Treasury's IRS awards $29.5M for ID.ME Software and Maintenance to V3GATE, LLC
Contract Overview
Contract Amount: $29,500,000 ($29.5M)
Contractor: V3gate, LLC
Awarding Agency: Department of the Treasury
Start Date: 2023-06-30
End Date: 2024-06-29
Contract Duration: 365 days
Daily Burn Rate: $80.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ID.ME SOFTWARE AND MAINTENANCE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220
Plain-Language Summary
Department of the Treasury obligated $29.5 million to V3GATE, LLC for work described as: ID.ME SOFTWARE AND MAINTENANCE Key points: 1. The contract value of $29.5M is significant for identity verification software. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate, given the reliance on a single vendor for a critical service. 4. The IT sector, specifically identity management, is a growing area of government spending.
Value Assessment
Rating: good
The contract value of $29.5M for ID.ME software and maintenance appears reasonable given the scope and criticality of identity verification services for the IRS. Benchmarking against similar large-scale software and maintenance contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and can lead to more competitive pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer dollars are spent efficiently by leveraging market forces to achieve the best possible price for essential software and maintenance services.
Public Impact
Ensures secure and reliable identity verification for taxpayers interacting with IRS online services. Supports the IRS's digital transformation efforts and modernization of taxpayer services. Potential for improved efficiency and reduced fraud through robust identity management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Vendor lock-in potential if ID.ME becomes deeply integrated.
- Reliance on a single vendor for critical identity services.
- Cybersecurity risks associated with handling sensitive taxpayer data.
Positive Signals
- Awarded through full and open competition.
- Supports essential IRS digital services.
- Firm Fixed Price contract type helps control costs.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on identity verification software and maintenance. Government spending in this area is substantial and growing as agencies prioritize secure digital services and data protection.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The IRS, as part of the Department of the Treasury, is subject to various oversight mechanisms, including congressional review and internal audits. The firm fixed price contract type provides a degree of cost control, aiding accountability.
Related Government Programs
- Electronic Computer Manufacturing
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Vendor lock-in
- Cybersecurity vulnerabilities
- Dependence on a single provider for critical identity services
- Potential for service disruptions impacting taxpayers
Tags
electronic-computer-manufacturing, department-of-the-treasury, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $29.5 million to V3GATE, LLC. ID.ME SOFTWARE AND MAINTENANCE
Who is the contractor on this award?
The obligated recipient is V3GATE, 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 $29.5 million.
What is the period of performance?
Start: 2023-06-30. End: 2024-06-29.
What is the specific functionality and scope of the ID.ME software being procured, and how does it align with the IRS's strategic goals for taxpayer engagement?
The ID.ME software likely provides identity proofing and authentication services, enabling taxpayers to securely access IRS online accounts and services. This aligns with the IRS's strategic goals of modernizing taxpayer interactions, enhancing security, and reducing fraud. The specific functionalities would detail the levels of assurance and verification provided, crucial for sensitive tax-related information.
What are the key performance indicators (KPIs) for this contract, and how will V3GATE, LLC's performance be measured to ensure effective service delivery and taxpayer satisfaction?
Key performance indicators would likely include system uptime, authentication success rates, response times for verification requests, and adherence to security protocols. Performance will be measured through regular reporting, audits, and potentially user feedback mechanisms. Effective delivery ensures taxpayers can access services reliably and securely, while poor performance could lead to frustration and security vulnerabilities.
What is the long-term strategy for identity verification at the IRS, and does this contract represent a foundational element or a temporary solution?
This contract's duration of one year with potential for extensions suggests it could be a foundational element for ongoing identity verification needs. The IRS's long-term strategy likely involves a robust, secure, and user-friendly identity management system. This procurement supports that by ensuring continuity of essential services while potentially allowing for future enhancements or integrations with evolving identity technologies.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 555 MIDDLE CREEK PKWY UNIT 120, COLORADO SPRINGS, CO, 80921
Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $29,500,000
Exercised Options: $29,500,000
Current Obligation: $29,500,000
Actual Outlays: $29,500,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 2032H520A00009
IDV Type: BPA
Timeline
Start Date: 2023-06-30
Current End Date: 2024-06-29
Potential End Date: 2024-06-29 19:08:08
Last Modified: 2025-03-09
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