Treasury's $2.3M contract for IT services awarded to Redhawk IT Solutions, with 4 bidders

Contract Overview

Contract Amount: $2,289,052 ($2.3M)

Contractor: Redhawk IT Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BRAVA SOFTWARE

Place of Performance

Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.3 million to REDHAWK IT SOLUTIONS, LLC for work described as: BRAVA SOFTWARE Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. The contract was competed fully, suggesting a healthy market for these services. 3. Risk indicators are low due to the firm-fixed-price contract type. 4. Performance context is within IT services, a common area for federal spending. 5. Sector positioning is in IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: good

The contract's value of approximately $2.3 million over four years for IT services appears to be within a reasonable range for federal contracts of this nature. Benchmarking against similar contracts for 'Other Computer Related Services' would provide a more precise assessment, but the firm-fixed-price structure suggests cost control. The presence of four bidders indicates a competitive environment that likely contributed to a fair price.

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 solicited. With four bidders participating, the competition level suggests that the government received a range of offers, allowing for price discovery and selection of the most advantageous proposal. This approach generally leads to better pricing for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive pricing for essential IT services.

Public Impact

Federal employees within the Internal Revenue Service will benefit from enhanced IT services. The contract delivers 'Other Computer Related Services,' crucial for the agency's operations. The geographic impact is primarily within West Virginia, where the contractor is located. The contract supports IT professionals and related roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Firm-fixed-price contract type limits cost overrun risks.
Full and open competition suggests a healthy market and potential for good value.
Contract duration of four years provides stability for service delivery.

Sector Analysis

The IT services sector is a significant area of federal spending, encompassing a wide range of support and development activities. 'Other Computer Related Services' (NAICS 541519) is a broad category that includes services like IT consulting, system integration, and data processing. Federal agencies consistently procure these services to maintain and upgrade their technological infrastructure. Comparable spending benchmarks for similar IT service contracts can vary widely based on scope and complexity, but this contract's value appears moderate within the broader federal IT landscape.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses. The award to Redhawk IT Solutions, LLC, a company that may or may not be classified as a small business, means that direct opportunities for small business participation through set-asides are not evident in this award. Further analysis of Redhawk's size status and any potential subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a firm-fixed-price contract, performance monitoring will be key to ensuring service delivery meets requirements. The Department of the Treasury and the Internal Revenue Service have internal oversight bodies, and the Government Accountability Office (GAO) can review contract disputes. Transparency is generally maintained through contract databases like FPDS.

Related Government Programs

IT Professional Services
Computer Systems Design Services
Information Technology Support Services

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.3 million to REDHAWK IT SOLUTIONS, LLC. BRAVA SOFTWARE

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 $2.3 million.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is the track record of Redhawk IT Solutions, LLC with federal contracts?

Redhawk IT Solutions, LLC has been awarded federal contracts, including this recent delivery order from the Department of the Treasury's Internal Revenue Service. A comprehensive review of their contract history would involve examining past performance evaluations, any reported contract disputes or terminations, and the types and values of previous awards across different federal agencies. Understanding their historical performance, particularly in delivering similar IT services, is crucial for assessing the reliability and effectiveness of their service provision under this current contract. Data from contract databases can reveal trends in their award types, agencies served, and overall federal spending engagement.

How does the pricing of this contract compare to similar IT services contracts?

The total value of this contract is approximately $2.3 million over four years. To benchmark its pricing, one would compare the average annual cost (around $575,000) against similar 'Other Computer Related Services' contracts awarded by the IRS or other Treasury bureaus, as well as comparable agencies. Factors such as the specific services rendered, labor categories, geographic location, and contract type (firm-fixed-price) influence pricing. Given the competitive nature with four bidders, the price is likely aligned with market rates for comparable federal IT services. A detailed analysis would involve comparing specific labor rates or service package costs if available.

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

The primary risks for this contract are related to service delivery performance and potential scope creep, although the firm-fixed-price (FFP) contract type significantly mitigates financial risks. FFP contracts place the responsibility for cost control on the contractor, reducing the government's exposure to cost overruns. Mitigation strategies for performance risks include clear performance work statements (PWS), defined service level agreements (SLAs), regular progress reviews, and robust government oversight. The IRS will monitor Redhawk IT Solutions' adherence to the PWS and quality standards. The relatively moderate contract value and defined service scope also help manage complexity and associated risks.

How effective is the competition level in ensuring value for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' with four bidders is a strong indicator of effective competition for this contract. This level of competition typically drives down prices as contractors vie for the award, leading to better value for taxpayers. It also encourages innovation and efficiency from the bidders. The selection process likely involved evaluating proposals based on a combination of price and technical merit, ensuring that the chosen contractor offers both cost-effectiveness and the capability to meet the IRS's IT service needs. This competitive environment reduces the likelihood of paying inflated prices.

What is the historical spending trend for 'Other Computer Related Services' at the IRS?

Historical spending on 'Other Computer Related Services' (NAICS 541519) by the Internal Revenue Service (IRS) is substantial, reflecting the agency's reliance on technology for tax administration and taxpayer services. Analyzing past spending patterns would reveal fluctuations based on modernization initiatives, cybersecurity needs, and evolving technological requirements. Typically, such spending is consistent, with potential increases during periods of major system upgrades or transitions to new platforms. Understanding this trend provides context for the current $2.3 million award, indicating whether it aligns with or deviates from historical investment levels in this service category.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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: $2,970,855

Exercised Options: $2,289,052

Current Obligation: $2,289,052

Actual Outlays: $1,654,186

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD38B

IDV Type: GWAC

Timeline