Treasury's IRS awards $49.3M contract for InfoConnect license and support to Metgreen Solutions

Contract Overview

Contract Amount: $49,302,710 ($49.3M)

Contractor: Metgreen Solutions Inc

Awarding Agency: Department of the Treasury

Start Date: 2023-10-01

End Date: 2026-09-30

Contract Duration: 1,095 days

Daily Burn Rate: $45.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFOCONNECT BRAND: LICENSE & SUPPORT ENGINEERS: POP: 10/01/2023 - 09/30/2024 (BASE), 10/01/2024 - 09/30/2025 (OY1), 10/01/2025 - 09/30/2026 (OY2), 10/01/2026 - 09/30/2027 (OY3)

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $49.3 million to METGREEN SOLUTIONS INC for work described as: INFOCONNECT BRAND: LICENSE & SUPPORT ENGINEERS: POP: 10/01/2023 - 09/30/2024 (BASE), 10/01/2024 - 09/30/2025 (OY1), 10/01/2025 - 09/30/2026 (OY2), 10/01/2026 - 09/30/2027 (OY3) Key points: 1. The contract covers license and support for InfoConnect software over three option years. 2. Metgreen Solutions Inc. is the awardee, with the Department of the Treasury as the agency. 3. The contract falls under NAICS code 541519 (Other Computer Related Services). 4. This is a Firm Fixed Price contract, indicating predictable costs for the government.

Value Assessment

Rating: fair

The total award value is $49.3M over three years. Benchmarking against similar IT software licensing and support contracts is difficult without specific service details and user counts. However, the value appears substantial for this type of service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while competition was sought, there might have been prior exclusions, potentially impacting the breadth of competition and price discovery.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers, but the 'after exclusion of sources' clause warrants further scrutiny to ensure maximum cost-effectiveness.

Public Impact

Taxpayers benefit from the IRS's continued access to essential InfoConnect software. The contract supports critical IRS operations through software licensing and technical support. The duration of the contract provides stability for the IRS's IT infrastructure. Potential for future cost savings if competitive bidding drives down prices in subsequent years.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Lack of detailed service scope makes precise value assessment challenging.
Reliance on a single vendor for critical software support.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract provides cost certainty.
Long-term contract ensures continuity of service.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is consistently high across federal agencies for software, licensing, and support, with benchmarks varying widely based on the specific technology and scale of deployment.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small businesses had an opportunity to participate in the competition or if subcontracting opportunities exist.

Oversight & Accountability

The contract was awarded by the Department of the Treasury to the Internal Revenue Service. Oversight would typically involve contract management by the contracting officer and technical monitoring by the COR to ensure Metgreen Solutions Inc. meets all performance requirements.

Related Government Programs

Other Computer Related Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Potential for limited competition.
Lack of detailed service scope.
Vendor lock-in risk.
Dependency on a single software solution.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $49.3 million to METGREEN SOLUTIONS INC. INFOCONNECT BRAND: LICENSE & SUPPORT ENGINEERS: POP: 10/01/2023 - 09/30/2024 (BASE), 10/01/2024 - 09/30/2025 (OY1), 10/01/2025 - 09/30/2026 (OY2), 10/01/2026 - 09/30/2027 (OY3)

Who is the contractor on this award?

The obligated recipient is METGREEN SOLUTIONS 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 $49.3 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-09-30.

What specific functionalities does InfoConnect provide to the IRS, and how critical are these to its operations?

InfoConnect likely provides document management, workflow automation, or secure information sharing capabilities essential for IRS tax processing, taxpayer services, and internal operations. Understanding its criticality helps assess the risk associated with vendor performance and the necessity of the expenditure.

What was the rationale for excluding certain sources prior to the full and open competition, and did this exclusion limit competitive pricing?

The exclusion of sources prior to competition could be due to specific technical requirements, prior performance, or other factors. If the exclusion significantly narrowed the field of potential bidders, it may have limited the downward pressure on pricing, potentially resulting in a higher cost than if broader competition had been feasible.

How does the per-unit cost of this InfoConnect license and support compare to industry benchmarks for similar software and services, considering the scale of IRS deployment?

Without specific details on the number of licenses, user types, and the exact support services included, a direct per-unit cost comparison is challenging. However, given the $49.3M total value over three years, the IRS is likely procuring a significant volume, and the pricing should be evaluated against enterprise-level agreements for comparable software solutions.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3203 KOENIGSTEIN AVE, NORFOLK, NE, 68701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, 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: $57,766,097

Exercised Options: $49,302,710

Current Obligation: $49,302,710

Actual Outlays: $49,302,710

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD87B

IDV Type: GWAC

Timeline