Treasury's IRS awards $3.8M contract for RMM and E-Records Digitization Support to Zen Strategics LLC

Contract Overview

Contract Amount: $3,837,132 ($3.8M)

Contractor: ZEN Strategics LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-09-30

End Date: 2026-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RMM AND E-RECORDS DIGITIZATION SUPPORT

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.8 million to ZEN STRATEGICS LLC for work described as: RMM AND E-RECORDS DIGITIZATION SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a medium-term need for these services. 3. The firm-fixed-price contract type aims to control costs by establishing a set price. 4. Zen Strategics LLC, the awardee, will provide custom computer programming services. 5. The contract is a delivery order under a larger contract vehicle, implying potential for further task orders. 6. The award is a single delivery order, not a new contract, suggesting it's part of an existing framework.

Value Assessment

Rating: good

The contract value of approximately $3.8 million over three years for RMM and E-Records Digitization Support appears reasonable given the scope of custom computer programming services. Benchmarking against similar contracts for digitization and IT support within the federal government would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overruns, but the overall value is contingent on the successful delivery of the specified digitization and records management solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down prices and encourages efficient use of funds by ensuring the government receives the best value through a wide range of offers.

Public Impact

The Internal Revenue Service (IRS) will benefit from improved records management and digitization capabilities. Services delivered will enhance the efficiency and accessibility of IRS records. The primary geographic impact is within the IRS's operational centers, likely supporting national functions. The contract supports the federal workforce by providing tools and systems for digital record-keeping.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if digitization requirements are not clearly defined and managed.
Dependence on contractor expertise for successful implementation of RMM and digitization.
Risk of data security breaches if robust cybersecurity measures are not maintained throughout the contract lifecycle.

Positive Signals

Firm-fixed-price contract type helps control costs.
Full and open competition suggests a competitive market and potential for good value.
Awarded as a delivery order under an existing contract vehicle, indicating a streamlined procurement process.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the federal IT market. The federal government consistently invests in IT modernization, including digitization and records management, to improve operational efficiency and data accessibility. Spending in this area is driven by the need to transition from legacy systems to digital platforms, enhance cybersecurity, and comply with data management regulations. Comparable spending benchmarks would typically involve analyzing IT services contracts for similar agencies or for specific digitization initiatives.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Zen Strategics LLC, is not explicitly identified as a small business in the provided data. There is no indication of subcontracting requirements for small businesses within this specific delivery order. Therefore, the direct impact on the small business ecosystem from this particular award appears limited, though the overall contract vehicle under which this delivery order was placed might have different small business considerations.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the designated contract specialist within the IRS or the Department of the Treasury. Performance monitoring will be crucial to ensure the contractor meets the requirements for RMM and E-Records Digitization Support. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected in the procurement or execution of the contract.

Related Government Programs

Federal Records Management
Electronic Records Management
IT Modernization Programs
Custom Software Development
Digital Transformation Initiatives

Risk Flags

Potential for data security vulnerabilities.
Dependence on contractor performance for critical digitization tasks.
Integration challenges with existing IRS IT systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.8 million to ZEN STRATEGICS LLC. RMM AND E-RECORDS DIGITIZATION SUPPORT

Who is the contractor on this award?

The obligated recipient is ZEN STRATEGICS 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 $3.8 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-09-29.

What is the track record of Zen Strategics LLC in delivering similar RMM and E-Records Digitization Support services to federal agencies?

Assessing the track record of Zen Strategics LLC requires a deeper dive into their past performance on federal contracts. Specifically, one would look for previous awards and performance evaluations related to records management, digitization, and custom computer programming. Examining contract databases for prior work with the IRS or other agencies, and reviewing any available past performance information (PPI) or CPARS reports, would provide insight into their ability to meet deadlines, manage costs, and deliver quality services. A history of successful, similar projects would indicate a lower performance risk for this current contract.

How does the awarded price of $3.8 million compare to market rates for similar digitization and RMM services?

To benchmark the $3.8 million award, one would compare it against industry data for custom computer programming, records management, and digitization services. This involves analyzing average hourly rates for relevant labor categories, typical project management overhead, and the cost of similar-sized projects completed by other federal contractors or in the commercial sector. Factors such as the complexity of the IRS's records, the required technology stack, and the specific deliverables will influence the comparison. If the awarded price falls within or below the typical range for comparable services, it suggests good value for money.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

The specific Key Performance Indicators (KPIs) for this RMM and E-Records Digitization Support contract would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These KPIs are crucial for measuring the contractor's success and ensuring the IRS receives the expected value. Typical KPIs for such a contract might include metrics related to the volume of records digitized per unit of time, accuracy rates of data extraction and indexing, system uptime and availability, response times for user support, and adherence to data security protocols. Regular performance reviews against these KPIs would inform payment and contract closeout.

What is the potential impact of this contract on the IRS's overall digital transformation strategy?

This contract for RMM and E-Records Digitization Support is likely a component of the IRS's broader digital transformation strategy, aimed at modernizing its operations and improving taxpayer services. By digitizing records and enhancing management systems, the IRS can achieve greater efficiency, reduce physical storage needs, improve data security, and enable faster access to information for both employees and potentially taxpayers. Successful execution of this contract could streamline internal processes, support data analytics initiatives, and contribute to a more agile and responsive tax administration system.

Are there any known risks associated with the specific technologies or methodologies to be employed in this digitization effort?

The risks associated with the technologies and methodologies for RMM and E-Records Digitization Support depend heavily on the specific requirements outlined in the contract. Potential risks could include the compatibility of new digitization tools with existing IRS IT infrastructure, the security vulnerabilities of cloud-based storage or processing solutions, the effectiveness of optical character recognition (OCR) and data extraction tools for diverse record types, and the long-term data integrity and accessibility of digitized formats. A thorough risk assessment by the IRS prior to and during the contract would identify and mitigate these potential issues.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10693 WATER FALLS LN, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,552,377

Exercised Options: $4,464,155

Current Obligation: $3,837,132

Actual Outlays: $3,245,933

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F424DA

IDV Type: FSS

Timeline