Treasury's IRS awards $12.1M for ServiceNow/Salesforce low-code app development and sustainment

Contract Overview

Contract Amount: $12,097,111 ($12.1M)

Contractor: Creative Systems and Consulting L.L.C.

Awarding Agency: Department of the Treasury

Start Date: 2025-08-01

End Date: 2026-07-31

Contract Duration: 364 days

Daily Burn Rate: $33.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: NEW LABOR HOUR ORDER FOR SERVICENOW & SALESFORCE LOWCODE APPLICATIONS. BASE: APPLICATIONS DEVELOPMENT & SUSTAINMENT SERVICES. THIS INCLUDES APPLICATION & WEB DEVELOPMENT SERVICES & MAINTENANCE SERVICES, & TECHNICAL PROGRAM MANAGE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $12.1 million to CREATIVE SYSTEMS AND CONSULTING L.L.C. for work described as: NEW LABOR HOUR ORDER FOR SERVICENOW & SALESFORCE LOWCODE APPLICATIONS. BASE: APPLICATIONS DEVELOPMENT & SUSTAINMENT SERVICES. THIS INCLUDES APPLICATION & WEB DEVELOPMENT SERVICES & MAINTENANCE SERVICES, & TECHNICAL PROGRAM MANAGE Key points: 1. Contract focuses on critical application development and maintenance for IRS's digital infrastructure. 2. Utilizes low-code platforms, suggesting a focus on agility and faster deployment cycles. 3. Full and open competition indicates a broad market search for qualified vendors. 4. Base contract value of $12.1M over 364 days suggests significant ongoing support needs. 5. Awarded as a BPA Call, implying it's part of a larger pre-competed agreement. 6. Contractor, Creative Systems and Consulting L.L.C., will provide application and web development services.

Value Assessment

Rating: good

The contract value of $12.1M for 364 days of labor hours for custom computer programming services appears reasonable given the scope of application development and sustainment. Benchmarking against similar IT services contracts for federal agencies, particularly those involving complex software platforms like ServiceNow and Salesforce, suggests this pricing is within expected ranges. The use of a BPA Call indicates that the underlying pricing structure was likely established through a prior competitive process, providing a degree of pre-validation for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The specific mechanism used was a BPA Call, which draws from an existing Blanket Purchase Agreement. While the number of bidders for this specific call is not detailed, the initial BPA competition likely involved multiple vendors. Full and open competition generally promotes price discovery and allows the government to select the best value offering from a wide pool of potential contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down costs through market forces and ensures the government secures services at competitive rates, maximizing the value of federal dollars.

Public Impact

IRS employees and potentially taxpayers will benefit from improved and sustained digital applications. Services delivered include application development, web development, and technical program management. The geographic impact is primarily within the IRS's operational footprint, likely supporting national functions. Workforce implications include the need for skilled developers and program managers familiar with low-code platforms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on contractor expertise for critical low-code platform development and maintenance.
Risk of vendor lock-in if specific platform customizations become proprietary.

Positive Signals

Focus on low-code platforms can lead to faster development and deployment.
Full and open competition suggests a robust selection process for best value.
BPA Call mechanism implies pre-negotiated terms and pricing, potentially streamlining execution.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the federal IT market. The federal government spends billions annually on IT services, including custom software development, application maintenance, and program management. Contracts involving platforms like ServiceNow and Salesforce are increasingly common as agencies adopt modern, agile development methodologies. This award represents a specific investment in enhancing the IRS's internal operational capabilities through specialized low-code application development.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a BPA Call under full and open competition, the primary focus was on selecting the best overall offer. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This means opportunities for small businesses may be limited unless the prime contractor voluntarily includes them in their subcontracting plan.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the IRS. The BPA Call mechanism suggests that the underlying BPA likely has established oversight and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Accountability measures would be tied to performance metrics and deliverables outlined in the BPA Call and the overarching BPA. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian IT Services
Custom Software Development Contracts
ServiceNow Platform Support
Salesforce Platform Support
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for vendor lock-in with proprietary low-code platforms.
Dependence on contractor expertise for critical application sustainment.
Ensuring adequate security for sensitive tax data developed on new platforms.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $12.1 million to CREATIVE SYSTEMS AND CONSULTING L.L.C.. NEW LABOR HOUR ORDER FOR SERVICENOW & SALESFORCE LOWCODE APPLICATIONS. BASE: APPLICATIONS DEVELOPMENT & SUSTAINMENT SERVICES. THIS INCLUDES APPLICATION & WEB DEVELOPMENT SERVICES & MAINTENANCE SERVICES, & TECHNICAL PROGRAM MANAGE

Who is the contractor on this award?

The obligated recipient is CREATIVE SYSTEMS AND CONSULTING L.L.C..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2025-08-01. End: 2026-07-31.

What is the track record of Creative Systems and Consulting L.L.C. in delivering similar low-code application development services to federal agencies?

Assessing the track record of Creative Systems and Consulting L.L.C. requires a review of their past performance on federal contracts, particularly those involving ServiceNow and Salesforce low-code development. Publicly available data, such as contract award histories and performance evaluations (if accessible), would indicate their experience level, success rates, and any past performance issues. Agencies typically evaluate past performance as a key factor in source selection. A strong track record suggests a lower risk of performance failure and a higher likelihood of successful project completion within budget and schedule. Conversely, a history of performance problems could signal potential risks for this new award.

How does the estimated cost per labor hour compare to market rates for similar IT services under this contract?

The provided data does not include specific labor hour rates, only the total contract value and duration. To benchmark the cost per labor hour, one would need to divide the total contract value ($12,097,111.38) by the estimated number of labor hours to be worked over the 364-day period. This calculated rate would then need to be compared against government-wide IT labor rate benchmarks, such as those found in the GSA Schedule or other agency-specific IT rate data. Factors like the specific skill sets required (e.g., senior developers, project managers), geographic location, and the complexity of the platforms (ServiceNow, Salesforce) influence market rates. A comparison would determine if the government is achieving a fair and reasonable price.

What are the primary risks associated with relying on low-code platforms for critical IRS applications?

While low-code platforms offer agility, key risks include potential limitations in customization for highly complex or unique requirements, vendor lock-in due to platform-specific configurations, and security vulnerabilities if the platform itself or its integrations are not properly secured. Scalability can also be a concern for extremely high-volume transaction processing. Furthermore, the long-term sustainment and evolution of applications built on proprietary low-code platforms depend heavily on the vendor's roadmap and support. The IRS must ensure robust security protocols, thorough testing, and contingency plans are in place to mitigate these risks, especially given the sensitive nature of tax data.

What is the historical spending pattern for application development and sustainment services at the IRS, and how does this award fit within that trend?

Analyzing historical spending patterns for application development and sustainment at the IRS would involve examining contract data over several fiscal years. This would reveal trends in IT investment, the types of technologies prioritized (e.g., custom development vs. COTS, specific platforms), and the average contract values. This $12.1M award for low-code applications suggests a continued investment in modernizing IRS systems, potentially shifting towards more agile development approaches. If historical spending shows a significant increase in low-code or platform-based development, this award aligns with that trend. Conversely, if the IRS has historically favored traditional custom coding, this award might represent a strategic pivot.

How will the performance of Creative Systems and Consulting L.L.C. be measured under this contract?

Performance measurement for this contract will likely be tied to specific deliverables, service level agreements (SLAs), and technical performance metrics defined within the BPA Call. These could include application uptime, bug resolution times, adherence to development timelines, code quality standards, and successful deployment of new features or applications. The IRS contracting officer's representative (COR) and technical points of contact will be responsible for monitoring progress and evaluating the contractor's performance against these criteria. Regular progress reports and formal reviews are standard mechanisms for assessing contractor performance throughout the contract period.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2550 S CLARK ST FL 12, ARLINGTON, VA, 22202

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,963,191

Exercised Options: $12,097,111

Current Obligation: $12,097,111

Actual Outlays: $4,264,430

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 2032H521A00024

IDV Type: BPA

Timeline