Treasury's IRS awards $12.2M for RPA, with Cherokee Nation Solutions Link as sole source
Contract Overview
Contract Amount: $12,194,328 ($12.2M)
Contractor: Cherokee Nation Solutions Link, L.L.C.
Awarding Agency: Department of the Treasury
Start Date: 2024-09-12
End Date: 2026-03-11
Contract Duration: 545 days
Daily Burn Rate: $22.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ROBOTIC PROCESS AUTOMATION (RPA) PROGRAM OFFICE
Place of Performance
Location: TULSA, TULSA County, OKLAHOMA, 74103
State: Oklahoma Government Spending
Plain-Language Summary
Department of the Treasury obligated $12.2 million to CHEROKEE NATION SOLUTIONS LINK, L.L.C. for work described as: ROBOTIC PROCESS AUTOMATION (RPA) PROGRAM OFFICE Key points: 1. The contract focuses on Robotic Process Automation (RPA), a growing area for efficiency. 2. Cherokee Nation Solutions Link, L.L.C. is the sole awardee, raising questions about competition. 3. The contract value is $12.2 million over 545 days. 4. The IRS is the primary agency utilizing this RPA program.
Value Assessment
Rating: fair
The contract value of $12.2 million for 545 days appears reasonable for specialized RPA services. However, without a competitive benchmark, it's difficult to definitively assess if it's excellent or merely fair.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning there was no open competition. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this $12.2 million contract may result in a higher cost to taxpayers than if it had been competitively bid.
Public Impact
Taxpayer services could be improved through automation, potentially leading to faster processing. The use of RPA may streamline internal IRS operations, reducing manual effort and errors. Dependence on a single vendor for critical automation technology could pose a future risk.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- No small business participation noted.
- Specific performance metrics and expected ROI are not detailed.
Positive Signals
- Focus on RPA aligns with government efficiency initiatives.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
The IT services sector, particularly Robotic Process Automation (RPA), is experiencing significant growth as agencies seek to automate repetitive tasks and improve efficiency. Benchmarks for similar RPA contracts vary widely based on complexity and scope.
Small Business Impact
There is no indication of small business participation in this contract, which is a missed opportunity to support small business growth within the federal contracting space.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the price is fair and reasonable and that the vendor is meeting all performance requirements.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole-source award limits competition.
- Lack of small business participation.
- Potential for vendor lock-in.
- Unclear ROI and performance metrics.
Tags
other-computer-related-services, department-of-the-treasury, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $12.2 million to CHEROKEE NATION SOLUTIONS LINK, L.L.C.. ROBOTIC PROCESS AUTOMATION (RPA) PROGRAM OFFICE
Who is the contractor on this award?
The obligated recipient is CHEROKEE NATION SOLUTIONS LINK, L.L.C..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $12.2 million.
What is the period of performance?
Start: 2024-09-12. End: 2026-03-11.
What is the specific expected return on investment (ROI) for this RPA program, and how will it be measured?
The expected ROI for this RPA program is not explicitly detailed in the provided data. Measuring ROI would typically involve tracking metrics such as reduced processing times, decreased error rates, and labor cost savings compared to manual processes. A clear ROI framework is crucial for justifying the $12.2 million investment and demonstrating value to taxpayers.
What are the risks associated with relying on a single vendor for critical RPA technology, and are there mitigation strategies in place?
The primary risk of a sole-source award is vendor lock-in and potential price escalation. Mitigation strategies could include building in clear exit clauses, ensuring knowledge transfer, and developing internal expertise to reduce long-term dependence. The IRS should also monitor vendor performance closely and have contingency plans for service disruptions.
How will the effectiveness of the RPA implementation be evaluated to ensure it meets the IRS's operational needs and improves taxpayer services?
Effectiveness will be evaluated through key performance indicators (KPIs) related to process automation speed, accuracy, and user satisfaction. The IRS should establish baseline metrics before implementation and track improvements post-deployment. Regular reviews and feedback loops with end-users will be essential to ensure the RPA solution aligns with evolving operational requirements and enhances taxpayer service delivery.
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2 W 2ND ST STE 1500-39, TULSA, OK, 74103
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, 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: $12,194,328
Exercised Options: $12,194,328
Current Obligation: $12,194,328
Actual Outlays: $11,825,499
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $4,503,978
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-12
Current End Date: 2026-03-11
Potential End Date: 2026-03-11 15:13:39
Last Modified: 2025-09-11
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