Treasury's IRS renews SAS software support for $4.97M, raising questions about value and competition

Contract Overview

Contract Amount: $4,973,501 ($5.0M)

Contractor: Executive Information Systems, L.L.C.

Awarding Agency: Department of the Treasury

Start Date: 2021-04-15

End Date: 2026-04-14

Contract Duration: 1,825 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SAS SOFTWARE SUPPORT AND MAINTENANCE RENEWAL

Place of Performance

Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $5.0 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C. for work described as: SAS SOFTWARE SUPPORT AND MAINTENANCE RENEWAL Key points: 1. The contract's value appears reasonable given the specialized nature of SAS software and its critical role in tax administration. 2. Competition was full and open, suggesting a fair market process, though the number of bidders is not specified. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. This renewal supports essential IRS operations, indicating ongoing reliance on the software. 5. The contract is positioned within the broader IT services sector, specifically software maintenance and support. 6. The duration of the contract (5 years) aligns with typical software support lifecycles.

Value Assessment

Rating: fair

The contract value of $4.97 million over five years for SAS software support and maintenance appears to be within a reasonable range for specialized enterprise software. Without specific details on the modules covered or the level of support required, a direct benchmark is difficult. However, SAS software is known for its high licensing and support costs. The firm-fixed-price structure is a positive indicator, locking in costs and reducing the risk of unexpected increases for the IRS.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which theoretically allows all responsible sources to submit offers. This method is generally preferred for ensuring the best possible pricing and value. However, the specific number of bids received is not detailed, which would provide a clearer picture of the actual competitive landscape and the degree of price discovery achieved.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a more competitive bidding environment, which can lead to lower prices and better terms for government contracts.

Public Impact

Benefits the Internal Revenue Service (IRS) by ensuring continued access to critical data analytics and software tools. Supports the delivery of essential tax administration and enforcement services. Geographic impact is nationwide, as the IRS operates across the United States. Workforce implications include ensuring that IRS analysts and IT staff have the necessary tools to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of true competition.
The long-term reliance on a single vendor for critical software support can create vendor lock-in.
Potential for price increases in future renewals if competition diminishes.

Positive Signals

Awarded under full and open competition, indicating an effort to maximize market participation.
Firm-fixed-price contract type provides cost certainty for the government.
Renewal ensures continuity of essential IT services for a critical government function.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software maintenance and support for a widely used analytics platform. The market for enterprise software support is often dominated by a few key vendors, and SAS is a significant player in this space, particularly for large organizations requiring advanced analytics. Comparable spending benchmarks would involve looking at other government agencies or large enterprises that utilize SAS software for similar support and maintenance agreements.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from this specific award. The focus remains on larger entities capable of providing comprehensive support for enterprise-level software.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Treasury's Inspector General, particularly concerning the effective use of funds and adherence to contract terms. The IRS likely has internal contract management and performance monitoring processes in place to ensure the vendor meets its obligations. Transparency is facilitated by public contract databases, though detailed performance metrics are often not publicly disclosed.

Related Government Programs

IRS IT Modernization Initiatives
Government Software Licensing and Maintenance
Data Analytics and Business Intelligence Services
Federal IT Procurement

Risk Flags

Limited transparency on competition details (number of bidders).
Potential for vendor lock-in with specialized enterprise software.
Lack of specific performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5.0 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C.. SAS SOFTWARE SUPPORT AND MAINTENANCE RENEWAL

Who is the contractor on this award?

The obligated recipient is EXECUTIVE INFORMATION SYSTEMS, L.L.C..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2021-04-15. End: 2026-04-14.

What specific SAS software modules and versions are covered under this support contract?

The provided data does not specify the exact SAS software modules or versions included in this support and maintenance renewal. SAS offers a wide suite of products for data management, advanced analytics, business intelligence, and more. Understanding the specific modules (e.g., SAS/STAT, SAS/GRAPH, SAS Enterprise Guide, SAS Viya) is crucial for accurately assessing the contract's value and necessity. Without this detail, it's challenging to benchmark the cost against similar support agreements for specific SAS functionalities.

How many bids were received for this contract, and what was the range of proposed prices?

The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION,' which implies that multiple vendors could have bid. However, the specific number of bids received is not provided. Knowing the number of bidders and the range of proposed prices would offer significant insight into the competitiveness of the procurement. A higher number of bids typically suggests a more robust competition, potentially leading to better pricing for the government. The absence of this information limits the ability to fully assess the price discovery achieved through the competition.

What is the historical spending pattern for SAS software support and maintenance at the IRS?

The provided data is for a single contract renewal from April 15, 2021, to April 14, 2026. To understand historical spending patterns, one would need to examine prior contracts for SAS software support and maintenance awarded to Executive Information Systems, L.L.C. or other vendors by the IRS. Analyzing spending over several preceding years would reveal trends in cost, contract duration, and vendor relationships, helping to determine if the current $4.97 million renewal represents an increase, decrease, or stable expenditure compared to past investments in similar services.

What are the key performance indicators (KPIs) used to evaluate the vendor's performance under this contract?

The provided data does not include details on the specific Key Performance Indicators (KPIs) established for this contract. Typically, software support contracts include metrics related to response times for issues, resolution times, availability of support personnel, accuracy of solutions provided, and adherence to service level agreements (SLAs). Effective oversight requires clearly defined and measurable KPIs to ensure the IRS receives the expected level of service and value for the $4.97 million investment. Without these KPIs, assessing the vendor's performance objectively is difficult.

Are there any alternative software solutions that the IRS considered or could consider for similar data analytics needs?

The data does not provide information on whether the IRS considered alternative software solutions or if they have a strategy for future transitions away from SAS. SAS is a powerful but often expensive platform. Government agencies are increasingly encouraged to explore open-source alternatives or cloud-based solutions that might offer comparable functionality at a lower cost. A review of the IRS's IT strategy and procurement pipeline would be necessary to understand their approach to evaluating and potentially adopting alternative data analytics platforms.

Industry Classification

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6903 ROCKLEDGE DR STE 760, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,211,914

Exercised Options: $5,021,368

Current Obligation: $4,973,501

Actual Outlays: $4,941,825

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D0081

IDV Type: FSS

Timeline