Treasury's IRS awards $4.17M R&D bridge contract to Avineon, Inc. for support services

Contract Overview

Contract Amount: $4,165,307 ($4.2M)

Contractor: Avineon, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2025-08-29

End Date: 2026-05-31

Contract Duration: 275 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: THIS A 6-MONTH BRIDGE CONTRACT THAT WILL PROVIDE SUPPORT SERVICES AS A BRIDGE BETWEEN THE EXPIRATION OF THE CURRENT OASIS SB POOL 3 TASK ORDER AND THE AWARD OF THE FOLLOW-ON CONTRACT.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.2 million to AVINEON, INC. for work described as: THIS A 6-MONTH BRIDGE CONTRACT THAT WILL PROVIDE SUPPORT SERVICES AS A BRIDGE BETWEEN THE EXPIRATION OF THE CURRENT OASIS SB POOL 3 TASK ORDER AND THE AWARD OF THE FOLLOW-ON CONTRACT. Key points: 1. This contract serves as a crucial bridge, ensuring continuity of support services between existing and future task orders. 2. The R&D focus on physical, engineering, and life sciences indicates a need for specialized technical expertise. 3. A firm-fixed-price contract type suggests that cost risks are largely borne by the contractor. 4. The short duration of 6 months highlights its nature as a temporary, stop-gap measure. 5. The award to a single contractor, Avineon, Inc., warrants scrutiny regarding potential future sole-source awards. 6. The contract's value, while significant, is relatively small in the context of broader federal R&D spending.

Value Assessment

Rating: fair

The contract value of approximately $4.17 million for a 6-month period appears reasonable for specialized R&D support services. Benchmarking against similar bridge contracts is difficult without more specific service details. However, the firm-fixed-price structure suggests that the government has a defined scope and the contractor assumes cost overruns. The absence of a specific Product or Service Code (PSC) makes direct comparison challenging, but the NAICS code (541715) points to research and development activities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was initially broad, specific sources may have been excluded based on certain criteria, or it could refer to a specific type of competitive procedure. Further clarification on the exclusion criteria would be beneficial. The award to a single entity, Avineon, Inc., suggests that either they were the sole responsive and responsible bidder, or the exclusion criteria significantly limited the pool.

Taxpayer Impact: The 'full and open' nature, even with exclusions, suggests an attempt to achieve competitive pricing. However, the limited number of bidders resulting from exclusions could potentially lead to less aggressive pricing than a truly unrestricted full and open competition.

Public Impact

The primary beneficiaries are the IRS and potentially other Treasury bureaus requiring specialized R&D support. The contract delivers essential support services to ensure operational continuity for critical research and development functions. The geographic impact is primarily within Virginia, where Avineon, Inc. is located, and at the IRS facilities. Workforce implications include the direct employment of personnel by Avineon, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for this bridge contract to lead to sole-source follow-on contracts if competition is not re-established.
Lack of detailed service descriptions makes it difficult to assess the full scope and potential for scope creep.
The 'exclusion of sources' clause requires further investigation to understand its impact on true competition.

Positive Signals

The contract ensures continuity of essential support services, preventing disruptions to critical IRS operations.
Firm-fixed-price contract type provides cost certainty for the government.
Awarding to a single entity may streamline management for this short-term bridge requirement.

Sector Analysis

The contract falls under the Research and Development (R&D) sector, specifically NAICS code 541715, which covers R&D in the Physical, Engineering, and Life Sciences. This is a broad category encompassing scientific research and experimental development. Federal spending in this area is substantial, supporting innovation across various agencies. Bridge contracts like this are common when transitioning between contract vehicles or awaiting the award of a larger, follow-on contract, ensuring that critical R&D activities are not interrupted.

Small Business Impact

This contract was not awarded as a small business set-aside, as indicated by 'ss': false and 'sb': false. Avineon, Inc. is not explicitly identified as a small business in the provided data. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The focus is on fulfilling the service requirement, regardless of the size of the prime contractor.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the program office within the IRS. As a delivery order under a larger contract vehicle (OASIS SB Pool 3 Task Order), the underlying contract likely has its own oversight mechanisms. Transparency is facilitated by contract award databases, but detailed performance metrics and specific oversight activities are not publicly detailed in this summary. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

OASIS SB (One Acquisition Solution for Integrated Services Small Business)
IRS Support Services Contracts
Federal R&D Spending
Government Bridge Contracts

Risk Flags

Potential for sole-source creep due to bridge contract nature.
Limited transparency on specific 'support services' scope.
Ambiguity in 'full and open competition after exclusion of sources' clause.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.2 million to AVINEON, INC.. THIS A 6-MONTH BRIDGE CONTRACT THAT WILL PROVIDE SUPPORT SERVICES AS A BRIDGE BETWEEN THE EXPIRATION OF THE CURRENT OASIS SB POOL 3 TASK ORDER AND THE AWARD OF THE FOLLOW-ON CONTRACT.

Who is the contractor on this award?

The obligated recipient is AVINEON, 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 $4.2 million.

What is the period of performance?

Start: 2025-08-29. End: 2026-05-31.

What is the specific nature of the 'support services' being provided under this bridge contract?

The provided data indicates this is a 6-month bridge contract to provide 'support services' between the expiration of a current OASIS SB Pool 3 Task Order and the award of a follow-on contract. The NAICS code 541715 suggests these services are related to Research and Development in the Physical, Engineering, and Life Sciences. Without more specific details, it's difficult to pinpoint the exact nature of the support. It could range from technical consulting, data analysis, laboratory support, or project management, all within the R&D domain. The bridge nature implies these are ongoing services critical to maintaining momentum on R&D projects.

How does the pricing of this contract compare to similar R&D support services awarded by the IRS or Treasury?

Direct price comparison is challenging without knowing the specific services rendered and the labor categories involved. The contract is Firm Fixed Price (FFP), which provides cost certainty. The total award is $4.17 million over approximately 275 days (roughly 6 months). This averages to about $1.5 million per month. To benchmark, one would need to compare hourly rates for similar R&D support roles (e.g., scientists, engineers, analysts) against market data and other government contracts. The 'full and open competition after exclusion of sources' suggests some level of competition, which should theoretically lead to competitive pricing, but the specifics of the exclusion could impact this.

What are the key risks associated with this bridge contract, and how are they being mitigated?

The primary risk is the potential for this bridge contract to become a de facto sole-source award if the follow-on contract is significantly delayed or awarded without adequate competition. Another risk is scope creep, where the 'support services' expand beyond the original intent during the bridge period, potentially increasing costs or extending the need. Mitigation strategies include clear definition of the bridge period's purpose, strict adherence to the defined scope, and a robust plan for the timely award of the follow-on contract. The FFP nature mitigates cost overrun risk for the government within the defined scope.

What is Avineon, Inc.'s track record with the IRS and other federal agencies, particularly in R&D support?

Avineon, Inc. has a history of performing government contracts. While the provided data doesn't detail their specific performance history with the IRS or in R&D support, a deeper dive into contract databases (like FPDS or SAM.gov) would reveal past awards, performance evaluations (e.g., CPARS), and the types of services they have provided. Their ability to secure this bridge contract suggests they have relevant capabilities and potentially a positive past performance record with the agency or on similar contract vehicles like OASIS.

How does this $4.17M contract fit into the broader context of federal R&D spending, particularly within the IRS?

The IRS, while primarily known for tax administration, does engage in R&D activities, often related to improving tax systems, data analytics, and cybersecurity. A $4.17 million contract for 6 months of R&D support is a moderate investment. Federal R&D spending is in the tens of billions annually, spread across agencies like DoD, NIH, NSF, and DOE. This contract represents a small fraction of that total but is significant for the specific IRS function it supports, ensuring continuity in specialized research and development efforts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 205AE9-25-Q-00134

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8401 GREENSBORO DR STE 510, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,165,307

Exercised Options: $4,165,307

Current Obligation: $4,165,307

Actual Outlays: $2,314,059

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,330,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRCA25DSC50

IDV Type: IDC

Timeline