Treasury's $7.9M IT contract for custom programming awarded to YUDRIO INC, with 1,432 days duration

Contract Overview

Contract Amount: $7,930,356 ($7.9M)

Contractor: Yudrio Inc

Awarding Agency: Department of the Treasury

Start Date: 2023-01-06

End Date: 2026-12-08

Contract Duration: 1,432 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CALS RECOMPETE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $7.9 million to YUDRIO INC for work described as: CALS RECOMPETE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for custom computer programming services, a critical IT function. 3. The duration of over three years indicates a significant, long-term need for these services. 4. The firm-fixed-price contract type aims to control costs by setting a predetermined price. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. No small business set-aside was utilized, indicating the primary focus was on best value regardless of business size.

Value Assessment

Rating: fair

Benchmarking the value of this $7.9 million contract for custom computer programming services is challenging without specific performance metrics or comparable contract data. The firm-fixed-price structure is a positive indicator for cost control. However, the absence of detailed cost breakdowns or comparisons to similar government IT service contracts makes a definitive value assessment difficult. The duration of the contract (over three years) suggests a substantial investment, and its effectiveness will depend on the successful delivery of the custom programming solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it was a delivery order suggests it was likely competed as part of a larger IDIQ contract. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions by allowing a wide range of potential contractors to participate.

Public Impact

The primary beneficiaries are the Department of the Treasury and the Internal Revenue Service, who will receive custom computer programming services. These services are expected to support internal IT operations and potentially enhance the functionality of IRS systems. The contract's impact is primarily within the District of Columbia, where the agency is located. The contract may have implications for the IT workforce, potentially creating or sustaining jobs in custom software development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services delivered.
The duration of the contract (over three years) could lead to vendor lock-in if not managed carefully.
Without knowing the number of bidders, it's hard to confirm the extent of competition and its impact on pricing.
The contract is for custom programming, which inherently carries risks related to scope creep and changing requirements.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type helps in budget predictability and cost control.
The contract addresses a specific need for custom computer programming services, indicating a clear requirement.
The duration suggests a stable, long-term engagement which can foster expertise and efficiency.

Sector Analysis

The IT services sector, particularly custom computer programming, is a significant area of federal spending. This contract falls under the North American Industry Classification System (NAICS) code 541511. Federal agencies frequently procure these services to maintain and upgrade complex IT systems. Comparable spending benchmarks for custom programming services vary widely based on complexity, duration, and contractor expertise, but this $7.9 million contract represents a substantial investment for a single delivery order.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of specific subcontracting goals for small businesses. This suggests that the primary focus of the procurement was on obtaining the best overall value from any qualified source, rather than specifically promoting small business participation. The impact on the small business ecosystem is likely minimal unless YUDRIO INC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Treasury's Internal Revenue Service. Accountability measures are inherent in the firm-fixed-price contract type, requiring YUDRIO INC to deliver specified services within the agreed-upon budget. Transparency is facilitated by the contract award notice, but detailed performance reports or Inspector General involvement would depend on specific agency policies and any identified issues.

Related Government Programs

Custom Computer Programming Services
IT Services
Software Development Contracts
Federal IT Modernization Programs

Risk Flags

Potential for scope creep in custom programming.
Risk of vendor lock-in due to long contract duration.
Lack of detailed performance metrics for value assessment.
Uncertainty regarding the level of competition without bidder count.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $7.9 million to YUDRIO INC. CALS RECOMPETE

Who is the contractor on this award?

The obligated recipient is YUDRIO 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 $7.9 million.

What is the period of performance?

Start: 2023-01-06. End: 2026-12-08.

What is the track record of YUDRIO INC in performing similar federal IT contracts?

Assessing YUDRIO INC's track record requires a review of their past performance on federal contracts, particularly those involving custom computer programming services. Information on contract performance ratings, past issues, and successful project completions would be crucial. Without access to specific past performance evaluations or a detailed contract history, it is difficult to definitively gauge their reliability and capability. Agencies typically use past performance as a key evaluation factor in source selection, so a review of their award history and any publicly available performance data would provide insight into their suitability for this type of work.

How does the estimated value of this contract compare to similar custom programming contracts awarded by the IRS or Treasury?

Comparing the $7.9 million value of this contract to similar custom programming contracts requires access to a database of federal procurements. The IRS and Treasury often engage in IT procurements, and the value of custom programming can vary significantly based on project scope, duration, and complexity. A benchmark analysis would involve identifying contracts with similar NAICS codes (541511), contract types (firm-fixed-price), and durations (over three years) awarded by these agencies. Without such comparative data, it's challenging to determine if this contract's value is within the expected range for the services rendered.

What are the primary risks associated with a firm-fixed-price contract for custom programming services?

The primary risks associated with a firm-fixed-price contract for custom programming services often revolve around scope definition and potential for change orders. If the requirements are not clearly defined upfront, the contractor may face challenges in delivering the exact desired outcome, leading to disputes or costly modifications. For the government, the risk is that the fixed price may not adequately cover unforeseen complexities, potentially leading to subpar deliverables if the contractor cuts corners. Conversely, if the scope is underestimated by the contractor, they may incur losses. Effective risk mitigation involves detailed SOWs, robust change control processes, and clear communication.

How effective is the firm-fixed-price contract type in ensuring value for money in IT service procurements?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. It shifts the risk of cost overruns to the contractor, incentivizing them to manage their costs efficiently and deliver the agreed-upon services within the set price. For IT services, this can be advantageous for routine tasks or projects with clear specifications. However, for highly innovative or complex IT projects where requirements may evolve, an FFP contract can sometimes stifle innovation or lead to costly change requests if the initial scope was incomplete. Hybrid approaches or cost-plus contracts might be more suitable in such dynamic environments.

What historical spending patterns exist for custom computer programming services at the IRS?

Analyzing historical spending patterns for custom computer programming services at the IRS would involve examining procurement data over several fiscal years. This would reveal trends in contract values, types of services procured, dominant contractors, and the overall budget allocated to this category. Such an analysis could indicate whether spending has been increasing or decreasing, whether specific types of programming services are consistently in demand, and if there are patterns in how these contracts are competed (e.g., sole-source vs. competitive). Understanding these patterns can help in forecasting future needs and identifying potential areas for cost savings or efficiency improvements.

What is the potential impact of this contract's duration on the IRS's ability to adopt new technologies?

A contract duration of over three years for custom computer programming services can have a dual impact on the IRS's ability to adopt new technologies. On one hand, a stable, long-term contract can allow for deep integration and refinement of specific systems, potentially leading to greater efficiency and reliability. On the other hand, such a long commitment might create inertia, making it more challenging and costly to pivot to newer, more advanced technologies if the current contract's scope is rigid. The IRS would need to ensure that the contract's statement of work includes flexibility or provisions for incorporating emerging technologies, or that it is structured to allow for periodic reviews and potential adjustments.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 FORT EVANS RD NE, LEESBURG, VA, 20176

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

Financial Breakdown

Contract Ceiling: $10,350,257

Exercised Options: $10,350,257

Current Obligation: $7,930,356

Actual Outlays: $6,223,487

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F017CA

IDV Type: FSS

Timeline