Treasury's IRS awards $45.4M for EGAIN SaaS, impacting IT services sector
Contract Overview
Contract Amount: $45,374,152 ($45.4M)
Contractor: V3gate, LLC
Awarding Agency: Department of the Treasury
Start Date: 2021-05-31
End Date: 2026-05-30
Contract Duration: 1,825 days
Daily Burn Rate: $24.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: EGAIN SOFTWARE AS A SERVICE (SAAS) LICENSE COVID-19
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80921
State: Colorado Government Spending
Plain-Language Summary
Department of the Treasury obligated $45.4 million to V3GATE, LLC for work described as: EGAIN SOFTWARE AS A SERVICE (SAAS) LICENSE COVID-19 Key points: 1. Significant contract value of $45.4M over 5 years. 2. Competition method is 'Full and Open After Exclusion of Sources', suggesting potential for better pricing. 3. Risk of vendor lock-in or limited future competition if not managed. 4. IT services sector, specifically software licensing, is a key area of government spending.
Value Assessment
Rating: fair
The contract is a Firm Fixed Price delivery order. Without specific benchmark data for EGAIN SaaS, assessing value is difficult. However, the 'Full and Open After Exclusion of Sources' competition method implies an attempt to achieve competitive pricing.
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 method allows for broad competition but may have had initial limitations. The pricing discovery relies on the competitive bids received.
Taxpayer Impact: Taxpayer funds are being used for essential IT services. The competitive nature of the award aims to ensure reasonable pricing and value for money.
Public Impact
Ensures IRS has necessary software for operations. Supports government's digital transformation efforts. Potential for improved efficiency in IRS services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition details
- Potential for price creep if not managed
- Reliance on a single software solution
Positive Signals
- Firm Fixed Price contract
- Long-term solution for IRS needs
- Competition aimed at value
Sector Analysis
This contract falls within the IT services sector, specifically software licensing. Government spending in this area is substantial, driven by the need for modern digital infrastructure and operational efficiency across agencies.
Small Business Impact
The data does not indicate if small businesses were involved in this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract is a delivery order under a larger framework. Oversight would involve monitoring performance, adherence to terms, and ensuring continued value throughout the contract period.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for vendor lock-in
- Dependence on a single software provider
- Limited transparency on specific competition details
- Risk of scope creep impacting final cost
Tags
other-computer-related-services, department-of-the-treasury, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $45.4 million to V3GATE, LLC. EGAIN SOFTWARE AS A SERVICE (SAAS) LICENSE COVID-19
Who is the contractor on this award?
The obligated recipient is V3GATE, 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 $45.4 million.
What is the period of performance?
Start: 2021-05-31. End: 2026-05-30.
What specific IRS functions does the EGAIN SaaS license support, and how critical are these functions to taxpayer services?
The EGAIN SaaS license likely supports customer relationship management, case management, or communication platforms for the IRS. These functions are critical for managing taxpayer inquiries, processing applications, and resolving issues efficiently. Ensuring the software's effectiveness directly impacts the IRS's ability to serve the public and maintain compliance.
What were the key factors that led to the 'Exclusion of Sources' in this full and open competition, and did it limit potential cost savings?
The 'Exclusion of Sources' typically occurs when specific technical requirements or existing infrastructure necessitate a particular vendor's solution, or if a previous contract established a baseline. While aiming for openness, this exclusion might limit the pool of bidders, potentially impacting the degree of price competition and overall cost savings compared to a truly unrestricted open competition.
How does the $45.4M expenditure compare to industry benchmarks for similar SaaS solutions, and what is the projected return on investment for the IRS?
Benchmarking this expenditure requires detailed analysis of EGAIN's specific features, user count, and service level agreements against comparable SaaS contracts in the public and private sectors. Without this, it's difficult to assess value. A clear ROI projection should detail expected efficiency gains, cost reductions in other areas, or improved service delivery metrics.
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 - NETWORK
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 555 MIDDLE CREEK PKWY STE 120, COLORADO SPRINGS, CO, 80921
Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $45,375,008
Exercised Options: $45,374,152
Current Obligation: $45,374,152
Actual Outlays: $45,374,152
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD27B
IDV Type: GWAC
Timeline
Start Date: 2021-05-31
Current End Date: 2026-05-30
Potential End Date: 2026-05-30 15:14:03
Last Modified: 2025-07-10
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