IRS Criminal Investigation to modernize case management with a $28.45M cloud system, enhancing data analysis capabilities

Contract Overview

Contract Amount: $28,450,000 ($28.4M)

Contractor: Monkton, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2025-09-30

End Date: 2028-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INTERNAL REVENUE SERVICE CRIMINAL INVESTIGATION HAS A REQUIREMENT FOR DESIGNING, AND DEPLOYING A NEW CLOUD-BASED ENTERPRISE CASE MANAGEMENT SYSTEM TO COLLECT AND ANALYZE DATA, CATALOG ISSUES, AND POTENTIAL SOLUTIONS TO ACCOMPLISH ITS MISSION.

Place of Performance

Location: OGDEN, WEBER County, UTAH, 84409

State: Utah Government Spending

Plain-Language Summary

Department of the Treasury obligated $28.4 million to MONKTON, INC. for work described as: INTERNAL REVENUE SERVICE CRIMINAL INVESTIGATION HAS A REQUIREMENT FOR DESIGNING, AND DEPLOYING A NEW CLOUD-BASED ENTERPRISE CASE MANAGEMENT SYSTEM TO COLLECT AND ANALYZE DATA, CATALOG ISSUES, AND POTENTIAL SOLUTIONS TO ACCOMPLISH ITS MISSION. Key points: 1. The contract aims to improve data collection, issue cataloging, and solution identification for IRS CI's mission. 2. A cloud-based enterprise system is expected to offer greater flexibility and scalability compared to legacy systems. 3. The firm-fixed-price contract structure provides cost certainty for the government. 4. The duration of the contract (3 years) suggests a phased deployment and integration approach. 5. The specific NAICS code (518210) indicates a focus on data processing and hosting services. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, suggesting potential for future task orders.

Value Assessment

Rating: good

The total contract value of $28.45 million over three years for a cloud-based enterprise case management system appears reasonable, especially considering the complexity of modernizing such a critical system for a federal law enforcement agency. Benchmarking against similar large-scale IT modernization projects within government, this figure falls within expected ranges. The firm-fixed-price nature of the contract helps manage cost risks for the government, although the initial award amount is an estimate and actual spending will depend on task order execution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the initial solicitation was broad, specific sources were later excluded, leading to a limited competition environment. The exact reasons for exclusion are not detailed but could relate to specific technical capabilities, existing contract vehicles, or prior performance. A limited competition typically results in fewer bidders than full and open competition, potentially impacting the government's ability to secure the lowest possible price.

Taxpayer Impact: A limited competition means taxpayers may not benefit from the full spectrum of market competition, potentially leading to higher costs than if a broader range of vendors had participated.

Public Impact

IRS Criminal Investigation agents and analysts will benefit from an improved system for managing cases and analyzing data. The new system is intended to enhance the efficiency and effectiveness of investigations into financial crimes. Improved data analysis capabilities could lead to better identification of criminal patterns and trends. The deployment of a cloud-based system may require updated training for IRS CI personnel. The geographic impact is national, supporting IRS CI operations across all jurisdictions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may restrict price discovery and potentially lead to higher costs.
The success of the system hinges on effective data migration and integration with existing IRS infrastructure.
Ensuring robust cybersecurity measures for a cloud-based system handling sensitive data is critical.
The exclusion of sources in the competition phase warrants further scrutiny to ensure fairness and optimal value.

Positive Signals

The use of a cloud-based solution offers scalability and potential for future technological advancements.
A firm-fixed-price contract provides budget certainty for this significant IT investment.
Modernizing case management systems is crucial for enhancing the operational effectiveness of IRS CI.
The contract is awarded to Monkton, Inc., suggesting a specific capability alignment.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on data processing, web hosting, and related services (NAICS 518210). The market for cloud-based enterprise solutions is highly competitive, with numerous providers offering platforms for case management, data analytics, and workflow automation. Government spending in this area is substantial as agencies prioritize digital transformation and cloud adoption to improve efficiency and security. Comparable spending benchmarks for similar enterprise-wide system modernizations can range from tens to hundreds of millions of dollars, depending on scope and complexity.

Small Business Impact

The data indicates that small business participation (sb: false) and set-asides (ss: false) were not primary considerations for this specific contract award. This suggests that the procurement was likely focused on large, established vendors with the specialized capabilities required for a complex enterprise system. While there are no direct subcontracting implications mentioned, larger prime contractors are often required to meet small business subcontracting goals on other types of federal contracts. For this particular award, the direct impact on the small business ecosystem appears minimal.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Treasury and the Internal Revenue Service, with specific contracting officers and program managers responsible for monitoring performance, adherence to terms, and delivery schedules. The firm-fixed-price nature of the contract provides a degree of financial oversight by fixing the total cost. Transparency will be facilitated through contract award databases and potentially through agency reporting on IT modernization efforts. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IRS Case Management Systems
Federal Law Enforcement IT Modernization
Cloud Computing Services for Government
Data Analytics Platforms
Enterprise Resource Planning (ERP) Systems

Risk Flags

Limited Competition
Cybersecurity Risk
Data Migration Complexity
System Integration Challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $28.4 million to MONKTON, INC.. INTERNAL REVENUE SERVICE CRIMINAL INVESTIGATION HAS A REQUIREMENT FOR DESIGNING, AND DEPLOYING A NEW CLOUD-BASED ENTERPRISE CASE MANAGEMENT SYSTEM TO COLLECT AND ANALYZE DATA, CATALOG ISSUES, AND POTENTIAL SOLUTIONS TO ACCOMPLISH ITS MISSION.

Who is the contractor on this award?

The obligated recipient is MONKTON, 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 $28.4 million.

What is the period of performance?

Start: 2025-09-30. End: 2028-09-29.

What is the track record of Monkton, Inc. in delivering similar large-scale, cloud-based enterprise systems for federal law enforcement agencies?

Assessing Monkton, Inc.'s track record requires a detailed review of their past performance on federal contracts, particularly those involving cloud-based enterprise case management or similar complex IT solutions. Information on contract databases like SAM.gov or FPDS can reveal past awards, performance evaluations (if publicly available), and the scale of previous projects. Specific attention should be paid to their experience with data migration, system integration, cybersecurity compliance for sensitive data, and user adoption strategies. Without specific past performance data for Monkton, Inc. on comparable projects, it is difficult to definitively assess their capability to successfully deliver this critical system. However, the limited competition aspect might suggest they were identified as having specific relevant expertise.

How does the $28.45 million cost compare to similar federal IT modernization projects for case management systems?

The $28.45 million cost for a three-year cloud-based enterprise case management system for IRS Criminal Investigation needs to be benchmarked against similar government IT modernization efforts. Large-scale system overhauls, especially those involving cloud migration and complex data analytics, can vary significantly in cost. For instance, other federal agencies have invested tens of millions of dollars in modernizing their core IT infrastructure and case management tools. Factors influencing cost include the number of users, data volume, integration requirements with legacy systems, and the specific functionalities required. While $28.45 million appears substantial, it may be competitive when considering the scope of modernizing a critical system for a federal law enforcement agency, provided the system delivers the expected enhancements in efficiency and analytical capability.

What are the primary risks associated with deploying a new cloud-based system for sensitive IRS data, and how are they being mitigated?

Key risks include cybersecurity vulnerabilities, data breaches, system integration challenges with existing IRS infrastructure, potential for cost overruns if not managed tightly, and user adoption issues. Mitigations typically involve stringent cybersecurity protocols, adherence to federal data protection standards (e.g., FedRAMP for cloud services), phased deployment strategies to minimize disruption, comprehensive user training, and robust project management. The firm-fixed-price contract structure helps mitigate financial risks by capping the total cost. However, the success of mitigation strategies depends heavily on the vendor's expertise and the government's oversight.

What specific performance metrics will be used to evaluate the success of this new case management system?

Performance metrics for such a system would likely focus on improvements in operational efficiency, data accuracy, system uptime, user satisfaction, and the ability to generate actionable insights. Specific metrics could include: reduction in case processing time, increase in the number of cases analyzed, improved data integrity rates, system availability (e.g., 99.9% uptime), user adoption rates, and the successful integration of new analytical tools. The contract's statement of work (SOW) should detail these metrics and the government's evaluation criteria.

How does this contract align with the IRS's broader IT modernization strategy and cloud adoption goals?

This contract directly aligns with common government-wide and agency-specific IT modernization strategies that emphasize cloud adoption for enhanced flexibility, scalability, and cost-efficiency. By moving to a cloud-based enterprise case management system, the IRS Criminal Investigation division is likely seeking to replace outdated infrastructure, improve data analytics capabilities, and streamline investigative processes. This initiative supports the broader goal of leveraging modern technology to improve the effectiveness and efficiency of tax administration and law enforcement functions.

What is the historical spending pattern for IRS Criminal Investigation's case management systems, and how does this award compare?

Historical spending on IRS Criminal Investigation's case management systems would likely reveal a pattern of investment in maintaining and upgrading legacy systems, potentially involving significant costs for hardware, software licenses, and specialized support. The transition to a new, cloud-based enterprise system represents a strategic shift from incremental upgrades to a comprehensive modernization. This $28.45 million award for a new system should be compared not just to annual maintenance costs of old systems, but to the total cost of ownership over several years, considering potential long-term savings from cloud efficiencies and improved operational effectiveness.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2023H2-25-Q-00056

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2236 CENTRAL AVE, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $64,950,000

Exercised Options: $28,450,000

Current Obligation: $28,450,000

Actual Outlays: $261,111

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA259520D0001

IDV Type: IDC

Timeline