Treasury's IRS awards $60.7M Salesforce contract to Lancer Information Solutions for enterprise software and services
Contract Overview
Contract Amount: $60,699,374 ($60.7M)
Contractor: Lancer Information Solutions, LLC
Awarding Agency: Department of the Treasury
Start Date: 2024-04-18
End Date: 2025-04-25
Contract Duration: 372 days
Daily Burn Rate: $163.2K/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: THIS IS A DELIVERY ORDER TO PURCHASE TREASURY ENTERPRISE LEVEL SALESFORCE SOFTWARE AND SERVICES.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224
Plain-Language Summary
Department of the Treasury obligated $60.7 million to LANCER INFORMATION SOLUTIONS, LLC for work described as: THIS IS A DELIVERY ORDER TO PURCHASE TREASURY ENTERPRISE LEVEL SALESFORCE SOFTWARE AND SERVICES. Key points: 1. The contract focuses on essential Salesforce software and services for the IRS. 2. Lancer Information Solutions, LLC is the awardee. 3. The award was made under full and open competition after exclusion of sources. 4. This represents a significant investment in IT infrastructure for tax administration.
Value Assessment
Rating: good
The contract value of $60.7 million for enterprise-level software and services appears reasonable given the scope. Benchmarking against similar large-scale Salesforce implementations would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition after exclusion of sources, indicating a competitive process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: Taxpayers benefit from efficient tax administration enabled by modern software, though the direct financial impact is through agency budgets.
Public Impact
Enhances IRS's ability to manage taxpayer interactions and internal processes. Supports modernization efforts within a critical government agency. Ensures continuity of essential IT services for tax collection and enforcement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with enterprise software.
- Dependence on a single vendor for critical services.
Positive Signals
- Awarded through competitive bidding.
- Supports essential government functions.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on enterprise software solutions. Spending benchmarks for similar government Salesforce implementations can vary widely based on scope and user base.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The award was made by the Department of the Treasury's Internal Revenue Service. Oversight will be crucial to ensure effective implementation and value for money.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost overruns if scope expands.
- Risk of integration challenges with existing IRS systems.
- Dependence on vendor for ongoing support and updates.
- Need for robust cybersecurity measures for sensitive taxpayer data.
Tags
other-computer-related-services, department-of-the-treasury, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $60.7 million to LANCER INFORMATION SOLUTIONS, LLC. THIS IS A DELIVERY ORDER TO PURCHASE TREASURY ENTERPRISE LEVEL SALESFORCE SOFTWARE AND SERVICES.
Who is the contractor on this award?
The obligated recipient is LANCER INFORMATION SOLUTIONS, 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 $60.7 million.
What is the period of performance?
Start: 2024-04-18. End: 2025-04-25.
What is the specific scope of 'Salesforce software and services' being procured, and how does it align with the IRS's strategic IT goals?
The delivery order specifies the purchase of Treasury enterprise-level Salesforce software and services. While the exact modules and service components are not detailed here, it is intended to support the IRS's operational needs. Alignment with strategic IT goals would likely involve enhancing taxpayer services, improving data management, and streamlining internal workflows, but requires further documentation review.
What were the key evaluation criteria used in the 'full and open competition after exclusion of sources' process, and how did Lancer Information Solutions meet them?
The evaluation criteria for this procurement method typically include technical approach, past performance, price, and other factors relevant to the specific requirements. As Lancer Information Solutions was awarded the contract, they presumably met or exceeded the agency's requirements in these areas. A detailed review of the source selection decision document would provide specific evaluation details.
How will the IRS measure the effectiveness and return on investment of this Salesforce implementation over its 372-day duration?
Effectiveness will likely be measured through key performance indicators (KPIs) related to taxpayer satisfaction, processing times, data accuracy, and internal user adoption. ROI will be assessed by comparing the benefits realized (e.g., cost savings, efficiency gains, improved compliance) against the total contract cost. Formal performance reviews and post-implementation assessments are standard practices.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1818 LIBRARY ST STE 500, RESTON, VA, 20190
Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, 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: $60,699,374
Exercised Options: $60,699,374
Current Obligation: $60,699,374
Actual Outlays: $60,389,844
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD29B
IDV Type: GWAC
Timeline
Start Date: 2024-04-18
Current End Date: 2025-04-25
Potential End Date: 2025-04-25 00:00:00
Last Modified: 2025-05-01
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