Treasury's IRS awards $2.2M for Inflation Reduction Act new hire support to Integrated Systems, LLC

Contract Overview

Contract Amount: $2,192,602 ($2.2M)

Contractor: Integrated Systems, LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-05-01

End Date: 2024-04-30

Contract Duration: 365 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INFLATION REDUCTION ACT NEW HIRE

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.2 million to INTEGRATED SYSTEMS, LLC for work described as: INFLATION REDUCTION ACT NEW HIRE Key points: 1. Contract supports critical Inflation Reduction Act (IRA) hiring initiatives. 2. Integrated Systems, LLC, a Virginia-based firm, secured the award. 3. The contract is a firm-fixed-price BPA call, indicating defined scope and cost. 4. Competition was full and open, suggesting a potentially competitive pricing environment. 5. The award value is modest relative to broader federal IT service contracts. 6. Performance period spans one year, aligning with immediate hiring needs.

Value Assessment

Rating: good

The contract value of approximately $2.2 million for a one-year period appears reasonable for specialized support services related to a significant legislative initiative like the Inflation Reduction Act. Benchmarking against similar IT and professional services contracts for federal agencies, particularly those supporting large-scale program implementation or workforce expansion, suggests this award is within expected parameters. The firm-fixed-price structure provides cost certainty for the government, and the competitive award process likely contributed to achieving a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The solicitation resulted in three bids, indicating a moderate level of competition for this specific requirement. While three bidders suggest some level of market interest, it is not indicative of a highly saturated competitive landscape. The agency's decision to pursue full and open competition is generally favorable for price discovery and ensuring a broad range of potential contractors can participate.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and potentially leading to better value. The presence of three bidders suggests that taxpayer dollars were likely used efficiently in securing this service.

Public Impact

Benefits the Internal Revenue Service (IRS) by providing essential support for hiring initiatives tied to the Inflation Reduction Act. Facilitates the onboarding and integration of new personnel crucial for implementing IRA programs. Supports the agency's strategic workforce planning and execution. Indirectly benefits taxpayers by enabling the IRS to effectively deploy resources for tax administration and climate initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'new hire' support extends beyond initial onboarding.
Reliance on a single contractor for a critical, time-sensitive initiative could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a robust vetting of potential contractors.
Short performance period (1 year) limits long-term financial commitment and allows for re-evaluation.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to IT and administrative support. The market for such services is vast, with numerous firms capable of providing specialized support for federal agencies. The award to Integrated Systems, LLC, under NAICS code 541519 (Other Computer Related Services), highlights the demand for IT-adjacent services that facilitate operational efficiency and program implementation. Comparable spending benchmarks in this category often range from hundreds of thousands to millions of dollars annually, depending on the scope and duration.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this specific award, though Integrated Systems, LLC's own size and small business status are not detailed here.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program officials within the IRS. As a BPA call, the underlying Blanket Purchase Agreement likely has its own set of oversight provisions. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Inflation Reduction Act Implementation Support
IRS Workforce Development Programs
Federal IT Professional Services
Government Contractor Support Services

Risk Flags

Contract Performance Risk
Scope Definition Clarity
Timeliness of Delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.2 million to INTEGRATED SYSTEMS, LLC. INFLATION REDUCTION ACT NEW HIRE

Who is the contractor on this award?

The obligated recipient is INTEGRATED SYSTEMS, 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 $2.2 million.

What is the period of performance?

Start: 2023-05-01. End: 2024-04-30.

What is the track record of Integrated Systems, LLC in supporting federal agencies, particularly the IRS?

Information regarding the specific track record of Integrated Systems, LLC in supporting federal agencies, and particularly the IRS, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any available CPARS (Contractor Performance Assessment Reporting System) data. Without this, it's difficult to definitively gauge their experience and reliability for this specific task. However, securing a contract, especially under full and open competition, suggests they met the agency's minimum qualifications and demonstrated capability to perform the required services.

How does the value of this contract compare to similar federal support services for new hires or program implementation?

The contract value of approximately $2.2 million for a one-year duration appears to be within a reasonable range for specialized support services related to federal hiring initiatives, especially those tied to significant legislative actions like the Inflation Reduction Act. Benchmarking against similar contracts for IT support, administrative services, or program implementation assistance reveals a wide spectrum. Smaller, targeted efforts might cost tens or hundreds of thousands, while large-scale, multi-year programs can run into tens or hundreds of millions. This award seems to represent a mid-tier investment focused on a specific, albeit important, aspect of program execution – workforce augmentation.

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

Key risks include potential performance deficiencies by the contractor, leading to delays in hiring or onboarding critical personnel. There's also a risk of scope creep if the definition of 'new hire support' is not tightly managed. Mitigation strategies likely involve robust contract management by the IRS, clear performance metrics, regular progress reviews, and the firm-fixed-price structure which incentivizes the contractor to deliver within budget. The one-year duration also limits long-term exposure to contractor underperformance, allowing for reassessment upon expiration.

How effective is the IRS in leveraging external contractors for workforce expansion and program support?

The effectiveness of the IRS in leveraging external contractors for workforce expansion and program support can be assessed through various lenses, including the success of the programs these contractors support (like the Inflation Reduction Act), the efficiency of the procurement process, and the overall value for money achieved. This specific contract award suggests the IRS is utilizing contracting mechanisms to address immediate needs related to IRA implementation. A broader analysis would require examining historical data on contractor performance, cost savings achieved versus in-house solutions, and the strategic alignment of contracted services with agency goals.

What are the historical spending patterns for similar support services at the IRS or Treasury?

Analyzing historical spending patterns for similar support services at the IRS or Treasury would involve examining procurement data over several fiscal years. This contract, valued at $2.2 million for one year, falls under professional, scientific, and technical services. Agencies often contract for IT support, administrative assistance, and specialized consulting to augment their workforce or manage specific projects. Without access to detailed historical databases, it's challenging to provide precise figures. However, it's common for large agencies like the IRS to allocate significant portions of their budget to external services, particularly during periods of major legislative change or modernization efforts.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2032H5-23-Q-00058

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: West 4TH Strategy, LLC

Address: 1934 OLD GALLOWS ROAD, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $2,192,602

Exercised Options: $2,192,602

Current Obligation: $2,192,602

Actual Outlays: $2,192,602

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 2032H519A00030

IDV Type: BPA

Timeline