Treasury's IRS awards $27.2M for ID.ME software and maintenance to V3GATE, LLC

Contract Overview

Contract Amount: $27,210,982 ($27.2M)

Contractor: V3gate, LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-02-28

End Date: 2025-02-27

Contract Duration: 365 days

Daily Burn Rate: $74.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ID.ME SOFTWARE AND SOFTWARE MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $27.2 million to V3GATE, LLC for work described as: ID.ME SOFTWARE AND SOFTWARE MAINTENANCE Key points: 1. Contract awarded via BPA Call under full and open competition. 2. Focus on electronic computer manufacturing software and maintenance. 3. Contract duration is one year, indicating a need for ongoing support. 4. The award value suggests a significant investment in identity verification solutions. 5. Fixed-price contract type aims to control costs. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract value of $27.2 million for one year of software and maintenance for ID.ME is substantial. Benchmarking this against similar identity verification software contracts is challenging without more specific service details. However, the fixed-price nature of the contract suggests an attempt to manage costs predictably. The award amount appears to be within a reasonable range for enterprise-level identity solutions, but a detailed cost-benefit analysis would be needed to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, likely through a Blanket Purchase Agreement (BPA) Call. This indicates that multiple vendors had the opportunity to bid on the requirement. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a marketplace where the government can secure competitive pricing and innovative solutions, ensuring federal funds are used efficiently.

Public Impact

Benefits federal employees and potentially citizens by ensuring secure digital identity verification. Supports the IRS's operational needs for identity management and access control. Primarily impacts the District of Columbia where the contract is registered. Ensures the continuity of critical IT services for tax administration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if ID.ME is a proprietary solution.
Dependence on a single vendor for critical identity services.
Risk of cost escalation in future contract renewals if competition is not maintained.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Fixed-price contract type helps control costs.
One-year duration allows for re-evaluation of needs and market conditions.

Sector Analysis

The contract falls within the IT services sector, specifically focusing on software and maintenance for identity verification solutions. The market for identity management software is robust and growing, driven by increasing cybersecurity threats and the need for secure digital interactions. This contract represents a significant investment by the IRS in maintaining secure access to its systems and data, aligning with broader government initiatives for digital identity.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. The primary contractor, V3GATE, LLC, is not explicitly identified as a small business in the provided data. This means that opportunities for small businesses to participate in this specific contract are likely limited unless they are part of a larger subcontracting effort not detailed here.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a BPA Call, it likely falls under the purview of the issuing agency's contracting officer and potentially the Treasury Inspector General for Tax Administration (TIGTA) for audits and investigations related to IRS operations. Transparency is generally maintained through contract databases like FPDS, allowing for public review of award details.

Related Government Programs

IRS IT Modernization Programs
Federal Identity, Credential, and Access Management (ICAM)
General Services Administration (GSA) IT Schedule Contracts
Cybersecurity and Data Protection Initiatives

Risk Flags

Potential for vendor lock-in
Dependence on single-source identity solution
Need for robust performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $27.2 million to V3GATE, LLC. ID.ME SOFTWARE AND SOFTWARE 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 $27.2 million.

What is the period of performance?

Start: 2024-02-28. End: 2025-02-27.

What is the specific nature of the ID.ME software and maintenance being procured, and how does it align with IRS's broader identity management strategy?

The provided data indicates the procurement is for 'ID.ME SOFTWARE AND SOFTWARE MAINTENANCE' under NAICS code 334111 (Electronic Computer Manufacturing). ID.ME is a widely used platform for digital identity verification, often employed by government agencies to authenticate users accessing sensitive online services. For the IRS, this software likely supports secure login processes, ensures that taxpayers are who they claim to be when interacting online, and helps prevent fraud. It aligns with the federal government's broader push towards secure and reliable digital identity solutions (ICAM) to enhance citizen services while protecting personal information. The maintenance aspect ensures the software remains up-to-date, secure, and functional throughout the contract period.

How does the $27.2 million award compare to historical spending on similar identity verification solutions by the IRS or other federal agencies?

Without specific details on the scope and features of the ID.ME software and maintenance, a direct comparison of the $27.2 million award is difficult. However, large federal agencies often spend millions annually on identity management solutions. For instance, other agencies like the Department of Veterans Affairs or the Social Security Administration also invest heavily in robust identity verification systems to manage millions of user accounts. The IRS's significant investment reflects the critical need for secure taxpayer interactions. Historical data from contract databases would be needed to establish a precise benchmark, but this figure appears consistent with the scale of IT procurements for major federal entities managing sensitive data.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure effective service delivery?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for identity verification software and maintenance, typical KPIs would likely include system uptime (e.g., 99.9% availability), response times for verification requests, successful verification rates, security incident response times, and the timeliness of software updates and patches. SLAs would define the acceptable performance thresholds for these metrics and outline remedies or penalties if the contractor fails to meet them. These would be detailed in the full contract documentation and BPA Call.

What is the track record of V3GATE, LLC in providing similar IT services, particularly in the area of identity management, to federal agencies?

Information regarding V3GATE, LLC's specific track record in providing ID.ME software and maintenance or similar identity management services to federal agencies is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, contract history, and client references for V3GATE, LLC. Federal procurement systems often contain past performance information, which would be crucial for understanding their reliability, technical capabilities, and ability to meet contractual obligations in this specialized area.

Given the one-year duration, what is the IRS's strategy for ensuring long-term identity verification needs beyond February 2025?

The one-year duration (ending February 27, 2025) suggests that this contract may be a bridge or a short-term solution, or it allows for annual re-evaluation of needs and market conditions. The IRS's long-term strategy could involve exercising options if available under the BPA Call, re-competing the requirement to ensure continued competition and potentially better pricing, or transitioning to a different identity verification solution if market offerings evolve. The agency likely plans for continuity of service, and the short duration provides flexibility to adapt to changing technological landscapes and agency requirements.

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: $32,768,282

Exercised Options: $27,210,982

Current Obligation: $27,210,982

Actual Outlays: $27,210,982

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 2032H520A00009

IDV Type: BPA

Timeline