Treasury's IRS Spends $11.87M on RPA Licenses for COVID-19 Response
Contract Overview
Contract Amount: $11,866,717 ($11.9M)
Contractor: Blue Tech Inc.
Awarding Agency: Department of the Treasury
Start Date: 2021-07-16
End Date: 2025-07-15
Contract Duration: 1,460 days
Daily Burn Rate: $8.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: RPA LICENSES COVID-19
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $11.9 million to BLUE TECH INC. for work described as: RPA LICENSES COVID-19 Key points: 1. Significant investment in Robotic Process Automation (RPA) for COVID-19 operations. 2. Competition method suggests potential for better pricing, but specific outcomes are unclear. 3. Risk of vendor lock-in and potential for cost overruns if not managed effectively. 4. IT services sector, with a focus on software licensing and related support.
Value Assessment
Rating: fair
The total award amount of $11.87 million for RPA licenses over two years appears substantial. Benchmarking against similar large-scale software license procurements is difficult without granular detail on the specific RPA platform and features.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have restricted the pool of potential bidders, potentially impacting price discovery and overall value.
Taxpayer Impact: Taxpayer funds are being utilized for this procurement. The effectiveness of the RPA in achieving COVID-19 response goals will determine the ultimate value for taxpayers.
Public Impact
Streamlining government processes through automation, potentially improving efficiency in IRS operations. Enhancing the IRS's capacity to manage COVID-19 related tasks and data. Potential for improved service delivery to taxpayers through automated functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Dependency on a single vendor for critical RPA functionality.
- Effectiveness of RPA in achieving stated COVID-19 goals needs verification.
Positive Signals
- Investment in modern technology for government efficiency.
- Focus on addressing critical needs during a national health crisis.
Sector Analysis
This procurement falls within the IT services sector, specifically software licensing and automation. Spending on RPA solutions has been growing across government agencies seeking to improve operational efficiency and reduce manual labor.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The nature of large-scale software licensing often favors larger, established vendors.
Oversight & Accountability
Oversight will be crucial to ensure the RPA licenses are effectively utilized, deliver the intended benefits for COVID-19 response, and are managed within budget. Performance metrics should be closely monitored.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost overruns.
- Vendor lock-in.
- Effectiveness of technology adoption.
- Data security and privacy concerns with automated processes.
Tags
other-computer-related-services, department-of-the-treasury, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $11.9 million to BLUE TECH INC.. RPA LICENSES COVID-19
Who is the contractor on this award?
The obligated recipient is BLUE TECH 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 $11.9 million.
What is the period of performance?
Start: 2021-07-16. End: 2025-07-15.
What specific IRS processes are being automated by these RPA licenses, and what are the projected efficiency gains?
The specific IRS processes targeted for automation are not detailed in the provided data. However, RPA is typically used for repetitive, rule-based tasks such as data entry, form processing, and report generation. Projected efficiency gains would likely involve reduced processing times, fewer errors, and reallocation of human resources to more complex tasks.
How does the pricing of these RPA licenses compare to industry benchmarks for similar capabilities, especially given the limited competition?
Without knowing the specific RPA software vendor and the exact features licensed, a direct price comparison is challenging. The 'limited competition' aspect raises concerns that the pricing might not be as competitive as it could be under a broader solicitation. Further analysis of the contract's pricing structure against market rates for comparable RPA solutions is recommended.
What is the plan for ongoing maintenance, support, and potential future upgrades of the RPA system to ensure its long-term effectiveness?
The provided data focuses on the initial license award and does not detail the long-term maintenance, support, or upgrade strategy. Agencies typically address these through separate contract vehicles or by incorporating them into the initial award's terms. Ensuring a clear roadmap for these aspects is vital for sustained operational effectiveness and return on investment.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4025 HANCOCK ST. STE. 100, SAN DIEGO, CA, 92110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $11,866,717
Exercised Options: $11,866,717
Current Obligation: $11,866,717
Actual Outlays: $11,866,717
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SD00B
IDV Type: GWAC
Timeline
Start Date: 2021-07-16
Current End Date: 2025-07-15
Potential End Date: 2025-07-15 11:47:36
Last Modified: 2026-02-10
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