Treasury's IRS awards $26.2M for criminal investigations radio equipment to Cynergy Professional Systems LLC

Contract Overview

Contract Amount: $26,160,809 ($26.2M)

Contractor: Cynergy Professional Systems LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-11-01

End Date: 2025-10-31

Contract Duration: 364 days

Daily Burn Rate: $71.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CRIMINAL INVESTIGATIONS RADIO EQUIPMENT PURCHASE

Place of Performance

Location: CHEVERLY, PRINCE GEORGES County, MARYLAND, 20785

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $26.2 million to CYNERGY PROFESSIONAL SYSTEMS LLC for work described as: CRIMINAL INVESTIGATIONS RADIO EQUIPMENT PURCHASE Key points: 1. Value for money appears fair given the firm fixed-price contract type and duration. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract and defined delivery period. 4. Performance context is tied to critical criminal investigation support for the IRS. 5. Sector positioning is within the broadcasting and wireless communications equipment manufacturing industry.

Value Assessment

Rating: fair

The contract value of $26.2 million over one year for radio equipment is substantial. Benchmarking against similar contracts for specialized communication equipment is challenging without more specific technical details. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the price is competitive. The award to Cynergy Professional Systems LLC, a single entity, implies a specific capability or price point was met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a reasonable level of competition for this specialized equipment. A competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best possible price for the required radio equipment, fostering a market where vendors must be competitive to win contracts.

Public Impact

Benefits federal law enforcement agencies, specifically the IRS, by providing essential communication tools for criminal investigations. Delivers critical radio equipment necessary for secure and reliable communication in sensitive operational environments. Geographic impact is likely nationwide, supporting IRS criminal investigation units across various locations. Workforce implications include enabling investigative personnel to perform their duties more effectively and safely.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this specific radio system becomes the standard without future competitive refresh.
Dependence on a single awardee for a critical piece of equipment could pose supply chain risks if not managed proactively.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process.
Defined delivery period and end date provide clear performance expectations.

Sector Analysis

This contract falls within the Information Technology and Telecommunications sector, specifically related to broadcasting and wireless communications equipment manufacturing. The market for such specialized radio equipment is often characterized by a few key manufacturers and integrators capable of meeting stringent government requirements. Spending in this area is crucial for agencies relying on secure and reliable communication for operational effectiveness, particularly in law enforcement and national security contexts.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. This suggests that the primary awardee is likely a larger entity, and the focus was on obtaining the best overall offer. Further analysis would be needed to determine if any small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's contracting and procurement offices, with potential involvement from the IRS's own oversight bodies. The firm fixed-price nature of the contract shifts some risk to the contractor, but performance monitoring and acceptance of deliverables remain key oversight functions. Transparency is generally maintained through contract award databases, though specific operational details of the equipment's use may be sensitive.

Related Government Programs

Federal Law Enforcement Communications
IRS Criminal Investigation Support
Radio and Wireless Communications Equipment Procurement
Department of the Treasury IT Spending

Risk Flags

Potential for supply chain disruption
Dependence on specific vendor technology
Need for robust performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $26.2 million to CYNERGY PROFESSIONAL SYSTEMS LLC. CRIMINAL INVESTIGATIONS RADIO EQUIPMENT PURCHASE

Who is the contractor on this award?

The obligated recipient is CYNERGY PROFESSIONAL SYSTEMS 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 $26.2 million.

What is the period of performance?

Start: 2024-11-01. End: 2025-10-31.

What is the specific type and technical capability of the radio equipment being procured?

The provided data does not specify the exact technical capabilities or model of the radio equipment. However, given the context of 'CRIMINAL INVESTIGATIONS' and the North American Industry Classification System (NAICS) code 334220 ('Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing'), it is likely specialized, secure, and potentially encrypted radio communication devices. These could range from portable handheld radios to base stations or mobile units designed for robust performance in challenging environments, possibly incorporating features like long-range transmission, interoperability with existing systems, and resistance to jamming or interception, crucial for sensitive law enforcement operations.

How does the awarded price compare to market rates for similar specialized radio equipment?

Directly comparing the awarded price of $26,160,808.51 to market rates is difficult without knowing the precise specifications, quantity, and manufacturer of the radio equipment. Specialized, secure communication systems for law enforcement often command premium pricing due to rigorous testing, certifications, and advanced features. The fact that this was a full and open competition with 3 bidders suggests that the price was competitive within the market for such specialized gear. However, a detailed benchmark analysis would require comparing unit costs against publicly available pricing for comparable government or commercial off-the-shelf (COTS) secure radio systems, adjusted for quantity and specific features.

What are the key performance metrics or deliverables expected under this contract?

While the specific performance metrics are not detailed in the provided summary, typical deliverables for a contract of this nature would include the timely delivery of the specified radio equipment, ensuring it meets all technical specifications and quality standards. Performance would likely be assessed based on the functionality and reliability of the equipment upon delivery and during initial testing. The contract duration of 364 days (ending October 31, 2025) implies a focused procurement period. The IRS would likely have acceptance testing protocols to verify that the equipment functions as intended for criminal investigation purposes, including aspects like signal clarity, battery life, durability, and security features.

What is Cynergy Professional Systems LLC's track record with similar government contracts, particularly for radio equipment?

Information regarding Cynergy Professional Systems LLC's specific track record with similar government contracts for radio equipment is not provided in the summary data. To assess their suitability and past performance, one would need to consult federal procurement databases (like SAM.gov or FPDS) for their contract history. This would reveal previous awards, contract types, agencies served, and potentially performance evaluations. A review of their past performance would be crucial to understand their experience in delivering complex communication systems and their reliability as a government contractor, especially for critical law enforcement needs.

What is the historical spending pattern for criminal investigations radio equipment by the IRS or Treasury?

The provided data only pertains to a single, recent award. To understand historical spending patterns for criminal investigations radio equipment by the IRS or Treasury, a broader analysis of past contracts would be necessary. This would involve querying procurement databases for similar equipment purchases over several fiscal years, identifying trends in spending levels, contract types (e.g., sole-source vs. competitive), and the primary contractors involved. Such an analysis could reveal whether this $26.2 million award represents an increase, decrease, or stable level of investment in this capability compared to previous periods.

Are there any identified risks associated with the sole awardee, Cynergy Professional Systems LLC, or the specific technology being procured?

The provided data does not explicitly list risks associated with Cynergy Professional Systems LLC or the technology. However, general risks for any sole awardee of critical equipment include potential supply chain disruptions, vendor viability issues, or a lack of future competitive pressure if the technology becomes proprietary. Risks related to the technology itself could involve obsolescence, security vulnerabilities, or interoperability challenges with existing systems. A thorough risk assessment would require examining the contractor's financial stability, technical expertise, and the maturity and security of the radio equipment being supplied.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 23187 LA CADENA, STE 102, LAGUNA HILLS, CA, 92653

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $31,829,693

Exercised Options: $26,160,809

Current Obligation: $26,160,809

Actual Outlays: $25,624,520

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B04C19D00000020

IDV Type: IDC

Timeline