Treasury's IRS awards $8.1M for BMC Control-M Software and Maintenance via Full and Open Competition
Contract Overview
Contract Amount: $8,140,066 ($8.1M)
Contractor: Colossal Contracting LLC
Awarding Agency: Department of the Treasury
Start Date: 2025-05-30
End Date: 2026-05-29
Contract Duration: 364 days
Daily Burn Rate: $22.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BMC CONTROL M SOFTWARE AND MAINTENANCE
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85701
State: Arizona Government Spending
Plain-Language Summary
Department of the Treasury obligated $8.1 million to COLOSSAL CONTRACTING LLC for work described as: BMC CONTROL M SOFTWARE AND MAINTENANCE Key points: 1. Software and maintenance contract valued at $8.1 million. 2. Awarded to Colossal Contracting LLC. 3. Competition method was full and open, suggesting market availability. 4. Sector is IT services, specifically Other Computer Related Services.
Value Assessment
Rating: fair
The contract value of $8.1 million for BMC Control-M software and maintenance over one year appears to be within a reasonable range for enterprise-level software licensing and support. Benchmarking against similar large-scale software procurement would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to secure favorable terms.
Taxpayer Impact: The use of full and open competition is expected to result in a fair market price, maximizing the value of taxpayer dollars spent on this essential IT service.
Public Impact
Ensures continuity of critical IT operations for the IRS. Supports tax administration and processing functions. Potential impact on IRS efficiency and data management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single software vendor (BMC).
- Potential for price increases upon contract renewal.
- Vendor lock-in concerns for future upgrades or replacements.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Contract duration of one year allows for periodic re-evaluation.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across federal agencies, supporting critical infrastructure and operational needs. Benchmarks for similar software maintenance contracts can vary widely based on the software's complexity and vendor.
Small Business Impact
The contract was awarded to Colossal Contracting LLC, and there is no indication that small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to determine if small business participation goals were met through other means or if opportunities were missed.
Oversight & Accountability
The use of full and open competition suggests a standard procurement process. Oversight will be crucial to ensure the software and maintenance meet IRS requirements and that the pricing remains competitive throughout the contract period.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Vendor lock-in
- Potential for price increases
- Reliance on a single software solution
- Limited visibility into subcontractor performance (if any)
Tags
other-computer-related-services, department-of-the-treasury, az, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $8.1 million to COLOSSAL CONTRACTING LLC. BMC CONTROL M SOFTWARE AND MAINTENANCE
Who is the contractor on this award?
The obligated recipient is COLOSSAL CONTRACTING LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $8.1 million.
What is the period of performance?
Start: 2025-05-30. End: 2026-05-29.
What is the specific functionality of BMC Control-M software utilized by the IRS, and how critical is it to their operations?
BMC Control-M is a workload automation software that helps organizations manage and automate complex IT processes and batch jobs. For the IRS, it is likely critical for scheduling, orchestrating, and monitoring essential tax processing workflows, ensuring timely and accurate data handling. Its failure or underperformance could significantly disrupt tax administration.
What are the potential risks associated with relying on a single vendor for this critical software and its maintenance?
Reliance on a single vendor, BMC in this case, presents risks such as vendor lock-in, limited negotiation power for future renewals, and potential price escalations. If BMC discontinues support or significantly alters its product roadmap, the IRS might face costly transitions or be forced to accept unfavorable terms. Ensuring robust service level agreements is paramount.
How does the firm fixed price contract type ensure cost-effectiveness and value for the taxpayer in this software maintenance agreement?
A firm fixed price (FFP) contract establishes a set price for the software and maintenance, providing cost certainty for the IRS and taxpayers. This contract type shifts the risk of cost overruns to the contractor, Colossal Contracting LLC. It incentivizes the contractor to manage their costs efficiently to maintain profitability, thereby potentially securing better 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: 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: 304 HARRY S TRUMAN PKWY, ANNAPOLIS, MD, 21401
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $42,215,056
Exercised Options: $8,140,066
Current Obligation: $8,140,066
Actual Outlays: $8,140,066
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0336Y
IDV Type: FSS
Timeline
Start Date: 2025-05-30
Current End Date: 2026-05-29
Potential End Date: 2030-05-29 14:56:45
Last Modified: 2026-02-03
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