Treasury's $3.8M Salesforce contract awarded to IAZ Associates LLC for platform enhancement and maintenance

Contract Overview

Contract Amount: $3,812,656 ($3.8M)

Contractor: IAZ Associates LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-09-11

End Date: 2026-09-10

Contract Duration: 364 days

Daily Burn Rate: $10.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SALESFORCE DEVELOPMENT SERVICES - CONTRACTOR SHALL PROVIDE PROJECT MANAGEMENT SUPPORT TO MAINTAIN & ENHANCE THE AGENCY'S SALESFORCE PLATFORM, INCLUDES APPLICATION DEVELOPMENT, DESIGN, TESTING, DEPLOYMENT, & MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20228

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.8 million to IAZ ASSOCIATES LLC for work described as: SALESFORCE DEVELOPMENT SERVICES - CONTRACTOR SHALL PROVIDE PROJECT MANAGEMENT SUPPORT TO MAINTAIN & ENHANCE THE AGENCY'S SALESFORCE PLATFORM, INCLUDES APPLICATION DEVELOPMENT, DESIGN, TESTING, DEPLOYMENT, & MAINTENANCE Key points: 1. Contract focuses on critical Salesforce platform support, including development, design, testing, deployment, and maintenance. 2. The award to IAZ Associates LLC represents a significant investment in maintaining the agency's core CRM capabilities. 3. The definitive contract is firm-fixed-price, providing cost certainty for the duration of the agreement. 4. The contract duration is one year, with a potential for renewal. 5. The Bureau of Engraving and Printing is the specific office within the Treasury Department overseeing this contract. 6. The North American Industry Classification System (NAICS) code 541512 indicates computer systems design services.

Value Assessment

Rating: fair

The contract value of $3.81 million for one year of Salesforce development and maintenance services appears to be within a reasonable range for specialized IT support. Benchmarking against similar government contracts for Salesforce platform management and development is difficult without more granular data on the specific services and skill sets required. However, given the complexity of maintaining and enhancing a large-scale CRM platform, the price is not immediately indicative of overspending, but further analysis of labor rates and project scope would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded through a sole-source or limited competition process. The absence of a broad competition means that the government did not explore the full range of potential vendors, which could limit price discovery and potentially lead to higher costs than if multiple bids were solicited. The rationale for not competing is not provided, but it could be due to specific contractor qualifications or urgency.

Taxpayer Impact: The lack of competition means taxpayers may not be benefiting from the most competitive pricing available in the market. Without a competitive bidding process, there is a reduced incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the Department of the Treasury, specifically the Bureau of the Engraving and Printing, which will receive enhanced and maintained Salesforce platform services. The services delivered include project management, application development, design, testing, deployment, and ongoing maintenance of the Salesforce platform. The geographic impact is primarily within the District of Columbia, where the agency is located. Workforce implications include the potential need for specialized Salesforce developers, administrators, and project managers, either employed by the contractor or potentially augmented by agency staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer dollars.
Limited transparency into the justification for a sole-source award hinders a full assessment of procurement fairness.
The contract's focus on a specific platform (Salesforce) may limit the pool of qualified contractors, potentially necessitating non-competitive awards in the future.

Positive Signals

The contract is firm-fixed-price, which provides budget certainty and shifts cost risk to the contractor.
The contract specifies a clear period of performance, allowing for defined project timelines and deliverables.
The award is to a single contractor, potentially allowing for streamlined communication and project execution.

Sector Analysis

The IT services sector, particularly custom software development and IT consulting, is a significant area of federal spending. Contracts like this, focused on maintaining and enhancing enterprise-level platforms such as Salesforce, are common across various agencies. The market for Salesforce implementation and support is robust, with numerous vendors offering specialized services. Federal spending in this category often benchmarks against commercial rates, adjusted for government contracting requirements and overhead.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, IAZ Associates LLC, will be responsible for fulfilling the contract requirements directly, with no mandated flow-down to the small business ecosystem. This could limit opportunities for small businesses to participate in this specific federal contract.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and the program management office within the Bureau of Engraving and Printing. Accountability measures are established through the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon budget and timeframe. Transparency is limited by the sole-source nature of the award; however, contract details are generally available through federal procurement databases. There is no specific mention of an Inspector General jurisdiction for this particular award, but the Treasury OIG has broad oversight responsibilities.

Related Government Programs

Salesforce Platform Support Services
IT Consulting and Professional Services
Computer Systems Design Services
Enterprise Resource Planning (ERP) System Maintenance
Customer Relationship Management (CRM) System Support

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited transparency into procurement justification.
Potential for vendor lock-in.
No explicit small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.8 million to IAZ ASSOCIATES LLC. SALESFORCE DEVELOPMENT SERVICES - CONTRACTOR SHALL PROVIDE PROJECT MANAGEMENT SUPPORT TO MAINTAIN & ENHANCE THE AGENCY'S SALESFORCE PLATFORM, INCLUDES APPLICATION DEVELOPMENT, DESIGN, TESTING, DEPLOYMENT, & MAINTENANCE

Who is the contractor on this award?

The obligated recipient is IAZ ASSOCIATES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $3.8 million.

What is the period of performance?

Start: 2025-09-11. End: 2026-09-10.

What is the track record of IAZ Associates LLC in performing similar federal contracts?

A review of federal procurement data indicates that IAZ Associates LLC has been awarded other federal contracts, though specific details on their performance history for similar Salesforce development and maintenance services would require a deeper dive into contract databases and performance reports. Without access to past performance evaluations or a comprehensive list of their prior federal engagements, it is difficult to definitively assess their track record. However, the award of this contract by the Department of the Treasury suggests they met the agency's requirements at the time of selection. Further investigation into contract award histories and any available performance feedback would provide a clearer picture of their reliability and expertise in delivering complex IT solutions.

How does the contract value compare to market rates for similar Salesforce development and maintenance services?

Benchmarking the $3.81 million contract value for one year of Salesforce services against market rates is challenging without specific details on the scope of work, labor categories, and hours required. General market data suggests that Salesforce consulting and development can range significantly based on complexity, location, and contractor expertise. For enterprise-level support involving project management, application development, design, testing, deployment, and maintenance, the annual cost could plausibly fall within this range for a dedicated team or significant project engagement. However, a precise comparison would necessitate analyzing the proposed labor mix, hourly rates, and the specific functionalities being supported or enhanced within the Treasury's Salesforce platform.

What are the primary risks associated with this sole-source contract award?

The primary risk associated with this sole-source contract award is the potential for reduced value for taxpayer money due to the lack of competition. Without multiple bids, there is less pressure on IAZ Associates LLC to offer the most competitive pricing, potentially leading to higher costs than if the contract were competed. Another risk is the potential for vendor lock-in, where the agency becomes heavily reliant on a single provider, making it difficult and costly to switch vendors in the future. Furthermore, the absence of a competitive process may limit transparency into the justification for the award and the contractor's pricing structure, making it harder to ensure fairness and efficiency.

What is the expected effectiveness of the Salesforce platform enhancements and maintenance under this contract?

The expected effectiveness hinges on the contractor's ability to deliver on the specified project management, development, design, testing, deployment, and maintenance tasks for the agency's Salesforce platform. If IAZ Associates LLC possesses the requisite expertise and resources, the enhancements and maintenance should lead to a more stable, functional, and potentially more capable Salesforce environment. This could translate to improved user experience, better data management, and more efficient business processes for the Bureau of Engraving and Printing. The firm-fixed-price nature of the contract incentivizes the contractor to manage resources effectively to meet objectives within budget, contributing to predictable outcomes.

What has been the historical spending trend for Salesforce-related services at the Bureau of Engraving and Printing or the Department of the Treasury?

Analyzing historical spending trends for Salesforce services at the Bureau of Engraving and Printing (BEP) or the broader Department of the Treasury requires access to detailed historical contract data. Without specific figures on past expenditures for similar Salesforce support, it's impossible to establish a trend. However, it is common for large government agencies to invest consistently in their CRM and enterprise software platforms to ensure operational efficiency and data integrity. If the BEP has been utilizing Salesforce for an extended period, it is likely that they have had ongoing contracts for its support, maintenance, and potential upgrades. The current $3.81 million award should be viewed in the context of any prior investments and the evolving needs of the agency's Salesforce implementation.

Are there any specific performance metrics or KPIs defined in the contract to measure success?

The provided data snippet does not detail specific performance metrics or Key Performance Indicators (KPIs) that are contractually mandated for measuring the success of IAZ Associates LLC's services. While the contract is firm-fixed-price, implying deliverables and a scope of work, the absence of explicit KPIs makes it challenging to objectively assess the contractor's performance beyond meeting the basic requirements. Effective contracts typically include measurable objectives related to system uptime, response times for support requests, successful deployment of new features, and user satisfaction. Without these, oversight relies more heavily on qualitative assessments and adherence to the defined project plan.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 2031ZB25Q00080

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5223 SWEET MEADOW LN, CLARKSVILLE, MD, 21029

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,812,656

Exercised Options: $3,812,656

Current Obligation: $3,812,656

Actual Outlays: $1,588,607

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline