IRS Awards $8.5M for IMF/701 Self-Service Reporting Analysis and Modernization to Technologent Solutions

Contract Overview

Contract Amount: $8,517,097 ($8.5M)

Contractor: Technologent Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-09-12

End Date: 2026-09-11

Contract Duration: 729 days

Daily Burn Rate: $11.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS REQUIREMENT IS TO OBTAIN CONTRACTOR'S TECHNICAL SUPPORT FOR THE IRS IMF/701 SELF SERVICE REPORTING ANALYSIS PROJECT, MODERNIZATION, AND RELATED INTERFACING APPLICATIONS.

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $8.5 million to TECHNOLOGENT SOLUTIONS, LLC for work described as: THIS REQUIREMENT IS TO OBTAIN CONTRACTOR'S TECHNICAL SUPPORT FOR THE IRS IMF/701 SELF SERVICE REPORTING ANALYSIS PROJECT, MODERNIZATION, AND RELATED INTERFACING APPLICATIONS. Key points: 1. The contract focuses on critical IRS reporting systems, indicating a need for specialized IT support. 2. Technologent Solutions, LLC, is the sole awardee, raising questions about competition. 3. The project involves modernization and interfacing, suggesting potential for efficiency gains but also integration risks. 4. The fixed-price contract type aims to control costs for this $8.5M award.

Value Assessment

Rating: questionable

The award amount of $8.5M for a 2-year contract for technical support appears within a reasonable range for specialized IT services. However, without specific benchmarks for similar IRS modernization projects, a definitive value assessment is difficult.

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 may result in a higher cost than if multiple vendors had competed.

Taxpayer Impact: The lack of competition for an $8.5M contract raises concerns about whether taxpayers received the best possible value.

Public Impact

Taxpayers rely on accurate and accessible reporting from the IRS, making this project crucial for transparency. Modernization efforts could lead to improved user experience and data accessibility for taxpayers. Potential delays or issues in modernization could impact taxpayer services and compliance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases cost.
Lack of detailed justification for sole-source award.
Risk of integration challenges with existing IRS systems.

Positive Signals

Focus on modernization of critical IRS systems.
Fixed-price contract provides cost certainty.

Sector Analysis

The IT services sector, particularly for government modernization projects, is highly competitive. However, specific expertise in legacy systems like those at the IRS can lead to sole-source awards. Benchmarks for similar IRS IT modernization contracts are not readily available.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is meeting all performance requirements and that the pricing remains fair. The IRS should provide a detailed justification for the sole-source decision.

Related Government Programs

Other Computer Related Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Lack of competitive bidding.
Potential for cost overruns due to sole-source award.
Risk of project delays impacting IRS operations.
Dependency on a single contractor for critical systems.
Insufficient justification for sole-source award provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $8.5 million to TECHNOLOGENT SOLUTIONS, LLC. THIS REQUIREMENT IS TO OBTAIN CONTRACTOR'S TECHNICAL SUPPORT FOR THE IRS IMF/701 SELF SERVICE REPORTING ANALYSIS PROJECT, MODERNIZATION, AND RELATED INTERFACING APPLICATIONS.

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 $8.5 million.

What is the period of performance?

Start: 2024-09-12. End: 2026-09-11.

What specific technical expertise does Technologent Solutions possess that justifies a sole-source award for the IRS IMF/701 reporting project?

The justification for a sole-source award typically hinges on unique capabilities, proprietary technology, or specialized knowledge that only one vendor possesses. For the IRS IMF/701 project, this could involve deep familiarity with specific legacy IRS systems, unique integration methodologies, or patented processes essential for modernization. Without this specific information, it's difficult to fully assess the necessity of the sole-source approach.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure value for money?

Key performance indicators for this contract would likely focus on the successful modernization of the IMF/701 system, improved reporting capabilities, seamless integration with other IRS applications, and adherence to project timelines and budget. Measurement would involve regular progress reports, system performance testing, user acceptance testing, and potentially independent audits. Ensuring value for money requires rigorous tracking against these KPIs and comparing outcomes against the contract's objectives and cost.

What is the potential impact on taxpayer data security and privacy during the modernization process?

Modernizing critical IRS systems like IMF/701 requires stringent security protocols to protect sensitive taxpayer data. The contractor must adhere to all federal data security regulations (e.g., FISMA, NIST standards). Potential impacts include risks during data migration, new vulnerabilities introduced by updated software, and ensuring secure access controls. Robust security testing, encryption, access management, and continuous monitoring are essential to mitigate these risks throughout the project lifecycle.

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: 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: $9,486,389

Exercised Options: $9,486,389

Current Obligation: $8,517,097

Actual Outlays: $6,718,793

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $8,389,340

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline