IRS Awards $49.7M Contract for Singular Application Development Environment to Hadron Industries
Contract Overview
Contract Amount: $49,746,670 ($49.7M)
Contractor: Hadron Industries, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2025-03-31
End Date: 2030-03-30
Contract Duration: 1,825 days
Daily Burn Rate: $27.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: APPLICATION DEVELOPMENT AND SUPPORT SERVICES TO CREATE A SINGULAR ENVIRONMENT FOR THE IRS TO DESIGN, BUILD, MODIFY, LOG, TEST, AND DEPLOY SOFTWARE, USING INFRASTRUCTURE-AS-CODE TOOLS AND PRACTICES.
Place of Performance
Location: CONCORD, MERRIMACK County, NEW HAMPSHIRE, 03301
Plain-Language Summary
Department of the Treasury obligated $49.7 million to HADRON INDUSTRIES, INC. for work described as: APPLICATION DEVELOPMENT AND SUPPORT SERVICES TO CREATE A SINGULAR ENVIRONMENT FOR THE IRS TO DESIGN, BUILD, MODIFY, LOG, TEST, AND DEPLOY SOFTWARE, USING INFRASTRUCTURE-AS-CODE TOOLS AND PRACTICES. Key points: 1. The contract focuses on creating a unified environment for IRS software development, leveraging modern infrastructure-as-code practices. 2. Hadron Industries, Inc. secured this award through full and open competition. 3. The duration of the contract is five years, ending March 30, 2030. 4. This award is for Application Development and Support Services, a critical function for the IRS's technological modernization.
Value Assessment
Rating: good
The contract value of $49.7M over five years appears reasonable for comprehensive application development and support services. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, ensuring taxpayer funds are used efficiently for essential IT services.
Public Impact
Enhances IRS's ability to design, build, and deploy software more efficiently. Modernizes IRS's software development lifecycle through infrastructure-as-code. Potential for improved service delivery to taxpayers due to better internal IT capabilities. Ensures continuity of critical IT support services for the IRS.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in long-term application development projects.
- Dependency on a single vendor for critical development infrastructure.
- Risk of technical obsolescence if not managed proactively.
Positive Signals
- Awarded via full and open competition.
- Utilizes modern infrastructure-as-code practices.
- Long-term contract provides stability for IRS IT development.
Sector Analysis
This contract falls under Computer Systems Design Services, a sector crucial for government IT modernization. Spending in this area is significant as agencies strive to update legacy systems and improve digital service delivery.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. While awarded through full and open competition, it's important to monitor if subcontracting opportunities are made available to small businesses.
Oversight & Accountability
The award is managed by the Department of the Treasury for the Internal Revenue Service. Standard government oversight mechanisms for contract performance and financial management will apply.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Vendor lock-in potential
- Integration challenges with existing IRS systems
- Cybersecurity risks associated with a centralized development environment
- Dependency on specialized skill sets for infrastructure-as-code
- Potential for cost overruns if project scope is not tightly managed
Tags
computer-systems-design-services, department-of-the-treasury, nh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $49.7 million to HADRON INDUSTRIES, INC.. APPLICATION DEVELOPMENT AND SUPPORT SERVICES TO CREATE A SINGULAR ENVIRONMENT FOR THE IRS TO DESIGN, BUILD, MODIFY, LOG, TEST, AND DEPLOY SOFTWARE, USING INFRASTRUCTURE-AS-CODE TOOLS AND PRACTICES.
Who is the contractor on this award?
The obligated recipient is HADRON INDUSTRIES, 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 $49.7 million.
What is the period of performance?
Start: 2025-03-31. End: 2030-03-30.
What is the projected impact of this singular environment on IRS's software development velocity and quality?
The creation of a singular environment using infrastructure-as-code is intended to streamline the software development lifecycle, potentially increasing velocity and improving consistency. This consolidation aims to reduce integration issues and deployment times, leading to higher quality software releases and faster delivery of new features or updates for IRS systems.
What are the key performance indicators (KPIs) for measuring the success of this contract?
Key performance indicators would likely include metrics related to development cycle time, deployment frequency, system uptime, reduction in critical bugs post-deployment, and user satisfaction from IRS development teams. Measuring adherence to infrastructure-as-code principles and security compliance would also be crucial for assessing overall contract effectiveness.
How will the IRS ensure this 'singular environment' remains adaptable to future technological advancements?
Adaptability will depend on the contract's flexibility clauses and the vendor's commitment to incorporating emerging technologies. The IRS should ensure the contract includes provisions for regular technology reviews, potential upgrades to the platform, and the ability to integrate new tools or methodologies as the IT landscape evolves, preventing the environment from becoming quickly outdated.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 90 AIRPORT RD, CONCORD, NH, 03301
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $49,746,670
Exercised Options: $49,746,670
Current Obligation: $49,746,670
Actual Outlays: $7,365,485
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA25D0021
IDV Type: FSS
Timeline
Start Date: 2025-03-31
Current End Date: 2030-03-30
Potential End Date: 2030-09-30 08:49:33
Last Modified: 2026-03-10
More Contracts from Hadron Industries, Inc.
- Weather.gov 2.0 and NWS API — $3.2M (Department of Commerce)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)