IRS awards $13M for Robotic Process Automation solutions and support to Anika Systems Inc

Contract Overview

Contract Amount: $13,039,939 ($13.0M)

Contractor: Anika Systems Incorporated

Awarding Agency: Department of the Treasury

Start Date: 2024-06-28

End Date: 2026-06-28

Contract Duration: 730 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS IS A REQUIREMENT FOR THE ROBOTIC PROCESS AUTOMATION (RPA) SOLUTIONS, APPROACHES, MAINTENANCE, TRAINING, AND ONLINE/REMOTE SUPPORT ACROSS THE INTERNAL REVENUE SERVICE (IRS) ENTERPRISE SOLUTIONS.

Place of Performance

Location: LEESBURG, LOUDOUN County, VIRGINIA, 20176

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $13.0 million to ANIKA SYSTEMS INCORPORATED for work described as: THIS IS A REQUIREMENT FOR THE ROBOTIC PROCESS AUTOMATION (RPA) SOLUTIONS, APPROACHES, MAINTENANCE, TRAINING, AND ONLINE/REMOTE SUPPORT ACROSS THE INTERNAL REVENUE SERVICE (IRS) ENTERPRISE SOLUTIONS. Key points: 1. Contract focuses on enhancing IRS operations through RPA, potentially improving efficiency and accuracy. 2. The award is a BPA Call under a larger Blanket Purchase Agreement, indicating a pre-competed framework. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. Duration of 730 days provides a medium-term engagement for RPA services. 5. The contract is not set aside for small businesses, indicating a focus on larger prime contractors. 6. Services include maintenance, training, and remote support, suggesting a comprehensive RPA lifecycle approach.

Value Assessment

Rating: good

The contract value of $13,039,939.35 for two years of RPA solutions and support appears reasonable given the scope. While specific per-unit costs for RPA implementation or maintenance are not detailed, the overall value aligns with industry benchmarks for enterprise-level automation services. The firm fixed price structure helps manage cost predictability. Further analysis would require benchmarking against similar government RPA procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. As a BPA Call, it likely leverages a pre-existing competitive process established for the parent BPA. The number of bidders for the BPA Call itself is not specified, but the full and open nature implies a robust competitive environment was sought.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging a wider range of vendors to offer their best pricing and solutions.

Public Impact

IRS employees will benefit from automated processes, potentially freeing up time for more complex tasks. The services delivered will enhance the IRS's internal operational efficiency and data processing capabilities. The geographic impact is enterprise-wide across the Internal Revenue Service. Workforce implications may include upskilling of existing staff to manage and work alongside automated systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the chosen RPA solution is proprietary and difficult to migrate from.
Dependence on a single contractor for critical automation processes could pose a risk if performance falters.

Positive Signals

Focus on RPA solutions indicates a commitment to modernizing IRS operations and improving efficiency.
The inclusion of training and support suggests a holistic approach to ensuring successful adoption and long-term value.
Firm Fixed Price contract type provides cost certainty for the government.

Sector Analysis

The contract falls within the Custom Computer Programming Services sector (NAICS 541511), specifically focusing on Robotic Process Automation (RPA). The market for RPA solutions is growing rapidly as organizations seek to automate repetitive tasks, improve accuracy, and reduce operational costs. Government agencies, including tax authorities, are increasingly adopting RPA to streamline processes. The total value of this BPA Call is $13 million over two years, which is a significant investment in automation technology for a federal agency.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary contractor, Anika Systems Incorporated, is expected to perform the majority of the work. The absence of small business set-asides means that opportunities for small businesses to participate in this specific BPA Call are limited unless they are partners or subcontractors to the prime.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the IRS. As a BPA Call, oversight may also be influenced by the governance structure of the parent BPA. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

IRS IT Modernization Programs
Federal Robotic Process Automation Initiatives
Custom Computer Programming Services Contracts
Treasury Department IT Spending

Risk Flags

Potential for vendor lock-in
Dependence on contractor performance
Cybersecurity risks in automated processes
User adoption and change management challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $13.0 million to ANIKA SYSTEMS INCORPORATED. THIS IS A REQUIREMENT FOR THE ROBOTIC PROCESS AUTOMATION (RPA) SOLUTIONS, APPROACHES, MAINTENANCE, TRAINING, AND ONLINE/REMOTE SUPPORT ACROSS THE INTERNAL REVENUE SERVICE (IRS) ENTERPRISE SOLUTIONS.

Who is the contractor on this award?

The obligated recipient is ANIKA SYSTEMS INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2024-06-28. End: 2026-06-28.

What is Anika Systems Incorporated's track record with the IRS or other federal agencies for delivering RPA solutions?

Information regarding Anika Systems Incorporated's specific track record with the IRS for RPA solutions is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any documented successes or challenges in delivering similar services to the IRS or other federal entities. Their experience with custom computer programming services (NAICS 541511) is a baseline, but specialized RPA delivery experience is key. Further investigation into their contract awards and performance reviews on platforms like SAM.gov or FPDS would be necessary to fully gauge their capabilities and reliability in this domain.

How does the $13 million contract value compare to similar RPA procurements by other federal agencies?

The $13 million contract value for two years of RPA solutions and support is a substantial investment. To benchmark this effectively, it would be compared against similar government-wide or agency-specific procurements for enterprise-level RPA implementation, maintenance, and support. For instance, agencies like the Department of Defense or Health and Human Services might have comparable contracts. Factors such as the number of processes automated, the complexity of the systems involved, and the level of support required would influence these comparisons. Without specific details on the scope of work and deliverables, a precise comparison is difficult, but the value suggests a significant and comprehensive RPA program.

What are the primary risks associated with this RPA contract for the IRS?

Key risks include potential vendor lock-in if the chosen RPA platform is proprietary and difficult to integrate with or migrate from. There's also a risk of performance issues if the vendor fails to deliver effective automation solutions or adequate support, potentially disrupting IRS operations. Another risk is the successful adoption and integration of RPA by IRS staff; resistance to change or inadequate training could hinder the realization of expected benefits. Finally, cybersecurity risks associated with automating processes and handling sensitive taxpayer data must be rigorously managed.

How effective is the firm fixed price (FFP) contract type in managing costs for RPA services?

The Firm Fixed Price (FFP) contract type is generally effective in managing costs for well-defined services like RPA maintenance and support, as it shifts the risk of cost overruns to the contractor. For the IRS, this means greater budget certainty. However, for the development or implementation phases of RPA, where scope can be less predictable, FFP might incentivize the contractor to cut corners or limit scope. The effectiveness here depends on how well the SOW is defined and managed. For ongoing services and maintenance, FFP is a strong choice for cost control.

What are the historical spending patterns of the IRS on automation and IT services?

Historical spending patterns of the IRS on automation and IT services would reveal trends in technology adoption and investment. Analyzing past budgets and contract awards for IT modernization, software development, and process automation would provide context for this $13 million RPA contract. If the IRS has consistently increased its IT and automation spending, this contract aligns with a strategic direction. Conversely, if this represents a significant departure, it warrants further examination of the rationale and expected return on investment. Data from previous years would indicate the scale and frequency of such investments.

What is the expected impact of this RPA contract on IRS operational efficiency and taxpayer services?

The expected impact of this RPA contract is a significant improvement in IRS operational efficiency by automating repetitive, manual tasks. This could lead to faster processing of documents, reduced errors, and quicker response times for taxpayer inquiries. By freeing up IRS employees from mundane tasks, they can focus on more complex issues and provide better support to taxpayers. Ultimately, enhanced efficiency should translate into a smoother, more accurate, and potentially faster experience for taxpayers interacting with the IRS.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2032H524Q00052

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 FORT EVANS RD NE STE 210, LEESBURG, VA, 20176

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $24,998,213

Exercised Options: $13,039,939

Current Obligation: $13,039,939

Actual Outlays: $7,988,731

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2032H521A00034

IDV Type: BPA

Timeline