Treasury's $214.5M Maltego Software Contract Awarded to Redhawk IT Solutions

Contract Overview

Contract Amount: $214,541 ($214.5K)

Contractor: Redhawk IT Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-07-01

End Date: 2026-06-30

Contract Duration: 1,095 days

Daily Burn Rate: $196/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MALTEGO ENTERPRISE SOFTWARE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $214,541.2 to REDHAWK IT SOLUTIONS, LLC for work described as: MALTEGO ENTERPRISE SOFTWARE Key points: 1. Value for money assessed through competitive bidding, with a firm-fixed-price structure. 2. Competition dynamics indicate a robust process, with 7 bidders vying for the contract. 3. Risk indicators appear moderate, given the firm-fixed-price nature and established contract duration. 4. Performance context relies on the successful delivery of enterprise software solutions. 5. Sector positioning within IT services, specifically computer-related services. 6. The contract's duration of 1095 days suggests a significant, ongoing need for the software.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty for the government. Benchmarking against similar enterprise software procurements for IT services suggests that the pricing is within a reasonable range, especially considering the competitive nature of the award. The total value of over $214 million over three years reflects a substantial investment in critical IT infrastructure.

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 while initial sources might have been considered, the final award was made after a broad solicitation. The participation of 7 bidders suggests a healthy level of competition for this significant IT services contract.

Taxpayer Impact: A competitive process with multiple bidders generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The Internal Revenue Service (IRS) is the primary beneficiary, gaining access to advanced data analysis capabilities. The software delivered is Maltego Enterprise, likely used for data mining, link analysis, and threat intelligence. The geographic impact is primarily within the District of Columbia, where the IRS headquarters is located. Workforce implications include enabling IRS analysts to perform more sophisticated data investigations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Maltego is a proprietary solution with limited interoperability.
Dependence on Redhawk IT Solutions for ongoing support and maintenance of the enterprise software.
The complexity of enterprise software can lead to integration challenges with existing IRS systems.

Positive Signals

Award to a single vendor through full and open competition suggests a well-defined requirement met by the market.
Firm-fixed-price contract provides budget predictability.
The contract duration of three years allows for stable planning and execution of software deployment and utilization.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). The market for enterprise software, particularly solutions focused on data analysis, link discovery, and cybersecurity, is robust and growing. Comparable spending benchmarks for similar enterprise software licenses and support contracts can vary widely based on features, user count, and vendor, but multi-million dollar awards are common for government-wide or agency-wide deployments.

Small Business Impact

The data indicates that small business participation was not a primary set-aside factor for this contract (ss: false, sb: false). While Redhawk IT Solutions, LLC is listed as the contractor, further analysis would be needed to determine if they are a small business themselves or if subcontracting opportunities exist for small businesses within the performance of this large contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's contracting officers and program managers. The IRS likely has internal audit and compliance functions to monitor performance and adherence to contract terms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Information Technology Acquisition Reform Act (FITARA)
General Services Administration (GSA) IT Schedule Programs
IRS Data Analytics Initiatives
Cybersecurity Software Procurement
Enterprise Software Licensing Agreements

Risk Flags

Potential for vendor lock-in
Reliance on contractor for critical software support
Integration complexity with existing systems

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $214,541.2 to REDHAWK IT SOLUTIONS, LLC. MALTEGO ENTERPRISE 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 $214,541.2.

What is the period of performance?

Start: 2023-07-01. End: 2026-06-30.

What is the specific functionality and intended use of Maltego Enterprise Software within the IRS?

Maltego Enterprise Software is a powerful data mining and link analysis tool. It is designed to query, transform, and visualize disparate data sources to uncover hidden relationships and patterns. Within the IRS, it is likely employed for a range of critical functions, including but not limited to, fraud detection, tax evasion investigations, money laundering analysis, and cybersecurity threat intelligence. By integrating various data sets (e.g., financial records, public records, network information), Maltego enables investigators to map complex networks of individuals, organizations, and assets, thereby facilitating more efficient and effective enforcement actions and risk assessments.

How does the $214.5 million contract value compare to historical IRS spending on similar data analysis software?

Comparing the $214.5 million contract value requires a nuanced look at historical spending patterns for data analysis software at the IRS. While specific historical figures for Maltego or directly comparable tools are not provided, the scale of this award suggests a significant, potentially agency-wide or mission-critical deployment. The IRS has historically invested heavily in IT infrastructure and data processing capabilities to manage its vast taxpayer database and combat financial crimes. Awards of this magnitude are not uncommon for enterprise-level software solutions that underpin core operational functions, especially those related to security, compliance, and revenue protection. A detailed historical analysis would involve examining spending trends for Business Intelligence (BI) tools, forensic software, and cybersecurity platforms over the past 5-10 years.

What are the primary risks associated with a three-year firm-fixed-price contract for enterprise software?

A primary risk with a three-year firm-fixed-price contract for enterprise software is the potential for the government to overpay if market prices decrease significantly during the contract term, or if the contractor's costs decrease unexpectedly. Conversely, the contractor bears the risk if their costs escalate beyond projections. For the government, there's also the risk of vendor lock-in, where switching to a different software solution becomes prohibitively expensive or complex due to integration challenges and data migration. Ensuring the software remains current with technological advancements and security patches throughout the three-year period is another consideration, as is the potential for scope creep if requirements evolve beyond the initial contract definition without proper modification.

What is Redhawk IT Solutions, LLC's track record with large federal IT contracts, particularly for software solutions?

Information regarding Redhawk IT Solutions, LLC's specific track record with large federal IT contracts, especially for software solutions like Maltego Enterprise, is not detailed in the provided data. A comprehensive assessment would require reviewing their contract history in federal databases (e.g., FPDS). Key factors to evaluate would include the size and duration of previous contracts, the types of services or products delivered, past performance ratings, and any history of contract modifications or disputes. Understanding their experience with similar enterprise software deployments and their capacity to manage contracts of this scale ($214.5 million) is crucial for evaluating their reliability and capability.

How does the competition level (7 bidders) impact the perceived value and potential for innovation in this contract?

A competition level involving 7 bidders for this contract is generally viewed positively. It suggests that the requirement was well-defined and accessible to a significant portion of the market, fostering a competitive environment that likely drove down prices and improved the overall value proposition for the IRS. A higher number of bidders often indicates a healthy market response and can lead to the selection of the most capable and cost-effective solution. Furthermore, robust competition can incentivize contractors to offer innovative features or service enhancements to differentiate themselves, potentially leading to better long-term outcomes and adaptability for the IRS as technology evolves.

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: 7

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: $358,726

Exercised Options: $284,398

Current Obligation: $214,541

Actual Outlays: $214,571

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD38B

IDV Type: GWAC

Timeline