IRS Awards $19.8M Contract for HR Consulting to ATI Government Solutions Amidst Taxpayer Protection Efforts

Contract Overview

Contract Amount: $19,787,636 ($19.8M)

Contractor: ATI Government Solutions LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-01-31

End Date: 2025-03-14

Contract Duration: 42 days

Daily Burn Rate: $471.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IRS SEEKS TO MINIMIZE THE BURDEN OF INVESTIGATION ON LEGITIMATE TAXPAYERS AND ENSURE TIMELY DELIVERY OF TAX REFUNDS. IN ADDITION, THE IRS SEEKS TO STRENGTHEN PROTECTIONS FOR TAXPAYERS & THE TAX SYSTEM.

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $19.8 million to ATI GOVERNMENT SOLUTIONS LLC for work described as: IRS SEEKS TO MINIMIZE THE BURDEN OF INVESTIGATION ON LEGITIMATE TAXPAYERS AND ENSURE TIMELY DELIVERY OF TAX REFUNDS. IN ADDITION, THE IRS SEEKS TO STRENGTHEN PROTECTIONS FOR TAXPAYERS & THE TAX SYSTEM. Key points: 1. Contract awarded to ATI Government Solutions LLC for HR consulting services. 2. The contract aims to minimize investigation burden and ensure timely refunds. 3. Focus on strengthening taxpayer and tax system protections. 4. The contract value is $19,787,636.48 with a duration of 42 days.

Value Assessment

Rating: fair

The contract value of $19.8 million for a 42-day period appears high for HR consulting services. Benchmarking against similar contracts is difficult without more detailed scope information.

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 leads to higher costs for taxpayers.

Taxpayer Impact: The significant contract value for a short duration raises concerns about taxpayer impact, especially if the services could have been procured more competitively.

Public Impact

Taxpayer protection and timely refund delivery are key objectives. The IRS is investing in services to strengthen the tax system. The contract duration is unusually short for the awarded amount.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under professional services, specifically Human Resources Consulting. Spending in this sector can vary widely based on agency needs and project scope. Benchmarks are difficult without specific service details.

Small Business Impact

The data does not indicate any specific provisions or considerations for small businesses in this contract award.

Oversight & Accountability

Oversight is crucial given the limited competition and significant value. The IRS should ensure robust monitoring of service delivery and cost-effectiveness to protect taxpayer funds.

Related Government Programs

Risk Flags

Tags

human-resources-consulting-services, department-of-the-treasury, md, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $19.8 million to ATI GOVERNMENT SOLUTIONS LLC. IRS SEEKS TO MINIMIZE THE BURDEN OF INVESTIGATION ON LEGITIMATE TAXPAYERS AND ENSURE TIMELY DELIVERY OF TAX REFUNDS. IN ADDITION, THE IRS SEEKS TO STRENGTHEN PROTECTIONS FOR TAXPAYERS & THE TAX SYSTEM.

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 $19.8 million.

What is the period of performance?

Start: 2025-01-31. End: 2025-03-14.

What specific HR consulting services are being procured, and how do they directly contribute to minimizing taxpayer burden and ensuring timely refunds?

The provided data lacks specifics on the HR consulting services. To assess value, a detailed breakdown of tasks, deliverables, and expected outcomes is needed. These services should demonstrably improve IRS HR processes, leading to more efficient operations that indirectly support taxpayer services and refund processing.

What is the justification for limiting competition on this $19.8 million contract, and what steps are being taken to mitigate potential cost overruns?

The justification for 'NOT AVAILABLE FOR COMPETITION' is not provided. Limiting competition typically reduces price discovery. Mitigation strategies should include rigorous negotiation, clear performance metrics, and strict oversight to ensure the contractor delivers value and adheres to the fixed-price agreement without scope creep.

How will the effectiveness of these HR consulting services be measured to ensure they strengthen taxpayer protections and the tax system as intended?

Effectiveness measurement requires defining key performance indicators (KPIs) tied to the stated objectives. For instance, improvements in HR efficiency could be linked to faster processing times for critical functions. Metrics related to employee training, compliance, or system improvements that enhance security and accuracy would demonstrate impact.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesHuman Resources 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

Solicitation ID: 2032H2-25-Q-00006

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: $24,872,601

Exercised Options: $19,787,636

Current Obligation: $19,787,636

Actual Outlays: $2,500,017

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2025-01-31

Current End Date: 2025-03-14

Potential End Date: 2025-03-14 13:45:09

Last Modified: 2025-04-29

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