Treasury's IRS renews MuleSoft license for $5.4M, awarded via full and open competition

Contract Overview

Contract Amount: $5,420,478 ($5.4M)

Contractor: Lancer Information Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-11-25

End Date: 2026-11-24

Contract Duration: 1,825 days

Daily Burn Rate: $3.0K/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: TREASURY-WIDE SALESFORCE SOFTWARE PRODUCTS CATALOG ORDER - NASA SEWP RFQ 215711 FOR MULESOFT SOFTWARE LICENSE RENEWAL

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22306

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $5.4 million to LANCER INFORMATION SOLUTIONS, LLC for work described as: TREASURY-WIDE SALESFORCE SOFTWARE PRODUCTS CATALOG ORDER - NASA SEWP RFQ 215711 FOR MULESOFT SOFTWARE LICENSE RENEWAL Key points: 1. Value for money assessed against comparable software license renewals. 2. Competition dynamics indicate a potentially competitive market for this software. 3. Risk indicators include software obsolescence and vendor lock-in. 4. Performance context is a software license renewal for critical IRS operations. 5. Sector positioning within IT services, specifically software licensing and support.

Value Assessment

Rating: good

The contract value of $5.42 million for an 1825-day (5-year) renewal of MuleSoft software licenses appears reasonable when benchmarked against typical enterprise software subscription costs. While specific pricing details are not public, the fixed-price nature of the contract provides cost certainty. The IRS is procuring a standard enterprise software product, suggesting that market rates are likely to be a significant factor in the negotiated price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited. The specific RFQ (NASA SEWP) suggests a structured procurement process designed to encourage broad participation. The presence of multiple bidders, if applicable, would typically lead to more competitive pricing and better value for the government.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from vendors.

Public Impact

The Internal Revenue Service (IRS) benefits from continued access to essential software for its operations. Services delivered include the renewal of software licenses for MuleSoft, a platform often used for integration and API management. Geographic impact is national, supporting IRS operations across the United States. Workforce implications include ensuring IRS IT staff have the necessary tools to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized software.
Risk of price increases in future renewals if competition diminishes.
Dependence on a single vendor for critical software functionality.

Positive Signals

Awarded through a competitive process, suggesting a fair market price.
Fixed-price contract provides cost predictability for the agency.
Renewal of existing software likely minimizes disruption and training costs.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically software licensing and support. The market for enterprise integration platforms like MuleSoft is competitive, with several major players. Spending on such software by federal agencies is substantial, reflecting the increasing reliance on robust IT infrastructure for mission-critical functions. Benchmarks for similar enterprise software renewals vary widely based on user count, features, and contract duration.

Small Business Impact

The contract does not indicate a small business set-aside. As a software license renewal, it is unlikely to involve significant subcontracting opportunities for small businesses unless the primary contractor chooses to do so. The primary focus appears to be on securing the necessary software licenses directly from the vendor or authorized resellers.

Oversight & Accountability

The contract is managed by the Department of the Treasury, with the Internal Revenue Service as the primary user. Oversight is likely conducted through standard contract management procedures within the agency, including performance monitoring and financial oversight. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics and detailed pricing may not be publicly disclosed.

Related Government Programs

IRS IT Modernization Programs
NASA SEWP (Solutions for Enterprise-Wide Procurement)
Enterprise Software Licensing Agreements
Cloud Computing Services

Risk Flags

Vendor Lock-in
Software Obsolescence
Security Vulnerabilities
Price Escalation Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5.4 million to LANCER INFORMATION SOLUTIONS, LLC. TREASURY-WIDE SALESFORCE SOFTWARE PRODUCTS CATALOG ORDER - NASA SEWP RFQ 215711 FOR MULESOFT SOFTWARE LICENSE RENEWAL

Who is the contractor on this award?

The obligated recipient is LANCER INFORMATION SOLUTIONS, 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 $5.4 million.

What is the period of performance?

Start: 2021-11-25. End: 2026-11-24.

What is the historical spending pattern for MuleSoft software licenses by the IRS or Treasury?

Detailed historical spending data for specific software licenses like MuleSoft by the IRS or Treasury is not readily available in the public domain. However, federal agencies typically engage in multi-year contracts for enterprise software to ensure continuity of operations and leverage volume discounts. The current award for $5.42 million over five years suggests a significant investment. Agencies often track spending through internal IT asset management systems and budget allocations. Future analysis would benefit from access to aggregated IT spending data or specific agency budget reports that detail software expenditures over time to identify trends and potential cost-saving opportunities.

How does the per-unit cost of this MuleSoft license renewal compare to similar government or commercial contracts?

A direct per-unit cost comparison for this MuleSoft license renewal is challenging without knowing the exact number of users, features, or modules licensed. However, the total value of $5.42 million over five years ($1.084 million annually) for an enterprise-level integration platform is within the expected range for large government agencies. Federal procurement vehicles like NASA SEWP are designed to offer competitive pricing. Commercial benchmarks for similar enterprise software subscriptions can vary significantly, but agencies often negotiate favorable terms due to their purchasing power. Without specific unit metrics (e.g., per user, per API call), a precise benchmark is difficult, but the overall contract value suggests a standard enterprise deployment.

What are the key performance indicators (KPIs) for this software license renewal, and how is performance being measured?

Specific Key Performance Indicators (KPIs) for this software license renewal are not publicly detailed in the award notice. Typically, for software licenses, performance is measured by the availability and functionality of the software, adherence to service level agreements (SLAs) if support is included, and the vendor's responsiveness to issues. For an integration platform like MuleSoft, KPIs might include uptime percentages, successful transaction rates, and the ability to support critical business processes. The IRS would likely have internal metrics to ensure the software is meeting its operational needs and that the vendor is fulfilling its contractual obligations regarding software delivery and potential support.

What is the track record of LANCER INFORMATION SOLUTIONS, LLC in providing similar IT services to the federal government?

LANCER INFORMATION SOLUTIONS, LLC has a track record of providing IT services to the federal government. Information available through federal procurement databases indicates they have been awarded contracts for various IT-related services. While this specific award is for a software license renewal, their broader experience likely includes software implementation, support, and potentially other IT consulting. Assessing their specific performance on past contracts, particularly those involving enterprise software or complex IT solutions, would require a deeper dive into contract performance reports and agency feedback, which are not always publicly accessible. However, their continued awards suggest a level of satisfactory performance.

Are there any identified risks associated with relying on MuleSoft software for critical IRS functions?

Key risks associated with relying on MuleSoft software, or any critical enterprise software, include vendor lock-in, potential obsolescence, security vulnerabilities, and the possibility of significant price increases in future renewals. For the IRS, ensuring the security and integrity of data processed through MuleSoft is paramount. Dependence on a single vendor can also pose a risk if the vendor's financial stability declines or if they discontinue support for certain versions. The IRS likely mitigates these risks through robust cybersecurity practices, regular software updates, contingency planning, and careful contract negotiation to secure favorable terms and maintain flexibility.

What is the potential impact of this contract on the broader IT services market, particularly for integration platforms?

This contract represents a significant renewal for a major federal agency using a prominent integration platform. It signals continued demand for enterprise integration solutions within the government sector. The award through NASA SEWP, a competitive vehicle, suggests that the market for such services remains dynamic. It reinforces MuleSoft's position in the federal IT landscape. For other vendors in the integration platform space, this highlights the importance of securing spots on large government-wide acquisition contracts and demonstrating value, security, and cost-effectiveness to agencies like the IRS.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

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: 1818 LIBRARY ST STE 500, RESTON, VA, 20190

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,206,469

Exercised Options: $7,097,794

Current Obligation: $5,420,478

Actual Outlays: $4,200,105

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD29B

IDV Type: GWAC

Timeline