Treasury's IRS awards $9.8M contract to Technologent Solutions for software capability expansion

Contract Overview

Contract Amount: $9,800,756 ($9.8M)

Contractor: Technologent Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-05-20

End Date: 2026-05-19

Contract Duration: 729 days

Daily Burn Rate: $13.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE OBJECTIVE OF THIS PERFORMANCE WORK STATEMENT (PWS) IS TO PROVIDE EXPERIENCED PERSONNEL TO SUPPORT EFFORTS IN EXPANDING THE REACH OF THE EXISTING SOFTWARE CAPABILITIES. THE CONTRACTOR SHALL PROVIDE A VARIETY OF CONTRACTOR RESOURCES TO ASSIST IN S

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $9.8 million to TECHNOLOGENT SOLUTIONS, LLC for work described as: THE OBJECTIVE OF THIS PERFORMANCE WORK STATEMENT (PWS) IS TO PROVIDE EXPERIENCED PERSONNEL TO SUPPORT EFFORTS IN EXPANDING THE REACH OF THE EXISTING SOFTWARE CAPABILITIES. THE CONTRACTOR SHALL PROVIDE A VARIETY OF CONTRACTOR RESOURCES TO ASSIST IN S Key points: 1. Contract aims to broaden the reach of existing software capabilities through specialized personnel. 2. The award is a definitive contract with a firm-fixed-price structure. 3. Technologent Solutions, LLC, is the selected contractor for this effort. 4. The contract duration is set for 729 days, spanning nearly two years. 5. This award falls under the 'Other Computer Related Services' NAICS code. 6. The contract was not competitively procured, raising questions about price discovery. 7. Virginia is the stated location for contract performance.

Value Assessment

Rating: questionable

The contract value of $9.8 million for a two-year period supporting software expansion appears substantial. Without comparable contract data or detailed scope of work, it is difficult to benchmark the value for money. The firm-fixed-price structure suggests a defined scope, but the lack of competition makes it challenging to assess if the pricing is optimal or reflects market rates effectively. Further analysis would require understanding the specific personnel and services required to determine if this represents a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential vendors. The data indicates it was 'NOT AVAILABLE FOR COMPETITION'. This approach bypasses the standard procurement process designed to solicit bids from multiple offerors, which typically drives down prices and encourages innovation. The lack of competition limits the government's ability to explore alternative solutions or secure the most cost-effective option.

Taxpayer Impact: Taxpayers may not be receiving the best possible value due to the absence of competitive bidding. This could result in a higher overall cost for the services rendered compared to what might have been achieved in an open market scenario.

Public Impact

The primary beneficiaries are the IRS and potentially taxpayers, through improved software capabilities. The contract will deliver specialized personnel to support the expansion of existing software. The geographic impact is likely focused on IRS operations, with performance in Virginia. Workforce implications include the engagement of Technologent Solutions' personnel to augment IRS efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and limited innovation.
The sole-source nature of the award prevents a thorough market assessment of available solutions.
Transparency is reduced without a competitive bidding process to document evaluation criteria.

Positive Signals

The contract aims to enhance critical IRS software capabilities, potentially improving service delivery.
A firm-fixed-price contract provides cost certainty for the government, assuming the scope is well-defined.
The contractor, Technologent Solutions, LLC, is being engaged for specific expertise.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. The market for IT support and software enhancement is vast and highly competitive, with numerous firms offering specialized skills. However, this particular award bypasses that competition. Comparable spending benchmarks for similar software expansion projects would typically involve analyzing IT service contracts across various federal agencies, looking at factors like personnel rates, project scope, and duration to gauge market value.

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 arising from a small business set-aside. The award to Technologent Solutions, LLC, does not appear to be structured to specifically benefit the small business ecosystem through mandated subcontracting goals.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury's Internal Revenue Service contracting and program management offices. Accountability measures would be defined within the Performance Work Statement (PWS) and the contract terms. Transparency is limited due to the sole-source nature of the award, as there is no public record of a competitive bidding process. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian Agency Software Development Contracts
IT Services for Tax Administration
Department of the Treasury IT Procurement

Risk Flags

Sole-source award lacks competitive transparency.
Potential for suboptimal pricing due to lack of competition.
Scope of 'software capability expansion' is broadly defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $9.8 million to TECHNOLOGENT SOLUTIONS, LLC. THE OBJECTIVE OF THIS PERFORMANCE WORK STATEMENT (PWS) IS TO PROVIDE EXPERIENCED PERSONNEL TO SUPPORT EFFORTS IN EXPANDING THE REACH OF THE EXISTING SOFTWARE CAPABILITIES. THE CONTRACTOR SHALL PROVIDE A VARIETY OF CONTRACTOR RESOURCES TO ASSIST IN S

Who is the contractor on this award?

The obligated recipient is TECHNOLOGENT 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 $9.8 million.

What is the period of performance?

Start: 2024-05-20. End: 2026-05-19.

What specific software capabilities are being expanded under this contract, and what is the expected impact on IRS operations?

The provided data indicates the objective is 'EXPANDING THE REACH OF THE EXISTING SOFTWARE CAPABILITIES' by providing 'EXPERIENCED PERSONNEL'. However, the specific software systems or functional areas targeted for expansion are not detailed in the excerpt. The expected impact is likely an enhancement of the IRS's ability to deliver services, process information, or manage its operations more effectively through improved or extended software functionality. Without more granular information on the PWS, the precise nature of the expansion and its direct operational impact remains unspecified.

Can Technologent Solutions, LLC's past performance on similar federal contracts be assessed to gauge their suitability for this role?

Assessing Technologent Solutions, LLC's past performance would require access to federal procurement databases (like SAM.gov or FPDS) beyond the provided data. While the contract award itself indicates they were selected, the rationale for selection and their track record in delivering similar software expansion services for federal agencies are not detailed here. A comprehensive review would involve examining their performance ratings on previous contracts, any past issues or disputes, and their demonstrated expertise in the specific technical areas relevant to the IRS's software needs. Without this external data, their suitability is based solely on the contracting agency's internal assessment.

Given the sole-source nature, what justification was provided for not competing this requirement?

The provided data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION' and is a 'SOLE SOURCE'. Federal procurement regulations typically require justification for sole-source awards, often citing reasons such as urgency, unique capabilities of a single source, or when only one responsible source can provide the required supply or service. The specific justification for this $9.8 million contract awarded to Technologent Solutions, LLC, by the IRS is not included in the provided data. Such justifications are usually documented and made publicly available, often through sources like SAM.gov, to ensure transparency and accountability in non-competitive procurements.

How does the $9.8 million contract value compare to historical IRS spending on similar IT support or software enhancement services?

Comparing the $9.8 million contract value to historical IRS spending on similar services requires access to historical procurement data for the IRS. The provided data does not include this context. To perform such a comparison, one would need to analyze past contracts awarded by the IRS for IT support, software development, or system enhancements, ideally under similar NAICS codes (like 541519) and contract types (like firm-fixed-price). Benchmarking against historical spending would help determine if this award represents an increase, decrease, or stable level of investment in these types of services and whether the current value is consistent with past trends.

What are the key performance indicators (KPIs) or metrics that will be used to measure the success of this contract?

The provided data excerpt does not specify the Key Performance Indicators (KPIs) or metrics that will be used to measure the success of this contract. Typically, these are detailed within the Performance Work Statement (PWS) or associated contract clauses. For a contract focused on expanding software capabilities, KPIs might include metrics related to software functionality delivered, system performance improvements, user adoption rates, adherence to project timelines, and quality of deliverables. The IRS contracting officers and program managers would be responsible for defining and monitoring these metrics to ensure Technologent Solutions, LLC meets the contract's objectives.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: RFQ 8378

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14100 PARKE LONG COURT, CHANTILLY, VA, 20151

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,800,756

Exercised Options: $9,800,756

Current Obligation: $9,800,756

Actual Outlays: $8,703,889

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $7,956,945

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline