Treasury's IRS awards $7.4M contract for electronic metrology lab services to Electronic Metrology Laboratory, LLC
Contract Overview
Contract Amount: $7,434,581 ($7.4M)
Contractor: Electronic Metrology Laboratory, LLC
Awarding Agency: Department of the Treasury
Start Date: 2023-04-01
End Date: 2027-01-31
Contract Duration: 1,401 days
Daily Burn Rate: $5.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: O&M SERVICES
Place of Performance
Location: OGDEN, WEBER County, UTAH, 84201
State: Utah Government Spending
Plain-Language Summary
Department of the Treasury obligated $7.4 million to ELECTRONIC METROLOGY LABORATORY, LLC for work described as: O&M SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of facilities support services. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 4. Performance is located in Utah, potentially impacting local workforce and economy. 5. The contractor, Electronic Metrology Laboratory, LLC, is a new entity in federal contracting. 6. This award represents a small portion of the IRS's overall facilities management budget.
Value Assessment
Rating: good
The contract's total value of $7.4 million over approximately 3.8 years (1401 days) suggests an average annual cost of roughly $1.95 million. Benchmarking this against similar facilities support services contracts is challenging without more specific service details. However, the firm-fixed-price structure indicates that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the contractor performs efficiently. The awarded amount is below the benchmark of $5.3 million for comparable contracts, suggesting potentially favorable pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The solicitation resulted in 7 offers, demonstrating a healthy level of interest and competition for these services. A competitive process like this typically leads to better price discovery and encourages contractors to offer their best value propositions to secure the award.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down costs and ensuring the government receives services at a fair market price.
Public Impact
The primary beneficiary is the Internal Revenue Service (IRS), which will receive essential metrology laboratory support services. Services delivered include maintaining and calibrating electronic measurement equipment, crucial for accurate financial data processing and tax administration. The geographic impact is concentrated in Utah, where the contractor's operations are based. Workforce implications may include job creation within the contractor's organization in Utah.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contractor's limited federal contracting history may present execution risks.
- Dependence on a single contractor for critical metrology services could pose a risk if performance issues arise.
Positive Signals
- Firm-fixed-price contract shifts cost overrun risk to the contractor.
- Full and open competition with multiple bidders suggests a competitive award process.
- Contract duration provides stability for service delivery and planning.
Sector Analysis
The Facilities Support Services sector is a significant component of government contracting, encompassing a wide range of services from maintenance and repair to specialized technical support. This contract for electronic metrology laboratory services falls within this broad category, focusing on the precise calibration and maintenance of measurement equipment. The market for such specialized services is often niche, with a limited number of qualified providers. The IRS's spending in this area is critical for ensuring the accuracy of its operational infrastructure.
Small Business Impact
This contract was not awarded as a small business set-aside, and the data indicates the primary awardee is not a small business. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, though the prime contractor's own procurement practices would determine any indirect effects.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant program officials within the IRS's facilities management or IT support divisions. The firm-fixed-price nature of the contract provides a degree of accountability through performance standards and payment schedules. Transparency is facilitated by the public availability of contract award data, though detailed performance metrics and internal oversight reports are typically not public.
Related Government Programs
- IRS Facilities Management
- Government Metrology Services
- Electronic Equipment Calibration Contracts
- Federal IT Support Services
Risk Flags
- Potential performance risk due to contractor's limited federal contracting experience.
- Award price exceeds provided benchmark for comparable contracts.
Tags
facilities-support-services, department-of-the-treasury, internal-revenue-service, electronic-metrology-laboratory-llc, full-and-open-competition, firm-fixed-price, delivery-order, utah, facilities-management, metrology-services, it-support
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $7.4 million to ELECTRONIC METROLOGY LABORATORY, LLC. O&M SERVICES
Who is the contractor on this award?
The obligated recipient is ELECTRONIC METROLOGY LABORATORY, 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 $7.4 million.
What is the period of performance?
Start: 2023-04-01. End: 2027-01-31.
What is the track record of Electronic Metrology Laboratory, LLC in performing federal contracts?
Based on the provided data, Electronic Metrology Laboratory, LLC appears to be a relatively new entrant into the federal contracting space, with this award being a significant initial contract. There is limited historical data available on their performance with the federal government. Further investigation into their corporate structure, previous commercial experience, and any potential past performance on state or local government contracts would be necessary to fully assess their track record. The number of offers received (7) suggests that while they may be new to federal contracts, other entities were aware of their capabilities or the opportunity itself.
How does the awarded price of $7.4 million compare to similar metrology laboratory service contracts?
The provided data includes a benchmark value of $5.3 million for comparable contracts. The awarded amount of $7.4 million exceeds this benchmark. This comparison suggests that the pricing for this specific contract may be higher than average for similar services. However, the benchmark value itself is a single data point and may not perfectly align with the specific scope, duration, or technical requirements of this particular contract. A more detailed analysis would require comparing against a broader set of contracts with similar service level agreements and technical specifications.
What are the primary risks associated with this contract award?
The primary risks associated with this contract include the potential inexperience of Electronic Metrology Laboratory, LLC in executing large federal contracts, which could lead to performance issues or delays. As this is a firm-fixed-price contract, any cost overruns incurred by the contractor are their responsibility, but significant performance failures could still disrupt IRS operations. Additionally, the concentration of critical metrology services with one provider could pose a risk if the contractor fails to meet service level agreements or faces unforeseen operational challenges. The duration of the contract (over 3 years) also means that market conditions or technological advancements could outpace the contracted services over time.
How effective is the competition level in ensuring value for taxpayers?
The contract was awarded under full and open competition, with 7 offers received. This level of competition is generally considered healthy and is expected to drive competitive pricing and encourage the contractor to deliver high-quality services efficiently to maintain profitability. The firm-fixed-price nature of the contract further aligns the contractor's incentives with cost control. While 7 offers indicate good competition, the fact that the award price exceeded the provided benchmark ($7.4M vs $5.3M) warrants further scrutiny to ensure optimal value was achieved. Continued monitoring of performance and cost will be key to confirming taxpayer value.
What is the historical spending pattern for electronic metrology laboratory services by the IRS?
The provided data does not include historical spending patterns for electronic metrology laboratory services by the IRS. This specific award of $7.4 million is for the period of April 1, 2023, to January 31, 2027. To understand historical spending, one would need to access previous contract awards for similar services, analyze their values, durations, and the number of contractors involved over prior fiscal years. This would help determine if current spending is consistent with past trends or represents an increase or decrease in investment in these services.
What are the implications of the firm-fixed-price contract type for cost management?
A firm-fixed-price (FFP) contract type places the primary responsibility for cost control on the contractor. This means that Electronic Metrology Laboratory, LLC is obligated to perform the work for the agreed-upon price, regardless of their actual costs. If their costs are lower than anticipated, they will realize a higher profit margin. Conversely, if their costs exceed the contract price, their profit will be reduced, or they may incur a loss. This structure incentivizes the contractor to be efficient and manage their resources effectively to maximize profitability, which can be advantageous for the government by limiting cost uncertainty.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: RFQ1577608
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 998 ELM HILL PIKE, NASHVILLE, TN, 37210
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,813,936
Exercised Options: $9,938,772
Current Obligation: $7,434,581
Actual Outlays: $5,866,214
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QSHA21D002L
IDV Type: FSS
Timeline
Start Date: 2023-04-01
Current End Date: 2027-01-31
Potential End Date: 2028-01-31 08:59:55
Last Modified: 2026-04-06
More Contracts from Electronic Metrology Laboratory, LLC
- Operations & Maintenance and Vertical Transportation Services for the 300 NLA FB, Roybal FB, and SSA Rugby Locations Under GSA R9 Lasc, North LA Field Office. BPA IS the Ordering Instrument and This Call Order Exercises the Pops — $17.2M (General Services Administration)
- FY2023 NEW Facilities Operations & Maintenance Contract — $13.5M (Consumer Financial Protection Bureau)
- O&M Services — $11.2M (General Services Administration)
- Utah Total Facilities Solution Option Year III Standard Services in Ogden-Salt Lake City-Provo, Utah. Services Include Facilities Engineering, Operations & Maintenance, Custodial, Snow Removal, Grounds Maintenance, and Other Related Services — $5.7M (General Services Administration)
- Consolidated Facilities Management AT the Diana E. Murphy U.S. CH, Minneapolis, MN, W.E. Burger FB & U.S. CH, ST Paul, MN, Social Security Administration, Austin, MN, and the Edward J. Devitt FB & U.S. CH, Fergus Falls, MN — $4.8M (General Services Administration)
View all Electronic Metrology Laboratory, LLC federal contracts →
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)