IRS IT contract awarded to Eagle Harbor, LLC for $10.98M to provide acquisition and contract support services

Contract Overview

Contract Amount: $10,984,133 ($11.0M)

Contractor: Eagle Harbor, LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-09-29

End Date: 2025-08-14

Contract Duration: 1,050 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: LABOR HOURS

Sector: Other

Official Description: THIS ORDER WILL PROVIDE A WIDE RANGE OF PROFESSIONAL ACQUISITION AND CONTRACT SUPPORT SERVICES TO IRS INFORMATION TECHNOLOGY AND THEIR CUSTOMERS IN THE AREAS OF REQUIREMENTS DEVELOPMENT, ACQUISITION PLANNING, ACQUISITION TRACKING AND REPORTING, COMMU

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20703

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $11.0 million to EAGLE HARBOR, LLC for work described as: THIS ORDER WILL PROVIDE A WIDE RANGE OF PROFESSIONAL ACQUISITION AND CONTRACT SUPPORT SERVICES TO IRS INFORMATION TECHNOLOGY AND THEIR CUSTOMERS IN THE AREAS OF REQUIREMENTS DEVELOPMENT, ACQUISITION PLANNING, ACQUISITION TRACKING AND REPORTING, COMMU Key points: 1. The contract aims to bolster IT acquisition and contract support for the IRS, addressing critical needs in requirements development and planning. 2. Eagle Harbor, LLC, a small business, secured this delivery order, indicating potential for specialized expertise in IT support services. 3. The contract duration of 1050 days (approx. 3 years) suggests a need for sustained support in complex acquisition processes. 4. The contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' implies a competitive process but with specific source limitations. 5. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) suggests a focus on technical and engineering aspects of acquisition. 6. The contract is a Delivery Order, indicating it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract, allowing for task-specific execution.

Value Assessment

Rating: fair

The contract value of $10.98 million over approximately three years for acquisition and contract support services appears reasonable given the scope. However, without specific benchmarks for similar IRS IT support contracts or detailed breakdowns of labor hours and rates, a precise value-for-money assessment is challenging. The contract is a delivery order under a potentially larger IDIQ, making direct comparison difficult. The pricing structure is based on labor hours, which can be variable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded, suggesting a potentially limited pool of bidders. The specific reasons for exclusion are not detailed, but this approach can sometimes lead to less competitive pricing compared to truly full and open competition.

Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible prices that could have been achieved through a broader bidding process.

Public Impact

The primary beneficiaries are the IRS Information Technology department, which will receive enhanced support for its acquisition and contract management processes. Services delivered include requirements development, acquisition planning, and acquisition tracking and reporting, crucial for efficient IT project execution. The geographic impact is primarily within the IRS's operational centers, likely concentrated in areas where IT operations are managed. Workforce implications include the potential for Eagle Harbor, LLC to expand its team to meet the contract's demands, creating jobs in specialized acquisition and IT support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'EXCLUSION OF SOURCES' clause in the competition type warrants further investigation to understand the rationale and potential impact on competition.
Lack of detailed performance metrics or specific deliverables makes it difficult to assess the effectiveness and efficiency of the services provided.
The reliance on labor hours for pricing introduces potential for cost overruns if not managed diligently.

Positive Signals

Award to Eagle Harbor, LLC, a small business, supports federal goals for small business utilization.
The contract addresses critical IT acquisition support needs for a major federal agency, indicating a strategic investment.
The defined period of performance (over 1000 days) suggests a commitment to sustained improvement in IRS IT acquisition processes.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically focusing on acquisition and contract support for Information Technology. The federal IT services market is substantial, with agencies increasingly relying on external expertise for complex acquisition and program management. This contract aligns with the trend of outsourcing specialized support functions to enhance efficiency and leverage industry best practices. Comparable spending benchmarks would typically involve analyzing other IT support contracts awarded to small businesses within the federal government.

Small Business Impact

Eagle Harbor, LLC is identified as the contractor, and the contract is not explicitly set aside for small businesses, nor does it indicate subcontracting requirements. However, the award to a small business itself contributes to federal small business utilization goals. Further analysis would be needed to determine if this contract was part of a broader small business set-aside program or if Eagle Harbor, LLC was selected through a competitive process that included other small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program managers within the IRS Information Technology department. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS-NG, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

IRS IT Modernization Initiatives
Federal IT Acquisition Support Services
Department of the Treasury Contract Vehicles
Small Business IT Services Contracts

Risk Flags

Limited competition due to source exclusion.
Potential for cost overruns with labor-hour pricing.
Dependence on contractor performance for critical IT support.
Lack of detailed performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $11.0 million to EAGLE HARBOR, LLC. THIS ORDER WILL PROVIDE A WIDE RANGE OF PROFESSIONAL ACQUISITION AND CONTRACT SUPPORT SERVICES TO IRS INFORMATION TECHNOLOGY AND THEIR CUSTOMERS IN THE AREAS OF REQUIREMENTS DEVELOPMENT, ACQUISITION PLANNING, ACQUISITION TRACKING AND REPORTING, COMMU

Who is the contractor on this award?

The obligated recipient is EAGLE HARBOR, 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 $11.0 million.

What is the period of performance?

Start: 2022-09-29. End: 2025-08-14.

What is the track record of Eagle Harbor, LLC in providing similar IT acquisition and contract support services to federal agencies?

Assessing the track record of Eagle Harbor, LLC requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, contract types, agencies served, and performance evaluations. Specific details on their experience in requirements development, acquisition planning, and reporting for IT projects would be crucial. A positive track record would demonstrate their capability to successfully execute this current delivery order, while any past performance issues could indicate potential risks. Without direct access to detailed past performance reports, it's difficult to provide a definitive assessment, but the award itself suggests they met initial qualification criteria.

How does the awarded amount of $10.98 million compare to similar IT acquisition support contracts within the IRS or other federal agencies?

Comparing the $10.98 million contract value requires benchmarking against similar contracts for IT acquisition and contract support services. Factors to consider include the contract duration (1050 days), the specific services rendered (requirements development, planning, tracking, reporting), and the agency (IRS). If this contract is a delivery order under an IDIQ, its value is a portion of a larger vehicle, making direct comparison to standalone contracts challenging. Generally, federal IT support contracts can range significantly based on scope and complexity. A value of approximately $3.66 million per year for specialized IT acquisition support appears within a reasonable range for a large agency like the IRS, assuming the scope is comprehensive.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential cost overruns due to the labor-hour pricing model, performance issues if Eagle Harbor, LLC lacks sufficient expertise or resources, and challenges in adapting to the IRS's specific IT environment and evolving needs. Risks also stem from the 'EXCLUSION OF SOURCES' competition type, which might limit innovation or lead to suboptimal pricing. Mitigation strategies typically involve robust contract oversight by the IRS, clear performance metrics, regular progress reviews, and defined deliverables. The IRS contracting officer would be responsible for monitoring performance and addressing any deviations from the contract requirements. The limited competition aspect suggests a need for proactive management to ensure value.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring value for taxpayers in this specific contract?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring taxpayer value is mixed. While it allows for competition among a defined set of qualified sources, the exclusion of others inherently limits the breadth of competition. This can potentially lead to higher prices than if the competition were truly unrestricted. However, if the excluded sources were deemed unqualified or if the exclusion was based on specific technical requirements best met by the remaining bidders, it could lead to a more focused and potentially efficient selection process. The ultimate value to taxpayers depends on the rigor of the evaluation process for the included sources and the competitiveness within that narrowed pool.

What are the historical spending patterns for IT acquisition and contract support services at the IRS, and how does this contract fit within them?

Analyzing historical spending patterns for IT acquisition and contract support at the IRS would involve reviewing past contract awards for similar services over several fiscal years. This would reveal trends in contract values, types of services procured, and the contractors frequently utilized. This $10.98 million delivery order represents a specific investment in bolstering IT acquisition capabilities. Its fit within historical patterns would depend on whether IRS IT spending in this area has been consistent, increasing, or decreasing. Understanding these patterns helps contextualize the current award and assess if it aligns with strategic priorities or represents a significant shift in resource allocation for IT support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 13

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 2702 DENALI ST, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,984,133

Exercised Options: $10,984,133

Current Obligation: $10,984,133

Actual Outlays: $10,984,133

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD20D1021

IDV Type: IDC

Timeline