Treasury's $3.18M EEFAX contract to BISCOM INC awarded under full and open competition

Contract Overview

Contract Amount: $3,181,202 ($3.2M)

Contractor: Biscom Inc

Awarding Agency: Department of the Treasury

Start Date: 2021-09-28

End Date: 2026-09-27

Contract Duration: 1,825 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENTERPRISE ELECTRONIC FAX (EEFAX) PROJECT

Place of Performance

Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430

State: West Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.2 million to BISCOM INC for work described as: ENTERPRISE ELECTRONIC FAX (EEFAX) PROJECT Key points: 1. Value for money appears reasonable given the 5-year duration and firm-fixed-price structure. 2. Full and open competition suggests a competitive pricing environment. 3. No immediate risk indicators are apparent from the provided data. 4. This contract supports essential internal communication infrastructure for the IRS. 5. The contract falls within the software publishing sector, supporting digital communication needs.

Value Assessment

Rating: good

The contract's total value of $3.18 million over five years averages to approximately $636,000 annually. Without specific per-unit cost data or detailed service level agreements, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure provides cost certainty for the government. Benchmarking against similar enterprise communication solutions would be necessary for a more definitive comparison, but the duration and scope suggest a potentially competitive price point.

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. The presence of two bids suggests a moderate level of competition for this requirement. While more bidders would typically lead to greater price discovery, the fact that it was competed openly is a positive sign for achieving a fair market price.

Taxpayer Impact: Taxpayers benefit from the assurance that the government sought the best possible solution through a competitive process, aiming to secure favorable pricing and terms.

Public Impact

Internal Revenue Service (IRS) employees benefit from enhanced electronic fax capabilities. The contract ensures the continued delivery of secure and reliable electronic fax services. The geographic impact is nationwide, supporting IRS operations across various locations. Workforce implications are minimal, focusing on maintaining existing communication infrastructure rather than significant new deployments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, indicating a fair and transparent procurement process.
Firm-fixed-price contract type provides cost predictability and limits the government's exposure to cost overruns.
The contract duration of five years allows for stable service provision and potential for economies of scale.
The contract is for an essential service (EEFAX) supporting IRS operations.

Sector Analysis

The Enterprise Electronic Fax (EEFAX) project falls within the Software Publishers (NAICS 511210) sector, specifically addressing digital communication and document transmission needs. This sector is characterized by companies developing and distributing software, including cloud-based solutions and communication platforms. The contract's value of $3.18 million over five years is modest within the broader federal IT spending landscape, but significant for a specialized communication service. Comparable spending might be found in contracts for secure messaging, document management systems, or enterprise communication platforms.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, BISCOM INC, is likely a mid-to-large-sized business given the nature of enterprise solutions.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the IRS. Accountability measures are inherent in the firm-fixed-price contract structure, requiring BISCOM INC to deliver the specified services within the agreed-upon terms. Transparency is facilitated by the contract award data being publicly available. While specific Inspector General jurisdiction for this particular contract isn't detailed, the Treasury Inspector General for Tax Administration (TIGTA) oversees IRS programs and financial activities.

Related Government Programs

IRS Communication Systems
Federal Electronic Document Management
Enterprise Software Solutions
Secure Communication Services

Risk Flags

Potential for vendor lock-in if not managed through future competitive procurements.
Reliance on a single vendor for a critical communication service.
Cybersecurity vulnerabilities inherent in any electronic communication system.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.2 million to BISCOM INC. ENTERPRISE ELECTRONIC FAX (EEFAX) PROJECT

Who is the contractor on this award?

The obligated recipient is BISCOM 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 $3.2 million.

What is the period of performance?

Start: 2021-09-28. End: 2026-09-27.

What is the track record of BISCOM INC in delivering similar enterprise communication solutions to the federal government?

BISCOM INC has a history of providing fax and document management solutions. Their experience often includes secure transmission capabilities, which are critical for government agencies like the IRS. Analyzing their past performance on federal contracts, including any past performance evaluations or awards, would provide insight into their reliability and ability to meet stringent requirements. A review of their contract history would reveal the types of services they have provided, the agencies they have served, and the duration and value of those contracts. This information is crucial for assessing their capability to successfully execute the EEFAX project over its five-year term.

How does the per-year cost of this contract compare to industry benchmarks for enterprise electronic fax services?

The annual cost of this contract averages approximately $636,000 ($3.18M / 5 years). Benchmarking this against industry rates for enterprise-level electronic fax solutions requires detailed knowledge of service levels, user counts, and feature sets. However, for a nationwide deployment supporting a large agency like the IRS, this figure may represent a competitive rate, especially considering the firm-fixed-price nature which includes risk for the vendor. Without specific details on the number of users, volume of faxes, or advanced security features required, a precise comparison is difficult. Generally, enterprise solutions command higher prices due to scalability, reliability, and security requirements.

What are the primary risks associated with the EEFAX project, and how are they being mitigated?

Primary risks for the EEFAX project could include technical obsolescence, cybersecurity threats, service disruptions, and potential vendor lock-in. Technical obsolescence is mitigated by the contract's five-year term, which is a reasonable lifecycle for such services, and the expectation that BISCOM INC will maintain an up-to-date platform. Cybersecurity risks are managed through standard federal security requirements and the firm-fixed-price contract, which incentivizes the vendor to maintain secure operations. Service disruptions are a concern, but the firm-fixed-price nature and the competitive award process suggest a focus on reliable service delivery. Vendor lock-in is a potential risk, but the competitive nature of the initial award and the possibility of future competition can help mitigate this.

What is the expected effectiveness of the EEFAX system in improving IRS communication efficiency and security?

The EEFAX system is expected to enhance IRS communication efficiency by providing a secure, digital alternative to traditional paper-based faxing. This transition can lead to faster document transmission, reduced manual handling, and improved record-keeping. Security is a key benefit, as electronic fax solutions can incorporate encryption and audit trails, which are vital for sensitive tax-related information. The effectiveness will depend on the system's integration with existing IRS workflows and its ability to handle the volume and complexity of communications. Successful implementation should streamline internal processes and potentially reduce operational costs associated with paper and manual faxing.

How has federal spending on enterprise communication solutions like EEFAX evolved over the past five years?

Federal spending on enterprise communication solutions has generally seen a trend towards modernization and digitalization. Agencies are increasingly moving away from legacy systems towards cloud-based platforms and integrated communication suites that offer enhanced security, scalability, and collaboration features. While specific data for 'enterprise electronic fax' might be niche, overall spending on IT infrastructure, software, and communication services has been substantial. There's a continuous push to adopt more secure and efficient digital tools to replace outdated methods, driven by requirements for better data management, cybersecurity, and operational efficiency. This EEFAX contract aligns with that broader trend of digital transformation within federal agencies.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 TECHNOLOGY PARK DR, WESTFORD, MA, 01886

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,190,181

Exercised Options: $3,181,202

Current Obligation: $3,181,202

Actual Outlays: $3,181,202

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F529GA

IDV Type: FSS

Timeline