IRS contract for taxpayer form requests awarded to National Telecommuting Institute, Inc. for $32.9M

Contract Overview

Contract Amount: $32,875,579 ($32.9M)

Contractor: National Telecommuting Institute, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2021-01-01

End Date: 2026-04-03

Contract Duration: 1,918 days

Daily Burn Rate: $17.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: INTERNAL REVENUE SERVICE (IRS) SUPPORT WITH RESPONDING TO TAXPAYER FORMS REQUESTS COMING IN ON THE IRS TOLL-FREE TELEPHONE FORMS LINE.

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02114

State: Massachusetts Government Spending

Plain-Language Summary

Department of the Treasury obligated $32.9 million to NATIONAL TELECOMMUTING INSTITUTE, INC. for work described as: INTERNAL REVENUE SERVICE (IRS) SUPPORT WITH RESPONDING TO TAXPAYER FORMS REQUESTS COMING IN ON THE IRS TOLL-FREE TELEPHONE FORMS LINE. Key points: 1. Value for money appears fair given the scope of supporting taxpayer inquiries via a dedicated toll-free line. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery and competitive pressure. 3. Risk indicators are moderate, with contract performance dependent on the contractor's ability to manage call volume and provide accurate information. 4. Performance context involves ensuring timely and accurate responses to taxpayer form requests, a critical function for IRS operations. 5. Sector positioning places this contract within the broader administrative support services for government agencies.

Value Assessment

Rating: fair

The contract's value of $32.9 million over its period of performance (approximately 5 years) suggests a significant investment in taxpayer support. Benchmarking against similar contracts for call center operations and administrative support is challenging without more detailed service level agreements and performance metrics. However, the per-call or per-inquiry cost would be a key metric to assess value, which is not readily available. The pricing structure based on labor hours requires careful monitoring to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances necessitate a rapid award without a full competitive process. The lack of competition means that the IRS did not benefit from the potential for lower prices or innovative solutions that a competitive bidding process might have yielded.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most cost-effective service possible, as there was no competitive pressure to drive down prices.

Public Impact

Taxpayers benefit directly through improved access to information and assistance regarding IRS forms via the toll-free telephone line. The service delivered is crucial for taxpayer compliance and understanding of tax obligations. The geographic impact is national, serving taxpayers across the United States. Workforce implications include the employment of individuals to staff the call center operations for the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits.
Labor hour pricing requires diligent oversight to ensure cost efficiency.
Performance metrics and service level agreements are not detailed, making value assessment difficult.

Positive Signals

Supports a critical IRS function of taxpayer assistance.
Contract duration provides stability for service delivery.
Focus on taxpayer form requests addresses a specific need.

Sector Analysis

This contract falls within the administrative and support services sector, specifically focusing on call center operations and taxpayer assistance. The market for such services is competitive, with many firms offering outsourced customer service and support. Government contracts in this space often involve significant volume and require robust infrastructure and trained personnel. The IRS's spending in this area is indicative of the need for efficient and accessible taxpayer communication channels.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. Therefore, it does not directly contribute to opportunities for small businesses through set-asides. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, National Telecommuting Institute, Inc., but are not mandated by the contract terms presented.

Oversight & Accountability

Oversight of this contract would primarily fall under the Department of the Treasury and the Internal Revenue Service. Accountability measures would be tied to the contract's performance metrics and service level agreements, which are not detailed here. Transparency is limited due to the sole-source nature and lack of publicly available detailed performance data. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

IRS Taxpayer Advocate Service
IRS Forms and Publications
Federal Call Center Services
Government Administrative Support Contracts

Risk Flags

Sole-source award
Lack of detailed performance metrics
Potential for higher costs due to no competition

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $32.9 million to NATIONAL TELECOMMUTING INSTITUTE, INC.. INTERNAL REVENUE SERVICE (IRS) SUPPORT WITH RESPONDING TO TAXPAYER FORMS REQUESTS COMING IN ON THE IRS TOLL-FREE TELEPHONE FORMS LINE.

Who is the contractor on this award?

The obligated recipient is NATIONAL TELECOMMUTING INSTITUTE, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $32.9 million.

What is the period of performance?

Start: 2021-01-01. End: 2026-04-03.

What is the historical spending pattern for IRS taxpayer form request support services?

Historical spending data for IRS taxpayer form request support services is not directly available from the provided contract details. However, the current contract awarded to National Telecommuting Institute, Inc. for $32.9 million from January 1, 2021, to April 3, 2026, indicates a significant and ongoing investment in this area. To understand historical patterns, one would need to examine previous contracts for similar services, potentially looking at annual IRS budgets allocated to taxpayer services and communications, as well as the duration and value of prior support contracts. This would reveal trends in outsourcing, cost fluctuations, and the evolution of support mechanisms over time.

How does the per-unit cost of this contract compare to industry benchmarks for call center services?

A precise per-unit cost comparison is not feasible with the current data, as the contract is priced based on 'LABOR HOURS' and specific performance metrics or service level agreements (SLAs) are not detailed. To benchmark, one would need to calculate the average cost per call, per inquiry, or per taxpayer interaction. Industry benchmarks for call center services vary widely based on complexity of inquiries, agent training, technology used, and geographic location of the call center. Generally, government contracts can sometimes be higher than commercial rates due to compliance and administrative overhead, but sole-source awards can also inflate costs due to lack of competition. A detailed analysis would require knowing the total number of inquiries handled and the total labor hours expended.

What are the key performance indicators (KPIs) for National Telecommuting Institute, Inc. under this contract?

The provided contract data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) that National Telecommuting Institute, Inc. must meet. Typically, for a contract supporting a taxpayer forms request line, KPIs would likely include metrics such as average speed of answer (ASA), abandonment rate, first call resolution (FCR), customer satisfaction scores (CSAT), and accuracy of information provided. The IRS would monitor these KPIs to ensure the contractor is meeting its obligations and providing effective taxpayer support. Without these specific metrics, a thorough assessment of the contractor's performance and the overall effectiveness of the service is limited.

What is the track record of National Telecommuting Institute, Inc. in performing similar government contracts?

Information regarding the specific track record of National Telecommuting Institute, Inc. in performing similar government contracts is not detailed in the provided data. To assess their track record, one would need to review their past performance on federal contracts, particularly those involving call center operations, taxpayer services, or administrative support. This would involve looking at past performance evaluations, any contract awards or terminations, and the scope and success of previous engagements. A positive track record would indicate reliability and capability, while a history of issues might raise concerns about performance on this current IRS contract.

What are the potential risks associated with a sole-source award for essential taxpayer services?

The primary risk associated with a sole-source award for essential taxpayer services like handling form requests is the lack of competitive pressure, which can lead to higher costs for taxpayers and the government. Without competition, there is less incentive for the contractor to innovate or optimize service delivery for efficiency. Furthermore, if the sole-source contractor underperforms or faces operational issues, there are limited immediate alternatives for the IRS to ensure continuity of service. This dependence on a single provider can also create vulnerabilities if the contractor experiences financial instability or strategic shifts. Robust oversight and clear performance standards are crucial to mitigate these risks.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telephone Answering Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 225 FRIEND ST STE 401, BOSTON, MA, 02114

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,744,893

Exercised Options: $35,668,664

Current Obligation: $32,875,579

Actual Outlays: $30,175,767

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline