Treasury's IRS awards $2.15M for Electronic Computer Manufacturing via Full and Open Competition

Contract Overview

Contract Amount: $2,148,962 ($2.1M)

Contractor: Sewp Solutions LLC

Awarding Agency: Department of the Treasury

Start Date: 2020-07-16

End Date: 2024-10-31

Contract Duration: 1,568 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SECURED64

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.1 million to SEWP SOLUTIONS LLC for work described as: SECURED64 Key points: 1. Contract value of $2.15M for electronic computer manufacturing. 2. Awarded to SEWP SOLUTIONS LLC under a full and open competition. 3. Potential risk associated with the fixed-price contract type if costs escalate. 4. Spending falls within the IT sector, specifically computer manufacturing.

Value Assessment

Rating: good

The contract value of $2.15M appears reasonable for electronic computer manufacturing services. Benchmarking against similar contracts for IT hardware procurement would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it promotes market competition and can lead to cost savings.

Public Impact

Ensures the IRS has necessary electronic computer hardware. Supports government IT infrastructure modernization efforts. Promotes fair competition among technology vendors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Fixed-price contract risk
Potential for vendor lock-in if not managed

Positive Signals

Full and open competition
Clear contract end date

Sector Analysis

This contract falls under the IT sector, specifically electronic computer manufacturing. Spending benchmarks for similar IT hardware procurements by federal agencies can vary widely based on technology and quantity.

Small Business Impact

While this contract was awarded to SEWP SOLUTIONS LLC, it's unclear if small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded under the SEWP vehicle, which typically has established oversight mechanisms. The IRS should ensure proper performance monitoring and adherence to contract terms.

Related Government Programs

Electronic Computer Manufacturing
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Fixed-price contract risk
Potential for technology obsolescence
Limited detail on specific equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.1 million to SEWP SOLUTIONS LLC. SECURED64

Who is the contractor on this award?

The obligated recipient is SEWP 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 $2.1 million.

What is the period of performance?

Start: 2020-07-16. End: 2024-10-31.

What is the specific type of electronic computer equipment being procured and its intended use?

The data indicates the North American Industry Classification System (NAICS) code is 334111, which covers electronic computer manufacturing. However, the specific type of equipment and its intended use by the IRS are not detailed. This information is crucial for assessing the value and necessity of the procurement.

How does the unit cost of the procured equipment compare to market rates for similar items?

Without specific details on the equipment and its quantity, a direct unit cost comparison is not possible. The contract's fixed-price nature suggests a pre-determined cost, but its competitiveness relies on the initial bidding process and the vendor's cost structure relative to the market.

What is the potential impact of the fixed-price contract on the IRS if technology evolves rapidly during the contract period?

A fixed-price contract can pose a risk if technology becomes obsolete or significantly improved during the contract's duration. The IRS might end up with outdated equipment or miss out on more advanced, potentially more cost-effective solutions if the contract doesn't allow for flexibility or upgrades.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4050 LEGATO RD #700, FAIRFAX, VA, 22033

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,148,962

Exercised Options: $2,148,962

Current Obligation: $2,148,962

Actual Outlays: $2,148,962

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC19B

IDV Type: GWAC

Timeline