Treasury's IRS Awards $24.8M Contract for Consulting Services to Summome Native Ventures LLC
Contract Overview
Contract Amount: $24,833,952 ($24.8M)
Contractor: Summome Native Ventures LLC
Awarding Agency: Department of the Treasury
Start Date: 2023-09-18
End Date: 2024-09-17
Contract Duration: 365 days
Daily Burn Rate: $68.0K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONSULTING SUPPORT SERVICES
Place of Performance
Location: ATMORE, ESCAMBIA County, ALABAMA, 36502
State: Alabama Government Spending
Plain-Language Summary
Department of the Treasury obligated $24.8 million to SUMMOME NATIVE VENTURES LLC for work described as: CONSULTING SUPPORT SERVICES Key points: 1. Contract awarded for administrative and general management consulting. 2. The contract is valued at $24.8 million. 3. Summome Native Ventures LLC is the sole awardee. 4. The contract duration is 365 days. 5. The North American Industry Classification System (NAICS) code is 541611.
Value Assessment
Rating: questionable
The contract is a definitive contract with a firm fixed price. However, without competitive bidding, it's difficult to assess if the price is optimal. The awarded amount of $24.8 million needs further benchmarking against similar consulting contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down the price.
Taxpayer Impact: The lack of competition for a $24.8 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The IRS is relying on a single vendor for critical consulting support. Transparency in the sole-source justification is crucial for public trust. The effectiveness of the consulting services will directly impact IRS operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- High contract value without competitive justification.
- Potential for inflated costs due to lack of bidding.
Positive Signals
- Clear contract duration of one year.
- Firm fixed-price contract provides cost certainty.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. Benchmarks for similar services can vary widely based on scope and expertise, but sole-source awards often deviate from market rates.
Small Business Impact
The contract was awarded to Summome Native Ventures LLC, and there is no indication of subcontracting opportunities for small businesses. Further analysis is needed to determine if small businesses were considered or excluded from this sole-source award.
Oversight & Accountability
Oversight is critical for sole-source contracts to ensure the government receives fair value and that the services provided meet the stated requirements. The Department of the Treasury and the IRS should have robust internal controls and reporting mechanisms in place.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited transparency on justification
- No small business subcontracting noted
- High contract value
Tags
administrative-management-and-general-ma, department-of-the-treasury, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $24.8 million to SUMMOME NATIVE VENTURES LLC. CONSULTING SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is SUMMOME NATIVE VENTURES 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 $24.8 million.
What is the period of performance?
Start: 2023-09-18. End: 2024-09-17.
What was the justification for awarding this contract on a sole-source basis, and how does it align with federal procurement regulations for non-competitive awards?
Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs. The justification typically involves detailing why competition is impracticable or not advantageous. For this $24.8 million contract, the IRS would need to provide a compelling rationale, such as unique expertise, proprietary technology, or urgent requirements that preclude a competitive process. This justification is crucial for ensuring accountability and demonstrating that taxpayer funds are being used appropriately.
How will the IRS ensure that the $24.8 million spent on these consulting services provides good value for taxpayers, given the lack of competitive bidding?
To ensure value, the IRS must implement rigorous performance monitoring and management of the contract. This includes establishing clear performance metrics, regularly evaluating the consultant's deliverables against these metrics, and conducting thorough reviews of invoices. Strong contract administration, including regular progress meetings and independent verification of work performed, is essential to mitigate the risks associated with a sole-source award and confirm that the services are effective and cost-efficient.
What specific administrative and general management consulting services are being procured, and how will their effectiveness be measured to justify the expenditure?
The specific services procured under NAICS code 541611 typically include advice and assistance on organizational issues, such as strategic and organizational planning, business process improvement, and management information systems. The IRS should have defined objectives and key performance indicators (KPIs) for this contract. Measuring effectiveness would involve tracking improvements in IRS operational efficiency, cost savings achieved through implemented recommendations, or enhanced compliance rates resulting from the consulting support. Regular reporting and independent assessments will be key.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 100 BROOKWOOD RD, ATMORE, AL, 36502
Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,833,952
Exercised Options: $24,833,952
Current Obligation: $24,833,952
Actual Outlays: $24,833,952
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-18
Current End Date: 2024-09-17
Potential End Date: 2024-09-17 11:30:01
Last Modified: 2026-03-19
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