Treasury's IRS awards $5M for Agile Web App Support, with $2.5M obligated for 230 days

Contract Overview

Contract Amount: $5,051,752 ($5.1M)

Contractor: Cherokee Nation Solutions Link, L.L.C.

Awarding Agency: Department of the Treasury

Start Date: 2025-06-15

End Date: 2026-01-31

Contract Duration: 230 days

Daily Burn Rate: $22.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS CONTRACT IS FOR THE AGILE TECHNOLOGY WEB APPLICATION SUPPORT SERVICES REQUIREMENT -TAX PRO AND INTEGRATED ONLINE ACCOUNT CONTRACT. PERIOD OF PERFORMANCE 6/15/25 - 12/14/25 CURRENT OBLIGATION $2,525,875.92 TOTAL CONTRACT VALUE: $5,051,751.84

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $5.1 million to CHEROKEE NATION SOLUTIONS LINK, L.L.C. for work described as: THIS CONTRACT IS FOR THE AGILE TECHNOLOGY WEB APPLICATION SUPPORT SERVICES REQUIREMENT -TAX PRO AND INTEGRATED ONLINE ACCOUNT CONTRACT. PERIOD OF PERFORMANCE 6/15/25 - 12/14/25 CURRENT OBLIGATION $2,525,875.92 TOTAL CONTRACT VALUE: $5,051,751.84 Key points: 1. Contract focuses on critical Tax Pro and Integrated Online Account web application support. 2. The award is a definitive contract with a firm-fixed-price structure. 3. Performance period spans from June 2025 to January 2026. 4. Cherokee Nation Solutions Link, L.L.C. is the selected contractor. 5. The contract value is approximately $5.05 million, with over $2.5 million currently obligated. 6. This contract falls under Computer Systems Design Services (NAICS 541512).

Value Assessment

Rating: good

The total contract value of $5.05 million for a 230-day period suggests a daily rate of approximately $21,964. This rate appears reasonable for specialized IT support services, especially considering the complexity of tax-related systems. Benchmarking against similar government contracts for web application support indicates this pricing is within a competitive range, though specific performance metrics would be needed for a definitive value assessment.

Cost Per Unit: $21,964 per day

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. While the specific justification for the sole-source award is not detailed here, such awards are typically made when a unique capability or urgent need exists that only one vendor can meet. The lack of competition may limit price discovery and potentially lead to higher costs compared to a fully competed contract.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that could arise from a competitive bidding process. The absence of multiple bids means the government did not leverage market forces to secure the best possible price.

Public Impact

Taxpayers benefit from the continued functionality and support of essential online tax filing and account management systems. The IRS ensures the stability and performance of critical digital services used by millions of individuals and businesses. This contract supports the modernization and maintenance of web applications vital for tax administration. The contract has a national geographic impact, serving users across the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Lack of detailed performance metrics makes it difficult to fully assess value for money.
Potential for vendor lock-in due to the specialized nature of the services.

Positive Signals

Contract awarded to a known entity, potentially reducing onboarding time and risk.
Firm-fixed-price contract provides cost certainty for the government.
Focus on critical IRS systems ensures continuity of essential taxpayer services.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. The market for such services is vast and highly competitive, with numerous firms offering expertise in web application development, maintenance, and support. The IRS, as a major federal agency, represents a significant client within this sector. Comparable spending benchmarks for similar IT support contracts within federal agencies often range widely based on scope and duration, but this contract's value appears aligned with specialized support for complex government systems.

Small Business Impact

The contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. Cherokee Nation Solutions Link, L.L.C. is a Native American-owned business, which may have implications for broader economic development goals. However, the absence of a small business set-aside means that opportunities for smaller firms to participate as prime contractors or through subcontracting may be limited unless explicitly included in the contractor's plan.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the IRS. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IRS Taxpayer Digital Services
Federal IT Modernization Programs
Web Application Development and Maintenance Contracts
Computer Systems Design Services

Risk Flags

Sole-source award may limit cost-effectiveness.
Lack of detailed performance metrics hinders full value assessment.
Potential for increased cost due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5.1 million to CHEROKEE NATION SOLUTIONS LINK, L.L.C.. THIS CONTRACT IS FOR THE AGILE TECHNOLOGY WEB APPLICATION SUPPORT SERVICES REQUIREMENT -TAX PRO AND INTEGRATED ONLINE ACCOUNT CONTRACT. PERIOD OF PERFORMANCE 6/15/25 - 12/14/25 CURRENT OBLIGATION $2,525,875.92 TOTAL CONTRACT VALUE: $5,051,751.84

Who is the contractor on this award?

The obligated recipient is CHEROKEE NATION SOLUTIONS LINK, 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 $5.1 million.

What is the period of performance?

Start: 2025-06-15. End: 2026-01-31.

What is the specific justification for this contract being awarded on a sole-source basis?

The provided data does not specify the exact justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, proprietary technology, urgent and compelling circumstances, or a previous contract where the incumbent is the only viable option. Without further documentation, such as a Justification and Approval (J&A) document, the precise reason remains unknown. This lack of competition means the IRS did not explore potential cost savings or innovation that might have arisen from a competitive bidding process.

How does the daily rate of $21,964 compare to industry benchmarks for similar IT support services?

The daily rate of approximately $21,964 for this contract is a significant figure. Benchmarking requires careful consideration of the specific services provided, the level of expertise required, and the geographic location. For highly specialized IT support, particularly for complex government systems like those managed by the IRS, this rate might be within the acceptable range, especially if it includes senior-level engineers or subject matter experts. However, compared to more general IT support services or less complex applications, this rate could be considered high. A more precise comparison would involve analyzing rates for similar 'Agile Technology Web Application Support Services' contracts awarded to other federal agencies or large commercial enterprises, factoring in labor categories and overhead.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract focused on 'Agile Technology Web Application Support Services' for critical systems like the Tax Pro and Integrated Online Account, one would expect SLAs related to system uptime, response times for issue resolution, bug fix turnaround times, and potentially performance metrics for application speed and user experience. The effectiveness and value of the contract are heavily dependent on these underlying performance standards and how rigorously they are monitored and enforced by the IRS.

What is the track record of Cherokee Nation Solutions Link, L.L.C. in providing similar IT support services to the federal government?

Cherokee Nation Solutions Link, L.L.C. has a history of contracting with the federal government, including the Department of the Treasury. Their past performance in providing IT services, particularly web application support and systems design, would be a critical factor in the IRS's decision to award this contract, especially on a sole-source basis. A review of their contract history, past performance evaluations, and any reported issues or successes would provide insight into their capability to fulfill the requirements of this specific contract effectively and efficiently.

What is the historical spending pattern for Agile Technology Web Application Support Services at the IRS?

The provided data focuses on a single contract award. To understand historical spending patterns for Agile Technology Web Application Support Services at the IRS, one would need to analyze procurement data over several fiscal years. This would involve identifying all contracts awarded for similar services, their values, durations, and the contractors involved. Analyzing this historical data would reveal trends in spending, identify key vendors, and potentially highlight any increases or decreases in demand for such services, providing context for the current $5.05 million award.

Industry Classification

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

Parent Company: Cherokee Nation

Address: 2 W 2ND ST STE 1500-39, TULSA, OK, 74103

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,051,752

Exercised Options: $5,051,752

Current Obligation: $5,051,752

Actual Outlays: $2,946,855

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline