Treasury's $26.6M IT contract for computer systems design awarded to SOS INTERNATIONAL LLC

Contract Overview

Contract Amount: $26,633,096 ($26.6M)

Contractor: SOS International LLC

Awarding Agency: Department of the Treasury

Start Date: 2021-04-01

End Date: 2026-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MPSM

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $26.6 million to SOS INTERNATIONAL LLC for work described as: MPSM Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for computer systems design services, a critical IT function. 3. The duration of the contract is 5 years, indicating a long-term need. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award was a single delivery order, suggesting a specific project or need. 6. The contractor, SOS INTERNATIONAL LLC, has secured this significant federal award.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar IT service contracts. Without specific performance metrics or a breakdown of services, it's difficult to definitively assess value for money. The firm fixed-price structure provides cost certainty, but the overall price relative to the scope of work needs further analysis against industry standards for computer systems design.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple companies likely vied for the contract. The level of competition can influence pricing, potentially driving it down due to market pressures.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price discovery and potentially leading to more cost-effective solutions.

Public Impact

The primary beneficiary is the Department of the Treasury, specifically the Internal Revenue Service, which will receive computer systems design services. The services delivered are crucial for maintaining and potentially upgrading the IRS's IT infrastructure. The geographic impact is likely concentrated within the IRS's operational areas, primarily in Virginia where the contractor is based. Workforce implications may include employment opportunities for IT professionals within SOS INTERNATIONAL LLC and potentially for government IT staff overseeing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to gauge the effectiveness of the computer systems design services.
The specific scope of 'Computer Systems Design Services' is broad and could encompass a wide range of activities, making precise value assessment challenging.
The contract's duration of five years necessitates ongoing monitoring to ensure continued value and alignment with evolving IRS needs.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace was leveraged.
Firm Fixed Price contract type provides cost predictability for the government.
The contract supports critical IT functions for a major federal agency (IRS).

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design services. The federal IT services market is vast, with agencies consistently investing in system design, development, and maintenance. Comparable spending benchmarks for similar IT services contracts within federal agencies can vary widely based on complexity, duration, and specific requirements. The IRS, as a large agency, often requires significant IT support to manage its complex operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, SOS INTERNATIONAL LLC, will be responsible for fulfilling the contract requirements. Analysis of their subcontracting plans, if any, would be necessary to understand potential small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the IRS. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services Contracts
Computer Systems Design
Federal IT Modernization
IRS Technology Modernization Programs
Department of the Treasury IT Spending

Risk Flags

Lack of detailed performance metrics
Broad scope of 'Computer Systems Design Services'
Potential for technological obsolescence if design is not forward-looking

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $26.6 million to SOS INTERNATIONAL LLC. MPSM

Who is the contractor on this award?

The obligated recipient is SOS INTERNATIONAL 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 $26.6 million.

What is the period of performance?

Start: 2021-04-01. End: 2026-03-31.

What is the specific nature of the 'Computer Systems Design Services' being provided under this contract?

The provided data categorizes the contract under NAICS code 541512, which is 'Computer Systems Design Services.' This broad category typically encompasses designing, developing, and implementing information technology solutions. Services can include analyzing user needs, designing system architecture, integrating hardware and software, and providing IT consulting. Without further details specific to this contract, the exact scope could range from developing new software applications to re-architecting existing IT infrastructure or implementing cloud-based solutions for the IRS. The firm fixed-price nature suggests a well-defined scope of work is expected.

How does the $26.6 million contract value compare to similar IT services contracts awarded by the Treasury or IRS?

Comparing the $26.6 million value requires context regarding the contract's duration and scope. For a 5-year contract (1825 days), this equates to approximately $5.3 million per year. This figure needs to be benchmarked against other IT services contracts for computer systems design awarded to similar-sized contractors or for comparable agency needs. For instance, larger IT modernization efforts or enterprise-wide system overhauls could easily exceed this amount annually. Conversely, smaller, project-specific design tasks might be valued significantly lower. A comprehensive comparison would involve analyzing contract databases for similar NAICS codes, contract types, and agency sizes within the federal government.

What are the key performance indicators (KPIs) or deliverables expected from SOS INTERNATIONAL LLC under this contract?

The provided data does not specify the key performance indicators (KPIs) or deliverables for this contract. However, for 'Computer Systems Design Services' under a Firm Fixed Price contract, typical deliverables might include system design documents, architectural blueprints, functional specifications, prototypes, integration plans, and potentially final implemented systems or components. Performance would likely be assessed based on adherence to these specifications, timely delivery, quality of documentation, and successful integration or functionality of the designed systems. The contracting officer's representative (COR) would be responsible for monitoring these aspects.

What is the track record of SOS INTERNATIONAL LLC in delivering federal IT contracts, particularly those involving computer systems design?

Information on SOS INTERNATIONAL LLC's specific track record for federal IT contracts, especially in computer systems design, is not detailed in the provided data. A thorough assessment would require reviewing their past performance on similar contracts, including client feedback, any past performance issues, and their success rate in meeting deadlines and technical requirements. Federal procurement databases and past performance reviews (if publicly accessible) would be the primary sources for evaluating their capabilities and reliability in this domain.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks include scope creep if the 'Computer Systems Design Services' are not clearly defined, contractor underperformance, or technological obsolescence if the design does not account for future needs. Mitigation strategies often involve robust contract management, clear statement of work, defined milestones, regular progress reviews, and the firm fixed-price structure itself, which incentivizes the contractor to manage costs and deliver within budget. The government's ability to monitor progress and enforce contract terms is also a key mitigation factor.

Industry Classification

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

Product/Service Code: IT AND TELECOM - PLATFORM

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: 1881 CAMPUS COMMONS DR STE 500, RESTON, VA, 20191

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: $28,672,829

Exercised Options: $26,652,875

Current Obligation: $26,633,096

Actual Outlays: $26,313,292

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200049W

IDV Type: GWAC

Timeline