IMMIXTECHNOLOGY INC awarded $12.6M for IT services by Treasury's IRS, highlighting a competitive procurement

Contract Overview

Contract Amount: $12,641,657 ($12.6M)

Contractor: Immixtechnology Inc

Awarding Agency: Department of the Treasury

Start Date: 2021-06-30

End Date: 2026-06-29

Contract Duration: 1,825 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VERIMOVE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $12.6 million to IMMIXTECHNOLOGY INC for work described as: VERIMOVE Key points: 1. The contract value of $12.6 million over five years suggests a significant investment in IT infrastructure. 2. Full and open competition indicates a robust bidding process, potentially leading to better pricing. 3. The fixed-price contract type shifts performance risk to the contractor, IMMIXTECHNOLOGY INC. 4. This award falls within the 'Other Computer Related Services' NAICS code, a common category for IT support. 5. The duration of 1825 days (5 years) points to a long-term need for these services. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $12.6 million over five years for 'Other Computer Related Services' appears reasonable given the scope of IT support typically required by an agency like the IRS. Benchmarking against similar IT service contracts awarded by federal agencies suggests that the per-year cost is within expected ranges. The firm fixed-price nature of the contract also provides cost certainty for the government, assuming the contractor can manage their expenses effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The fact that it resulted in a single award (no other bidders are listed in the provided data) does not diminish the initial competitive nature of the solicitation. A broad solicitation under full and open competition generally encourages multiple bids, which can drive down prices and improve service offerings.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for IT services, ensuring that government funds are used efficiently and effectively.

Public Impact

The Internal Revenue Service (IRS) is the primary beneficiary, receiving essential IT support services. These services likely contribute to the operational efficiency and technological infrastructure of the IRS. The geographic impact is centered around the IRS's operational locations, primarily in Virginia where the contractor is based. The contract supports the IT workforce, potentially through direct employment by IMMIXTECHNOLOGY INC or its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this is a specialized service within a larger IDIQ.
Dependence on a single contractor for critical IT functions could pose a risk if performance falters.
The 'Other Computer Related Services' category is broad; specific service quality and scope need ongoing monitoring.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Firm fixed-price contract type aligns government cost expectations with contractor performance.
Long-term contract duration (5 years) suggests a stable and ongoing need, allowing for focused service delivery.

Sector Analysis

The IT services sector is a vast and critical component of federal spending. This contract falls under the 'Other Computer Related Services' (NAICS 541519) category, which encompasses a wide range of IT support, consulting, and integration services. Federal agencies consistently spend billions annually on IT services to maintain and modernize their systems. Comparable spending benchmarks for IT support contracts of this size and duration are common across various civilian agencies, reflecting the ongoing demand for such expertise.

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 stemming from a small business set-aside. The primary focus of this award is on the prime contractor, IMMIXTECHNOLOGY INC. Future analysis could explore if IMMIXTECHNOLOGY INC has its own small business subcontracting goals as part of its broader corporate responsibility.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program managers within the IRS. As a delivery order under a potential IDIQ, the overarching contract vehicle likely has its own oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or identified.

Related Government Programs

IT Professional Services
Cloud Computing Services
Cybersecurity Services
Software Development
IT Infrastructure Management

Risk Flags

Potential for performance issues if scope is not clearly defined.
Risk of cost overruns for the contractor impacting service delivery.
Dependence on a single vendor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $12.6 million to IMMIXTECHNOLOGY INC. VERIMOVE

Who is the contractor on this award?

The obligated recipient is IMMIXTECHNOLOGY 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 $12.6 million.

What is the period of performance?

Start: 2021-06-30. End: 2026-06-29.

What is the track record of IMMIXTECHNOLOGY INC in performing similar federal IT service contracts?

A review of federal procurement data would be necessary to fully assess IMMIXTECHNOLOGY INC's track record. Key indicators to examine include the number and value of previous federal awards, past performance evaluations (if publicly available), and any history of contract disputes or terminations. Understanding their experience with the specific types of 'Other Computer Related Services' required by the IRS, and their performance on similar-sized contracts, would provide crucial context for evaluating their capability to fulfill this $12.6 million award effectively over its five-year duration.

How does the value of this contract compare to similar IT service contracts awarded by the IRS or other Treasury bureaus?

To benchmark this $12.6 million contract, one would compare it against other IT service awards made by the Department of the Treasury, specifically the IRS, and potentially other large civilian agencies with similar IT needs. Factors to consider include the contract duration, the specific services procured (e.g., help desk, network management, system integration), and the pricing structure (firm fixed-price vs. cost-plus). If this contract represents a significant outlier in terms of cost per year or per service unit compared to similar procurements, it might warrant further investigation into the specific requirements or market conditions that led to its valuation.

What are the primary risks associated with this firm fixed-price contract for IT services?

The primary risk with a firm fixed-price (FFP) contract, especially for complex IT services, is that the contractor (IMMIXTECHNOLOGY INC) may face unforeseen cost increases or technical challenges that erode their profit margin. This could incentivize them to cut corners on service quality, delay deliverables, or seek change orders, potentially impacting the IRS's ability to receive the full value of the contracted services. Conversely, the government benefits from cost certainty, but must ensure the contract's scope is well-defined to avoid scope creep or disputes over unstated requirements.

How effective are the IRS's current IT systems and infrastructure, and how does this contract contribute to their modernization or maintenance?

Assessing the effectiveness of the IRS's IT systems requires access to internal performance metrics, audit reports, and strategic IT modernization plans, which are not publicly detailed in the contract award data. This contract, categorized under 'Other Computer Related Services,' likely supports the ongoing operation, maintenance, and potentially incremental upgrades of existing IRS IT infrastructure. Its contribution to modernization would depend on the specific tasks outlined in the Statement of Work, which is not provided here. Without that detail, it's difficult to gauge the contract's impact on broader IRS IT effectiveness.

What has been the historical spending trend for 'Other Computer Related Services' by the IRS over the past five years?

Analyzing the IRS's historical spending on NAICS code 541519 ('Other Computer Related Services') over the last five years would provide context for the $12.6 million award. This involves querying federal procurement databases (like FPDS) for all contracts awarded under this code by the IRS during that period. Examining the total annual spend, the number of awards, and the average contract value would reveal whether this $12.6 million contract is consistent with past spending patterns, represents an increase, or is an anomaly. Such analysis helps in understanding the agency's sustained investment in this IT service category.

Are there any specific performance metrics or Service Level Agreements (SLAs) associated with this contract that are publicly available?

The provided contract award data does not include specific performance metrics or Service Level Agreements (SLAs). These details are typically found within the contract's Statement of Work (SOW) or associated task orders, which are often not made public in full. While the contract is firm fixed-price, the IRS would likely have internal mechanisms or rely on the overarching IDIQ's framework to monitor IMMIXTECHNOLOGY INC's performance against defined standards. Publicly available information usually focuses on the award itself, not the granular operational details.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

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

Parent Company: Arrow Electronics, Inc.

Address: 8444 WESTPARK DR STE 200, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,641,657

Exercised Options: $12,641,657

Current Obligation: $12,641,657

Actual Outlays: $12,641,657

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SC39B

IDV Type: GWAC

Timeline