IRS Spends $348K on SYSTRAN Software Licenses with Annual Maintenance
Contract Overview
Contract Amount: $348,623 ($348.6K)
Contractor: Systran Software, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2025-01-01
End Date: 2026-02-28
Contract Duration: 423 days
Daily Burn Rate: $824/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS IS A DELIVERY ORDER TO PURCHASE 10 SYSTRAN TRANSLATE SERVER LICENSING WITH ANNUAL MAINTENANCE FOR PERPETUAL ON-PREMISES LANGUAGE TRANSLATION SOLUTION
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92108
Plain-Language Summary
Department of the Treasury obligated $348,622.53 to SYSTRAN SOFTWARE, INC. for work described as: THIS IS A DELIVERY ORDER TO PURCHASE 10 SYSTRAN TRANSLATE SERVER LICENSING WITH ANNUAL MAINTENANCE FOR PERPETUAL ON-PREMISES LANGUAGE TRANSLATION SOLUTION Key points: 1. SYSTRAN Software, Inc. secured a $348,622 contract for 10 perpetual on-premises language translation licenses. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The primary risk appears to be the reliance on a single vendor for specialized translation software. 4. Spending in the IT software sector can vary widely, but this appears to be a moderate investment for specific departmental needs.
Value Assessment
Rating: fair
The contract price of $348,622.53 for 10 SYSTRAN Translate Server licenses with annual maintenance is difficult to benchmark without specific feature comparisons. However, perpetual on-premises solutions often involve significant upfront costs followed by recurring maintenance fees.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing, although the specific pricing outcomes are not detailed here.
Taxpayer Impact: Taxpayers benefit from competitive bidding processes that aim to secure goods and services at the best possible price, ensuring efficient use of public funds.
Public Impact
Improved internal communication and data processing through advanced language translation capabilities. Potential for enhanced efficiency in handling multilingual documents and communications within the IRS. Ensures the IRS has access to up-to-date translation technology for its operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Vendor Lock-in
- Software Obsolescence
- Maintenance Cost Escalation
Positive Signals
- Competitive Procurement
- Perpetual License Model
Sector Analysis
This purchase falls within the Information Technology sector, specifically software licensing. Spending in this area is driven by the need for advanced tools to support government operations, with costs varying based on software complexity, vendor, and licensing model.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement. Full and open competition typically allows for participation from all eligible businesses, but specific subcontracting or prime contracting opportunities for SMBs are not detailed.
Oversight & Accountability
The award was made by the Department of the Treasury's Internal Revenue Service. Oversight would typically involve contract management to ensure delivery of services and adherence to terms, with potential for audits or reviews.
Related Government Programs
- Computer and Software Stores
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for vendor lock-in with a perpetual license.
- Risk of software becoming outdated if maintenance and upgrades are not consistently pursued.
- Dependence on SYSTRAN for ongoing support and security updates.
- Uncertainty regarding the total cost of ownership beyond the initial purchase and first year of maintenance.
Tags
computer-and-software-stores, department-of-the-treasury, ca, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $348,622.53 to SYSTRAN SOFTWARE, INC.. THIS IS A DELIVERY ORDER TO PURCHASE 10 SYSTRAN TRANSLATE SERVER LICENSING WITH ANNUAL MAINTENANCE FOR PERPETUAL ON-PREMISES LANGUAGE TRANSLATION SOLUTION
Who is the contractor on this award?
The obligated recipient is SYSTRAN SOFTWARE, 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 $348,622.53.
What is the period of performance?
Start: 2025-01-01. End: 2026-02-28.
What is the total cost of ownership over the expected lifespan of the software, including maintenance and potential upgrade costs?
The total cost of ownership is not fully captured by the initial $348,622.53 award. It's crucial to consider the annual maintenance fees for the duration of use, which are not specified beyond the initial period. Future upgrade costs or the need for new versions should also be factored in, as perpetual licenses may require additional investment for significant advancements or compatibility with evolving IT infrastructure.
How does the performance and feature set of SYSTRAN Translate Server compare to other leading language translation solutions available in the market?
A comprehensive comparison of SYSTRAN's performance and features against competitors is not provided in the data. While the contract was awarded under full and open competition, the specific evaluation criteria and benchmark tests used to determine SYSTRAN as the best value are unknown. Further analysis would require reviewing technical specifications, user reviews, and independent performance benchmarks.
What is the long-term strategy for language translation needs within the IRS, and does this purchase align with that strategy?
The long-term strategy for the IRS's language translation needs is not detailed in this procurement data. This purchase of perpetual on-premises licenses suggests a focus on maintaining control over the software and data internally. However, it's unclear if this aligns with a broader strategy that might include cloud-based solutions, AI-driven translation services, or a hybrid approach.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: IT AND TELECOM - COMPUTE
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: 1615 MURRAY CANYON RD STE 560, SAN DIEGO, CA, 92108
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $348,623
Exercised Options: $348,623
Current Obligation: $348,623
Actual Outlays: $348,623
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0364V
IDV Type: FSS
Timeline
Start Date: 2025-01-01
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2026-04-06
More Contracts from Systran Software, Inc.
- Systran Neural Server License and Maintenance — $118.7K (Department of State)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)