Treasury's IRS awards $23.2M contract for law enforcement telecommunications system to County of Santa Clara

Contract Overview

Contract Amount: $23,229 ($23.2K)

Contractor: County of Santa Clara

Awarding Agency: Department of the Treasury

Start Date: 2023-09-30

End Date: 2026-06-30

Contract Duration: 1,004 days

Daily Burn Rate: $23/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COUNTY OF SANTA CLARA, OFFICE OF THE SHERIFF, CALIFORNIA LAW ENFORCEMENT TELECOMMUNICATIONS SYSTEM (CLETS)

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $23,229.4 to COUNTY OF SANTA CLARA for work described as: COUNTY OF SANTA CLARA, OFFICE OF THE SHERIFF, CALIFORNIA LAW ENFORCEMENT TELECOMMUNICATIONS SYSTEM (CLETS) Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies and market competition. 2. The contract duration of approximately 2.8 years suggests a need for ongoing operational support for critical law enforcement data sharing. 3. The 'Other Computer Related Services' NAICS code indicates a focus on IT infrastructure and services, aligning with IRS modernization efforts. 4. The firm-fixed-price contract type aims to provide cost certainty for the government, but may limit flexibility for unforeseen technical challenges. 5. The absence of small business set-aside flags suggests the primary contractor is not a small business, with potential implications for subcontracting opportunities. 6. The contract's value, while significant, needs to be benchmarked against similar telecommunications system contracts to assess value for money.

Value Assessment

Rating: fair

The contract value of $23.2 million over its term appears reasonable for a specialized law enforcement telecommunications system. However, without direct comparisons to similar systems procured by other agencies or jurisdictions, a definitive value-for-money assessment is challenging. The firm-fixed-price structure provides cost predictability, but the lack of competition limits the opportunity for price discovery and potential savings that might be achieved through a more open bidding process. Benchmarking against industry standards for similar IT services would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific vendor possesses unique capabilities or when there is a compelling justification for not seeking competition. The lack of competition means that the IRS did not benefit from a range of proposals and pricing strategies that could have emerged from an open bidding process. This can sometimes lead to higher prices than might be achieved in a competitive environment.

Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of achieving the lowest possible price through competitive bidding. While the firm-fixed-price contract offers some cost certainty, the absence of competition limits the government's ability to leverage market forces for cost savings.

Public Impact

The primary beneficiaries are law enforcement agencies utilizing the California Law Enforcement Telecommunications System (CLETS). The contract ensures the continued operation and maintenance of a critical telecommunications system for data sharing among law enforcement entities. The geographic impact is primarily within California, supporting state and local law enforcement operations. The contract supports the IT infrastructure and services necessary for the functioning of law enforcement communication networks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially impacting cost-effectiveness.
Lack of transparency in the procurement process due to sole-source nature.
Dependence on a single provider for a critical system could pose risks if performance issues arise.

Positive Signals

Firm-fixed-price contract provides budget certainty for the IRS.
The contractor, County of Santa Clara, Office of the Sheriff, has direct experience with the CLETS system.
The contract duration allows for stable service delivery over a defined period.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive. This contract falls under the 'Other Computer Related Services' NAICS code (541519), which encompasses a broad range of IT support and consulting. Government spending in this area is substantial, driven by the need for modernization, cybersecurity, and efficient data management. Benchmarks for similar IT service contracts often vary widely based on scope, duration, and complexity, but a $23.2 million award over nearly three years for a specialized system suggests a significant investment in maintaining critical infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary focus of this award was on the capabilities of the awarded entity, the County of Santa Clara, Office of the Sheriff. Consequently, there may be limited direct opportunities for small businesses to participate in fulfilling this specific contract, unless they are identified as subcontractors by the prime awardee.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury and the Internal Revenue Service. As a definitive contract, it is subject to standard government procurement regulations and oversight mechanisms. Transparency is limited due to the sole-source nature of the award. Accountability measures would be defined within the contract's terms and conditions, including performance standards and payment schedules. Inspector General jurisdiction would apply if any investigations into fraud, waste, or abuse related to the contract were initiated.

Related Government Programs

Law Enforcement Information Sharing Programs
Criminal Justice Information Services
State and Local Government IT Support Contracts
Federal Law Enforcement Technology Initiatives

Risk Flags

Sole-source award may limit price competition.
Lack of detailed performance metrics in the provided data.
Potential for vendor lock-in due to specialized system.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $23,229.4 to COUNTY OF SANTA CLARA. COUNTY OF SANTA CLARA, OFFICE OF THE SHERIFF, CALIFORNIA LAW ENFORCEMENT TELECOMMUNICATIONS SYSTEM (CLETS)

Who is the contractor on this award?

The obligated recipient is COUNTY OF SANTA CLARA.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $23,229.4.

What is the period of performance?

Start: 2023-09-30. End: 2026-06-30.

What is the track record of the County of Santa Clara, Office of the Sheriff, in managing and delivering similar telecommunications services to government entities?

The County of Santa Clara, Office of the Sheriff, is the entity responsible for the California Law Enforcement Telecommunications System (CLETS). This implies they have direct operational experience and likely a strong understanding of the system's requirements. However, their track record as a direct federal contractor for such services, particularly to an agency outside of California law enforcement, is not detailed in the provided data. Further investigation would be needed to assess their performance history on federal contracts, including adherence to federal procurement regulations, service level agreements, and financial management, beyond their role in operating CLETS for state and local agencies.

How does the $23.2 million contract value compare to similar law enforcement telecommunications systems procured by federal agencies?

Benchmarking this $23.2 million contract value against similar federal procurements is challenging without more specific data on the scope and services included. Law enforcement telecommunications systems can vary significantly in complexity, user base, and technological features. Contracts for nationwide systems or those involving advanced data analytics and cybersecurity measures could command higher values. Conversely, smaller, regional systems might be procured at lower costs. Given this is a sole-source award to a county sheriff's office, it may represent a unique arrangement rather than a standard market procurement, making direct comparisons difficult. A comprehensive analysis would require identifying comparable systems and their contract values, considering factors like duration, number of users, and included functionalities.

What are the primary risks associated with awarding a sole-source contract for a critical IT system like CLETS?

The primary risks associated with a sole-source award for a critical IT system like CLETS include a lack of competitive pricing, potentially leading to higher costs for the government and taxpayers. Without competition, there is less incentive for the contractor to innovate or offer the most cost-effective solutions. Furthermore, sole-source contracts can reduce transparency in the procurement process and may limit the government's leverage in negotiating terms and conditions. There's also a risk of vendor lock-in, where the government becomes heavily reliant on a single provider, making it difficult and costly to switch vendors in the future if performance issues arise or better alternatives become available.

What is the expected effectiveness of this contract in supporting the IRS's mission and operational needs?

The effectiveness of this contract hinges on the County of Santa Clara's ability to maintain and support the California Law Enforcement Telecommunications System (CLETS) to meet the IRS's specific operational needs. CLETS is a vital system for law enforcement information exchange. If the IRS requires access to or integration with this system for its law enforcement-related functions (e.g., investigations, asset forfeiture), then the contract's effectiveness will be measured by the reliability, security, and accessibility of the CLETS data and services provided. The firm-fixed-price structure suggests a focus on delivering defined services, but the ultimate effectiveness will depend on the contractor's performance and the system's alignment with IRS requirements.

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

The provided data does not include historical spending patterns for the IRS on similar IT services, making a direct comparison impossible. The IRS, like other large federal agencies, spends billions annually on IT services, encompassing a wide range of needs from infrastructure maintenance and software development to cybersecurity and data analytics. To assess this contract's value in context, one would need to analyze the IRS's past expenditures on telecommunications systems, law enforcement data sharing platforms, or outsourced IT support services. Understanding the trend in IRS IT spending, including the proportion allocated to sole-source versus competitively awarded contracts, would provide valuable perspective.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 55 W YOUNGER AVE, SAN JOSE, CA, 95110

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $57,154

Exercised Options: $23,229

Current Obligation: $23,229

Actual Outlays: $11,036

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline