IRS Network Engineering Services Contract Awarded to Candor Solutions LLC for $20.8 Million

Contract Overview

Contract Amount: $20,796,983 ($20.8M)

Contractor: Candor Solutions LLC

Awarding Agency: Department of the Treasury

Start Date: 2020-09-08

End Date: 2024-01-07

Contract Duration: 1,216 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENGINEERING SMES FOR IRS UNS NETWORK ENGINEERING SERVICES ANTICIPATED POP: BASE PERIOD: 09/08/2020-07/07/2021 OP1: 07/08/2021-0707/2022 OP2: 07/08/2022-07/07/2023 OP3: 07/08/2023-07/07/2024 OP4:07/08/2024-07/07/2025 COVID-19

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $20.8 million to CANDOR SOLUTIONS LLC for work described as: ENGINEERING SMES FOR IRS UNS NETWORK ENGINEERING SERVICES ANTICIPATED POP: BASE PERIOD: 09/08/2020-07/07/2021 OP1: 07/08/2021-0707/2022 OP2: 07/08/2022-07/07/2023 OP3: 07/08/2023-07/07/2024 OP4:07/08/2024-07/07/2025 COVID-19 Key points: 1. The contract provides engineering SMEs for network engineering services to the IRS. 2. Candor Solutions LLC is the awardee, with a total value of $20.8 million. 3. The contract spans multiple option periods, extending through July 2025. 4. This falls under Computer Systems Design Services (NAICS 541512).

Value Assessment

Rating: fair

The total contract value of $20.8 million over several years suggests a significant investment. Benchmarking against similar IT services contracts for government agencies is needed to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This indicates a competitive process, but the exclusion clause warrants further investigation to ensure fair market access.

Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure support for the IRS, aiming for efficient tax administration.

Public Impact

Ensures continued operation and security of IRS network infrastructure. Supports critical tax processing and taxpayer services. Provides specialized technical expertise for complex network challenges. Potential for improved system reliability and performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ambiguity in 'Exclusion of Sources' clause.
Long contract duration with multiple options.
Lack of detailed performance metrics provided.

Positive Signals

Awarded through full and open competition.
Addresses critical IRS IT needs.
Experienced contractor likely providing specialized skills.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Government spending in this area is substantial, focusing on maintaining and upgrading complex IT infrastructures to support agency operations and data security.

Small Business Impact

The data indicates that the primary awardee is Candor Solutions LLC, and there is no explicit mention of small business participation or subcontracting. Further analysis is needed to determine if small businesses were involved.

Oversight & Accountability

The contract is managed by the Department of the Treasury's Internal Revenue Service. Standard government oversight mechanisms for contract performance and financial management would apply.

Related Government Programs

Computer Systems Design Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Potential for reduced competition due to 'Exclusion of Sources'.
Long-term contract duration may not adapt to rapidly changing technology.
Lack of transparency on specific performance metrics.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $20.8 million to CANDOR SOLUTIONS LLC. ENGINEERING SMES FOR IRS UNS NETWORK ENGINEERING SERVICES ANTICIPATED POP: BASE PERIOD: 09/08/2020-07/07/2021 OP1: 07/08/2021-0707/2022 OP2: 07/08/2022-07/07/2023 OP3: 07/08/2023-07/07/2024 OP4:07/08/2024-07/07/2025 COVID-19

Who is the contractor on this award?

The obligated recipient is CANDOR 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 $20.8 million.

What is the period of performance?

Start: 2020-09-08. End: 2024-01-07.

What specific network engineering challenges does the IRS face that necessitate this level of investment?

The IRS likely faces challenges related to aging network infrastructure, increasing data volumes, cybersecurity threats, and the need to support modern digital services for taxpayers. Specialized engineering SMEs are crucial for designing, implementing, and maintaining a robust and secure network capable of handling these demands and ensuring uninterrupted tax administration.

How does the 'Exclusion of Sources' clause impact the competitive landscape and potential cost savings?

The 'Exclusion of Sources' clause, even within a full and open competition framework, can limit the pool of potential bidders. While it might be justified by specific technical requirements or prior performance, it could potentially reduce price competition and may not always yield the most cost-effective solution compared to unrestricted competition.

What are the key performance indicators (KPIs) for this contract to ensure effectiveness and value for money?

Key performance indicators should focus on network uptime, latency, bandwidth utilization, incident response times, and successful implementation of network upgrades. Measuring these against established benchmarks and contractually defined targets will be crucial for assessing the effectiveness of the engineering services and ensuring the IRS receives value for its investment.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 113 E MARKET STREET, SUITE 120, LEESBURG, VA, 20176

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture 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: $39,259,632

Exercised Options: $20,796,983

Current Obligation: $20,796,983

Actual Outlays: $20,796,983

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200110W

IDV Type: GWAC

Timeline