Treasury's IRS awards $11.4M contract for vulnerability discovery to Minburn Technology Group

Contract Overview

Contract Amount: $11,370,456 ($11.4M)

Contractor: Minburn Technology Group, LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-09-29

End Date: 2026-03-28

Contract Duration: 1,641 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CROWDSOURCED VULNERABILITY DISCOVERY

Place of Performance

Location: GREAT FALLS, FAIRFAX County, VIRGINIA, 22066

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $11.4 million to MINBURN TECHNOLOGY GROUP, LLC for work described as: CROWDSOURCED VULNERABILITY DISCOVERY Key points: 1. Contract value represents a significant investment in cybersecurity posture. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Contract duration indicates a long-term need for these services. 4. Fixed-price contract type offers cost certainty for the government. 5. Focus on vulnerability discovery aligns with proactive threat mitigation strategies. 6. Geographic location of the contractor may influence local economic impact.

Value Assessment

Rating: good

The contract value of $11.4 million over approximately 5.5 years appears reasonable for specialized cybersecurity services. Benchmarking against similar contracts for vulnerability discovery and penetration testing reveals a wide range, but this award falls within typical spending for such critical functions. The firm fixed-price structure provides cost predictability, which is a positive indicator for value. Further analysis would require comparing the scope of work and deliverables against market rates for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the initial solicitation was broad, specific exclusions were applied. This suggests a potentially limited number of bidders who met the specific criteria. The exact number of bidders (2) is provided, which is on the lower side for full and open competition, potentially impacting price discovery and the government's ability to secure the most competitive pricing.

Taxpayer Impact: A limited number of bidders may result in higher prices than a more broadly competed contract. Taxpayers may not benefit from the full cost savings that could arise from a larger pool of interested and capable vendors.

Public Impact

The Internal Revenue Service (IRS) benefits from enhanced cybersecurity defenses. Services delivered include the identification and reporting of system vulnerabilities. The primary geographic impact is within the federal government's IT infrastructure. Workforce implications include the need for skilled cybersecurity professionals within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing for taxpayers.
The specific nature of 'exclusions of sources' warrants further investigation to ensure fairness and necessity.
Reliance on a single awardee for critical vulnerability discovery could pose a risk if performance issues arise.

Positive Signals

The contract addresses a critical cybersecurity need for a major federal agency.
Firm fixed-price contract type provides budget certainty.
The contractor, Minburn Technology Group, LLC, is tasked with a vital security function.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on cybersecurity. The market for cybersecurity services is robust and growing, driven by increasing digital threats. Comparable spending benchmarks for federal cybersecurity contracts vary widely based on scope, but awards for vulnerability assessment and penetration testing are common. This contract's value is moderate within the context of large federal IT procurements.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no specific subcontracting requirements for small businesses were mandated. This means that opportunities for small businesses to participate in this specific contract are limited unless they are part of a larger bid or subcontracting effort initiated by the prime contractor. The overall impact on the small business ecosystem for this particular award is likely minimal.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified services within budget. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal Cybersecurity Contracts
IT Services Procurement
Vulnerability Management Programs
Department of the Treasury IT Spending
Internal Revenue Service Technology Modernization

Risk Flags

Limited Competition
Potential for Higher Costs
Reliance on Single Vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $11.4 million to MINBURN TECHNOLOGY GROUP, LLC. CROWDSOURCED VULNERABILITY DISCOVERY

Who is the contractor on this award?

The obligated recipient is MINBURN TECHNOLOGY GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-03-28.

What is the track record of Minburn Technology Group, LLC with federal contracts, particularly in cybersecurity?

Minburn Technology Group, LLC has a history of federal contracting, though specific details on their cybersecurity performance require deeper analysis of past awards and performance reviews. Examining their contract history within the Federal Procurement Data System (FPDS) can reveal the types of services they have provided, their past performance ratings (if available), and their success in meeting contract requirements. Understanding their experience with similar vulnerability discovery or cybersecurity assessment contracts is crucial for evaluating their capability to fulfill the IRS's needs effectively. A review of any past performance issues or commendations would provide further insight into their reliability as a contractor for this critical function.

How does the value of this contract compare to similar vulnerability discovery contracts awarded by other federal agencies?

The $11.4 million contract value for vulnerability discovery services over approximately 5.5 years needs to be benchmarked against comparable federal awards. Cybersecurity services, especially those involving specialized vulnerability discovery, can vary significantly in price based on the scope of work, the technologies used, the frequency of assessments, and the depth of analysis required. Agencies like the Department of Defense or the Department of Homeland Security often award large contracts for similar services. A comparative analysis would involve looking at the average cost per year, the number of systems covered, and the specific types of vulnerabilities targeted in other contracts to determine if the IRS's award represents a fair market price and good value for money.

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

Key risks for this contract include potential underperformance by the contractor, leading to missed vulnerabilities or inadequate reporting, and the risk of vendor lock-in or over-reliance on a single provider. Mitigation strategies likely include clearly defined performance metrics and deliverables in the contract, regular progress reviews by the IRS, and potentially incorporating clauses for corrective action or termination for default. The firm fixed-price nature also mitigates cost overrun risks for the government. However, the limited competition aspect could increase the risk of paying a premium price. Ensuring robust oversight and clear communication channels are vital for managing these risks effectively.

How effective is the IRS's current approach to vulnerability discovery, and how does this contract contribute to that effectiveness?

This contract is a direct mechanism for the IRS to enhance its vulnerability discovery capabilities. Its effectiveness hinges on the quality of the services provided by Minburn Technology Group, LLC and how well these services integrate with the IRS's existing cybersecurity framework. The contract's focus on identifying weaknesses proactively aims to prevent breaches and protect sensitive taxpayer data. The effectiveness can be measured by metrics such as the number and severity of vulnerabilities identified, the timeliness of reporting, and the subsequent remediation efforts undertaken by the IRS based on the findings. This contract represents a significant investment in bolstering the IRS's defensive posture against evolving cyber threats.

What are the historical spending patterns for vulnerability discovery services at the IRS or Treasury?

Analyzing historical spending patterns for vulnerability discovery at the IRS and the broader Department of the Treasury is essential for context. This involves reviewing past contracts for similar services, noting the award amounts, contract durations, and the number of vendors utilized over time. Significant increases or decreases in spending could indicate shifts in threat perception, changes in cybersecurity strategy, or the effectiveness of previous investments. Understanding these patterns helps in assessing whether the current $11.4 million award is an anomaly, a continuation of a trend, or a strategic adjustment in response to the current threat landscape.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the procurement process and potential bidder pool?

This designation implies that the initial solicitation was intended for all responsible sources ('full and open competition'). However, specific sources were subsequently excluded. This exclusion could be based on various factors, such as specific technical capabilities, past performance issues, or national security concerns. While the intent was broad competition, the exclusions likely narrowed the field of potential bidders. This can impact the level of competition achieved, potentially leading to fewer proposals and possibly less aggressive pricing compared to a scenario with no exclusions. The justification for these exclusions would be critical to understanding the procurement's integrity and fairness.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9716 ARNON CHAPEL RD, GREAT FALLS, VA, 22066

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,370,456

Exercised Options: $11,370,456

Current Obligation: $11,370,456

Actual Outlays: $10,900,803

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD34B

IDV Type: GWAC

Timeline