Treasury's IRS awards $3.1M contract for BMF DM Support to Purisole, Inc

Contract Overview

Contract Amount: $3,103,947 ($3.1M)

Contractor: Purisolve, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2022-08-20

End Date: 2026-08-19

Contract Duration: 1,460 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BMF DM SUPPORT

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.1 million to PURISOLVE, INC. for work described as: BMF DM SUPPORT Key points: 1. Contract value of $3.1M over 4 years. 2. Competition was full and open. 3. Risk appears low due to established vendor and fixed-price contract. 4. Sector is IT services, specifically custom computer programming.

Value Assessment

Rating: good

The contract value of $3.1M over four years for custom computer programming services appears reasonable. Benchmarking against similar contracts for IT support services suggests this pricing is within expected ranges, especially given the firm-fixed-price structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method likely resulted in competitive pricing for the services rendered.

Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive bidding process for essential IT support services.

Public Impact

Ensures continued support for the IRS's Business Master File (BMF) data management. Supports critical tax administration functions by maintaining vital IT systems. Potential for improved efficiency in IRS operations through dedicated support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition
Firm fixed price contract
Long-term support for critical IRS function

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Spending in this sector is substantial across government, with significant variation based on complexity and duration.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to compete or if set-asides were considered.

Oversight & Accountability

The award was a delivery order under a larger contract, suggesting existing oversight mechanisms. The firm-fixed-price nature provides cost control, but performance monitoring is crucial.

Related Government Programs

Custom Computer Programming Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Potential for vendor lock-in over the contract's duration.
Lack of small business participation noted.
Dependence on a single vendor for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.1 million to PURISOLVE, INC.. BMF DM SUPPORT

Who is the contractor on this award?

The obligated recipient is PURISOLVE, 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 $3.1 million.

What is the period of performance?

Start: 2022-08-20. End: 2026-08-19.

What specific BMF data management functions does this contract support?

This contract likely supports a range of critical functions related to the IRS's Business Master File (BMF), which contains information on all U.S. businesses. This could include data entry, validation, maintenance, system integration, and potentially custom development for enhancing BMF capabilities. The specific tasks would be detailed in the statement of work.

What are the potential risks associated with relying on a single vendor for this critical IT support?

While Purisole, Inc. won through full and open competition, long-term reliance on a single vendor can introduce risks such as vendor lock-in, potential price increases upon contract renewal, and reduced incentive for innovation if not managed contractually. Mitigating these risks requires strong performance management and regular market analysis.

How does the firm-fixed-price structure ensure cost-effectiveness for the IRS?

The firm-fixed-price (FFP) structure shifts the risk of cost overruns to the contractor, Purisole, Inc. The IRS pays a set price regardless of the contractor's actual costs. This encourages the contractor to manage their resources efficiently to maximize profit, thereby ensuring cost-effectiveness for the government, provided the scope is well-defined.

Industry Classification

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

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

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: 260 PEACHTREE ST NW, ATLANTA, GA, 30303

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

Financial Breakdown

Contract Ceiling: $4,335,134

Exercised Options: $3,107,474

Current Obligation: $3,103,947

Actual Outlays: $2,696,213

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0485W

IDV Type: FSS

Timeline