Treasury's IRS awards $3.7M for HSPD-12 PIV card software, with 4 bidders in full and open competition

Contract Overview

Contract Amount: $374,540 ($374.5K)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2025-04-10

End Date: 2026-04-09

Contract Duration: 364 days

Daily Burn Rate: $1.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ACTIVID ACTIVCLIENT SOFTWARE LICENSES FOR HSPD-12 PIV CARDS

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 $374,540 to NEW TECH SOLUTIONS, INC. for work described as: ACTIVID ACTIVCLIENT SOFTWARE LICENSES FOR HSPD-12 PIV CARDS Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. The contract was competed fully and openly, suggesting a healthy market. 3. Risk indicators are low due to a firm-fixed-price contract and established technology. 4. Performance context is for essential identity credentialing software. 5. This contract fits within the broader IT services sector for government identity management.

Value Assessment

Rating: good

The award of $3.74 million for ACTIVID ACTIVCLIENT SOFTWARE LICENSES for HSPD-12 PIV cards appears to be a fair price, especially considering it was awarded under full and open competition. Benchmarking against similar identity management software licenses is challenging without more specific details on the scope and features. However, the firm-fixed-price contract structure provides cost certainty for the IRS. The duration of one year also suggests a manageable commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. With four bidders participating, the competition level suggests a robust market for this type of software. This level of competition is generally favorable for price discovery and achieving competitive pricing.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down the final price compared to a sole-source or limited competition scenario. The presence of multiple bidders ensures that the IRS receives a fair market price for the essential PIV card software.

Public Impact

Federal employees and contractors requiring PIV cards will benefit from the continued availability of secure identity credentialing. The software supports the implementation of Homeland Security Presidential Directive 12 (HSPD-12), ensuring secure access to federal facilities and information systems. The primary geographic impact is within the District of Columbia, where the IRS is headquartered and likely manages its PIV card operations. The contract supports the IT workforce involved in managing and maintaining federal identity credentialing systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this software becomes deeply integrated into IRS systems.
Reliance on a single vendor for critical identity management software could pose a security risk if vulnerabilities are discovered.
The 'after exclusion of sources' clause warrants review to ensure no viable sources were unnecessarily excluded.

Positive Signals

The use of a firm-fixed-price contract limits cost overruns for the government.
The competitive award process suggests a market that can support the government's needs.
The software supports a critical government mandate (HSPD-12), indicating its essential nature.

Sector Analysis

The contract falls within the Information Technology (IT) sector, specifically focusing on identity and access management solutions. The market for identity credentialing software, including PIV card solutions, is significant within the federal government, driven by mandates like HSPD-12. Comparable spending benchmarks for similar software licenses can vary widely based on user count, features, and support levels, but this award of $3.74 million for a one-year term appears to be within a reasonable range for a federal agency of the IRS's size.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, there are no direct subcontracting implications for small businesses stemming from this particular award. The primary contractor, NEW TECH SOLUTIONS, INC., is not identified as a small business in the provided data. The impact on the small business ecosystem is neutral, as this award does not appear to prioritize or exclude small business participation.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Treasury's Internal Revenue Service (IRS). As a firm-fixed-price contract, the primary accountability measure is the delivery of the specified software licenses and associated support. Transparency is facilitated by the public nature of contract awards and the availability of data like this. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

HSPD-12 PIV Card Issuance
Federal Identity, Credential, and Access Management (FICAM)
IT Software Licensing
Cybersecurity Services
Government Identity Solutions

Risk Flags

Competition Clause Nuance
Vendor Lock-in Potential
Security Vulnerability Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $374,540 to NEW TECH SOLUTIONS, INC.. ACTIVID ACTIVCLIENT SOFTWARE LICENSES FOR HSPD-12 PIV CARDS

Who is the contractor on this award?

The obligated recipient is NEW TECH 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 $374,540.

What is the period of performance?

Start: 2025-04-10. End: 2026-04-09.

What is the specific functionality and scope of the ACTIVID ACTIVCLIENT SOFTWARE LICENSES being procured?

The ACTIVID ACTIVCLIENT SOFTWARE LICENSES are for the management and issuance of PIV (Personal Identity Verification) cards, mandated by Homeland Security Presidential Directive 12 (HSPD-12). This software likely enables the creation, management, and revocation of digital identities and credentials for federal employees and contractors. Specific functionalities would include enrollment, card personalization, credential lifecycle management, and potentially integration with other identity and access management systems. The scope covers the necessary licenses for the IRS to operate its PIV card program effectively, ensuring secure access to federal facilities and information systems.

How does the $3.74 million award compare to historical spending by the IRS or other agencies on similar PIV card software?

Direct comparison of the $3.74 million award for a one-year term is difficult without granular historical data for the IRS or similar agencies. However, the federal market for identity management solutions is substantial. Agencies often procure licenses and support for PIV card systems, with costs varying based on the number of users, features, and contract duration. Given that this was a competitive award with four bidders, the price is likely reflective of market conditions. Historical data from similar procurements would be needed for a precise benchmark, but the current award appears to be a reasonable investment for a critical function like PIV card management.

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

While specific KPIs and SLAs are not detailed in the provided data, contracts for identity management software typically include metrics related to software availability, performance, and support response times. For PIV card software, critical indicators might include the uptime of the licensing server, the speed and success rate of card issuance processes, and the timeliness of technical support for any issues encountered. The IRS would likely have established internal requirements or contractual clauses to ensure the software reliably supports the PIV card program and meets federal security standards.

What is the track record of NEW TECH SOLUTIONS, INC. in providing similar IT solutions to the federal government?

NEW TECH SOLUTIONS, INC. has secured this contract for ACTIVID ACTIVCLIENT SOFTWARE LICENSES, indicating a capability in providing IT solutions, specifically related to identity management. Further analysis of their contract history would reveal their experience with federal agencies, the types of services and products they have delivered, and their performance ratings on past contracts. A review of their past performance would help assess their reliability and expertise in fulfilling the requirements of this HSPD-12 PIV card software contract.

What are the potential risks associated with relying on this specific software for federal identity credentialing?

Potential risks include vendor lock-in, where the IRS becomes heavily dependent on NEW TECH SOLUTIONS, INC. and their specific software, making future transitions costly and complex. Security vulnerabilities within the software could pose a significant risk to federal identity data and access controls. Furthermore, the 'after exclusion of sources' aspect of the competition warrants scrutiny to ensure no potentially capable and competitive vendors were unfairly excluded, which could limit future options or lead to suboptimal pricing.

How does this contract align with the IRS's broader IT modernization and cybersecurity strategies?

This contract directly supports the IRS's foundational IT requirements for identity and access management, which is a critical component of cybersecurity. Ensuring secure and reliable PIV card issuance and management is essential for protecting federal systems and data. While not directly a 'modernization' project in terms of new technology adoption, it ensures the continued operational integrity of an existing, vital security infrastructure. Its alignment with broader strategies would depend on how well this software integrates with other identity solutions and security protocols the IRS employs.

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 - PLATFORM

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,876,160

Exercised Options: $752,540

Current Obligation: $374,540

Actual Outlays: $374,540

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC82B

IDV Type: GWAC

Timeline