Treasury's IRS awards $2.98M for Kiteworks software licenses under full and open competition

Contract Overview

Contract Amount: $2,975,197 ($3.0M)

Contractor: Standard-Blazar, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-09-23

End Date: 2026-09-22

Contract Duration: 1,460 days

Daily Burn Rate: $2.0K/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: THE PURPOSE OF THIS FIRM FIXED PRICED DELIVERY ORDER IS TO PURCHASE BRAND NAME KITEWORKS SOFTWARE LICENSES, AS A PRODUCT.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22032

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.0 million to STANDARD-BLAZAR, LLC for work described as: THE PURPOSE OF THIS FIRM FIXED PRICED DELIVERY ORDER IS TO PURCHASE BRAND NAME KITEWORKS SOFTWARE LICENSES, AS A PRODUCT. Key points: 1. Value for money assessed through competitive bidding, aiming for optimal pricing. 2. Competition dynamics indicate a market where multiple vendors could potentially bid. 3. Risk indicators are low due to a firm-fixed-price contract type. 4. Performance context is a software license purchase for IRS operations. 5. Sector positioning is within IT services, specifically software licensing.

Value Assessment

Rating: good

The contract's value of approximately $2.98 million for software licenses appears reasonable given the duration of over three years. Benchmarking against similar software license procurements would provide a more precise assessment, but the firm-fixed-price structure suggests that the price was determined upfront and is not expected to fluctuate significantly with usage. The competitive nature of the award further supports the likelihood of a fair market price being achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, the designation implies a robust competitive process. This approach is designed to foster price discovery and ensure the government receives the best value by considering a wide range of potential solutions and pricing.

Taxpayer Impact: A full and open competition generally leads to more competitive pricing, which benefits taxpayers by ensuring federal dollars are spent efficiently. It also promotes a healthier market by allowing various vendors to compete for government business.

Public Impact

The Internal Revenue Service (IRS) benefits from this contract by acquiring necessary software licenses. The software is intended to support IRS operations, likely related to document management or security. The geographic impact is primarily within the IRS's operational footprint, likely nationwide. Workforce implications are minimal, as this is a software license purchase rather than a service contract requiring significant personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits full assessment of competitive intensity.
Details on software functionality and specific need are not fully elaborated.

Positive Signals

Firm-fixed-price contract type mitigates cost overrun risks.
Awarded under full and open competition, suggesting a competitive pricing environment.
Long-term license agreement provides budget predictability for the IRS.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software licensing. The market for enterprise software solutions, including document management and security platforms like Kiteworks, is substantial and competitive. Federal agencies are significant consumers of such software, with spending often driven by requirements for data security, workflow automation, and regulatory compliance. Comparable spending benchmarks would involve analyzing other federal procurements for similar enterprise software licenses.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses were not specifically targeted for this procurement. The implications for the small business ecosystem are that they did not directly receive this award. However, if the prime contractor, STANDARD-BLAZAR, LLC, utilizes subcontractors, there could be indirect opportunities for small businesses to participate in fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's Inspector General, as well as internal IRS program management. The firm-fixed-price nature of the contract simplifies oversight by focusing on delivery and adherence to terms rather than cost accumulation. Transparency is facilitated by the public nature of contract awards, though detailed usage and performance metrics may be internal to the agency.

Related Government Programs

IRS Software Procurement
Federal Software Licensing
IT Services Contracts
Document Management Software

Risk Flags

Brand Name Justification (if applicable, though not explicitly stated)
Limited Competition Details (if 'exclusion of sources' implies specific reasons)
Software Performance and Integration Risks

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.0 million to STANDARD-BLAZAR, LLC. THE PURPOSE OF THIS FIRM FIXED PRICED DELIVERY ORDER IS TO PURCHASE BRAND NAME KITEWORKS SOFTWARE LICENSES, AS A PRODUCT.

Who is the contractor on this award?

The obligated recipient is STANDARD-BLAZAR, 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 $3.0 million.

What is the period of performance?

Start: 2022-09-23. End: 2026-09-22.

What is the specific functionality of the Kiteworks software being procured, and how does it align with the IRS's mission-critical operations?

The provided data indicates the purchase is for 'BRAND NAME KITEWORKS SOFTWARE LICENSES, AS A PRODUCT.' Kiteworks is generally known as a secure file transfer and data governance platform, often used for managing sensitive information, ensuring compliance with regulations like GDPR and HIPAA, and automating workflows involving document sharing. For the IRS, such software could be critical for secure handling of taxpayer data, internal document management, and inter-agency communication, thereby supporting its core mission of tax administration and enforcement. Without more specific details on the IRS's intended use, it's presumed to enhance data security and operational efficiency in handling sensitive financial and personal information.

How does the per-unit cost or total contract value compare to industry benchmarks for similar enterprise software licenses?

The total contract value is approximately $2.98 million over a period of 1460 days (roughly 4 years). To benchmark this effectively, one would need to compare it against the pricing of similar enterprise-grade secure file transfer or data governance software from other vendors, considering factors like the number of users, features included, and support levels. Given that this is a brand-name procurement, the IRS likely evaluated alternatives and determined Kiteworks offered the best fit or was a required solution. A direct comparison to market rates for comparable solutions would be necessary for a definitive value-for-money assessment. However, the competitive award process suggests an effort to secure favorable terms.

What is the track record of STANDARD-BLAZAR, LLC in delivering IT solutions to federal agencies, particularly for software licensing?

Information regarding STANDARD-BLAZAR, LLC's specific track record with federal IT solutions and software licensing is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, client feedback, and any reported issues or successes. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would typically hold this information. Without access to these resources, it's difficult to definitively assess their reliability and expertise in this specific domain, though their ability to win a full and open competition award suggests they met the basic qualifications.

What are the potential risks associated with a firm-fixed-price contract for software licenses, and how are they mitigated?

Firm-fixed-price (FFP) contracts are generally favored for their cost certainty, as the price is set regardless of the contractor's actual costs. For software licenses, the primary risks are typically related to the vendor's ability to deliver the licensed product as specified and on time, and the software meeting the agency's functional requirements. Risks of cost overruns for the government are minimal with FFP. Mitigation strategies include clearly defined contract terms, performance standards, acceptance criteria, and potentially liquidated damages clauses for non-performance. The IRS would have established these terms during the solicitation process to ensure they receive the intended software and value.

How does this $2.98 million expenditure fit into the IRS's overall IT budget and historical spending on software acquisition?

This $2.98 million expenditure represents a specific investment in software licensing for the IRS over a four-year period. To understand its context within the IRS's overall IT budget, one would need to examine the agency's annual IT budget allocations and historical spending trends. Federal agencies often have multi-year IT modernization plans and significant budgets dedicated to software, hardware, and services. This particular contract's size suggests it's a notable, but likely not a dominant, portion of the IRS's IT spending. Analyzing prior years' spending on similar enterprise software or document management solutions would reveal whether this represents an increase, decrease, or steady investment in this capability.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 248147

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9547 OLD CREEK DR, FAIRFAX, VA, 22032

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

Financial Breakdown

Contract Ceiling: $3,446,011

Exercised Options: $2,975,197

Current Obligation: $2,975,197

Actual Outlays: $2,975,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD70B

IDV Type: GWAC

Timeline