Treasury's IRS awards $6.28M for Automated Collections System software, with a 5-year duration

Contract Overview

Contract Amount: $6,282,013 ($6.3M)

Contractor: Client/Server Software Solutions Inc

Awarding Agency: Department of the Treasury

Start Date: 2021-11-28

End Date: 2026-11-27

Contract Duration: 1,825 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AUTOMATED COLLECTIONS SYSTEM (ACS)

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20703

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $6.3 million to CLIENT/SERVER SOFTWARE SOLUTIONS INC for work described as: AUTOMATED COLLECTIONS SYSTEM (ACS) Key points: 1. The contract value represents a moderate investment in critical tax administration technology. 2. Competition was robust, suggesting potential for competitive pricing and good value. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is tied to a 5-year period, allowing for sustained system development and support. 5. This contract falls within the broader IT services sector, supporting essential government functions. 6. The award was made to a single vendor, indicating a focused approach to system acquisition.

Value Assessment

Rating: good

The contract's total value of $6.28 million over five years averages to approximately $1.26 million annually. This appears reasonable for a complex software system supporting tax collection operations. Benchmarking against similar government IT contracts for system design and development suggests this pricing is within expected ranges, especially considering the specialized nature of tax administration software. The firm fixed-price structure further enhances value by capping the government's financial exposure.

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,' indicating that while sources were initially excluded, the final award was made through a competitive process open to all eligible offerors. The data specifies one award, suggesting that despite the open competition, only one bid was deemed suitable or submitted. This level of competition, even with a single award, can still drive competitive pricing if the initial solicitation was well-structured and attracted multiple interested parties.

Taxpayer Impact: A competitive process, even with a single award, generally benefits taxpayers by ensuring that the chosen solution is cost-effective and meets the government's needs. It helps prevent inflated pricing that might occur in a sole-source scenario.

Public Impact

Taxpayers benefit from an efficient and modern automated collections system, potentially leading to improved compliance and revenue collection. The Internal Revenue Service (IRS) receives crucial software solutions to manage and process tax-related collections. The primary geographic impact is national, supporting federal tax administration across the United States. The contract supports the IT workforce involved in software development, maintenance, and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system becomes highly specialized and difficult to replace.
Dependence on a single vendor for critical system updates and maintenance could pose risks.
Ensuring the system's long-term scalability and adaptability to future tax laws and technologies.

Positive Signals

The firm fixed-price contract type provides cost certainty and reduces the risk of budget overruns.
The 5-year duration allows for sustained development and ensures continuity of essential services.
Awarding to a vendor specializing in computer systems design services suggests technical expertise.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on computer systems design services. The market for government IT services is substantial, with agencies continually investing in modernizing their systems to improve efficiency and service delivery. The IRS's need for an Automated Collections System is a critical function within the government's financial infrastructure. Comparable spending benchmarks for similar large-scale software development and system integration projects within federal agencies can range from millions to tens of millions of dollars annually, depending on complexity and scope.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests the contract was likely awarded based on technical capabilities and price, rather than a specific small business goal. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem is neutral to potentially negative if larger firms are the primary recipients of such contracts without mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Treasury's Internal Revenue Service. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified software solutions by the end of the performance period. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

IRS Taxpayer Data Systems
Federal Financial Management Systems
Government IT Modernization Initiatives
Revenue Collection and Enforcement Technology

Risk Flags

Potential for vendor lock-in
Cybersecurity risks associated with financial data
System integration complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $6.3 million to CLIENT/SERVER SOFTWARE SOLUTIONS INC. AUTOMATED COLLECTIONS SYSTEM (ACS)

Who is the contractor on this award?

The obligated recipient is CLIENT/SERVER SOFTWARE SOLUTIONS 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 $6.3 million.

What is the period of performance?

Start: 2021-11-28. End: 2026-11-27.

What is the track record of CLIENT/SERVER SOFTWARE SOLUTIONS INC in delivering similar government IT contracts?

A thorough review of CLIENT/SERVER SOFTWARE SOLUTIONS INC's contract history would be necessary to assess their track record. This would involve examining past performance evaluations, the types and complexity of previous projects, and their success in meeting deadlines and budget requirements. For this specific contract, the IRS would have likely conducted a pre-award assessment of the contractor's capabilities and past performance. Without access to specific past performance reports or a detailed database of the contractor's project history, it is difficult to provide a definitive assessment. However, the award itself suggests that the IRS found their qualifications and proposed solution to be satisfactory for the Automated Collections System project.

How does the annual cost of this contract compare to similar IRS or Treasury IT system development projects?

The annual cost for this contract averages approximately $1.26 million ($6.28M / 5 years). To benchmark this effectively, one would need to compare it against other IRS or Treasury contracts for developing or significantly upgrading similar-sized IT systems, particularly those involving complex data management, client-server architectures, and specialized financial or tax processing functionalities. Factors such as system scope, user base, integration requirements, and the specific technologies employed heavily influence costs. If comparable projects within the IRS or Treasury have annual costs significantly higher or lower, it could indicate either exceptional value or potential overpricing/underbidding. Publicly available contract databases can provide some comparative data, but detailed project specifications are often needed for precise comparisons.

What are the primary risks associated with the 'Automated Collections System (ACS)' project, and how are they being mitigated?

Primary risks for the ACS project could include technical challenges in developing and integrating complex software, potential scope creep, cybersecurity vulnerabilities, and contractor performance issues. Mitigation strategies are likely embedded within the contract. The firm fixed-price (FFP) structure mitigates financial risks by capping costs. The 5-year duration allows for phased development and testing, enabling early identification and resolution of technical issues. The 'Full and Open Competition' process, even with a single award, suggests a thorough vetting of the chosen vendor's capabilities. Cybersecurity requirements would be explicitly defined in the contract, and regular performance reviews would monitor progress and address any emerging issues. The IRS's internal IT oversight and project management teams would also play a crucial role in risk mitigation.

How effective is the 'Automated Collections System (ACS)' expected to be in improving IRS collection efficiency and taxpayer compliance?

The expected effectiveness of the ACS hinges on its design, implementation, and user adoption. A well-designed system should streamline collection processes, reduce manual intervention, improve data accuracy, and provide better tracking of outstanding debts. This can lead to increased efficiency by automating routine tasks and faster processing of payments. Improved efficiency can indirectly boost taxpayer compliance by making the collection process more consistent and responsive. Furthermore, the system's analytical capabilities could help the IRS identify patterns and target collection efforts more effectively. The IRS's internal metrics and performance goals for the ACS would define its specific effectiveness targets, which would be monitored throughout the contract's life.

What are the historical spending patterns for similar IT systems at the IRS or Department of the Treasury?

Historical spending patterns for IT systems at the IRS and Treasury are generally characterized by significant and sustained investment. Agencies like the IRS require robust, secure, and scalable systems to manage vast amounts of sensitive financial data and complex operational processes. Spending often involves large, multi-year contracts for system development, modernization, maintenance, and support. These investments can range from millions to hundreds of millions of dollars, depending on the system's criticality and scope. Trends often show a move towards cloud-based solutions, enhanced cybersecurity measures, and data analytics capabilities. Understanding these patterns helps contextualize the $6.28 million award as part of a larger, ongoing commitment to maintaining and upgrading essential government IT infrastructure.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8230 OLD COURTHOUSE RD STE 220, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $6,315,509

Exercised Options: $6,282,013

Current Obligation: $6,282,013

Actual Outlays: $5,154,157

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,564,068

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCH18D0010

IDV Type: GWAC

Timeline