Treasury's IRS Spends $28.8M on Dell EMC Big Data Suite via Full & Open Competition
Contract Overview
Contract Amount: $28,816,218 ($28.8M)
Contractor: RED River Technology LLC
Awarding Agency: Department of the Treasury
Start Date: 2018-09-30
End Date: 2018-10-30
Contract Duration: 30 days
Daily Burn Rate: $960.5K/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: FIRM FIXED PRICE PURCHASE OF BRAND NAME DELL EMC BIG DATA ANALYTICS SUITE.
Place of Performance
Location: CLAREMONT, SULLIVAN County, NEW HAMPSHIRE, 03743
Plain-Language Summary
Department of the Treasury obligated $28.8 million to RED RIVER TECHNOLOGY LLC for work described as: FIRM FIXED PRICE PURCHASE OF BRAND NAME DELL EMC BIG DATA ANALYTICS SUITE. Key points: 1. Significant investment in advanced data analytics capabilities for the IRS. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The sector is IT services, specifically 'Other Computer Related Services'.
Value Assessment
Rating: good
The total award of $28.8M for a brand-name software suite appears substantial. Benchmarking against similar large-scale data analytics software procurements would be necessary for a precise value assessment, but the firm fixed price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple vendors were considered. This competitive process is generally expected to yield fair market prices.
Taxpayer Impact: Taxpayer funds were used for this procurement. The competitive nature of the award suggests efforts were made to secure a reasonable price, but the overall value depends on the utility and necessity of the software.
Public Impact
Enhances IRS capabilities in processing and analyzing large datasets, potentially improving tax administration and fraud detection. Investment in technology infrastructure to support modern data analytics needs. The use of a brand-name product may limit flexibility but ensures specific functionality.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Brand-name justification could be explored for potential cost savings if commercial off-the-shelf alternatives exist.
- Performance metrics and actual utilization of the suite are not detailed, impacting value assessment.
Positive Signals
- Firm Fixed Price contract type minimizes cost overrun risk for the government.
- Full and open competition process is a positive indicator for price discovery.
- Awarded to a single delivery order, suggesting a focused need.
Sector Analysis
This procurement falls within the IT services sector, specifically 'Other Computer Related Services.' Spending in this area is critical for government modernization, with benchmarks varying widely based on the complexity and scope of services required.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to participate in the competition or provide subcontracting support.
Oversight & Accountability
The award was a delivery order under a larger contract. Oversight would focus on the terms of the base contract, the justification for the brand-name purchase, and the effective utilization of the software by the IRS.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for higher cost due to brand-name specification.
- Lack of detailed performance metrics makes value assessment difficult.
- No indication of small business participation.
- Reliance on a specific vendor's technology could lead to future lock-in.
Tags
other-computer-related-services, department-of-the-treasury, nh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $28.8 million to RED RIVER TECHNOLOGY LLC. FIRM FIXED PRICE PURCHASE OF BRAND NAME DELL EMC BIG DATA ANALYTICS SUITE.
Who is the contractor on this award?
The obligated recipient is RED RIVER TECHNOLOGY 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 $28.8 million.
What is the period of performance?
Start: 2018-09-30. End: 2018-10-30.
What was the specific justification for procuring the brand-name Dell EMC suite instead of exploring commercial off-the-shelf alternatives that might offer better value or lower costs?
The justification for a brand-name purchase typically centers on unique features, existing infrastructure compatibility, or specific performance requirements that only the named product can meet. Without detailed documentation, it's difficult to assess if alternative solutions were adequately considered or if this choice represents the best value for taxpayer dollars. Further review of the acquisition planning documents would be necessary.
How effectively is the Dell EMC Big Data Analytics Suite being utilized by the IRS to achieve its intended mission objectives, and what are the measurable outcomes?
Measuring the effectiveness requires access to IRS performance reports, usage statistics, and documented improvements in areas like tax processing efficiency, fraud detection rates, or data analysis turnaround times. The current data provides only the financial commitment, not the operational impact. Without post-award performance data, it's challenging to definitively assess the return on investment for this $28.8 million expenditure.
Given the firm-fixed-price nature, what mechanisms are in place to ensure the contractor, Red River Technology LLC, is delivering the full scope of services and software capabilities as defined in the
The government typically employs contract officers' representatives (CORs) and quality assurance surveillance plans (QASPs) to monitor contractor performance and ensure deliverables meet contractual requirements. For a software suite, this would involve verifying installation, functionality, and potentially performance benchmarks. The effectiveness of these oversight mechanisms is crucial for ensuring the government receives the value paid for under the firm-fixed-price agreement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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: 21 WATER ST STE 500, CLAREMONT, NH, 03743
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,816,218
Exercised Options: $28,816,218
Current Obligation: $28,816,218
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: NNG15SC85B
IDV Type: GWAC
Timeline
Start Date: 2018-09-30
Current End Date: 2018-10-30
Potential End Date: 2019-09-30 09:17:55
Last Modified: 2020-05-05
More Contracts from RED River Technology LLC
- This Contract IS to Provide the Department of Veterans Affairs With Cisco Business Critical Enterprise Service Agreement Maintenance and Support Services the VA Enterprise Network Infrastructure That Expires September 30, 2019 — $378.4M (Department of Veterans Affairs)
- Requirement IS for the Procurement of an Enterprise Service Agreement Covering ALL Department of Veterans Affairs, Office of Information and Technology Managed Cisco Equipment and Applications Worldwide — $236.3M (Department of Veterans Affairs)
- Software Maintenance — $188.4M (Department of Defense)
- BIG Data Analytics Greenplum (BDA GP) — $59.9M (Department of the Treasury)
- Network Equipment AS a Service — $52.4M (Department of Homeland Security)
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)