IRS awards $2.38M contract for custom computer programming services to PURISOLVE, INC

Contract Overview

Contract Amount: $2,384,992 ($2.4M)

Contractor: Purisolve, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2023-05-12

End Date: 2026-05-14

Contract Duration: 1,098 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BUSINESS MASTER FILE - BASE PLUS 4 OPTION YEARS

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20703

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.4 million to PURISOLVE, INC. for work described as: BUSINESS MASTER FILE - BASE PLUS 4 OPTION YEARS Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract has a duration of 1098 days, spanning over three years. 3. Competition was full and open, suggesting a potentially competitive bidding process. 4. The contract is for custom computer programming services, a critical IT function. 5. The award is a delivery order under a larger master contract. 6. The contractor, PURISOLVE, INC., is based in Maryland.

Value Assessment

Rating: good

The contract's firm-fixed-price structure provides cost certainty for the IRS. Benchmarking against similar custom computer programming services contracts is difficult without more specific service details. However, the total award value of approximately $2.38 million over three years suggests a moderate investment for specialized IT support. The value appears reasonable given the duration and the nature of custom programming, which can be complex and resource-intensive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates there were 3 bids received. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives efficiency and cost-effectiveness by encouraging multiple vendors to offer their best pricing and solutions.

Public Impact

The Internal Revenue Service (IRS) is the primary beneficiary, receiving custom computer programming services. These services are crucial for maintaining and potentially enhancing IRS IT systems. The geographic impact is primarily within the IRS's operational sphere, likely supporting federal tax administration. The contract supports the IT workforce by engaging a specialized service provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the custom solutions are highly proprietary.
Dependence on a single contractor for critical custom programming could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Long-term contract duration allows for sustained development and support.

Sector Analysis

The Information Technology sector, specifically custom computer programming services (NAICS 541511), is a vital component of government operations. This contract fits within the broader IT services market, which is characterized by rapid innovation and a constant need for specialized skills. Government spending in this area supports everything from core infrastructure to advanced data analytics and cybersecurity. Comparable spending benchmarks would depend on the specific complexity and scope of the custom programming required by the IRS.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The lack of a small business set-aside means opportunities for small businesses to directly participate in this specific contract are limited, though they may be involved in the broader IT ecosystem supporting the IRS.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within the IRS. The firm-fixed-price nature of the contract provides a degree of financial oversight by fixing costs. Transparency is generally maintained through contract award databases like FPDS. Specific accountability measures would be detailed in the contract's statement of work and performance standards. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IRS IT Modernization Programs
Custom Software Development Contracts
Federal IT Services Procurement
Tax System Modernization Initiatives

Risk Flags

Potential for vendor lock-in
Dependence on contractor performance
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.4 million to PURISOLVE, INC.. BUSINESS MASTER FILE - BASE PLUS 4 OPTION YEARS

Who is the contractor on this award?

The obligated recipient is PURISOLVE, 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 $2.4 million.

What is the period of performance?

Start: 2023-05-12. End: 2026-05-14.

What is the track record of PURISOLVE, INC. with federal contracts, particularly for custom computer programming?

Information regarding PURISOLVE, INC.'s specific track record with federal contracts, especially for custom computer programming services, is not detailed in the provided data. A comprehensive analysis would require examining their past performance on similar contracts, including client satisfaction, adherence to timelines, and budget management. Reviewing contract databases and past performance evaluations would offer deeper insights into their capabilities and reliability as a federal contractor. Without this specific historical data, it's challenging to definitively assess their proven experience in delivering complex custom programming solutions for government agencies.

How does the pricing of this contract compare to similar custom computer programming services awarded by the government?

Direct comparison of pricing for this contract is challenging without detailed service specifications and market rates for comparable custom programming projects. The provided data indicates a firm-fixed-price contract totaling approximately $2.38 million over 1098 days. To benchmark effectively, one would need to analyze the scope of work, the complexity of the programming required, the skill sets involved, and the duration. Comparing the average hourly rates or project costs for similar NAICS code contracts (541511) awarded by agencies like the IRS or other large federal bodies would provide a more robust assessment of value for money. The current data suggests a moderate investment over a significant period.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep, contractor underperformance, and the possibility of the custom solution not meeting evolving IRS requirements. Mitigation strategies likely involve a well-defined statement of work, clear performance metrics, regular progress reviews, and strong contract management by the IRS. The firm-fixed-price structure helps mitigate cost overrun risks, provided the scope is well-managed. Dependence on a single vendor for critical custom development also presents a risk, which could be addressed through knowledge transfer clauses or contingency planning. The full and open competition suggests a thorough vetting of potential risks during the selection phase.

How effective is the IRS in managing custom computer programming contracts to ensure successful outcomes?

The effectiveness of the IRS in managing custom computer programming contracts can be assessed by examining their historical success rates, the quality of delivered systems, and their ability to adapt to technological changes. Factors contributing to effectiveness include robust procurement processes, skilled contract officers and technical evaluators, and clear communication channels with contractors. The IRS's extensive IT infrastructure suggests they have experience managing complex software development. However, the success of any specific contract, including this one, depends on the detailed execution of management and oversight protocols, adherence to best practices in agile development or waterfall methodologies as applicable, and proactive risk management throughout the contract lifecycle.

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

Analyzing historical spending patterns for custom computer programming services at the IRS would reveal trends in IT investment, technology adoption, and contractor reliance. This involves examining annual expenditures on NAICS code 541511 and related services over several fiscal years. Such an analysis could highlight periods of increased investment, perhaps driven by modernization efforts or specific system upgrades. It would also show which types of contracts (e.g., fixed-price, time-and-materials) have been most common and the typical duration and value of these engagements. Understanding these patterns provides context for the current $2.38 million award, indicating whether it aligns with or deviates from historical norms.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 260 PEACHTREE ST NW, ATLANTA, GA, 30303

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: $4,544,550

Exercised Options: $2,401,020

Current Obligation: $2,384,992

Actual Outlays: $2,160,202

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0485W

IDV Type: FSS

Timeline