IRS Call Center Modernization Contract Awarded to ATI Government Solutions for $16.8M
Contract Overview
Contract Amount: $16,835,092 ($16.8M)
Contractor: ATI Government Solutions LLC
Awarding Agency: Department of the Treasury
Start Date: 2025-01-17
End Date: 2025-10-29
Contract Duration: 285 days
Daily Burn Rate: $59.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS EFFORT IS FOR CALL CENTER MODERNIZATION SUPPORT SERVICES WHICH INCLUDES BUT NOT LIMITED TO THE IMPLANTATION OF A CONVERSATIONAL ROUTING SYSTEM ON THE IRS MAIN 1040 PHONE LINE THAT MEETS BASELINE QUALITY & CUSTOMER SATISFACTION LEVELS.
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21701
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $16.8 million to ATI GOVERNMENT SOLUTIONS LLC for work described as: THIS EFFORT IS FOR CALL CENTER MODERNIZATION SUPPORT SERVICES WHICH INCLUDES BUT NOT LIMITED TO THE IMPLANTATION OF A CONVERSATIONAL ROUTING SYSTEM ON THE IRS MAIN 1040 PHONE LINE THAT MEETS BASELINE QUALITY & CUSTOMER SATISFACTION LEVELS. Key points: 1. Focuses on implementing a conversational routing system for the IRS 1040 line. 2. Aims to improve baseline quality and customer satisfaction metrics. 3. Contract awarded to ATI Government Solutions LLC. 4. Firm Fixed Price contract type. 5. Duration of 285 days.
Value Assessment
Rating: fair
The contract value of $16.8M for approximately 9 months of support appears within a reasonable range for specialized IT and management consulting services. However, without specific benchmarks for conversational AI implementation in government call centers, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION', indicating a limited competition approach. This limits price discovery and potentially reduces the incentive for the contractor to offer the most competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for this modernization effort. While the goal is improved service, the lack of competition raises questions about the optimal use of these funds.
Public Impact
Improved taxpayer experience through modernized call center technology. Potential for reduced wait times and more efficient issue resolution. Modernization of a critical IRS customer service function. Ensuring baseline quality and customer satisfaction levels are met.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about price reasonableness.
- Lack of detailed performance metrics in provided data.
- Potential for scope creep in modernization efforts.
Positive Signals
- Focus on improving taxpayer services.
- Clear objective of meeting quality and satisfaction levels.
- Firm Fixed Price contract can provide cost certainty.
Sector Analysis
This contract falls within the Administrative Management and General Management Consulting Services sector, specifically related to IT modernization. Benchmarks for similar government call center modernization projects are scarce, making direct comparison challenging.
Small Business Impact
The provided data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this effort.
Oversight & Accountability
Oversight will be crucial to ensure the successful implementation of the conversational routing system and that the stated quality and customer satisfaction goals are achieved within the contract period and budget.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition.
- Potential for undefined performance metrics.
- Risk of cost overruns if scope is not tightly managed.
- Dependence on a single vendor for critical infrastructure.
- Ensuring successful integration with existing IRS systems.
Tags
administrative-management-and-general-ma, department-of-the-treasury, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $16.8 million to ATI GOVERNMENT SOLUTIONS LLC. THIS EFFORT IS FOR CALL CENTER MODERNIZATION SUPPORT SERVICES WHICH INCLUDES BUT NOT LIMITED TO THE IMPLANTATION OF A CONVERSATIONAL ROUTING SYSTEM ON THE IRS MAIN 1040 PHONE LINE THAT MEETS BASELINE QUALITY & CUSTOMER SATISFACTION LEVELS.
Who is the contractor on this award?
The obligated recipient is ATI GOVERNMENT SOLUTIONS 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 $16.8 million.
What is the period of performance?
Start: 2025-01-17. End: 2025-10-29.
What specific metrics will be used to define and measure 'baseline quality & customer satisfaction levels' for the IRS call center?
The contract should clearly define measurable Key Performance Indicators (KPIs) for quality and satisfaction. This could include metrics like average handle time, first call resolution rate, customer satisfaction scores (CSAT) via post-call surveys, and call abandonment rates. Without these defined metrics, it's difficult to objectively assess the success of the modernization effort.
Given the limited competition, how will the IRS ensure the pricing remains competitive and provides good value for taxpayer money?
The IRS should leverage independent cost estimates and potentially conduct market research to validate the proposed pricing. Robust contract oversight and performance management are essential to ensure the contractor delivers the required services efficiently. Exploring future opportunities for competitive bidding on similar projects can also drive better value.
What is the anticipated impact of this conversational routing system on IRS staffing levels and the nature of agent work?
Implementing a conversational routing system is expected to automate initial customer interactions and direct callers more effectively. This could potentially reduce the need for agents handling basic inquiries, allowing human agents to focus on more complex issues. The impact on staffing levels and job roles should be carefully managed and communicated.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 47 E SOUTH ST, UNIT 002, FREDERICK, MD, 21701
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,999,804
Exercised Options: $16,835,092
Current Obligation: $16,835,092
Actual Outlays: $16,827,194
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-01-17
Current End Date: 2025-10-29
Potential End Date: 2025-10-29 10:24:32
Last Modified: 2025-11-06
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