IRS awards $31M for MF software and ESM tools support to Intact Technology Inc

Contract Overview

Contract Amount: $31,057,785 ($31.1M)

Contractor: Intact Technology Inc

Awarding Agency: Department of the Treasury

Start Date: 2023-08-02

End Date: 2025-02-01

Contract Duration: 549 days

Daily Burn Rate: $56.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS TASK ORDER IS FOR THE CONTRACTOR TO PROVIDE THE GOVERNMENT SERVICES IN SUPPORT OF MF SOFTWARE AND THE SERVICE MANAGEMENT PLATFORM AND RELATED ESM TOOLS AND APPLICATIONS AT THE IRS. SPECIFICALLY, SUPPORT FOR THE DEVELOPMENT OF RELATED APPLICATION

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $31.1 million to INTACT TECHNOLOGY INC for work described as: THIS TASK ORDER IS FOR THE CONTRACTOR TO PROVIDE THE GOVERNMENT SERVICES IN SUPPORT OF MF SOFTWARE AND THE SERVICE MANAGEMENT PLATFORM AND RELATED ESM TOOLS AND APPLICATIONS AT THE IRS. SPECIFICALLY, SUPPORT FOR THE DEVELOPMENT OF RELATED APPLICATION Key points: 1. Contract focuses on critical IT infrastructure for tax administration. 2. Firm Fixed Price contract type suggests defined scope and cost control. 3. Delivery Order under an existing contract indicates potential for streamlined procurement. 4. Contract duration of 549 days provides a medium-term engagement. 5. The North American Industry Classification System (NAICS) code 541519 covers a broad range of IT services. 6. Virginia is the primary state for contract performance.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without comparable data for similar IT support services at the IRS. The firm fixed-price structure is generally favorable for cost predictability. However, the absence of detailed performance metrics or a clear comparison to market rates for 'MF software and Service Management Platform' support makes a definitive value assessment difficult. Further analysis would require understanding the specific services rendered and their criticality to IRS operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The award indicates that Intact Technology Inc. was selected as the most advantageous offer.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures the government receives competitive pricing.

Public Impact

The Internal Revenue Service (IRS) benefits from enhanced IT support for its software and service management platforms. Taxpayers may experience improved efficiency and reliability in IRS digital services due to this support. The contract supports IT operations within Virginia. The contract likely supports a team of IT professionals, contributing to the tech workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess contractor effectiveness.
The broad NAICS code (541519) could encompass a wide range of services, potentially leading to scope creep if not managed carefully.
Dependence on a single contractor for critical IT support could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, indicating a competitive selection process.
Firm Fixed Price contract type provides cost certainty for the government.
The contract is a delivery order under an existing contract, suggesting a potentially established relationship and streamlined process.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer-related services. The market for IT support and service management platforms is vast and highly competitive, with numerous vendors offering specialized solutions. The IRS, as a major federal agency, represents a significant client for IT services, and this contract aligns with broader government efforts to modernize and maintain its technological infrastructure.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Intact Technology Inc., is not identified by size in the provided data, so its status as a small or large business is unknown, impacting potential subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Internal Revenue Service. As a delivery order under an existing contract, there may be established reporting and performance monitoring mechanisms. Transparency is generally facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IRS IT Modernization Programs
Federal IT Services Procurement
Software and Application Development Support
Service Management Platform Contracts

Risk Flags

Performance Risk
Security Risk
Personnel Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $31.1 million to INTACT TECHNOLOGY INC. THIS TASK ORDER IS FOR THE CONTRACTOR TO PROVIDE THE GOVERNMENT SERVICES IN SUPPORT OF MF SOFTWARE AND THE SERVICE MANAGEMENT PLATFORM AND RELATED ESM TOOLS AND APPLICATIONS AT THE IRS. SPECIFICALLY, SUPPORT FOR THE DEVELOPMENT OF RELATED APPLICATION

Who is the contractor on this award?

The obligated recipient is INTACT TECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $31.1 million.

What is the period of performance?

Start: 2023-08-02. End: 2025-02-01.

What is the specific nature of the 'MF software' and 'Service Management Platform' being supported, and what is their criticality to IRS operations?

The provided data does not specify the exact nature of 'MF software' or the 'Service Management Platform.' These likely refer to internal IRS systems critical for managing IT services, applications, and potentially taxpayer data. 'MF software' could stand for 'Mainframe' or another proprietary system. The Service Management Platform (SMP) is crucial for IT Service Management (ITSM) processes, including incident management, problem management, change management, and service request fulfillment. Their criticality lies in ensuring the stable and efficient operation of the IRS's IT infrastructure, which underpins all taxpayer interactions and internal administrative functions. Without these systems functioning optimally, the IRS's ability to process tax returns, manage taxpayer accounts, and provide essential services could be severely impacted.

How does the $31 million contract value compare to historical spending on similar IT support services at the IRS?

Direct comparison of this $31 million delivery order to historical IRS IT support spending requires access to detailed historical contract data. However, the IRS consistently spends billions annually on IT services, including software development, maintenance, and infrastructure support. This $31 million figure represents a moderate-sized investment for a specific IT support task order over approximately 18 months. To assess its relative value, one would need to analyze the scope of services, the duration, and the number of similar contracts awarded by the IRS in recent years for comparable IT functions. Without such comparative data, it's difficult to definitively state whether this represents high, low, or average spending for this type of service.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure Intact Technology Inc. delivers effectively?

The provided data for this delivery order does not explicitly list the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) that Intact Technology Inc. must meet. Typically, for IT support contracts of this nature, SLAs would cover aspects such as system uptime, response times for issue resolution, patch management timeliness, and user satisfaction. KPIs would measure the contractor's performance against these SLAs. Effective oversight would involve the IRS regularly monitoring these metrics, conducting performance reviews, and potentially withholding payment or applying penalties if contractual obligations are not met. The absence of this information in the summary data highlights a need for deeper contract review.

What is Intact Technology Inc.'s track record with the IRS or other federal agencies for similar IT support services?

Information regarding Intact Technology Inc.'s specific track record with the IRS or other federal agencies for similar IT support services is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations. Federal procurement databases often contain past performance information, which contracting officers use in source selection. Without this specific data, it is difficult to gauge the contractor's reliability and expertise in delivering the required services. However, the fact that they were awarded a delivery order under full and open competition suggests they met the minimum requirements and were deemed capable of performing the work.

What are the potential risks associated with relying on Intact Technology Inc. for critical IT infrastructure support at the IRS?

Potential risks associated with relying on Intact Technology Inc. include performance deficiencies, where the contractor may fail to meet the required service levels, impacting IRS operations. There's also a risk of cost overruns if the firm fixed-price contract doesn't adequately account for unforeseen complexities, although this is mitigated by the contract type. Key personnel dependency is another risk; if critical staff leave Intact Technology Inc., it could disrupt service delivery. Security risks are paramount for the IRS; any compromise of data or systems due to contractor negligence could have severe consequences. Finally, vendor lock-in could occur if the IRS becomes overly reliant on Intact's specific solutions or expertise, making future transitions difficult or costly.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12700 SUNRISE VALLEY DR STE 410, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,057,785

Exercised Options: $31,057,785

Current Obligation: $31,057,785

Actual Outlays: $31,057,785

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA22D00B2

IDV Type: FSS

Timeline