Treasury's IRS awards $3M for ancillary SOC support to Delviom LLC under full and open competition

Contract Overview

Contract Amount: $3,032,794 ($3.0M)

Contractor: Delviom LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-03-27

End Date: 2027-03-26

Contract Duration: 729 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ANCILLARY SECURITY OPERATIONS CENTER SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.0 million to DELVIOM LLC for work described as: ANCILLARY SECURITY OPERATIONS CENTER SUPPORT Key points: 1. Contract value appears reasonable for specialized cybersecurity support services. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Potential risk indicators include the relatively short contract duration and the specific nature of the services. 4. Performance context is within the IRS's need for robust cybersecurity operations. 5. This contract fits within the broader IT services sector, specifically cybersecurity. 6. The contract is a BPA Call, indicating it's part of a larger pre-competed agreement.

Value Assessment

Rating: good

The contract value of approximately $3 million over two years for ancillary Security Operations Center (SOC) support is within a reasonable range for specialized cybersecurity services. Benchmarking against similar contracts for SOC support, which can range from hundreds of thousands to millions of dollars annually depending on scope and complexity, suggests this award is not excessively priced. The firm-fixed-price structure helps control costs for the government. However, a more precise value-for-money assessment would require detailed comparison of the specific deliverables and service levels against market rates for comparable SOC support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically involves a robust solicitation process, such as an RFP, where multiple vendors can compete. The specific number of bidders is not provided, but the 'full and open' designation implies a competitive environment that should drive price discovery and potentially lead to better value. The use of a BPA Call suggests this specific task order was competed under an existing Blanket Purchase Agreement.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring government funds are used efficiently.

Public Impact

The primary beneficiary is the Internal Revenue Service (IRS), which will receive enhanced cybersecurity monitoring and response capabilities. Services delivered include ancillary support to the Security Operations Center, crucial for protecting sensitive taxpayer data and IRS systems. The geographic impact is primarily within the District of Columbia, where the IRS operates. Workforce implications may involve specialized cybersecurity personnel employed by Delviom LLC, contributing to the cybersecurity workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited information on specific performance metrics or past performance of Delviom LLC in similar SOC support roles.
The contract is a BPA Call, which relies on the underlying BPA's competition and oversight; issues with the BPA could cascade.
The specific scope of 'ancillary' support needs clear definition to avoid scope creep or under-delivery.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield fair pricing.
Firm-fixed-price contract type provides cost certainty for the government.
The contract supports critical cybersecurity functions for a major federal agency (IRS).

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically the cybersecurity services sub-sector. The market for cybersecurity services is substantial and growing, driven by increasing cyber threats. Comparable spending benchmarks for SOC support can vary widely based on the size of the organization, the criticality of the systems protected, and the specific services offered (e.g., 24/7 monitoring, threat intelligence, incident response). The IRS, as a large federal agency, requires significant investment in cybersecurity, making this contract a typical component of its overall IT security strategy.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a full and open competition, it was available to all responsible sources, including large and small businesses. There is no explicit information regarding subcontracting plans for small businesses. The award to Delviom LLC, without specific size designation, suggests it is either a large business or a small business that won in a full and open competition against larger entities. The impact on the small business ecosystem is neutral to potentially negative if small businesses were unable to compete effectively.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the IRS's program officials responsible for cybersecurity. As a BPA Call, oversight also extends to the management of the underlying Blanket Purchase Agreement. Transparency is facilitated by public contract databases, but detailed performance reports and specific oversight mechanisms are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Cybersecurity Services
Security Operations Centers (SOC)
IT Support Services
Blanket Purchase Agreements (BPAs)
Federal Information Security Management Act (FISMA) Compliance

Risk Flags

Potential for undefined scope ('ancillary')
Contractor performance risk
Dependence on BPA structure

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.0 million to DELVIOM LLC. ANCILLARY SECURITY OPERATIONS CENTER SUPPORT

Who is the contractor on this award?

The obligated recipient is DELVIOM 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 $3.0 million.

What is the period of performance?

Start: 2025-03-27. End: 2027-03-26.

What is Delviom LLC's track record with federal cybersecurity contracts, particularly SOC support?

Information regarding Delviom LLC's specific track record with federal cybersecurity contracts, especially those involving Security Operations Center (SOC) support, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history databases (like SAM.gov or FPDS), and any publicly available information on their previous government engagements. Understanding their experience with similar scope, scale, and complexity is crucial for evaluating their capability to fulfill this IRS contract effectively. Without this data, it's difficult to definitively assess their suitability beyond the fact they were selected through a competitive process.

How does the $3.03 million contract value compare to similar IRS or Treasury SOC support contracts?

The $3.03 million contract value for ancillary SOC support over approximately two years (729 days) needs to be benchmarked against similar contracts within the IRS or the broader Treasury Department. While the provided data indicates a firm-fixed-price award under full and open competition, suggesting a potentially fair price, a direct comparison is difficult without knowing the exact scope of 'ancillary' services. Typical SOC support contracts can vary significantly in cost based on factors like 24/7 coverage, number of analysts, technology stack, and specific threat intelligence services. A detailed analysis would involve identifying comparable contracts awarded within the last 1-2 years for similar IT security support functions within the agency or related agencies, considering contract duration, service levels, and total value.

What are the primary risks associated with this ancillary SOC support contract?

The primary risks associated with this ancillary SOC support contract include potential gaps in service coverage if 'ancillary' is not clearly defined, leading to incomplete security monitoring. There's also a risk related to the contractor's performance and responsiveness, especially during critical security incidents, which requires robust oversight. Dependence on a single contractor for specific support functions can pose a risk if the contractor fails to perform or experiences financial instability. Furthermore, the integration of the contractor's services with the IRS's existing security infrastructure presents technical risks. Finally, ensuring continuous compliance with evolving cybersecurity regulations and standards adds another layer of risk management.

How effective is the 'full and open competition' strategy in ensuring value for taxpayer money in this specific IT security context?

The 'full and open competition' strategy is generally considered effective for ensuring value for taxpayer money in IT security contexts like this SOC support contract. By allowing all responsible sources to bid, it fosters a competitive environment that typically drives down prices and encourages innovation among offerors. This process helps the government identify the most capable vendors at the most reasonable costs. However, the effectiveness is contingent on the clarity of the solicitation requirements and the evaluation criteria. If the solicitation is poorly defined, even full and open competition might not yield the best value. The use of a BPA Call suggests this task order benefited from the pre-competed BPA, potentially streamlining the process while still leveraging competition.

What is the historical spending pattern for SOC support services at the IRS?

Historical spending patterns for SOC support services at the IRS are not provided in the current data. To analyze this, one would need to examine historical contract awards for similar services over several fiscal years. This would involve looking at the total amount spent annually on SOC operations, the number of contracts awarded, the types of services procured (e.g., managed SOC, threat intelligence, incident response), and the primary contractors utilized. Understanding these patterns can reveal trends in agency needs, budget allocation for cybersecurity, and the evolution of its security posture. It can also highlight whether spending has increased or decreased, and if the agency relies more on internal capabilities or external contractors.

What specific cybersecurity threats does this ancillary SOC support aim to mitigate for the IRS?

The specific cybersecurity threats that this ancillary SOC support aims to mitigate for the IRS are not explicitly detailed in the provided data. However, ancillary SOC support typically complements core SOC functions by providing specialized capabilities or additional monitoring capacity. This could involve mitigating threats such as malware infections, phishing attacks, unauthorized access attempts, data exfiltration, denial-of-service attacks, and insider threats. The support likely enhances the IRS's ability to detect, analyze, and respond to a wide range of cyber intrusions and vulnerabilities, thereby protecting sensitive taxpayer information and critical IT infrastructure from compromise.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44790 MAYNARD SQ, ASHBURN, VA, 20147

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,032,794

Exercised Options: $3,032,794

Current Obligation: $3,032,794

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 2032H523A00005

IDV Type: BPA

Timeline