Treasury's IRS awards $5M IT services contract to VIBRANTECH SOLUTIONS INC. for data domain support

Contract Overview

Contract Amount: $5,035,747 ($5.0M)

Contractor: Vibrantech Solutions Inc.

Awarding Agency: Department of the Treasury

Start Date: 2023-09-30

End Date: 2026-03-29

Contract Duration: 911 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS IS A DELIVERY ORDER FOR TECHNICAL INTEGRATION AND MANAGEMENT (TIM) FOR THE OFFICE OF INFORMATION TECHNOLOGY, CORPORATE DATA DOMAIN.

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 $5.0 million to VIBRANTECH SOLUTIONS INC. for work described as: THIS IS A DELIVERY ORDER FOR TECHNICAL INTEGRATION AND MANAGEMENT (TIM) FOR THE OFFICE OF INFORMATION TECHNOLOGY, CORPORATE DATA DOMAIN. Key points: 1. Contract focuses on technical integration and management for the IRS's Corporate Data Domain. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract duration of approximately 2.5 years provides a stable period for service delivery. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The service falls under Computer Systems Design Services, a critical IT function. 6. The award amount is moderate for IT services, requiring benchmarking for value assessment.

Value Assessment

Rating: good

The contract value of approximately $5.04 million for a period of roughly 2.5 years appears reasonable for specialized IT integration and management services. Benchmarking against similar contracts for Computer Systems Design Services (NAICS 541512) within federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for controlling costs. However, without detailed scope of work and performance metrics, a definitive value judgment is challenging.

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 publicly advertised and multiple vendors were likely invited to bid. The presence of two bids suggests a degree of competition, though the exact number of interested parties and the rigor of the evaluation process are not detailed. A competitive process generally leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. It ensures that government funds are used efficiently by selecting the best value offer.

Public Impact

The Office of Information Technology at the IRS benefits from enhanced technical integration and management. The Corporate Data Domain will receive support, potentially improving data management and accessibility. Federal employees within the IT sector may see improved tools and processes. The contract supports the IRS's mission to manage tax administration through robust IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if integration is highly specialized.
Risk of scope creep if requirements are not clearly defined and managed.
Dependence on contractor expertise for critical data domain functions.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Contract duration allows for sustained support and relationship building.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services (NAICS 541512). This is a significant area of federal spending, with agencies increasingly relying on external expertise for complex IT infrastructure, data management, and system integration. The market for these services is competitive, with numerous large and small businesses offering specialized capabilities. The IRS's need for technical integration and management aligns with broader government efforts to modernize IT systems and enhance data security and accessibility.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, VIBRANTECH SOLUTIONS INC., is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. Without a small business subcontracting plan requirement, the direct impact on the small business ecosystem for this specific contract may be limited, though VIBRANTECH may engage small businesses as part of its supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the IRS's Office of Information Technology. Performance monitoring, adherence to the statement of work, and invoice approvals are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. The Inspector General for the Treasury Department may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

IRS IT Modernization Programs
Federal Data Management Services
IT Systems Integration Contracts
Computer Systems Design Services
Treasury Department IT Support

Risk Flags

Potential for vendor lock-in
Risk of scope creep
Dependence on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5.0 million to VIBRANTECH SOLUTIONS INC.. THIS IS A DELIVERY ORDER FOR TECHNICAL INTEGRATION AND MANAGEMENT (TIM) FOR THE OFFICE OF INFORMATION TECHNOLOGY, CORPORATE DATA DOMAIN.

Who is the contractor on this award?

The obligated recipient is VIBRANTECH SOLUTIONS 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 $5.0 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-03-29.

What is VIBRANTECH SOLUTIONS INC.'s track record with federal IT contracts, particularly in data management and integration?

A review of federal procurement data would be necessary to fully assess VIBRANTECH SOLUTIONS INC.'s track record. Key indicators to examine include the number and value of previous federal contracts, performance ratings (if available), and any history of contract modifications or disputes. Specifically, looking for prior awards related to IT integration, data management, and support for agencies like the IRS or other large bureaus would provide relevant context. A strong history of successful performance on similar contracts would increase confidence in their ability to deliver on this award. Conversely, a history of performance issues or significant contract challenges might raise concerns.

How does the awarded price compare to market rates for similar Computer Systems Design Services?

Benchmarking this contract's price against market rates requires detailed analysis of the scope of work and the specific services provided. The NAICS code 541512 covers a broad range of services. To assess value, one would compare the estimated labor rates (for different skill levels), project management costs, and overhead applied by VIBRANTECH SOLUTIONS INC. against industry benchmarks and rates paid by other federal agencies for comparable tasks. Factors such as the contract duration, geographic location (District of Columbia), and the firm fixed-price nature also influence pricing. Without a detailed breakdown of the contractor's proposed costs and a comparison to similar, recently awarded contracts, it is difficult to definitively state if the price is optimal.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns or delays. Another risk is the contractor's performance falling short of expectations, impacting the IRS's data domain operations. Dependence on key personnel from VIBRANTECH SOLUTIONS INC. could also pose a risk if those individuals leave. Mitigation strategies likely involve robust contract management by the IRS, including clear definition of deliverables, regular progress reviews, performance monitoring, and change control processes. The firm fixed-price nature itself acts as a risk mitigation tool for the government regarding cost certainty, shifting some cost risk to the contractor.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring competitive pricing for IT services?

This procurement method, while seemingly complex, aims to maximize competition. 'Full and open competition' means all responsible sources were permitted to submit offers. The 'after exclusion of sources' part suggests that perhaps some initial sources were considered and then excluded based on specific criteria, or it might refer to a specific FAR clause allowing for certain exclusions while still maintaining broad competition. When executed properly, this approach encourages multiple bidders to offer their best pricing and technical solutions, thereby driving down costs and improving value for taxpayers. The fact that two bids were received indicates some level of competition was achieved, but the effectiveness in achieving the lowest possible price depends on the number of bidders and the intensity of the competition.

What is the historical spending pattern for Computer Systems Design Services at the IRS or Treasury?

Analyzing historical spending patterns for NAICS 541512 at the IRS and the broader Treasury Department would provide context for this $5.04 million award. This involves examining past contract values, durations, and the types of services procured under this category. Significant year-over-year increases or decreases in spending could indicate shifts in IT strategy, budget allocations, or the outsourcing of specific functions. Understanding this trend helps determine if the current award is consistent with past investments, represents a new initiative, or signifies a change in approach to IT service procurement. It also helps in identifying potential areas of overspending or efficiency gains.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 722 E MARKET ST STE 102, LEESBURG, VA, 20176

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,035,747

Exercised Options: $5,035,747

Current Obligation: $5,035,747

Actual Outlays: $4,881,919

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB22D0288

IDV Type: GWAC

Timeline