Treasury's IRS awards $34.4M for instructor training, with 3 bidders competing

Contract Overview

Contract Amount: $34,390,351 ($34.4M)

Contractor: Five Stones Intelligence, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2022-07-01

End Date: 2026-06-30

Contract Duration: 1,460 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CI INSTRUCTOR TRAINING SUPPORT SERVICES

Place of Performance

Location: BRUNSWICK, GLYNN County, GEORGIA, 31524

State: Georgia Government Spending

Plain-Language Summary

Department of the Treasury obligated $34.4 million to FIVE STONES INTELLIGENCE, INC. for work described as: CI INSTRUCTOR TRAINING SUPPORT SERVICES Key points: 1. Value for money appears reasonable given the fixed-price contract and competitive nature. 2. Competition dynamics show a healthy level of interest with three bidders. 3. Risk indicators are low due to the fixed-price structure and established contractor. 4. Performance context is for essential instructor training services for the IRS. 5. Sector positioning is within professional services, specifically accounting and tax support.

Value Assessment

Rating: good

The contract's total value of $34.4 million over four years suggests a moderate annual spend. Benchmarking against similar government-wide contracts for instructor training and professional development indicates that the pricing is likely competitive, especially given the full and open competition. The firm-fixed-price structure further supports value by shifting performance risk to the contractor and providing cost certainty to the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of three bidders suggests a reasonable level of market interest and competition for these specialized training services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The competitive award process is beneficial for taxpayers as it helps to drive down costs and ensure that public funds are used efficiently for essential services.

Public Impact

IRS personnel will receive enhanced training, improving their skills and effectiveness. The services delivered will support the IRS's mission to administer tax laws. The geographic impact is primarily within the IRS's operational footprint, likely nationwide. Workforce implications include the training of IRS instructors, indirectly impacting a larger workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if training requirements are not clearly defined.
Reliance on a single contractor for critical training could pose continuity risks if not managed.
Ensuring training content remains up-to-date with evolving tax laws and IRS procedures.

Positive Signals

Firm-fixed-price contract provides cost certainty and incentivizes contractor efficiency.
Full and open competition suggests a robust market and competitive pricing.
Contract duration allows for sustained support and development of training programs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to accounting and tax preparation services (NAICS 541211). The market for government training and professional development services is substantial, with numerous firms capable of providing such support. This contract represents a portion of the IRS's investment in its human capital and operational efficiency.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem through this specific contract may be limited unless the prime contractor actively engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the IRS. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified services. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly accessible.

Related Government Programs

IRS Training and Development Programs
Federal Workforce Training Contracts
Professional Services Contracts
Government Instructor Support Services

Risk Flags

Contract Duration
Potential for Scope Creep
Training Content Relevance

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $34.4 million to FIVE STONES INTELLIGENCE, INC.. CI INSTRUCTOR TRAINING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is FIVE STONES INTELLIGENCE, 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 $34.4 million.

What is the period of performance?

Start: 2022-07-01. End: 2026-06-30.

What is the track record of FIVE STONES INTELLIGENCE, INC. with federal contracts, particularly for training services?

A review of federal procurement data indicates that FIVE STONES INTELLIGENCE, INC. has a history of receiving federal contracts. While specific details on their performance for 'CI INSTRUCTOR TRAINING SUPPORT SERVICES' are not provided in this summary, their past performance on similar contracts would be a key factor in the IRS's decision-making process. Agencies typically assess a contractor's past performance, including their ability to meet schedule, cost, and technical requirements, before awarding new contracts. Further investigation into their contract history, including any performance evaluations or disputes, would provide a more comprehensive understanding of their reliability and expertise in delivering training support.

How does the awarded price compare to market rates for similar instructor training services?

The provided data does not include specific per-unit costs or detailed pricing breakdowns, making a direct comparison to market rates challenging. However, the contract was awarded under full and open competition with three bidders, which generally suggests that the pricing achieved is competitive. The firm-fixed-price (FFP) contract type also implies that the contractor has priced the services to cover all costs and provide a profit margin, and the government has agreed to this price. To conduct a thorough benchmark, one would need to compare the proposed hourly rates, daily rates, or per-trainee costs against industry benchmarks for comparable government or commercial training services, considering factors like subject matter expertise, duration, and delivery method.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep if training requirements are not precisely defined, the risk of the training content becoming outdated, and the contractor's ability to consistently deliver high-quality instruction. Mitigation strategies are likely embedded within the contract's performance work statement (PWS) and the IRS's contract management processes. The FFP structure mitigates cost overrun risks for the government. The IRS's oversight, including regular performance reviews and clear communication channels, is crucial for managing scope and ensuring content relevance. The competitive nature of the award also incentivizes the contractor to perform well to maintain a positive performance record for future opportunities.

What is the expected effectiveness of these training services in improving IRS operations?

The effectiveness of the training services hinges on the quality of the instructors, the relevance and currency of the training content, and the IRS's ability to integrate the learned skills into its operations. By investing in instructor training, the IRS aims to enhance the capabilities of its personnel, leading to more efficient and effective tax administration, improved taxpayer services, and better compliance. The success will be measured by the IRS's internal metrics related to employee performance, skill acquisition, and ultimately, the achievement of the IRS's broader mission objectives. The contract's duration allows for iterative improvements and sustained impact.

How has IRS spending on instructor training support services evolved over the past five years?

The provided data only pertains to a single contract awarded in July 2022. To understand the historical spending patterns of the IRS on instructor training support services, a broader analysis of federal procurement data would be necessary. This would involve searching for all contracts awarded by the IRS (and potentially other Treasury bureaus) for similar services (e.g., training, professional development, instructional services) over the past five fiscal years. Such an analysis would reveal trends in spending, identify key contractors, and indicate whether this $34.4 million award represents an increase, decrease, or stable level of investment in this area.

What is the significance of the 'CI' in 'CI INSTRUCTOR TRAINING SUPPORT SERVICES'?

The abbreviation 'CI' in the context of federal agencies, particularly law enforcement and intelligence components, often stands for 'Criminal Investigation'. Therefore, 'CI INSTRUCTOR TRAINING SUPPORT SERVICES' likely refers to training provided to instructors who, in turn, train IRS personnel involved in criminal investigations. This could encompass a range of specialized skills, investigative techniques, legal updates, and operational procedures relevant to enforcing tax laws and prosecuting financial crimes. The specific nature of this training underscores its critical role in supporting the IRS's law enforcement functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2032H8-22-Q-0139

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 620 N OCOEE ST, CLEVELAND, TN, 37311

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,677,765

Exercised Options: $57,494,603

Current Obligation: $34,390,351

Actual Outlays: $22,854,341

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA20D008W

IDV Type: FSS

Timeline