Treasury's IRS awards $11.8M contract for computer systems design services to Technology Solutions Provider, LLC

Contract Overview

Contract Amount: $11,763,174 ($11.8M)

Contractor: Technology Solutions Provider, LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-09-05

End Date: 2026-09-04

Contract Duration: 1,825 days

Daily Burn Rate: $6.4K/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: RFQ 8159 ERIS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $11.8 million to TECHNOLOGY SOLUTIONS PROVIDER, LLC for work described as: RFQ 8159 ERIS Key points: 1. Contract value represents a significant investment in IT infrastructure for tax administration. 2. Competition was conducted under a 'full and open' basis after excluding specific sources, suggesting a deliberate procurement strategy. 3. The fixed-price contract type aims to control costs and provide predictability. 4. The contract duration of five years indicates a long-term need for these services. 5. The awardee, Technology Solutions Provider, LLC, is a key player in this IT services domain. 6. The North American Industry Classification System (NAICS) code 541512 points to specialized computer systems design expertise.

Value Assessment

Rating: good

The contract value of approximately $11.8 million over five years, or about $2.36 million annually, appears reasonable for complex computer systems design services. Benchmarking against similar contracts for IT systems design and integration within federal agencies would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method indicates that while the competition was intended to be broad, certain sources were initially excluded, possibly due to specific technical requirements or prior performance issues. The number of bidders is not explicitly stated, but the 'exclusion of sources' clause suggests a potentially narrowed field compared to a purely 'full and open' competition.

Taxpayer Impact: While the competition was not entirely unrestricted, the 'full and open' aspect aims to ensure a competitive price. The exclusion of sources warrants further scrutiny to confirm it did not unduly limit competition and potentially inflate costs for taxpayers.

Public Impact

The Internal Revenue Service (IRS) is the primary beneficiary, receiving enhanced computer systems design services. These services are crucial for maintaining and improving the technological infrastructure that supports tax collection and processing. The contract's impact is largely internal to the IRS's operational efficiency and data management capabilities. The workforce implications are primarily for the IT professionals employed by Technology Solutions Provider, LLC, and potentially for IRS IT staff who will interact with the new systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition method requires careful review to ensure it was justified and did not unnecessarily restrict competition.
The specific reasons for excluding certain sources are not detailed, which could obscure potential issues with prior contractor performance or market access.
The contract's reliance on a single awardee for a significant duration could create vendor lock-in if not managed proactively.

Positive Signals

The use of a firm fixed-price contract type is a positive signal for cost control and budget predictability.
The five-year duration suggests a stable, long-term partnership that can foster deep understanding of IRS needs.
The award to Technology Solutions Provider, LLC, indicates confidence in their capabilities for complex IT systems design.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on computer systems design services. This segment of the IT market is characterized by rapid innovation and a high demand for specialized expertise. Federal spending in IT systems design is substantial, driven by the need to modernize legacy systems, enhance cybersecurity, and improve data analytics capabilities across various agencies. Comparable spending benchmarks would typically be found within IT services categories for large federal agencies undertaking similar system overhauls or enhancements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the best technical solution and price from the available market, rather than specifically promoting small business participation through this particular award. The impact on the small business ecosystem is therefore likely minimal for this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within the IRS. The firm fixed-price nature provides some inherent oversight by shifting cost risk to the contractor. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian IT Services
Computer Systems Design and Related Services
Technology Solutions Provider Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Reliance on a single contractor for a long duration.
Need for clear definition and management of system design requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $11.8 million to TECHNOLOGY SOLUTIONS PROVIDER, LLC. RFQ 8159 ERIS

Who is the contractor on this award?

The obligated recipient is TECHNOLOGY SOLUTIONS PROVIDER, 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 $11.8 million.

What is the period of performance?

Start: 2021-09-05. End: 2026-09-04.

What is the track record of Technology Solutions Provider, LLC with the federal government, particularly with the IRS?

A review of federal procurement data would be necessary to fully assess Technology Solutions Provider, LLC's track record. Generally, agencies consider past performance when awarding contracts. For this specific contract, the award implies that the IRS found their past performance satisfactory or superior. Further investigation into their contract history, including any performance evaluations, past disputes, or awards for similar services, would provide a more comprehensive understanding of their reliability and expertise. Examining their performance on previous IRS contracts, if any, would be particularly relevant to gauge their familiarity with the agency's unique operational environment and requirements.

How does the awarded price compare to similar IT systems design contracts within the federal government?

Benchmarking this contract's price against similar federal IT systems design contracts requires access to detailed pricing data for comparable services. Factors such as contract scope, duration, labor categories, and geographic location significantly influence pricing. The $11.8 million total value over five years, averaging approximately $2.36 million annually, needs to be contextualized within the market rates for specialized IT design services. Without specific comparable contract data, a definitive assessment of value for money is challenging. However, the firm fixed-price structure suggests a commitment to a defined cost, which is generally a positive indicator for the government.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep if requirements are not clearly defined, contractor underperformance, or unforeseen technical challenges. The firm fixed-price contract mitigates financial risk for the government by capping costs. Mitigation for performance risk relies on robust contract management, including regular progress reviews, performance metrics, and clear communication channels. Technical risks are managed through the selection of a qualified contractor with a demonstrated track record and potentially through phased delivery and testing. The 'exclusion of sources' aspect also presents a risk if it was not adequately justified, potentially limiting the pool of qualified bidders.

How effective is the chosen procurement method ('full and open competition after exclusion of sources') in achieving the IRS's objectives?

This procurement method aims to balance broad competition with the need to ensure specific requirements are met, potentially excluding vendors who cannot meet stringent technical or security prerequisites. Its effectiveness hinges on the justification for excluding sources. If the exclusions were valid and necessary, it could lead to a more focused competition among highly qualified vendors, potentially resulting in a better technical solution. However, if the exclusions were overly broad or unjustified, it could limit competition, potentially leading to higher prices or a less optimal outcome. The IRS's objectives are likely to secure specialized IT design services efficiently and effectively.

What is the historical spending trend for computer systems design services at the IRS or Treasury?

Analyzing historical spending trends for computer systems design services at the IRS or Treasury would provide context for this $11.8 million award. A review of past contract awards within the NAICS code 541512 and related IT services categories over the last 5-10 years would reveal patterns in spending levels, average contract values, and the types of services procured. Significant increases or decreases in spending could indicate shifts in IT priorities, budget allocations, or the adoption of new technologies. Understanding these trends helps assess whether this current award is consistent with historical investment or represents a new strategic direction.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFQ 8159

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: ABT Global LLC

Address: 11490 COMMERCE PARK DRIVE, SUITE 200, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,763,174

Exercised Options: $11,763,174

Current Obligation: $11,763,174

Actual Outlays: $10,352,653

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N98120D00092

IDV Type: GWAC

Timeline