Treasury's IRS Awards $53.1M for IOLA Support to Deloitte, Utilizing Full and Open Competition

Contract Overview

Contract Amount: $53,102,445 ($53.1M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of the Treasury

Start Date: 2023-05-18

End Date: 2024-11-17

Contract Duration: 549 days

Daily Burn Rate: $96.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS IS A NEW TASK ORDER FOR INDIVIDUAL ONLINE ACCOUNT (IOLA) SUPPORT SERVICES UNDER THE WEB APPS BRIDGE BPA

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $53.1 million to DELOITTE CONSULTING LLP for work described as: THIS IS A NEW TASK ORDER FOR INDIVIDUAL ONLINE ACCOUNT (IOLA) SUPPORT SERVICES UNDER THE WEB APPS BRIDGE BPA Key points: 1. Significant contract value for IT support services. 2. Deloitte Consulting LLP is the awardee. 3. Competition method is full and open, suggesting potential for competitive pricing. 4. The sector is administrative management and general management consulting services, often IT-related. 5. Risk is moderate due to contract duration and fixed-price nature.

Value Assessment

Rating: good

The contract value of $53.1M over 18 months for specialized IT support appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a broad range of qualified vendors to bid. This method is expected to yield fair market value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure services at the best possible price for the government.

Public Impact

Ensures continued operation and support for the IRS's Individual Online Account (IOLA) system. Supports critical taxpayer services by maintaining essential online account functionalities. Potential for improved user experience and data security through ongoing support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 549 days.
Reliance on a single vendor for critical support.
Potential for scope creep in IT support services.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type.
Supports essential IRS taxpayer services.

Sector Analysis

This contract falls under administrative management and general management consulting services, a broad category often encompassing IT support and system maintenance. Spending in this area is substantial across federal agencies, with IT services being a major component.

Small Business Impact

The data indicates this was a large contract awarded to a single entity, Deloitte Consulting LLP. There is no explicit mention of small business participation in this specific award, suggesting it may not have been a primary focus or was subcontracted.

Oversight & Accountability

The award was made under a Blanket Purchase Agreement (BPA), which implies some level of pre-negotiated terms. Further oversight would involve monitoring performance against the contract's objectives and ensuring adherence to the firm fixed price.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Contract duration.
Potential for single-vendor dependency.
Complexity of IT support services.
Firm Fixed Price may limit flexibility for unforeseen issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $53.1 million to DELOITTE CONSULTING LLP. THIS IS A NEW TASK ORDER FOR INDIVIDUAL ONLINE ACCOUNT (IOLA) SUPPORT SERVICES UNDER THE WEB APPS BRIDGE BPA

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $53.1 million.

What is the period of performance?

Start: 2023-05-18. End: 2024-11-17.

What is the specific scope of 'IOLA Support Services' and how does it align with IRS's digital transformation goals?

IOLA support services likely encompass maintenance, troubleshooting, and potential enhancements for the Individual Online Account portal. This aligns with IRS goals by ensuring a stable and functional platform for taxpayers to manage their accounts, file taxes, and access information, thereby supporting digital engagement and service delivery.

What are the key performance indicators (KPIs) for this contract to ensure effective service delivery and value for money?

Key performance indicators should include system uptime percentages, response times for issue resolution, user satisfaction ratings, and adherence to security protocols. Effective monitoring of these KPIs will ensure the contractor delivers high-quality support, maintains system integrity, and provides demonstrable value for the $53.1 million investment.

How will the IRS ensure continued innovation and prevent vendor lock-in with Deloitte for IOLA support over the long term?

The IRS can mitigate long-term vendor lock-in by clearly defining contract deliverables and performance standards, encouraging knowledge transfer, and periodically reviewing the market for alternative solutions. Regular performance reviews and potentially incorporating clauses for future competition or technology refresh will be crucial.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: 1919 N LYNN ST, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $55,181,913

Exercised Options: $55,181,913

Current Obligation: $53,102,445

Actual Outlays: $53,102,445

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $6,004,775

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA18D001P

IDV Type: FSS

Timeline