IRS Awards $5.57M for EPAC System Support to Cherokee Nation System Solutions

Contract Overview

Contract Amount: $5,571,091 ($5.6M)

Contractor: Cherokee Nation System Solutions LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-07-01

End Date: 2029-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AWARD TO ACQUIRE A TECHNICAL AND PROJECT MANAGEMENT RESPONSE TEAM FOR RAPID RESOLUTION OF IMPLEMENTATION AND OPERATION ISSUES OF THE INTERNAL REVENUE SERVICE (IRS) ENTERPRISE PHYSICAL ACCESS CONTROL SYSTEM (EPAC) NATIONAL ASSISTANCE CENTER (NAC).

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38118

State: Tennessee Government Spending

Plain-Language Summary

Department of the Treasury obligated $5.6 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC for work described as: AWARD TO ACQUIRE A TECHNICAL AND PROJECT MANAGEMENT RESPONSE TEAM FOR RAPID RESOLUTION OF IMPLEMENTATION AND OPERATION ISSUES OF THE INTERNAL REVENUE SERVICE (IRS) ENTERPRISE PHYSICAL ACCESS CONTROL SYSTEM (EPAC) NATIONAL ASSISTANCE CENTER (NAC). Key points: 1. Focuses on critical IT infrastructure for the IRS's physical access control. 2. Competition method suggests potential for price discovery, but exclusion of sources warrants scrutiny. 3. Risk of system downtime or security breaches if support is inadequate. 4. IT sector spending on system integration and support services is substantial.

Value Assessment

Rating: fair

The contract value of $5.57M over five years for technical and project management support appears reasonable for specialized IT services. Benchmarking against similar contracts for system maintenance and rapid response teams would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources were excluded. This method can impact price discovery and may limit the pool of qualified bidders.

Taxpayer Impact: Taxpayer funds are being used to ensure the operational integrity and security of IRS facilities through specialized technical support.

Public Impact

Ensures the security and operational continuity of IRS facilities. Supports the reliable functioning of the Enterprise Physical Access Control System. Addresses potential implementation and operation issues promptly to minimize disruption.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Potential for vendor lock-in if expertise is highly specialized.
Reliance on a single vendor for critical system support.

Positive Signals

Addresses a critical need for system support.
Clear performance period defined.
Firm fixed-price contract provides cost certainty.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. Spending in this area is driven by the need for specialized expertise in managing and maintaining complex government IT systems.

Small Business Impact

The contract was awarded to Cherokee Nation System Solutions LLC, a Native American-owned business. While the award itself is significant, the analysis does not indicate specific set-asides or subcontracting goals for small businesses in this particular award.

Oversight & Accountability

The award is a delivery order under a larger contract, suggesting existing oversight mechanisms. However, the 'exclusion of sources' in the competition warrants further review to ensure fairness and optimal use of taxpayer funds.

Related Government Programs

Computer Systems Design Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Limited competition due to source exclusion.
Potential for increased costs due to restricted bidder pool.
Dependence on a single vendor for critical system support.
Need for robust performance monitoring to ensure issue resolution.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5.6 million to CHEROKEE NATION SYSTEM SOLUTIONS LLC. AWARD TO ACQUIRE A TECHNICAL AND PROJECT MANAGEMENT RESPONSE TEAM FOR RAPID RESOLUTION OF IMPLEMENTATION AND OPERATION ISSUES OF THE INTERNAL REVENUE SERVICE (IRS) ENTERPRISE PHYSICAL ACCESS CONTROL SYSTEM (EPAC) NATIONAL ASSISTANCE CENTER (NAC).

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION SYSTEM SOLUTIONS 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 $5.6 million.

What is the period of performance?

Start: 2024-07-01. End: 2029-06-30.

What specific criteria led to the exclusion of certain sources in the competition, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, security clearances, or past performance are required that only a limited number of vendors possess. This can reduce competition, potentially leading to higher prices than under a truly open competition. A detailed review of the solicitation documents and award justification would be needed to understand the specific reasons for exclusion and their pricing implications.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured to ensure effective resolution of issues?

Effective resolution of issues is critical for maintaining the security and operational integrity of the IRS's physical access control systems. Key performance indicators likely include response times to reported issues, resolution times, system uptime, and adherence to security protocols. The IRS should have a robust performance management plan in place to track these metrics and ensure the contractor meets contractual obligations.

What is the long-term strategy for managing the EPAC system, and does this contract align with future modernization or replacement plans?

This contract provides essential support for the current EPAC system, ensuring its ongoing functionality and security. However, understanding the IRS's long-term IT infrastructure roadmap is crucial. If the EPAC system is slated for significant upgrades or replacement, this contract's scope and duration should align with those plans to avoid redundant spending or gaps in support during transitions.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2 W. 2ND ST, TULSA, OK, 74103

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,363,285

Exercised Options: $5,571,091

Current Obligation: $5,571,091

Actual Outlays: $4,140,520

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0333

IDV Type: GWAC

Timeline