Treasury's IRS awards $2.5M IFS Help Desk Support Services contract to Venturis LLC

Contract Overview

Contract Amount: $2,507,896 ($2.5M)

Contractor: Venturis LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-03-01

End Date: 2025-10-31

Contract Duration: 1,340 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IFS HELP DESK SUPPORT SERVICES

Place of Performance

Location: WALDORF, CHARLES County, MARYLAND, 20603

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.5 million to VENTURIS LLC for work described as: IFS HELP DESK SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery contract. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. The contract duration spans over three years, indicating a need for sustained support. 5. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services. 6. The contract is not set aside for small businesses.

Value Assessment

Rating: fair

The contract value of $2.5 million over approximately three years for help desk support services appears moderate. Benchmarking against similar IT support contracts is challenging without more specific service level agreements and scope details. However, the firm-fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the contractor performs efficiently. Further analysis would require comparing the per-incident or per-user support costs to industry averages for comparable government IT help desks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders suggests a reasonable level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used more efficiently by leveraging market forces to secure competitive pricing for essential IT support services.

Public Impact

Internal Revenue Service (IRS) employees will benefit from improved IT help desk support. The services delivered will ensure the smooth operation of critical IRS IT systems. The contract's primary geographic impact is within Maryland, where the services are likely performed or managed. The contract supports IT professionals and potentially creates or sustains jobs within the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the multi-year duration.
Dependence on a single contractor for critical IT support could pose a risk if performance falters.
Ensuring adequate performance metrics are met under the firm-fixed-price contract requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract aligns incentives for efficient service delivery.
Contract duration suggests a stable, long-term need for these services, allowing for specialized expertise development.

Sector Analysis

The IT services sector, particularly custom computer programming and IT support, is a significant area of federal spending. This contract for help desk support falls within the broader category of IT services, which includes a wide range of activities from software development to infrastructure management. Federal agencies consistently rely on contractors for specialized IT functions to maintain and upgrade their complex systems. The market for such services is competitive, with numerous firms vying for government contracts.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting goals for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the IRS. Performance monitoring, adherence to service level agreements, and invoice verification are key oversight functions. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IRS IT Support Services
Federal IT Help Desk Contracts
Custom Computer Programming Services
Department of the Treasury IT Contracts

Risk Flags

Performance Risk
Contractor Dependency
Scope Management

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.5 million to VENTURIS LLC. IFS HELP DESK SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is VENTURIS 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 $2.5 million.

What is the period of performance?

Start: 2022-03-01. End: 2025-10-31.

What is the historical spending pattern for IFS Help Desk Support Services at the IRS?

Analyzing historical spending for IFS Help Desk Support Services at the IRS requires access to detailed procurement data beyond this single award. Typically, agencies like the IRS issue multiple contracts over time for similar services, often through different contract vehicles or competitions. To understand the pattern, one would look at the total amount spent on help desk support over several fiscal years, identify the incumbent contractors, and note any significant fluctuations in spending. This contract, valued at approximately $2.5 million over its duration, represents a portion of the IRS's overall IT support expenditure. Without prior contract data for this specific service, it's difficult to establish a trend, but it suggests a consistent need for such support within the agency.

How does the pricing of this contract compare to similar IT help desk contracts awarded by other federal agencies?

Directly comparing the pricing of this $2.5 million contract to similar IT help desk contracts across federal agencies is challenging without detailed service level agreements (SLAs), scope of work, and labor categories. However, the firm-fixed-price (FFP) structure is a positive indicator for cost control, as it shifts the financial risk to the contractor. To benchmark effectively, one would need to analyze metrics such as cost per user, cost per ticket, or cost per support hour against industry standards and government-wide IT support contracts. Given that this was awarded under full and open competition with 6 bidders, the pricing is likely competitive within the market for similar services. Further investigation into the specific deliverables and performance metrics would be necessary for a precise value-for-money assessment.

What is Venturis LLC's track record with federal IT support contracts?

Assessing Venturis LLC's track record with federal IT support contracts requires a review of their past performance on similar engagements. This would involve examining contract databases (like FPDS or SAM.gov) for previous awards to Venturis LLC, particularly those involving help desk, IT support, or custom computer programming services. Key aspects to investigate include contract values, durations, agencies served, and any reported performance issues or accolades. A history of successful contract completion, positive past performance reviews, and experience with the specific requirements of the IRS would indicate a lower performance risk for this current contract. Conversely, a pattern of underperformance or contract disputes would raise concerns.

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

Potential risks for this contract include performance deficiencies by Venturis LLC, such as failing to meet service level agreements (SLAs) for response times or resolution rates, leading to disruptions in IRS operations. Another risk is potential cost overruns if the scope is not well-defined, although the firm-fixed-price (FFP) structure mitigates this for the government. Contractor dependency is also a risk; if Venturis struggles, the IRS could face challenges finding a replacement quickly. Mitigation strategies typically involve robust contract oversight by a Contracting Officer's Representative (COR), clear performance metrics and reporting requirements within the contract, regular performance reviews, and maintaining open communication channels with the contractor. The competitive award process itself also serves as a risk mitigation by selecting a contractor based on demonstrated capability and price.

How does this contract align with the IRS's broader IT modernization or support strategy?

This contract for IFS Help Desk Support Services directly aligns with the IRS's fundamental need to maintain and operate its vast IT infrastructure, which is crucial for tax administration. While not explicitly stated as a 'modernization' contract, reliable help desk support is a foundational element that enables other modernization efforts by ensuring end-users can effectively utilize existing and new systems. The IRS, like many large government agencies, relies heavily on external support for day-to-day IT operations to allow its internal staff to focus on strategic initiatives, including modernization. The duration and value suggest a sustained commitment to ensuring operational continuity and user support, which is a prerequisite for any successful IT strategy.

Industry Classification

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

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: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3200 CRAIN HWY STE 200, WALDORF, MD, 20603

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,507,896

Exercised Options: $2,507,896

Current Obligation: $2,507,896

Actual Outlays: $2,087,936

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA21D000W

IDV Type: FSS

Timeline