Treasury's IRS awards $4.78M for CI Radio Equipment Maintenance, with 2 bids received

Contract Overview

Contract Amount: $4,783,220 ($4.8M)

Contractor: Software Information Resource Corp.

Awarding Agency: Department of the Treasury

Start Date: 2022-01-26

End Date: 2026-01-25

Contract Duration: 1,460 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CI RADIO EQUIPMENT MAINTENANCE AND REPAIR

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.8 million to SOFTWARE INFORMATION RESOURCE CORP. for work described as: CI RADIO EQUIPMENT MAINTENANCE AND REPAIR Key points: 1. Value for money appears reasonable given the fixed-price contract and duration. 2. Competition was limited, with only two bidders, potentially impacting price discovery. 3. Risk indicators are moderate, with a fixed-price contract mitigating some cost overruns. 4. Performance context is for essential maintenance services for IRS communication systems. 5. Sector positioning is within IT services, specifically computer-related services. 6. The contract duration of four years suggests a stable, ongoing need for these services.

Value Assessment

Rating: good

The contract's total value of $4.78 million over four years suggests an annual spend of approximately $1.195 million. Benchmarking against similar IT maintenance contracts is challenging without more specific service details. However, the firm fixed-price structure generally provides good value by capping the government's financial exposure. The number of bids received (2) is on the lower side for a contract of this value, which could indicate less competitive pricing than if more bidders had participated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be open, certain sources were excluded prior to the solicitation. Only two bids were received, which suggests a limited competitive landscape for this specific requirement. This level of competition may not have driven the lowest possible price, as vendors might have had less incentive to aggressively bid when facing fewer rivals.

Taxpayer Impact: With only two bidders, taxpayers may have paid a slightly higher price than if a more robust competition had occurred. The limited number of offers suggests that the market for this specialized service might be concentrated, or the solicitation terms may have inadvertently deterred broader participation.

Public Impact

The Internal Revenue Service (IRS) benefits from reliable maintenance of its critical communication infrastructure. Essential radio equipment maintenance and repair services ensure operational continuity for IRS operations. The geographic impact is likely nationwide, supporting IRS facilities and personnel across the country. Workforce implications are minimal for the government, as the contractor provides the specialized labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing for taxpayers.
The exclusion of sources prior to competition raises questions about the breadth of market engagement.
Specific details on the 'CI' (Criminal Investigation?) aspect of the radio equipment are not provided, potentially obscuring the criticality and risk.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The contract duration of four years indicates a stable and predictable need for the service.
The award was made to a single contractor, simplifying management and oversight.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on the maintenance and repair of specialized communication equipment. The broader market for IT services is vast and highly competitive, but niche areas like maintenance for specific government radio systems can have fewer specialized providers. Comparable spending benchmarks are difficult to establish without knowing the exact type and volume of radio equipment being serviced, but annual spending of over $1 million on such maintenance is significant within this sub-sector.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, SOFTWARE INFORMATION RESOURCE CORP., is likely a mid-to-large-sized business given the contract value.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the IRS. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver services as specified. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics are usually internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IRS Communication Systems Maintenance
Federal Radio Equipment Procurement
IT Infrastructure Support Services
Department of the Treasury IT Contracts

Risk Flags

Limited Competition
Potential for Overpricing
Unclear Scope of 'CI' Equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.8 million to SOFTWARE INFORMATION RESOURCE CORP.. CI RADIO EQUIPMENT MAINTENANCE AND REPAIR

Who is the contractor on this award?

The obligated recipient is SOFTWARE INFORMATION RESOURCE CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2022-01-26. End: 2026-01-25.

What is the specific nature of the 'CI RADIO EQUIPMENT' and why is its maintenance critical for the IRS?

The designation 'CI' likely refers to the IRS's Criminal Investigation division, which relies on secure and reliable communication systems for its sensitive operations. This equipment could include specialized radio hardware used for surveillance, undercover operations, and coordination among agents. The criticality stems from the need for uninterrupted communication to ensure officer safety, maintain operational security, and effectively pursue investigations. Failure of this equipment could compromise ongoing investigations, endanger personnel, and hinder the IRS's law enforcement capabilities. Without specific details on the radio technology, it's difficult to quantify the exact risk, but for a law enforcement support function, communication reliability is paramount.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact potential pricing and market access?

This procurement method is a variation of full and open competition, but it allows the agency to exclude specific sources before the solicitation is released. This exclusion could be based on various factors, such as past performance, security clearances, or specific technical capabilities. While it aims to ensure that only qualified vendors participate, it inherently limits the pool of potential bidders. Consequently, the reduced competition might lead to higher prices than a truly unrestricted full and open competition. It also raises questions about whether the exclusions were justified and if they inadvertently prevented potentially competitive small businesses or innovative firms from participating, thereby impacting market access for those excluded.

What are the potential risks associated with a firm fixed-price contract for maintenance services?

While firm fixed-price (FFP) contracts are generally favored for providing cost certainty to the government, they can introduce risks for the contractor. For maintenance services, the primary risk is that the contractor may underestimate the scope or frequency of repairs needed over the contract's duration. If unforeseen issues arise or the equipment requires more extensive maintenance than anticipated, the contractor could incur losses. Conversely, if the contractor is highly efficient or the equipment proves more reliable than expected, the government might be paying a premium compared to a cost-reimbursable contract where savings could be shared. For the government, the risk lies in potentially receiving substandard service if the contractor cuts corners to maintain profitability under the FFP.

Can the annual spending of approximately $1.195 million be considered a benchmark for similar IRS communication maintenance contracts?

The annual spending of approximately $1.195 million for CI Radio Equipment Maintenance and Repair is a significant figure, but it's difficult to use as a direct benchmark without more context. The specific type, age, quantity, and technological sophistication of the radio equipment are crucial factors. For instance, maintaining highly specialized, secure, or legacy communication systems could be substantially more expensive than standard commercial radios. Furthermore, the scope of services included (e.g., preventative maintenance, emergency repairs, parts replacement, software updates) heavily influences cost. Comparing this to other IRS IT maintenance contracts might be more relevant, but even then, the unique nature of specialized radio equipment for law enforcement functions likely places it in a distinct cost category.

What does the contractor's track record suggest about their ability to perform this contract?

SOFTWARE INFORMATION RESOURCE CORP. (SIRC) has been awarded this contract, valued at $4.78 million over four years. While the provided data doesn't detail SIRC's specific past performance on similar contracts, their selection implies they met the government's criteria during the procurement process. The fact that they were one of only two bidders suggests they possess the necessary qualifications and potentially specialized expertise required for maintaining IRS CI radio equipment. Further analysis would require examining SIRC's contract history, client feedback, and any performance ratings available through federal procurement databases to fully assess their track record.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 730 24TH ST NW STE 3, WASHINGTON, DC, 20037

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

Financial Breakdown

Contract Ceiling: $5,306,229

Exercised Options: $4,783,220

Current Obligation: $4,783,220

Actual Outlays: $4,173,919

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD74B

IDV Type: GWAC

Timeline