Treasury's IRS renews InfoScale software support for $8.56M, extending a 2022 contract

Contract Overview

Contract Amount: $8,560,558 ($8.6M)

Contractor: Government Acquisitions Inc

Awarding Agency: Department of the Treasury

Start Date: 2022-12-30

End Date: 2026-12-18

Contract Duration: 1,449 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VERIFIED SUPPORT 12 MONTHS RENEWAL FOR INFOSCALE ENTERPRISE XPLAT 1 CORE PLUS

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38118

State: Tennessee Government Spending

Plain-Language Summary

Department of the Treasury obligated $8.6 million to GOVERNMENT ACQUISITIONS INC for work described as: VERIFIED SUPPORT 12 MONTHS RENEWAL FOR INFOSCALE ENTERPRISE XPLAT 1 CORE PLUS Key points: 1. Value for money hinges on the continued necessity and effectiveness of the InfoScale software for IRS operations. 2. Competition dynamics indicate a full and open competition after exclusion of sources, suggesting a deliberate process to ensure fair pricing. 3. Risk indicators include potential vendor lock-in and the ongoing need for specialized software support. 4. Performance context is tied to the IRS's reliance on this software for critical functions. 5. Sector positioning places this contract within the broader IT services and software maintenance market for government agencies.

Value Assessment

Rating: fair

The contract's value is benchmarked against the renewal of an existing service, implying a known cost structure. Without direct comparisons to similar software support contracts or detailed breakdowns of the renewal costs, a precise value-for-money assessment is challenging. The price appears consistent with enterprise-level software maintenance, but further analysis of the specific services and support levels would be needed for a definitive judgment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition after exclusion of sources' clause. This suggests that while the initial procurement might have had some limitations or specific requirements that excluded certain vendors, the subsequent renewal was opened to all eligible bidders. The number of bidders is not specified, but the 'full and open' nature implies a competitive process aimed at achieving fair market prices.

Taxpayer Impact: The competitive nature of this award, even with an initial exclusion of sources, is intended to provide taxpayers with assurance that the government is seeking the best possible price for essential software support.

Public Impact

The Internal Revenue Service (IRS) benefits from continued access to critical software. Essential IT services supporting tax administration and data management are delivered. The geographic impact is national, supporting IRS operations across the United States. Workforce implications include ensuring IT staff have the necessary tools and support to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs in future renewals if competition is not maintained.
Dependence on a single software vendor for critical operational capabilities.
Risk of performance degradation if support levels are not adequately met.

Positive Signals

Renewal indicates satisfaction with current software performance and support.
Full and open competition suggests a structured procurement process.
Firm Fixed Price contract provides cost certainty for the duration.

Sector Analysis

This contract falls within the Information Technology sector, specifically software maintenance and support services. The market for enterprise software licenses and support is substantial, with government agencies being significant consumers. Comparable spending benchmarks would involve analyzing other large federal contracts for similar enterprise software suites, considering factors like user base, criticality of function, and vendor pricing models.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this specific contract. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. Future procurements or related contracts might offer opportunities for small businesses in IT services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's Inspector General and relevant agency contracting officers. Accountability measures are embedded in the Firm Fixed Price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is facilitated through contract databases like FPDS, where such awards are reported.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian Agency Software Procurement
Enterprise Software Licensing and Support
IT Services for Tax Administration

Risk Flags

Potential for vendor lock-in
Reliance on specialized software
Long-term contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $8.6 million to GOVERNMENT ACQUISITIONS INC. VERIFIED SUPPORT 12 MONTHS RENEWAL FOR INFOSCALE ENTERPRISE XPLAT 1 CORE PLUS

Who is the contractor on this award?

The obligated recipient is GOVERNMENT ACQUISITIONS 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 $8.6 million.

What is the period of performance?

Start: 2022-12-30. End: 2026-12-18.

What is the historical spending trend for this specific software support contract with the IRS?

The provided data indicates a renewal for a 12-month period starting from the delivery order date of December 30, 2022, extending to December 18, 2026, with a total value of $8,560,558.09. This suggests a significant, multi-year commitment. To understand the historical trend, one would need to examine prior contract awards for the same software (InfoScale Enterprise XPLAT) by the IRS or other agencies. This would involve searching federal procurement databases for previous contract durations, values, and any changes in pricing or scope over time. Without this historical data, it's difficult to ascertain if the current renewal represents an increase, decrease, or stable spending pattern relative to past expenditures.

How does the per-unit cost of this InfoScale software support compare to market rates or similar government contracts?

Determining a precise per-unit cost is challenging without knowing the exact number of 'cores' or specific modules covered by the $8.56 million renewal. The data mentions '1 CORE PLUS,' but this likely refers to a specific licensing tier or package rather than a quantifiable unit for broad comparison. To benchmark, one would need to identify comparable government contracts for InfoScale or similar enterprise data management software, looking at the number of units (e.g., cores, users, servers) supported and the total contract value. Additionally, comparing against commercial price lists or negotiated enterprise agreements from the vendor (if publicly available or obtainable through market research) would provide further context. Given the specialized nature of enterprise software and the government's procurement scale, direct comparisons can be complex.

What specific risks are associated with the IRS's reliance on this particular software and its vendor?

The primary risks associated with the IRS's reliance on InfoScale software and its vendor include vendor lock-in, where switching to a different solution becomes prohibitively expensive or complex. There's also the risk of price increases in future renewals, especially if competition diminishes or the vendor faces increased costs. Performance risks exist if the vendor fails to provide adequate support, leading to system downtime or degraded functionality, which could impact critical IRS operations. Furthermore, security vulnerabilities within the software could pose a risk if not promptly addressed by the vendor through patches and updates. The long-term viability and strategic direction of the vendor itself could also present a risk.

What is the track record of 'GOVERNMENT ACQUISITIONS INC' in providing similar IT services to federal agencies?

The provided data identifies 'GOVERNMENT ACQUISITIONS INC' as the contractor. To assess their track record, a review of their past performance on federal contracts, particularly those involving IT services, software maintenance, and support for agencies like the IRS, would be necessary. This would involve examining contract databases for previous awards, contract values, performance evaluations (if available), and any reported issues or successes. Understanding their experience with similar software platforms and their ability to meet delivery timelines, quality standards, and budgetary constraints is crucial. A positive track record would indicate reliability and competence, while a history of performance issues or contract disputes would raise concerns.

How does the duration and value of this contract align with typical IT support contracts for enterprise software within the federal government?

This contract has a duration of approximately 1449 days (roughly 4 years) and a value of $8.56 million. Enterprise software support contracts within the federal government often span multiple years due to the complexity and cost of implementing and maintaining such systems. Values can vary significantly based on the software's criticality, user base, and the vendor's pricing structure. A $8.56 million contract over four years for enterprise software support is within a reasonable range for a large agency like the IRS, especially if it covers a widely used or critical platform. Benchmarking against similar contracts for comparable software (e.g., database management, operating systems, middleware) would provide a clearer picture of whether this represents standard, high, or low spending for its scope.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2060 READING ROAD, CINCINNATI, OH, 45202

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

Financial Breakdown

Contract Ceiling: $8,560,558

Exercised Options: $8,560,558

Current Obligation: $8,560,558

Actual Outlays: $8,560,558

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD23B

IDV Type: GWAC

Timeline