Treasury's IRS Awards $2.36M to Anika Systems for Technical Support of Business Applications

Contract Overview

Contract Amount: $2,361,302 ($2.4M)

Contractor: Anika Systems Incorporated

Awarding Agency: Department of the Treasury

Start Date: 2025-07-19

End Date: 2026-07-18

Contract Duration: 364 days

Daily Burn Rate: $6.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OCPO TECHNICAL SUPPORT SERVICES FOR MAINTENANCE OF BUSINESS SOLUTION APPLICATIONS FOR AUTOMATION, AND DATA CONNECTIONS RESULTING IN DASHBOARDS/REPORTS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.4 million to ANIKA SYSTEMS INCORPORATED for work described as: OCPO TECHNICAL SUPPORT SERVICES FOR MAINTENANCE OF BUSINESS SOLUTION APPLICATIONS FOR AUTOMATION, AND DATA CONNECTIONS RESULTING IN DASHBOARDS/REPORTS. Key points: 1. Contract focuses on maintaining critical business applications, automation, and data connections for dashboards/reports. 2. Anika Systems Inc. is the sole awardee, raising questions about competition and potential price discovery. 3. The contract value is $2.36 million over one year, with a fixed-price structure. 4. The NAICS code 541511 points to Custom Computer Programming Services, a common area for IT support.

Value Assessment

Rating: fair

The contract is firm-fixed-price, which can provide cost certainty. However, without a competitive bidding process, it's difficult to assess if the $2.36 million price is optimal compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited competition approach. This limits the government's ability to leverage market forces for the best possible pricing and service.

Taxpayer Impact: The lack of full and open competition may result in taxpayers paying more than necessary for these technical support services.

Public Impact

Ensures continued operation of essential IRS business applications and data reporting capabilities. Supports automation efforts within the IRS, potentially leading to increased efficiency. Provides necessary maintenance for data connections that generate crucial dashboards and reports for agency operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending in this area is substantial across federal agencies, with a focus on maintaining legacy systems and developing new digital capabilities.

Small Business Impact

The awardee is Anika Systems Incorporated. Information regarding their small business status or subcontracting plans is not provided in the data, making it difficult to assess small business participation.

Oversight & Accountability

The firm-fixed-price contract type provides some level of cost control. However, the limited competition aspect warrants closer oversight to ensure value for money and prevent potential cost overruns.

Related Government Programs

Risk Flags

Tags

custom-computer-programming-services, department-of-the-treasury, dc, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.4 million to ANIKA SYSTEMS INCORPORATED. OCPO TECHNICAL SUPPORT SERVICES FOR MAINTENANCE OF BUSINESS SOLUTION APPLICATIONS FOR AUTOMATION, AND DATA CONNECTIONS RESULTING IN DASHBOARDS/REPORTS.

Who is the contractor on this award?

The obligated recipient is ANIKA SYSTEMS INCORPORATED.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2025-07-19. End: 2026-07-18.

What is the justification for limiting competition for these critical technical support services?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION.' A detailed justification, such as a sole-source requirement due to unique capabilities or urgent need, would be necessary to understand the rationale behind this decision and its impact on potential cost savings.

How does the $2.36 million price compare to industry benchmarks for similar custom computer programming and application maintenance services?

Without access to a competitive bidding process or specific performance metrics, it is challenging to benchmark the $2.36 million price against industry standards. A thorough market research analysis would be required to determine if this price represents fair and reasonable value for the services rendered.

What are the key performance indicators (KPIs) for this contract to ensure effectiveness and value delivery?

The data does not specify the key performance indicators (KPIs) for this contract. Effective oversight would require clearly defined metrics related to application uptime, issue resolution times, and successful implementation of automation features to ensure the services meet IRS operational needs.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesCustom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL 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: 161 FORT EVANS RD NE STE 250, LEESBURG, VA, 20176

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,361,302

Exercised Options: $2,361,302

Current Obligation: $2,361,302

Actual Outlays: $1,180,651

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2025-07-19

Current End Date: 2026-07-18

Potential End Date: 2026-10-18 11:34:17

Last Modified: 2026-04-03

More Contracts from Anika Systems Incorporated

View all Anika Systems Incorporated federal contracts →

Other Department of the Treasury Contracts

View all Department of the Treasury contracts →

Explore Related Government Spending