Treasury's IRS Awards $4.7M for PeopleSoft Licenses and Maintenance to Affigent, LLC
Contract Overview
Contract Amount: $4,700,103 ($4.7M)
Contractor: Affigent, LLC
Awarding Agency: Department of the Treasury
Start Date: 2023-12-01
End Date: 2026-11-30
Contract Duration: 1,095 days
Daily Burn Rate: $4.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PEOPLESOFT LICENSES SOFTWARE MAINTENANCE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220
Plain-Language Summary
Department of the Treasury obligated $4.7 million to AFFIGENT, LLC for work described as: PEOPLESOFT LICENSES SOFTWARE MAINTENANCE Key points: 1. Contract awarded for PeopleSoft licenses and software maintenance. 2. Affigent, LLC is the contractor for this $4.7M award. 3. The contract spans three years, from December 2023 to November 2026. 4. This award falls under 'Other Computer Related Services' (NAICS 541519).
Value Assessment
Rating: fair
The contract value of $4.7M for three years of software maintenance and licenses appears reasonable given the specialized nature of enterprise software. Benchmarking against similar large-scale software maintenance contracts is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', indicating a limited competition. This method may impact price discovery and potentially lead to higher costs compared to full and open competition.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The limited competition raises questions about whether the best possible price was secured for the government.
Public Impact
Ensures continued operation of critical IRS financial and HR systems. Supports the IRS's ability to manage its workforce and financial resources. Potential for increased costs due to limited competition. Reliability of essential software is maintained for tax administration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may result in suboptimal pricing.
- Lack of transparency in the source exclusion process.
- Potential vendor lock-in with specialized software maintenance.
Positive Signals
- Ensures continuity of essential IRS operations.
- Contract duration provides stability for system support.
- Fixed price contract provides cost certainty.
Sector Analysis
The IT services sector, particularly software licensing and maintenance, is a significant area of government spending. Benchmarks for similar contracts vary widely based on software complexity, vendor, and support levels.
Small Business Impact
The contract was not awarded to a small business. There is no indication of small business subcontracting goals or participation in this award.
Oversight & Accountability
The award was made by the Department of the Treasury's Internal Revenue Service. Oversight should focus on ensuring the necessity of the software and the justification for limited competition.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition raises concerns about price fairness.
- Potential for vendor lock-in and future price escalations.
- Lack of small business participation.
- Justification for source exclusion needs scrutiny.
Tags
other-computer-related-services, department-of-the-treasury, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $4.7 million to AFFIGENT, LLC. PEOPLESOFT LICENSES SOFTWARE MAINTENANCE
Who is the contractor on this award?
The obligated recipient is AFFIGENT, 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 $4.7 million.
What is the period of performance?
Start: 2023-12-01. End: 2026-11-30.
What was the specific justification for excluding other sources, and how was the pricing determined to be fair and reasonable under these circumstances?
The justification for excluding other sources is critical for understanding the limited competition. A thorough review would examine the technical requirements, the proprietary nature of the software, and any prior contractual relationships. Price reasonableness would typically be assessed through cost analysis, comparison to historical pricing, or market research, even within a limited competition.
What are the risks associated with relying on a single vendor for critical software maintenance, particularly concerning future upgrades, security patches, and potential price increases?
Reliance on a single vendor for critical software maintenance poses risks of vendor lock-in, where switching costs become prohibitively high. This can lead to escalating prices, slower delivery of essential security patches or updates, and a lack of leverage in negotiating future terms. It also increases vulnerability if the vendor experiences financial instability or discontinues support.
How does this contract contribute to the IRS's overall IT modernization strategy and ensure the effectiveness of its core financial and HR systems?
This contract ensures the continued operational effectiveness of the IRS's core financial and HR systems by providing necessary licenses and maintenance. Its contribution to IT modernization depends on whether these PeopleSoft systems are part of a planned upgrade or replacement strategy. Continued maintenance is essential for stability, but may not align with long-term modernization goals if the software is legacy.
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 - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Nana Regional Corporation, Inc.
Address: 2553 DULLES VIEW DR, HERNDON, VA, 20171
Business Categories: Alaskan Native Corporation Owned Firm, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,355,481
Exercised Options: $5,917,955
Current Obligation: $4,700,103
Actual Outlays: $3,380,570
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC59B
IDV Type: GWAC
Timeline
Start Date: 2023-12-01
Current End Date: 2026-11-30
Potential End Date: 2028-11-30 00:00:00
Last Modified: 2026-01-28
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