Treasury's $15.6M IT contract with AT-IMPACT LLC for computer systems design services awarded under full and open competition

Contract Overview

Contract Amount: $15,569,673 ($15.6M)

Contractor: At-Impact LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-09-30

End Date: 2025-09-30

Contract Duration: 1,461 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: YK1 SUITE

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $15.6 million to AT-IMPACT LLC for work described as: YK1 SUITE Key points: 1. Contract awarded for computer systems design services, indicating a need for specialized IT support. 2. The contract duration of 1461 days suggests a long-term requirement for these services. 3. Firm Fixed Price contract type aims to control costs and provide budget certainty. 4. Awarded by the Internal Revenue Service, a major component of the Department of the Treasury. 5. The contract was awarded after exclusion of sources, suggesting a specific justification for the procurement approach. 6. The contract value of approximately $15.6 million over its term warrants scrutiny for value for money.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar IT services procurements. The firm fixed price structure is a positive indicator for cost control. However, without specific performance metrics or a detailed cost analysis, it's difficult to definitively assess if the $15.6 million represents excellent value. The contract's duration and scope will be key factors in determining overall value realization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation implies that while the initial intent might have been broader competition, specific circumstances led to excluding certain sources. The presence of 2 bids suggests some level of competition, but the 'exclusion of sources' aspect raises questions about the extent of market engagement and whether the most competitive pricing was achieved.

Taxpayer Impact: The exclusion of sources, even with some competition, may have limited the potential for taxpayers to benefit from the lowest possible price through a wider bidding pool.

Public Impact

Federal taxpayers benefit from the IT infrastructure and systems supported by this contract. The contract delivers computer systems design services essential for the IRS's operational efficiency. Services are likely concentrated within Maryland, where the contract is managed. The contract supports IT professionals and potentially creates or sustains jobs in the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause requires further investigation to ensure fair market access and optimal pricing.
Lack of detailed performance metrics makes it challenging to assess the effectiveness and efficiency of the services provided.
The contract's significant value necessitates robust oversight to prevent cost overruns or scope creep.

Positive Signals

The firm fixed price contract type provides cost certainty for the government.
The award to AT-IMPACT LLC, a specific entity, suggests a focused approach to meeting IRS IT needs.
The contract duration indicates a stable, long-term partnership for critical IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. This is a critical area for government operations, enabling agencies like the IRS to manage vast amounts of data and provide essential services. The market for IT services is highly competitive, with numerous firms offering specialized solutions. Government spending in this area is substantial, reflecting the increasing reliance on technology across all federal agencies.

Small Business Impact

The data indicates 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 a set-aside. However, the prime contractor, AT-IMPACT LLC, may choose to subcontract portions of this work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Treasury and the Internal Revenue Service contracting officers and program managers. The firm fixed price nature of the contract provides a degree of accountability by linking payment to deliverables. Transparency would be enhanced by public contract data, but detailed performance reports and Inspector General reviews would offer deeper insights into accountability and effectiveness.

Related Government Programs

IRS IT Modernization Programs
Treasury Department IT Infrastructure Support
Federal Civilian Agency IT Services Contracts
Computer Systems Design and Related Services

Risk Flags

Limited competition due to exclusion of sources
Lack of specific performance metrics in public data
Potential for cost overruns if scope is not tightly managed

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $15.6 million to AT-IMPACT LLC. YK1 SUITE

Who is the contractor on this award?

The obligated recipient is AT-IMPACT 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 $15.6 million.

What is the period of performance?

Start: 2021-09-30. End: 2025-09-30.

What is the specific justification for the 'exclusion of sources' in this procurement?

The justification for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' typically involves specific circumstances where a broader competition is deemed impractical or not in the government's best interest. This could include situations like follow-on work to a previous contract where only certain vendors possess the necessary knowledge or proprietary technology, or if there's a critical need that can only be met by a limited number of sources. Without further documentation specific to this award, the exact reason remains unclear, but it suggests a deliberate decision to narrow the field of potential bidders, which warrants scrutiny to ensure it was fully justified and did not unduly restrict competition.

How does the per-unit cost of services compare to market rates for similar IT systems design contracts?

Determining the precise per-unit cost is challenging without a detailed breakdown of the services provided and their associated pricing within the $15.6 million contract. However, the contract is for 'Computer Systems Design Services' and is a Firm Fixed Price award. To benchmark effectively, one would need to compare the rates for specific roles (e.g., system architects, developers, project managers) or project phases against industry benchmarks for similar government or commercial contracts in the Maryland region. Given the fixed-price nature, the contractor presumably factored in market rates and their own cost structure to arrive at the total bid. A comprehensive analysis would involve comparing these implicit rates against publicly available data for similar IT services.

What are the key performance indicators (KPIs) for this contract, and how is AT-IMPACT LLC's performance being measured?

The provided data does not specify the key performance indicators (KPIs) or the detailed performance measurement plan for this contract. For a contract of this duration and value, it is expected that the IRS has established specific metrics related to system design quality, project timelines, adherence to technical specifications, and potentially user satisfaction or system uptime post-implementation. Performance would typically be monitored by the Contracting Officer's Representative (COR) and documented through performance reports. Without access to these specific KPIs and performance evaluations, it is difficult to assess the contractor's track record and the overall effectiveness of the services delivered.

What is the historical spending pattern for computer systems design services by the IRS and the Department of the Treasury?

Historical spending on computer systems design services by the IRS and the broader Department of the Treasury is likely substantial, reflecting their ongoing need for IT modernization and support. Analyzing past contract awards for similar services would reveal trends in contract values, durations, and the types of contractors engaged. This specific $15.6 million contract, awarded in late 2021 for a term extending to late 2025, represents a significant investment. Understanding the historical context, including whether spending has increased or decreased, and the competitive landscape over time, provides valuable insight into the current procurement's place within the agency's IT budget and strategy.

What is the potential impact of this contract on the IT market in Maryland?

This contract, with a stated location of 'MARYLAND' (SN: MARYLAND), suggests that AT-IMPACT LLC will likely be performing services within or significantly impacting the IT market in that region. A $15.6 million contract awarded to a single entity can stimulate local economic activity through job creation, office space utilization, and procurement from local suppliers. It also signifies the presence of significant federal IT contracting opportunities in Maryland, potentially attracting or retaining IT talent and businesses in the area. The competitive nature, even if limited, influences pricing and service offerings within the regional IT sector.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 24917 CASTLETON DR, CHANTILLY, VA, 20152

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $15,569,673

Exercised Options: $15,569,673

Current Obligation: $15,569,673

Actual Outlays: $11,554,158

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N98120D00242

IDV Type: GWAC

Timeline