Treasury's IRS awards $3.8M for compliance data warehouse software and support

Contract Overview

Contract Amount: $3,831,450 ($3.8M)

Contractor: Government Acquisitions Inc

Awarding Agency: Department of the Treasury

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $10.5K/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: VYASA CERTARA SOFTWARE, SUPPORT, AND DEVELOPMENT FOR COMPLIANCE DATA WAREHOUSE.

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.8 million to GOVERNMENT ACQUISITIONS INC for work described as: VYASA CERTARA SOFTWARE, SUPPORT, AND DEVELOPMENT FOR COMPLIANCE DATA WAREHOUSE. Key points: 1. Contract focuses on essential IT infrastructure for tax compliance. 2. Competition was open, suggesting a potentially competitive pricing environment. 3. Fixed-price contract type aims to control costs. 4. Duration of one year provides flexibility for future needs. 5. Vendor has a single award, indicating limited prior federal experience. 6. Small business participation is not explicitly mandated. 7. Geographic focus is Maryland.

Value Assessment

Rating: good

The contract value of $3.8 million for a one-year term for software, support, and development of a compliance data warehouse appears reasonable. Benchmarking against similar IT service contracts for data management and compliance systems suggests this is within expected ranges. The firm fixed-price structure provides cost certainty for the government, mitigating the risk of cost overruns. Without specific details on the scope of services and the complexity of the data warehouse, a precise value-for-money assessment is challenging, but the initial indicators are positive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The exclusion of sources clause might suggest specific technical requirements or prior performance considerations that narrowed the field, but the core competition was open.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider range of innovative solutions.

Public Impact

The Internal Revenue Service (IRS) benefits from enhanced capabilities for managing and analyzing compliance data. Taxpayers may experience improved efficiency and accuracy in tax processing and enforcement. The services delivered will support the government's efforts to ensure tax compliance. The primary geographic impact is within the IRS's operational centers, likely in Maryland. The contract supports IT professionals and data analysts involved in maintaining and developing the compliance data warehouse.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited public information on the contractor's track record with similar large-scale data warehouse projects.
The specific scope of 'development' is not detailed, which could lead to scope creep if not managed tightly.
Reliance on a single vendor for critical compliance data infrastructure requires robust performance monitoring.

Positive Signals

The use of a firm fixed-price contract provides cost predictability.
The contract is competitively procured, suggesting a focus on achieving good value.
The services directly support a core government function: tax compliance.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on data management and software services. The market for IT services, including data warehousing, compliance software, and development, is robust and highly competitive. Government spending in this area is substantial, driven by the need for secure, efficient, and scalable data infrastructure to support agency operations. Comparable spending benchmarks for similar data warehouse solutions can vary widely based on complexity, data volume, and required integrations, but this award appears to be a moderate-sized investment for a specific IRS function.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of mandatory subcontracting requirements for small businesses. The prime contractor, Government Acquisitions Inc., is not typically classified as a small business. This means that the direct economic benefit to the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officers and program managers within the IRS's IT division. The firm fixed-price nature of the contract provides a degree of accountability by linking payment to deliverables. Transparency is facilitated through federal procurement databases where contract awards are recorded. While no specific Inspector General jurisdiction is mentioned for this particular award, the Treasury Inspector General for Tax Administration (TIGTA) has broad oversight over IRS programs and operations, including IT systems and contracts.

Related Government Programs

IRS Data Management Systems
Federal Compliance Software
Government Data Warehousing Solutions
Treasury IT Modernization Efforts

Risk Flags

Limited contractor performance history in federal sector.
Potential for knowledge transfer gaps due to short contract duration.
Scope definition for 'development' needs clear management.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.8 million to GOVERNMENT ACQUISITIONS INC. VYASA CERTARA SOFTWARE, SUPPORT, AND DEVELOPMENT FOR COMPLIANCE DATA WAREHOUSE.

Who is the contractor on this award?

The obligated recipient is GOVERNMENT ACQUISITIONS 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 $3.8 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the specific nature of the 'compliance data warehouse' and its criticality to IRS operations?

The 'compliance data warehouse' is a centralized repository designed to store, manage, and analyze vast amounts of data related to tax compliance. Its criticality stems from its role in supporting the IRS's core mission of enforcing tax laws, identifying non-compliance, detecting fraud, and ensuring accurate revenue collection. This system likely integrates data from various sources, including tax filings, financial transactions, and other relevant databases. The software, support, and development services procured are essential for maintaining the integrity, security, and functionality of this critical infrastructure, enabling data-driven decision-making and operational efficiency for the IRS.

How does the 'Full and Open Competition After Exclusion of Sources' method impact potential cost savings compared to a standard full and open competition?

The 'Full and Open Competition After Exclusion of Sources' method, while still competitive, can sometimes lead to slightly higher costs than a standard full and open competition. This is because the 'exclusion of sources' implies that certain potential bidders were disqualified based on specific criteria, such as unique technical capabilities, proprietary technology, or prior performance requirements. While the remaining pool of bidders still competes, it is a smaller, more specialized group. This can reduce the intensity of price competition compared to a scenario where virtually any qualified vendor could bid. However, it ensures that the selected vendor possesses the necessary specialized expertise, potentially leading to better overall value and reduced technical risk.

What are the potential risks associated with a one-year contract duration for a data warehouse system?

A one-year contract duration for a data warehouse system, while offering flexibility, carries potential risks. Firstly, it may limit the vendor's incentive to invest heavily in long-term system optimization or innovation, as their commitment is short-term. Secondly, it necessitates frequent re-procurement cycles, which can be administratively burdensome and costly for the government. There's also a risk of knowledge loss or disruption if a new vendor is onboarded or if the current vendor's team changes significantly during the transition. For critical systems like a compliance data warehouse, longer-term contracts often provide greater stability and continuity, allowing for deeper integration and sustained performance improvements.

What is the track record of Government Acquisitions Inc. in delivering similar IT services, particularly data warehousing solutions?

Publicly available data indicates that Government Acquisitions Inc. has received a single federal contract award, which is this current delivery order. This suggests a limited track record specifically in delivering large-scale IT services, such as comprehensive data warehousing solutions, to the federal government. While the company may possess the necessary expertise, the lack of extensive federal contract history makes it challenging to benchmark their performance, reliability, and experience against established providers in the federal IT services market. Further due diligence on their past performance, client references, and specific technical capabilities would be necessary for a comprehensive assessment.

How does the $3.8 million award compare to historical spending on similar IRS IT infrastructure projects?

Comparing this $3.8 million award to historical IRS IT infrastructure spending requires context on the specific scope and duration. The IRS, like many large federal agencies, invests significantly in IT modernization and data management. Annual IT spending for the IRS can run into hundreds of millions or even billions of dollars, encompassing a wide range of projects from cybersecurity enhancements to large-scale system overhauls. A $3.8 million contract for a one-year term for a specific data warehouse function is a relatively modest investment within the IRS's overall IT budget. It suggests a focused effort rather than a broad modernization initiative, making direct historical comparisons difficult without knowing the exact scale and complexity of the services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 347568

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2060 READING ROAD, CINCINNATI, OH, 45202

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

Financial Breakdown

Contract Ceiling: $4,235,700

Exercised Options: $3,831,450

Current Obligation: $3,831,450

Actual Outlays: $3,684,450

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC78B

IDV Type: GWAC

Timeline