IRS Awards $18.5M IT Service Management Contract to Intact Technology Inc
Contract Overview
Contract Amount: $18,565,441 ($18.6M)
Contractor: Intact Technology Inc
Awarding Agency: Department of the Treasury
Start Date: 2025-01-08
End Date: 2025-12-31
Contract Duration: 357 days
Daily Burn Rate: $52.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFORMATION TECHNOLOGY SERVICE MANAGEMENT (ITSM) IRWORKS OPERATION SUPPORT. MODIFICATION TO UPDATE FPDS DESCRIPTION.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $18.6 million to INTACT TECHNOLOGY INC for work described as: INFORMATION TECHNOLOGY SERVICE MANAGEMENT (ITSM) IRWORKS OPERATION SUPPORT. MODIFICATION TO UPDATE FPDS DESCRIPTION. Key points: 1. Contract value of $18.5M for IT Service Management. 2. Awarded via full and open competition. 3. Potential risk associated with sole-source modification. 4. IT sector spending is significant and growing.
Value Assessment
Rating: good
The contract value of $18.5M appears reasonable for IT Service Management operations support. Benchmarking against similar contracts for ITSM services would provide a more definitive assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential IT services.
Public Impact
Ensures continued IT service management for the IRS. Supports critical operations of the Internal Revenue Service. Potential for improved IT support and efficiency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Modification to update FPDS description may indicate scope creep or changes.
- Small business participation is not indicated.
Positive Signals
- Awarded under full and open competition.
- Contract supports essential IRS IT operations.
Sector Analysis
Information Technology Service Management (ITSM) is a critical function for government agencies, ensuring the smooth operation of digital infrastructure. Spending in this sector is substantial, with agencies increasingly relying on external providers for specialized support.
Small Business Impact
There is no indication of small business participation in this contract. Further analysis would be needed to determine if opportunities were missed or if the scope was unsuitable for small businesses.
Oversight & Accountability
The modification to the FPDS description warrants oversight to ensure it accurately reflects the contract's scope and value, and that no unauthorized changes have occurred.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for scope creep due to FPDS description update.
- Lack of small business participation.
- Dependence on a single vendor for critical IT services.
- Contract modification requires careful review for accuracy and impact.
Tags
other-computer-related-services, department-of-the-treasury, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $18.6 million to INTACT TECHNOLOGY INC. INFORMATION TECHNOLOGY SERVICE MANAGEMENT (ITSM) IRWORKS OPERATION SUPPORT. MODIFICATION TO UPDATE FPDS DESCRIPTION.
Who is the contractor on this award?
The obligated recipient is INTACT TECHNOLOGY 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 $18.6 million.
What is the period of performance?
Start: 2025-01-08. End: 2025-12-31.
What is the specific nature of the 'update to FPDS description' and does it represent a change in scope or cost?
The modification to the FPDS description is noted as an update. Without further details, it's unclear if this represents a minor administrative change or a significant alteration to the contract's scope, deliverables, or cost. Further investigation is needed to ascertain the precise impact on the contract's original intent and value.
How does the per-unit cost of this ITSM contract compare to industry benchmarks for similar services?
A precise per-unit cost benchmark is not available without detailed service breakdowns. However, the total contract value of $18.5M for ITSM operations support over approximately one year suggests a significant investment. A comparative analysis with industry standards for IT service desks, incident management, and problem resolution would be necessary to assess cost-effectiveness.
What is the potential impact on IRS operations if Intact Technology Inc. fails to meet its contractual obligations?
Failure to meet contractual obligations could lead to significant disruptions in IRS IT operations, impacting tax processing, taxpayer services, and internal administrative functions. The reliance on a single vendor for critical ITSM functions necessitates robust performance monitoring and contingency planning to mitigate potential risks to government 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 - 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: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12700 SUNRISE VALLEY DR STE 410, RESTON, VA, 20191
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,565,441
Exercised Options: $18,565,441
Current Obligation: $18,565,441
Actual Outlays: $18,540,441
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCA22D00B2
IDV Type: FSS
Timeline
Start Date: 2025-01-08
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 09:07:54
Last Modified: 2025-10-31
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