Treasury's IRS awards $928K contract for web subscription to Pen-Link, Ltd

Contract Overview

Contract Amount: $928,185 ($928.2K)

Contractor: Pen-Link, Ltd

Awarding Agency: Department of the Treasury

Start Date: 2024-08-10

End Date: 2026-08-09

Contract Duration: 729 days

Daily Burn Rate: $1.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PEN-LINK'S WEB-BASED SUBSCRIPTION FOR A BASE PLUS THREE (3) OPTION YEARS.

Place of Performance

Location: LINCOLN, LANCASTER County, NEBRASKA, 68516

State: Nebraska Government Spending

Plain-Language Summary

Department of the Treasury obligated $928,185 to PEN-LINK, LTD for work described as: PEN-LINK'S WEB-BASED SUBSCRIPTION FOR A BASE PLUS THREE (3) OPTION YEARS. Key points: 1. Contract awarded to Pen-Link, Ltd. for a web-based subscription service. 2. The contract has a base period and three option years, totaling 729 days. 3. The award was not competed, raising questions about price discovery. 4. The primary sector appears to be IT services, specifically 'Other Computer Related Services'.

Value Assessment

Rating: questionable

The contract is firm fixed price, which provides cost certainty. However, without competition, it's difficult to assess if the $928,185 price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have prevented the government from obtaining the best possible price.

Taxpayer Impact: Without competitive bidding, taxpayers may be paying more than necessary for this web-based subscription service.

Public Impact

IRS users will continue to have access to Pen-Link's web-based subscription service. The lack of competition could lead to higher costs for taxpayers. The contract duration extends for two years, with potential for further extension.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to sole-source award

Positive Signals

Firm fixed price contract provides cost certainty

Sector Analysis

This contract falls under IT services, specifically 'Other Computer Related Services' (NAICS 541519). Spending in this category can vary widely based on the specific service provided. Benchmarks are difficult without knowing the exact nature of the subscription.

Small Business Impact

The data does not indicate whether small businesses were considered or involved in this procurement. The award was made to Pen-Link, Ltd., and no small business set-aside is mentioned.

Oversight & Accountability

The contract was awarded as not competed, suggesting limited oversight in the initial award decision. Further oversight would be needed to ensure the service continues to meet IRS needs and that pricing remains reasonable, especially if future renewals are considered.

Related Government Programs

Other Computer Related Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Lack of competition may lead to inflated costs.
Potential for vendor lock-in if alternatives are not explored.
Absence of justification for sole-source award.
Limited transparency on service specifics and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $928,185 to PEN-LINK, LTD. PEN-LINK'S WEB-BASED SUBSCRIPTION FOR A BASE PLUS THREE (3) OPTION YEARS.

Who is the contractor on this award?

The obligated recipient is PEN-LINK, LTD.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $928,185.

What is the period of performance?

Start: 2024-08-10. End: 2026-08-09.

What specific functionalities does Pen-Link's web-based subscription provide to the IRS, and how critical are these to IRS operations?

The provided data does not detail the specific functionalities of Pen-Link's web-based subscription. Understanding the critical nature of these services is essential for assessing the justification for a sole-source award and the potential impact of any service disruption. Further investigation into the contract's statement of work would be necessary.

What is the justification for not competing this contract, and has the IRS explored alternative solutions or vendors?

The contract was explicitly marked as 'NOT COMPETED.' The justification for this decision is not provided in the data. Typically, sole-source awards require a strong justification, such as unique capabilities or urgent need. The IRS should have documented why competition was not feasible or advantageous.

How does the per-unit cost or overall value of this subscription compare to similar services available in the market?

Without knowing the specific features and user base of the Pen-Link subscription, a direct per-unit cost comparison is not possible. Given the sole-source nature of the award, it is challenging to benchmark the $928,185 total value against competitive offerings. An independent market research analysis would be needed to assess value.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5936 VANDERVOORT DR, LINCOLN, NE, 68516

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

Financial Breakdown

Contract Ceiling: $1,934,595

Exercised Options: $928,185

Current Obligation: $928,185

Actual Outlays: $928,185

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline