Treasury's $21M contract for application development awarded to ATI Government Solutions LLC

Contract Overview

Contract Amount: $21,090,359 ($21.1M)

Contractor: ATI Government Solutions LLC

Awarding Agency: Department of the Treasury

Start Date: 2023-07-19

End Date: 2025-10-30

Contract Duration: 834 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: APPLICATION DEVELOPMENT SERVICES FOR CORPORATE DATA (CP), COMPLIANCE, SUBMISSION PROCESSING AND TECHNICAL INTEGRATION ORGANIZATION (TIO) DOMAINS

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21701

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $21.1 million to ATI GOVERNMENT SOLUTIONS LLC for work described as: APPLICATION DEVELOPMENT SERVICES FOR CORPORATE DATA (CP), COMPLIANCE, SUBMISSION PROCESSING AND TECHNICAL INTEGRATION ORGANIZATION (TIO) DOMAINS Key points: 1. Contract focuses on critical IT domains including corporate data, compliance, and technical integration. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of 834 days indicates a significant, medium-term project. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The services are essential for IRS operations, supporting data management and compliance. 6. This award represents a substantial investment in the IRS's IT infrastructure.

Value Assessment

Rating: good

The contract value of approximately $21.1 million over roughly 2.3 years appears reasonable for specialized application development services. Benchmarking against similar IT services contracts for federal agencies, particularly those involving complex data management and compliance systems, suggests this pricing is within an expected range. The firm fixed-price structure further supports value by shifting cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters robust competition, which is expected to lead to more competitive pricing and better value for the government.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of securing services at competitive market rates, preventing potential overspending associated with less competitive or sole-source awards.

Public Impact

The Internal Revenue Service (IRS) will benefit from enhanced application development for critical IT domains. Services delivered will support corporate data management, compliance initiatives, and technical integration. The geographic impact is primarily within the IRS's operational centers, likely supporting national functions. Workforce implications may include the need for specialized IT professionals within ATI Government Solutions LLC and potentially internal IRS IT staff for oversight and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on contractor expertise could create knowledge transfer challenges.
Ensuring data security and privacy compliance throughout development is critical.

Positive Signals

Firm fixed-price contract mitigates cost overrun risks for the government.
Full and open competition suggests a competitive environment leading to better value.
Award to an established IT solutions provider indicates potential for reliable service delivery.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The federal IT market is substantial, with agencies consistently investing in application development to modernize systems, improve data analytics, and enhance citizen services. This contract aligns with the IRS's ongoing efforts to upgrade its technological infrastructure to meet evolving tax administration and compliance demands. Comparable spending benchmarks for similar application development and systems integration projects within large federal agencies often range in the tens to hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, ATI Government Solutions LLC, will be responsible for fulfilling the contract requirements. Opportunities for small businesses would typically arise if ATI Government Solutions LLC voluntarily engages them as subcontractors, which is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the designated contract specialist within the IRS. Performance monitoring will be crucial to ensure adherence to the statement of work, delivery schedules, and quality standards. Transparency is facilitated through federal procurement databases where contract awards are reported. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the Treasury Inspector General for Tax Administration (TIGTA) generally oversees IRS programs and contracts for waste, fraud, and abuse.

Related Government Programs

IRS Application Modernization Programs
Federal IT Services Procurement
Taxpayer Data Management Systems
Compliance and Submission Processing Systems
Corporate IT Infrastructure Development

Risk Flags

Potential for integration challenges with legacy IRS systems.
Cybersecurity risks inherent in developing and managing sensitive data applications.
Dependence on contractor for specialized technical expertise.
Ensuring timely delivery of critical application updates and features.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $21.1 million to ATI GOVERNMENT SOLUTIONS LLC. APPLICATION DEVELOPMENT SERVICES FOR CORPORATE DATA (CP), COMPLIANCE, SUBMISSION PROCESSING AND TECHNICAL INTEGRATION ORGANIZATION (TIO) DOMAINS

Who is the contractor on this award?

The obligated recipient is ATI GOVERNMENT SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.1 million.

What is the period of performance?

Start: 2023-07-19. End: 2025-10-30.

What is the track record of ATI Government Solutions LLC in delivering similar IT services to federal agencies?

ATI Government Solutions LLC has a history of providing IT services to federal agencies. While specific details on past performance for contracts of this exact scope and value are not provided in this data snippet, their presence in the federal contracting space suggests experience. A deeper dive into their contract history, past performance evaluations (e.g., CPARS), and any relevant certifications would be necessary to fully assess their track record. Agencies often award contracts to vendors with demonstrated success in similar technical domains, such as application development, data management, and compliance systems, to mitigate performance risks.

How does the awarded amount compare to the estimated value or ceiling of the contract?

The provided data indicates an awarded amount of $21,090,359.30. However, the data does not specify if this is the total contract value, a ceiling, or an initial task order amount. Without information on the contract's ceiling or estimated total value, it's difficult to definitively compare the awarded amount. If this represents the total value, it suggests the government has committed this sum. If it's a ceiling, the actual spending could be lower. Further details on the contract type (e.g., IDIQ with specific order amounts) would clarify this comparison.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. Typically, for application development services, KPIs would focus on factors such as adherence to project timelines, software quality (e.g., defect rates, performance metrics), successful deployment of features, user satisfaction, and compliance with security requirements. The contract's Statement of Work (SOW) would detail these specific metrics and the standards against which ATI Government Solutions LLC's performance will be evaluated. Regular performance reviews would track progress against these KPIs.

What is the historical spending pattern for similar application development services at the IRS?

Historical spending on application development services at the IRS is substantial, reflecting the agency's continuous need to modernize its complex IT systems. While specific figures for comparable contracts aren't in this dataset, the IRS consistently invests billions annually in IT modernization, which includes significant allocations for application development, maintenance, and integration. This $21.1 million award is one component of a larger, ongoing IT investment strategy aimed at improving taxpayer services, enhancing data security, and ensuring compliance with evolving regulations. Past awards for similar services have varied widely in value depending on project scope and duration.

Are there any identified risks associated with the contractor or the nature of the services being provided?

Potential risks associated with this contract include standard IT project risks such as scope creep, technical challenges, integration issues with existing systems, and cybersecurity vulnerabilities. For the contractor, ATI Government Solutions LLC, risks could involve meeting performance expectations, managing project timelines, and ensuring data privacy. The IRS faces risks related to reliance on the contractor's expertise and the potential impact of delays or failures on critical business operations. The firm fixed-price nature of the contract helps mitigate financial risks for the government, but performance risks remain.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 47 E SOUTH ST UNIT 002, FREDERICK, MD, 21701

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,543,759

Exercised Options: $21,090,359

Current Obligation: $21,090,359

Actual Outlays: $20,990,359

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $14,364,381

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0299

IDV Type: GWAC

Timeline