat landscape and adaptive security measures are also crucial. The contract's structure should allow for adjustments to address evolving threats, and contingency plans for vendor failure or performance degradation would be standard practice.

How effective is the firm fixed-price (FFP) contract type in managing costs for this cybersecurity service?

The Firm Fixed-Price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and unlikely to change significantly. For cybersecurity support services like those provided under this contract, FFP provides the government with cost certainty, as the contractor assumes the risk of cost overruns. This encourages the contractor to manage their resources efficiently to maintain profitability. However, if unforeseen technical challenges or significant shifts in the threat landscape require substantial changes to the scope, modifications to the FFP contract can become complex and potentially costly. For services with a high degree of uncertainty or evolving requirements, other contract types like Cost-Plus-Fixed-Fee (CPFF) might be considered, but FFP is often preferred for its budgetary predictability when feasible.

What is the historical spending pattern for cybersecurity support at the IRS or Treasury?

Historical spending on cybersecurity support at the IRS and the broader Treasury Department has generally trended upwards over the past decade, mirroring the increasing digital threats and the growing reliance on IT systems for tax administration and financial services. Specific figures fluctuate based on modernization initiatives, new security mandates (like FISMA updates), and the emergence of new cyber threats. Contracts for cybersecurity can range from smaller, specialized services to large, comprehensive support agreements similar to this one. Analyzing past contract awards, including their values, durations, and scopes, would reveal a pattern of sustained investment in securing sensitive financial and taxpayer data, indicating that cybersecurity is a consistent and growing priority for the agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

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: 2002 EDMUND HALLEY DRIVE, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $70,906,882

Exercised Options: $68,834,232

Current Obligation: $68,834,232

Actual Outlays: $68,468,272

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $1,480,715

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU143

IDV Type: IDC

Timeline