Treasury's IRS awards $2.06M for ES Program Integration and Management Support to SD SOLUTIONS LLC

Contract Overview

Contract Amount: $2,064,490 ($2.1M)

Contractor: SD Solutions LLC

Awarding Agency: Department of the Treasury

Start Date: 2022-09-30

End Date: 2025-03-26

Contract Duration: 908 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ES PROGRAM INTEGRATION AND MANAGEMENT SUPPORT

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.1 million to SD SOLUTIONS LLC for work described as: ES PROGRAM INTEGRATION AND MANAGEMENT SUPPORT Key points: 1. Contract awarded as a purchase order, indicating a potentially smaller scale or specific need. 2. The contract duration of 908 days suggests a medium-term engagement for program support. 3. The fixed-price nature of the contract aims to control costs for the government. 4. The award is for custom computer programming services, a critical area for IRS operations. 5. The contract is not competitively procured, raising questions about potential value for money. 6. The small business status of the contractor is not specified, impacting set-aside analysis.

Value Assessment

Rating: fair

The contract value of $2.06 million for nearly three years of program integration and management support appears reasonable for specialized IT services. However, without a competitive bidding process, it is difficult to benchmark against market rates or determine if the government secured the best possible price. The fixed-price structure provides some cost certainty, but the lack of competition limits the ability to assess overall value for money compared to potentially lower bids from other qualified vendors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a sole-source justification, meaning it was not open to full and open competition. This approach is typically used when only one vendor possesses the unique capabilities or qualifications required for the specific service. The lack of multiple bidders means there was no direct price competition, which could lead to higher costs for the government than if the contract had been competed.

Taxpayer Impact: Taxpayers may not have received the most cost-effective solution due to the absence of competitive bidding. The government's ability to negotiate favorable terms is diminished without alternative offers.

Public Impact

The primary beneficiaries are the IRS's Enterprise Systems (ES) program, which will receive integration and management support. The services delivered are crucial for the efficient operation and modernization of IRS IT systems. The geographic impact is primarily within the IRS's operational footprint, likely supporting federal employees and contractors. Workforce implications include the potential for SD SOLUTIONS LLC to utilize skilled IT professionals, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source awards can limit opportunities for emerging or smaller businesses.
Performance risks are concentrated with a single vendor without competitive pressure.

Positive Signals

Fixed-price contract provides cost predictability.
Award to a single vendor can ensure continuity of specialized services.
Focus on program integration and management suggests alignment with IRS strategic goals.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the federal IT market. The federal government consistently spends billions annually on IT services, including custom programming, system integration, and IT management. This contract represents a small portion of that overall spending, focused on supporting a specific program within the Internal Revenue Service.

Small Business Impact

The provided data does not indicate if this contract was set aside for small businesses, nor does it specify subcontracting plans. Without this information, it's difficult to assess the impact on the small business ecosystem. Sole-source awards, in particular, may bypass opportunities for small business participation unless specifically structured to include them.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within the IRS. As a purchase order, it may have less formal oversight than larger, more complex contracts. Transparency is limited by the sole-source nature and the lack of publicly available performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IRS IT Modernization Programs
Federal Enterprise Systems Management
Custom Software Development Contracts
IT Program Management Support Services

Risk Flags

Sole-source award lacks competitive pricing pressure.
Limited public information on contractor's past performance.
Potential for vendor lock-in due to single-source nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.1 million to SD SOLUTIONS LLC. ES PROGRAM INTEGRATION AND MANAGEMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is SD SOLUTIONS 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 $2.1 million.

What is the period of performance?

Start: 2022-09-30. End: 2025-03-26.

What is the track record of SD SOLUTIONS LLC in performing similar federal contracts?

Information regarding SD SOLUTIONS LLC's specific track record with federal contracts is not detailed in the provided data. A comprehensive analysis would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar engagements. Without this, it's challenging to assess their capability and reliability for this specific program integration and management support role. Further investigation into federal procurement databases like SAM.gov or FPDS would be necessary to gauge their experience and performance history.

How does the pricing of this contract compare to similar IT support services awarded competitively?

Directly comparing the pricing of this sole-source contract to competitively awarded contracts is difficult without specific benchmarks. The total value of $2.06 million over approximately 30 months (908 days) translates to roughly $700,000 per year. To assess value, one would need to identify comparable contracts for IT program integration and management support services procured through full and open competition. Factors such as the specific scope of work, required expertise, and vendor qualifications would need to be matched. If competitive contracts for similar services are awarded at significantly lower rates, it would suggest that this sole-source award may not represent optimal value for taxpayer dollars.

What are the primary risks associated with a sole-source award for critical IT program support?

The primary risks associated with a sole-source award for critical IT program support include potential overpayment due to lack of price competition, limited vendor innovation driven by the absence of competitive pressure, and a higher risk of vendor lock-in. If SD SOLUTIONS LLC underperforms or faces challenges, the IRS has fewer immediate alternatives without initiating a new, potentially lengthy, sole-source justification process. Furthermore, the government may not benefit from the most efficient or cost-effective solutions that might have emerged from a competitive environment. Ensuring robust contract management and clear performance expectations becomes even more critical in sole-source scenarios.

What is the expected effectiveness of SD SOLUTIONS LLC in delivering ES Program Integration and Management Support?

The expected effectiveness of SD SOLUTIONS LLC hinges on their demonstrated capabilities and the clarity of the contract's performance work statement (PWS). As the contract is for custom computer programming services and program management, their success will depend on their technical expertise, project management skills, and understanding of the IRS's specific enterprise systems. Without prior performance data or competitive benchmarking, assessing their likely effectiveness is speculative. The IRS's internal oversight and performance monitoring will be crucial in ensuring that the program integration and management support meets the required standards and contributes to the overall goals of the ES program.

How does this contract's value and duration compare to historical IRS spending on similar IT services?

This contract, valued at $2.06 million over 908 days (approximately 2.5 years), represents a moderate investment for specialized IT program support within the IRS. Historical IRS spending on IT services is substantial, often in the billions annually, covering a wide range of needs from infrastructure to software development. Contracts for program integration and management support can vary significantly in value and duration. To provide a precise comparison, one would need to analyze past IRS procurements for similar services, looking at average contract values, lengths, and the number of bidders. This specific award appears to be a focused engagement rather than a large-scale, long-term IT overhaul.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8000 TOWERS CRESCENT DR STE 1700, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,778,995

Exercised Options: $2,064,490

Current Obligation: $2,064,490

Actual Outlays: $2,064,490

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline