IRS IRWorks O&M Support Contract Awarded to Intact Technology Inc. for $8.35M
Contract Overview
Contract Amount: $8,350,760 ($8.4M)
Contractor: Intact Technology Inc
Awarding Agency: Department of the Treasury
Start Date: 2025-12-31
End Date: 2026-05-30
Contract Duration: 150 days
Daily Burn Rate: $55.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE OPERATION AND MAINTENANCE SUPPORT FOR THE INTERNAL REVENUE SERVICE IRWORKS PROGRAM AND MAINTENANCE OFFICE.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $8.4 million to INTACT TECHNOLOGY INC for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE OPERATION AND MAINTENANCE SUPPORT FOR THE INTERNAL REVENUE SERVICE IRWORKS PROGRAM AND MAINTENANCE OFFICE. Key points: 1. Contract focuses on essential IT operations and maintenance for the IRS IRWorks program. 2. Sole source award to Intact Technology Inc. raises questions about competition and potential cost savings. 3. The $8.35M value for a 15-month period requires scrutiny for value for money. 4. IT sector spending on software maintenance and support is a significant government expenditure.
Value Assessment
Rating: questionable
The contract value of $8.35M for 15 months suggests a monthly cost of approximately $556,720. Benchmarking this against similar IT operations and maintenance contracts is crucial to determine if this pricing is competitive.
Cost Per Unit: $556,720 per month
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and may prevent the government from securing the best possible pricing through competitive bidding.
Taxpayer Impact: The lack of competition could result in higher costs for taxpayers compared to a fully competed contract.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The IRS relies on this support for critical internal IT systems. Ensuring efficient and cost-effective IT operations is vital for government services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
- Firm Fixed Price contract may not incentivize cost efficiency
Positive Signals
- Essential IT support for a critical government agency
- Clear contract duration and value
Sector Analysis
This contract falls within the IT sector, specifically software publishers and support services. Government spending on IT operations and maintenance is substantial, with benchmarks often focusing on service level agreements and uptime.
Small Business Impact
The awardee, Intact Technology Inc., is not specified as a small business. Further analysis would be needed to determine if small business participation was considered or if opportunities were missed.
Oversight & Accountability
Oversight will be critical to ensure Intact Technology Inc. meets the performance requirements of the contract and that the IRS is receiving value for the funds expended, especially given the sole-source nature.
Related Government Programs
- Software Publishers
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- Lack of transparency in award justification.
- Firm Fixed Price may not incentivize cost efficiency.
- No indication of small business participation.
Tags
software-publishers, department-of-the-treasury, va, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $8.4 million to INTACT TECHNOLOGY INC. THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE OPERATION AND MAINTENANCE SUPPORT FOR THE INTERNAL REVENUE SERVICE IRWORKS PROGRAM AND MAINTENANCE OFFICE.
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 $8.4 million.
What is the period of performance?
Start: 2025-12-31. End: 2026-05-30.
What is the justification for the sole-source award, and were alternative competitive strategies considered?
The justification for a sole-source award is typically based on specific circumstances, such as the uniqueness of the service or the contractor's specialized capabilities. Without further documentation, it's unclear if alternative competitive strategies were explored. A thorough review of the justification is necessary to ensure it aligns with federal procurement regulations and that taxpayer funds are being used efficiently.
How does the per-unit cost compare to industry benchmarks for similar IT operations and maintenance support?
The estimated monthly cost of $556,720 needs to be benchmarked against comparable contracts within the IT sector. Factors such as service level agreements, scope of work, and contractor experience influence pricing. A detailed comparison with similar government or commercial contracts will reveal if this pricing is competitive or if there is potential for cost savings.
What performance metrics are in place to ensure the effectiveness of the support provided by Intact Technology Inc.?
Effective oversight requires clearly defined performance metrics and key performance indicators (KPIs) to measure the quality and timeliness of the support. These metrics should align with the IRS's operational needs for the IRWorks program. Regular performance reviews and reporting are essential to ensure the contractor is meeting expectations and delivering value.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12700 SUNRISE VALLEY DR, RESTON, VA, 20191
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,350,760
Exercised Options: $8,350,760
Current Obligation: $8,350,760
Actual Outlays: $1,670,152
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-12-31
Current End Date: 2026-05-30
Potential End Date: 2026-05-30 15:05:32
Last Modified: 2025-12-31
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