Treasury's IRS Awards $4.45M Task Order for Computer Systems Design Services to Applica Solutions, Inc

Contract Overview

Contract Amount: $4,448,581 ($4.4M)

Contractor: Applica Solutions, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2022-09-30

End Date: 2026-03-30

Contract Duration: 1,277 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IFS_PPS_BPA TO A TASK ORDER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.4 million to APPLICA SOLUTIONS, INC. for work described as: IFS_PPS_BPA TO A TASK ORDER Key points: 1. The contract is for computer systems design services, a critical area for the IRS. 2. Applica Solutions, Inc. is the awardee, with the contract type being a delivery order under a BPA. 3. The contract duration is over 3 years, indicating a significant, ongoing need. 4. The award was made under full and open competition after exclusion of sources. 5. The total award value is $4.45 million.

Value Assessment

Rating: good

The contract is a firm-fixed-price delivery order, which helps control costs. The per-unit cost is not directly calculable from the provided data, but the total value seems reasonable for the scope of computer systems design services over a multi-year period.

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, suggesting a competitive process was used to ensure fair pricing and access to qualified vendors. This method generally leads to better price discovery.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price for the services, minimizing unnecessary taxpayer expense.

Public Impact

Enhances IRS's technological infrastructure and operational efficiency. Supports critical tax administration functions through advanced IT solutions. Ensures continued development and maintenance of essential government systems. Potential for improved taxpayer services through modernized systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for scope creep in complex IT projects.
Dependence on a single vendor for critical IT services.

Positive Signals

Firm-fixed-price contract limits cost overruns.
Competitive award process suggests value for money.
Long-term duration indicates sustained need and potential for stable service delivery.

Sector Analysis

The IT services sector, particularly computer systems design, is crucial for government operations. Spending in this area is substantial, with agencies constantly seeking to modernize and secure their digital infrastructure. Benchmarks vary widely based on complexity and specific services.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-aside opportunities were considered or if the nature of the requirement precluded it.

Oversight & Accountability

The award is a delivery order under an existing BPA, suggesting prior oversight. The firm-fixed-price structure provides some cost control. Continued monitoring of performance and adherence to the contract scope will be essential for accountability.

Related Government Programs

Computer Systems Design Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Potential for vendor lock-in if not managed carefully.
Risk of scope creep leading to cost overruns.
Dependence on a single vendor for critical IT functions.
Challenges in measuring and verifying IT service performance.
Cybersecurity risks associated with sensitive IRS data.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.4 million to APPLICA SOLUTIONS, INC.. IFS_PPS_BPA TO A TASK ORDER

Who is the contractor on this award?

The obligated recipient is APPLICA 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 $4.4 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-03-30.

What specific computer systems design services are included in this task order, and how do they align with the IRS's strategic IT goals?

The task order likely encompasses a range of services such as system architecture, software development, integration, testing, and potentially IT infrastructure design. These services are crucial for modernizing the IRS's aging tax systems, enhancing cybersecurity, improving data analytics capabilities, and ultimately supporting more efficient tax administration and taxpayer services.

Given the competitive award, what is the expected return on investment for the IRS in terms of improved efficiency or cost savings from these IT services?

While a precise ROI is difficult to quantify without detailed performance metrics, the investment is expected to yield returns through increased operational efficiency, reduced manual processing, enhanced data accuracy, and improved cybersecurity posture. These improvements can translate into cost savings and better service delivery to taxpayers over the contract's lifespan.

How will the IRS ensure effective oversight and performance management of Applica Solutions, Inc. throughout the contract duration to mitigate risks associated with IT service delivery?

The IRS will likely employ a contract officer's representative (COR) to oversee daily performance, conduct regular progress reviews, and ensure adherence to the statement of work. Performance metrics, service level agreements (SLAs), and periodic reporting requirements will be key tools for monitoring and managing the vendor's effectiveness and mitigating potential risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8565 SUDLEY RD STE D, MANASSAS, VA, 20110

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

Financial Breakdown

Contract Ceiling: $4,448,581

Exercised Options: $4,448,581

Current Obligation: $4,448,581

Actual Outlays: $4,232,082

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCH18D0005

IDV Type: GWAC

Timeline