Treasury's IRS Awards $17.5M Non-Competitive Contract to Nalu Tech Solutions for BNA Recompete
Contract Overview
Contract Amount: $17,530,869 ($17.5M)
Contractor: Nalu Tech Solutions, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2006-12-27
End Date: 2010-09-30
Contract Duration: 1,373 days
Daily Burn Rate: $12.8K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BNA RECOMPETE
Place of Performance
Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430
Plain-Language Summary
Department of the Treasury obligated $17.5 million to NALU TECH SOLUTIONS, INC. for work described as: BNA RECOMPETE Key points: 1. Contract awarded to NALU TECH SOLUTIONS, INC. for $17.5M. 2. This is a non-competitive delivery order, raising questions about price discovery. 3. The contract duration is 1373 days, ending September 30, 2010. 4. The agency is the Department of the Treasury, specifically the Internal Revenue Service. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: questionable
The contract's non-competitive nature makes a direct pricing assessment difficult. Without competing offers, it's hard to determine if the $17.5M represents fair market value. Benchmarking against similar IRS IT services contracts would be necessary for a more robust evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a non-competitive delivery order, indicating a sole-source procurement. This method limits price discovery and may not yield the best value for taxpayers as competition is absent.
Taxpayer Impact: The lack of competition in this $17.5M award means taxpayers may not have received the most cost-effective solution available.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The IRS's reliance on a sole-source vendor could indicate a lack of market research or strategic sourcing. Transparency in government spending is reduced when contracts are not competitively awarded.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Lack of price competition
- Potential for overpayment
Positive Signals
- Contract awarded to a specific vendor
Sector Analysis
This contract falls under general IT services, likely supporting IRS operations. Without a specific PSC code, it's difficult to benchmark precisely, but IT services for large government agencies typically represent significant annual spending.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Sole-source awards often bypass opportunities for small business participation.
Oversight & Accountability
The non-competitive nature of this award warrants scrutiny. Further investigation into the justification for sole-sourcing and the agency's efforts to ensure fair pricing would be appropriate.
Related Government Programs
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated pricing due to no competition.
- Limited opportunity for small business participation.
- Lack of clear justification for non-competitive award.
Tags
department-of-the-treasury, wv, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $17.5 million to NALU TECH SOLUTIONS, INC.. BNA RECOMPETE
Who is the contractor on this award?
The obligated recipient is NALU TECH SOLUTIONS, 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 $17.5 million.
What is the period of performance?
Start: 2006-12-27. End: 2010-09-30.
What was the specific justification for awarding this contract on a sole-source basis?
The provided data does not include the justification for the sole-source award. Typically, agencies must document reasons such as urgency, unique capabilities of the vendor, or lack of other responsible sources. Without this documentation, it's impossible to assess the validity of the non-competitive decision.
How was the $17.5M price determined to be fair and reasonable without competition?
Determining fairness and reasonableness without competition is challenging. Agencies usually rely on historical pricing, commercial item pricing, or independent government cost estimates. The absence of competitive bids means there's no market validation, increasing the risk that the price might not be optimal.
What is the long-term strategy for acquiring these BNA services, and will future procurements be competitive?
The provided data only covers this specific delivery order ending in 2010. It does not offer insight into the IRS's long-term strategy for BNA services. Future procurements should ideally be competed to ensure best value and encourage market innovation, unless a valid sole-source justification exists.
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10400 EATON PL, FAIRFAX, VA, 11
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $25,513,206
Exercised Options: $17,671,199
Current Obligation: $17,530,869
Parent Contract
Parent Award PIID: GS35F0507K
IDV Type: FSS
Timeline
Start Date: 2006-12-27
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2012-11-26
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