Treasury's IRS awards $16M for virtual learning platform to Redhawk IT Solutions

Contract Overview

Contract Amount: $15,980,364 ($16.0M)

Contractor: Redhawk IT Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $10.9K/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: ADOBE CONNECT MEETING INTEGRATED VIRTUAL LEARNING PLATFORM (IVLP)

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $16.0 million to REDHAWK IT SOLUTIONS, LLC for work described as: ADOBE CONNECT MEETING INTEGRATED VIRTUAL LEARNING PLATFORM (IVLP) Key points: 1. The contract value represents a significant investment in modernizing IRS training capabilities. 2. Competition dynamics suggest a potentially competitive bidding process for this IT service. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. Performance is measured over a four-year period, allowing for sustained service delivery. 5. This contract falls within the broader IT services sector, supporting essential government functions. 6. The award to Redhawk IT Solutions indicates a focus on specialized IT service providers.

Value Assessment

Rating: good

The contract value of $15.98 million over four years for an integrated virtual learning platform appears reasonable given the scope of services. Benchmarking against similar government IT service contracts for virtual platforms suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost predictability for the IRS. The number of bids received (3) also suggests a degree of market interest and potential for competitive pricing.

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 multiple vendors were allowed to bid. Three bids were received, suggesting a moderate level of competition for this requirement. While not an exhaustive number of bidders, it implies that the IRS sought a broad range of solutions and that Redhawk IT Solutions offered the most advantageous proposal.

Taxpayer Impact: A competitive process, even with a limited number of bidders, generally leads to better pricing and value for taxpayers compared to sole-source awards. It ensures that the government is not overpaying for the services.

Public Impact

Federal employees, particularly IRS staff, will benefit from enhanced virtual training and professional development opportunities. The platform will deliver integrated virtual learning experiences, improving the efficiency and accessibility of training. The primary geographic impact is likely within the IRS's operational footprint, supporting its national workforce. This contract supports the IT services workforce, potentially creating or sustaining jobs within that sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the platform becomes deeply integrated without clear exit strategies.
Dependence on a single vendor for critical training infrastructure could pose continuity risks.
Ensuring data security and privacy within the virtual learning environment is paramount.

Positive Signals

The firm-fixed-price contract provides cost certainty and incentivizes efficient service delivery.
The four-year duration allows for stable platform development and user adoption.
Awarding to a single vendor for this integrated solution can streamline management and support.

Sector Analysis

The IT services sector is a vast and critical component of government operations, encompassing software development, cloud services, and IT support. This contract for a virtual learning platform fits within the broader category of IT professional services, specifically focusing on educational technology and infrastructure. Comparable spending in this area often involves significant investments in learning management systems and digital training solutions across various federal agencies.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large or mid-sized business. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors to Redhawk IT Solutions.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the IRS. Performance metrics and deliverables outlined in the contract will serve as key accountability measures. Transparency is generally maintained through federal procurement databases, though specific operational details of the platform's use may be internal.

Related Government Programs

Federal IT Services Contracts
Learning Management Systems
Virtual Training Platforms
IRS Employee Development Programs

Risk Flags

Potential for vendor lock-in
Cybersecurity risks associated with virtual platforms
User adoption challenges
Dependence on single vendor for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $16.0 million to REDHAWK IT SOLUTIONS, LLC. ADOBE CONNECT MEETING INTEGRATED VIRTUAL LEARNING PLATFORM (IVLP)

Who is the contractor on this award?

The obligated recipient is REDHAWK IT 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 $16.0 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What is the track record of Redhawk IT Solutions, LLC in delivering similar virtual learning platforms to federal agencies?

A review of federal procurement data indicates that Redhawk IT Solutions, LLC has experience with IT services contracts. However, specific details regarding their past performance on large-scale, integrated virtual learning platforms comparable to the IRS's IVLP are not immediately apparent from the summary data. Further investigation into their contract history, past performance evaluations (e.g., CPARS), and client testimonials would be necessary to fully assess their capabilities and reliability for this specific type of project. Understanding their experience with similar technologies, user base sizes, and security requirements would provide a clearer picture of their suitability.

How does the per-unit cost or overall value of this contract compare to similar virtual learning platforms procured by other federal agencies?

Without specific per-unit cost data (e.g., cost per user, cost per module) or detailed service level agreements, a direct per-unit cost comparison is challenging. However, the total contract value of approximately $16 million over four years for an integrated virtual learning platform can be benchmarked against other large federal IT training solutions. Agencies often invest millions in learning management systems and virtual environments. The value proposition here depends heavily on the specific features, scalability, and user support included. A preliminary assessment suggests the pricing is within a common range for such comprehensive IT solutions, but a deeper dive into feature sets and user numbers would refine this comparison.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential technical challenges in integrating the platform, ensuring robust cybersecurity for sensitive training data, and user adoption issues among IRS employees. Vendor performance and potential cost overruns (though mitigated by fixed-price) are also considerations. Mitigation strategies likely involve detailed performance work statements, regular progress reviews, stringent security protocols, and comprehensive user training and support plans. The IRS's oversight mechanisms and Redhawk IT Solutions' contractual obligations are designed to address these risks.

How effective is the chosen virtual learning platform expected to be in improving IRS employee training outcomes?

The effectiveness will hinge on the platform's features, user-friendliness, and how well it aligns with IRS training objectives. An integrated virtual learning platform has the potential to significantly improve outcomes by offering flexible, accessible, and potentially more engaging training modules compared to traditional methods. Success metrics would likely include completion rates, knowledge retention assessments, and feedback from trainees and instructors. The four-year duration allows for iterative improvements and adaptation to evolving training needs, which should contribute to its long-term effectiveness.

What are the historical spending patterns for virtual learning or IT training solutions at the IRS or Treasury Department?

Historical spending data for virtual learning or IT training at the IRS and Treasury is not provided in the summary. However, federal agencies, including the IRS, have increasingly shifted towards digital and virtual training solutions over the past decade, especially accelerated by recent global events. This trend suggests a growing investment in such technologies. Understanding past expenditures on similar systems or training initiatives would provide context for the $16 million award, indicating whether this represents an increase, a continuation, or a consolidation of previous spending.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2689 MAPLE RIDGE DR, WOODBRIDGE, VA, 22192

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,959,275

Exercised Options: $15,980,364

Current Obligation: $15,980,364

Actual Outlays: $15,980,364

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD38B

IDV Type: GWAC

Timeline