Treasury's IRS Awards $8.17M Task Order to Cybermedia Technologies for Information Returns Program Modernization
Contract Overview
Contract Amount: $8,168,780 ($8.2M)
Contractor: Cybermedia Technologies, LLC
Awarding Agency: Department of the Treasury
Start Date: 2025-10-29
End Date: 2026-10-30
Contract Duration: 366 days
Daily Burn Rate: $22.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFORMATION RETURNS PROGRAM DEVELOPMENT TASK ORDER7 ORDER TO MORE EFFECTIVELY IMPROVE & MANAGE REPORTING COMPLIANCE LEVELS, CAPABILITIES OF SERVICE NEED FOR ENHANCED BY MODERNIZING PROCESSES, PROCEDURES, SOFTWARE APPS, BUSINESS PROCESSES, AND ARCHIT.
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $8.2 million to CYBERMEDIA TECHNOLOGIES, LLC for work described as: INFORMATION RETURNS PROGRAM DEVELOPMENT TASK ORDER7 ORDER TO MORE EFFECTIVELY IMPROVE & MANAGE REPORTING COMPLIANCE LEVELS, CAPABILITIES OF SERVICE NEED FOR ENHANCED BY MODERNIZING PROCESSES, PROCEDURES, SOFTWARE APPS, BUSINESS PROCESSES, AND ARCHIT. Key points: 1. The task order focuses on modernizing IT systems and processes for the Information Returns Program. 2. Cybermedia Technologies, LLC, a small business, secured this contract. 3. The contract is a Firm Fixed Price award, indicating defined costs. 4. This initiative aims to improve reporting compliance and data management capabilities.
Value Assessment
Rating: good
The $8.17 million award for custom computer programming services appears reasonable given the scope of modernizing complex government IT systems. Benchmarking against similar modernization efforts would provide further context.
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 promotes price discovery and potentially better value for the government.
Taxpayer Impact: The investment aims to improve efficiency and compliance, which could lead to long-term cost savings and increased revenue collection, benefiting taxpayers.
Public Impact
Improved accuracy and timeliness of tax information reporting. Enhanced data security and compliance with federal regulations. Streamlined processes for taxpayers and IRS personnel. Potential for increased tax revenue through better compliance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in modernization projects.
- Dependence on a single vendor for critical system upgrades.
Positive Signals
- Focus on improving compliance and efficiency.
- Use of a competitive bidding process.
- Modernization of outdated systems.
Sector Analysis
The Information Returns Program modernization falls under IT services, specifically custom computer programming. Spending in this sector is substantial, with agencies continually investing in upgrading legacy systems and enhancing cybersecurity.
Small Business Impact
Cybermedia Technologies, LLC is identified as a small business. Awards to small businesses are encouraged to foster competition and economic growth, though the specific impact on overall small business participation in this contract is not detailed.
Oversight & Accountability
The award was made by the IRS, a component of the Department of the Treasury, which has established oversight mechanisms for contract performance and financial management. Further details on specific oversight activities would be beneficial.
Related Government Programs
- Custom Computer Programming Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost overruns if scope expands.
- Risk of vendor lock-in for future enhancements.
- Dependency on contractor performance for critical system updates.
- Challenges in integrating new systems with existing legacy infrastructure.
Tags
custom-computer-programming-services, department-of-the-treasury, md, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $8.2 million to CYBERMEDIA TECHNOLOGIES, LLC. INFORMATION RETURNS PROGRAM DEVELOPMENT TASK ORDER7 ORDER TO MORE EFFECTIVELY IMPROVE & MANAGE REPORTING COMPLIANCE LEVELS, CAPABILITIES OF SERVICE NEED FOR ENHANCED BY MODERNIZING PROCESSES, PROCEDURES, SOFTWARE APPS, BUSINESS PROCESSES, AND ARCHIT.
Who is the contractor on this award?
The obligated recipient is CYBERMEDIA TECHNOLOGIES, 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 $8.2 million.
What is the period of performance?
Start: 2025-10-29. End: 2026-10-30.
What specific performance metrics will be used to measure the success of the Information Returns Program modernization?
Success metrics will likely focus on improvements in reporting accuracy, reduction in processing errors, enhanced data security posture, and increased efficiency in handling information returns. Key Performance Indicators (KPIs) should be established to track progress against baseline performance and ensure the modernization meets its objectives of improved compliance and operational effectiveness.
What are the primary risks associated with modernizing the Information Returns Program, and how are they being mitigated?
Key risks include potential system integration challenges, data migration complexities, user adoption hurdles, and cybersecurity vulnerabilities during the transition. Mitigation strategies likely involve phased implementation, rigorous testing, comprehensive training programs, and robust security protocols throughout the modernization lifecycle.
How will the modernized Information Returns Program enhance the IRS's ability to detect tax fraud and evasion?
A modernized system with enhanced data analytics capabilities can improve the IRS's ability to identify patterns and anomalies indicative of tax fraud and evasion. Better data quality, integration, and processing speed will allow for more sophisticated analysis, leading to more targeted enforcement actions and potentially increased tax revenue.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cybermedia Technologies LLC
Address: 8444 WESTPARK DR STE 620, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $8,168,780
Exercised Options: $8,168,780
Current Obligation: $8,168,780
Actual Outlays: $4,888,482
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2032H522A00009
IDV Type: BPA
Timeline
Start Date: 2025-10-29
Current End Date: 2026-10-30
Potential End Date: 2026-10-30 17:03:17
Last Modified: 2026-03-17
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