Treasury's IRS awards $15.7M for Web Content Management and Tax Withholding Estimator services to Nationwide IT Services Inc

Contract Overview

Contract Amount: $15,711,302 ($15.7M)

Contractor: Nationwide IT Services Inc

Awarding Agency: Department of the Treasury

Start Date: 2020-10-15

End Date: 2026-04-14

Contract Duration: 2,007 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: LABOR HOURS

Sector: IT

Official Description: WEB CONTENT MANAGEMENT SYSTEM (WCMS) AND TAX WITHHOLDING ESTIMATOR (TWE)

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $15.7 million to NATIONWIDE IT SERVICES INC for work described as: WEB CONTENT MANAGEMENT SYSTEM (WCMS) AND TAX WITHHOLDING ESTIMATOR (TWE) Key points: 1. The contract value of $15.7 million over its period of performance represents a significant investment in critical IRS digital infrastructure. 2. Competition dynamics for this contract were 'Full and Open Competition After Exclusion of Sources,' suggesting a potentially competitive bidding process. 3. The contract's duration of approximately 6 years (October 2020 to April 2026) indicates a long-term need for these services. 4. The primary contractor, NationWide IT Services Inc., has a track record that warrants further examination for performance consistency. 5. The service falls under Computer Systems Design Services, a broad category within the IT sector. 6. The contract was awarded as a Delivery Order, implying it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this $15.7 million contract is challenging without specific details on the scope of work for the Web Content Management System (WCMS) and Tax Withholding Estimator (TWE). However, the contract's duration and the nature of IT services suggest that the pricing should be competitive. Further analysis would require comparing the labor hours and rates to similar government contracts for WCMS and TWE development and maintenance. The 'fair' rating reflects the need for more granular data to definitively assess value for money.

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.' This indicates that the solicitation was broadly advertised, and multiple bidders were likely considered. The exclusion of sources clause suggests that certain pre-qualified vendors or specific circumstances led to the exclusion of some potential bidders, but the core intent was open competition. The number of bidders (9) is a positive sign for competition, suggesting a reasonable level of market interest and potential for price discovery.

Taxpayer Impact: A competitive bidding process generally leads to better pricing for taxpayers by encouraging vendors to offer their best value. The fact that 9 bidders participated suggests that the IRS likely received competitive offers, potentially resulting in cost savings.

Public Impact

Taxpayers benefit from improved online tools and information, such as the Tax Withholding Estimator, which aids in financial planning. The IRS gains enhanced capabilities for managing its web content, ensuring accurate and timely dissemination of tax information. The contract supports IT infrastructure and services nationwide, impacting the IRS's digital presence across all regions. The contract likely supports a workforce of IT professionals involved in system design, development, and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in an otherwise 'Full and Open' competition warrants scrutiny to ensure it did not unduly limit competition or favor specific vendors.
Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness and efficiency in delivering WCMS and TWE services.
The contract's duration of nearly six years could lead to potential cost overruns if not managed proactively, especially with evolving technology.

Positive Signals

The award to NationWide IT Services Inc. under full and open competition suggests a potentially vetted and capable vendor was selected.
The participation of 9 bidders indicates a healthy level of interest and competition in the market for these services.
The contract addresses critical IRS functions related to public-facing web content and taxpayer tools, indicating strategic importance.

Sector Analysis

The IT services sector, particularly custom computer systems design, is a significant area of federal spending. Contracts like this, focused on web content management and specialized tools like tax estimators, are crucial for government agencies to maintain effective public-facing digital platforms. The market for such services is competitive, with numerous firms offering expertise in system design, development, and maintenance. Benchmarks for similar contracts often vary widely based on complexity, scope, and duration, but a $15.7 million award over six years for specialized IT services is within a common range for federal agencies.

Small Business Impact

There is no explicit indication of small business set-asides or subcontracting requirements in the provided data. The contract was awarded under full and open competition, which typically does not prioritize small businesses unless specifically structured to do so. Further investigation into the contract's specific clauses and the prime contractor's subcontracting plan would be necessary to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury and the Internal Revenue Service. Standard government contracting oversight mechanisms, including contract performance reviews, financial audits, and potentially Inspector General investigations if issues arise, would be in place. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. The effectiveness of oversight depends on the IRS's internal controls and monitoring capabilities.

Related Government Programs

IRS IT Modernization Initiatives
Federal Web Content Management Systems
Taxpayer Services Technology
Custom Computer Systems Design Services
Government IT Infrastructure Support

Risk Flags

Potential for technology obsolescence due to long contract duration.
Need for clear performance metrics to ensure contractor accountability.
Risk of scope creep impacting budget and timeline.
Importance of verifying 'Exclusion of Sources' rationale.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $15.7 million to NATIONWIDE IT SERVICES INC. WEB CONTENT MANAGEMENT SYSTEM (WCMS) AND TAX WITHHOLDING ESTIMATOR (TWE)

Who is the contractor on this award?

The obligated recipient is NATIONWIDE IT SERVICES 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 $15.7 million.

What is the period of performance?

Start: 2020-10-15. End: 2026-04-14.

What is the specific scope of work for the Web Content Management System (WCMS) and Tax Withholding Estimator (TWE) under this contract?

The provided data does not detail the specific scope of work for the WCMS and TWE. However, based on the service description 'Computer Systems Design Services' and the nature of the tools, it likely encompasses the design, development, implementation, maintenance, and potential upgrades of the IRS's web content management platform and the tax withholding estimation tool. This could include features such as content creation workflows, user access controls, data security, performance optimization, and ensuring the accuracy and usability of the tax estimator for the public. A detailed statement of work (SOW) within the contract documents would provide precise requirements.

How does the $15.7 million contract value compare to similar federal contracts for WCMS and TWE services?

Comparing the $15.7 million value requires understanding the contract's duration (approx. 6 years) and the specific deliverables. For federal IT projects of this nature, a total contract value of this magnitude over several years is not uncommon, especially for critical systems supporting large agencies like the IRS. However, without specific details on the number of users supported, the complexity of the WCMS, or the advanced features of the TWE, a direct comparison is difficult. Similar contracts for enterprise-level content management or specialized financial tools can range from a few million to tens of millions of dollars, depending on the scope and vendor rates. The 'fair' rating suggests that while the price isn't alarmingly high, a more detailed benchmark against comparable, well-defined contracts would be beneficial.

What are the key performance indicators (KPIs) used to measure the success of NationWide IT Services Inc. under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for WCMS and TWE services, KPIs might include system uptime, website performance (e.g., page load times), user satisfaction ratings, accuracy of the tax estimator calculations, security incident rates, and timely delivery of new features or updates. The IRS would establish these KPIs in the contract's Statement of Work (SOW) or Performance Work Statement (PWS) to ensure the contractor meets performance expectations. The absence of this information in the summary data limits a full assessment of contractor performance.

What is the historical spending pattern for WCMS and TWE services at the IRS or Treasury?

Historical spending data for WCMS and TWE services at the IRS or Treasury is not provided in the summary. To analyze historical patterns, one would need to examine past contracts awarded for similar services, noting their values, durations, and contractors. This would reveal trends in IT investment, potential increases or decreases in spending over time, and the stability of vendors in this service area. Understanding historical spending can help contextualize the current $15.7 million award and identify any significant shifts in the agency's procurement strategy for these critical digital services.

What are the potential risks associated with a 6-year contract for IT services like WCMS and TWE?

A 6-year contract for IT services carries several potential risks. Technology evolves rapidly, and a long-term contract might not keep pace with the latest advancements, leading to outdated systems or the need for costly modifications. There's also the risk of vendor lock-in, where the agency becomes overly reliant on a single provider, potentially reducing leverage in future negotiations. Furthermore, long contracts can sometimes mask inefficiencies or allow performance to degrade over time if not rigorously monitored. Scope creep is another common risk, where the project's requirements expand beyond the original agreement, leading to increased costs and delays. Proactive contract management, regular performance reviews, and flexibility clauses are crucial to mitigate these risks.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4025 FAIR RIDGE DR STE 300, FAIRFAX, VA, 22033

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $32,337,956

Exercised Options: $15,711,302

Current Obligation: $15,711,302

Actual Outlays: $14,984,926

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,242,965

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCH18D0046

IDV Type: GWAC

Timeline