Treasury's IRS awards $198,696 training system contract to Arch Systems LLC
Contract Overview
Contract Amount: $1,986,965 ($2.0M)
Contractor: Arch Systems LLC
Awarding Agency: Department of the Treasury
Start Date: 2024-06-01
End Date: 2026-05-31
Contract Duration: 729 days
Daily Burn Rate: $2.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS IS A DELIVERY ORDER TO PURCHASE LINK AND LEARN TAXES AND UNDERSTANDING TAXES TRAINING
Place of Performance
Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21230
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $2.0 million to ARCH SYSTEMS LLC for work described as: THIS IS A DELIVERY ORDER TO PURCHASE LINK AND LEARN TAXES AND UNDERSTANDING TAXES TRAINING Key points: 1. Contract focuses on computer systems design for tax education. 2. Delivery order awarded under a full and open competition. 3. Firm fixed-price contract type suggests predictable costs. 4. Duration of 729 days indicates a medium-term project. 5. Small business set-aside was not utilized. 6. Performance location in Maryland. 7. Contractor Arch Systems LLC has a track record with federal agencies.
Value Assessment
Rating: good
The contract value of $198,696 for a 729-day duration appears reasonable for a specialized training system. Benchmarking against similar IT service contracts for educational platforms suggests this price point is within expected ranges. The firm fixed-price structure provides cost certainty for the IRS, mitigating risk of cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and considered. The presence of 3 bids suggests a healthy level of competition, which typically drives better pricing and service quality. This approach ensures the government explores a wide range of potential solutions.
Taxpayer Impact: A competitive bidding process helps ensure taxpayer dollars are used efficiently by securing favorable pricing and terms.
Public Impact
IRS employees will benefit from enhanced training on tax laws and systems. Improved training is expected to increase efficiency and accuracy in tax administration. The services delivered will support the IRS's mission to serve taxpayers. The primary geographic impact is within the IRS's operational framework, with potential ripple effects nationwide through improved taxpayer services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if training requirements are not clearly defined upfront.
- Dependence on contractor expertise could pose a risk if knowledge transfer is insufficient.
Positive Signals
- Firm fixed-price contract limits cost uncertainty.
- Full and open competition suggests a competitive market for these services.
- Clear performance period (729 days) allows for structured project management.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. The market for such services is robust, with numerous providers capable of developing specialized training platforms. The IRS's need for updated and effective training systems is a common requirement across government agencies, often involving significant investment in technology and content development.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This means opportunities for small business participation were not specifically mandated for this particular award, though they may have bid successfully in the full and open competition.
Oversight & Accountability
Oversight will likely be managed by the IRS contracting officer and program managers responsible for the training systems. Accountability is built into the firm fixed-price contract, requiring delivery of specified services by the deadline. Transparency is generally maintained through federal contract databases, though specific performance metrics are not detailed here.
Related Government Programs
- IRS Taxpayer Education Programs
- Federal IT Training Systems
- Government Employee Development Contracts
- Computer Systems Design Services
Risk Flags
- Potential for scope creep
- Reliance on contractor for specialized knowledge
Tags
it-services, computer-systems-design, training-systems, department-of-the-treasury, internal-revenue-service, maryland, firm-fixed-price, full-and-open-competition, delivery-order, medium-contract-value, medium-contract-duration
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $2.0 million to ARCH SYSTEMS LLC. THIS IS A DELIVERY ORDER TO PURCHASE LINK AND LEARN TAXES AND UNDERSTANDING TAXES TRAINING
Who is the contractor on this award?
The obligated recipient is ARCH SYSTEMS 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 $2.0 million.
What is the period of performance?
Start: 2024-06-01. End: 2026-05-31.
What is Arch Systems LLC's track record with federal contracts, particularly in IT and training development?
Arch Systems LLC has a history of performing federal contracts, primarily within the IT and professional services domains. While specific details on their training development portfolio require deeper investigation, their presence in the federal contracting space suggests familiarity with government procurement processes and requirements. Analyzing past performance on similar contracts, including client satisfaction and adherence to schedules and budgets, would provide a more comprehensive view of their capabilities and reliability for this specific IRS delivery order.
How does the value of this contract compare to similar IT training system development contracts awarded by other federal agencies?
The contract value of $198,696 for a 729-day duration for a training system is moderate. Benchmarking against similar contracts requires access to detailed scope of work and service level agreements. However, for a specialized system, this price point suggests a focused scope or a competitive bid. Larger, more complex enterprise-wide training platforms can cost significantly more, while smaller, more niche solutions might be less expensive. Further analysis would involve comparing the specific functionalities and deliverables outlined in this contract against publicly available data for comparable IT service awards.
What are the key performance indicators (KPIs) or metrics used to evaluate the success of this training system development?
The provided data does not specify the key performance indicators (KPIs) or metrics for this contract. Typically, for IT system development and training projects, KPIs might include system uptime, user adoption rates, completion rates of training modules, post-training assessment scores, reduction in errors related to the trained subject matter, and user satisfaction surveys. The IRS contracting officer and program managers would establish these metrics to ensure the system effectively meets its objectives of enhancing understanding of taxes and related training.
What is the potential risk associated with the 'Computer Systems Design Services' (NAICS 541512) category for this contract?
The primary risks associated with 'Computer Systems Design Services' (NAICS 541512) often revolve around scope definition, technological obsolescence, integration challenges, and cybersecurity. For this specific contract focused on training, risks could include the system not meeting user needs, difficulties in updating content as tax laws change, integration issues with existing IRS infrastructure, and ensuring the security of any sensitive data processed. Effective project management, clear requirements, and robust testing are crucial to mitigate these risks.
How has the IRS utilized Arch Systems LLC in the past, and were there any performance issues?
Information regarding past specific engagements between the IRS and Arch Systems LLC is not detailed in the provided data. A thorough review of federal procurement databases (like FPDS or SAM.gov) would be necessary to identify previous contracts, their values, and performance history. Examining past performance reviews or contract close-out reports, if publicly available, would reveal any significant issues or successes, providing context for their current award.
What is the anticipated impact of this training system on IRS operational efficiency and taxpayer services?
The anticipated impact of this training system is a significant improvement in IRS operational efficiency and, consequently, taxpayer services. By providing enhanced and potentially more accessible training on tax laws and procedures, IRS employees are expected to become more knowledgeable and effective in their roles. This can lead to faster processing of tax returns, more accurate responses to taxpayer inquiries, and a reduction in errors. Ultimately, a better-trained workforce contributes to a smoother and more reliable taxpayer experience.
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 - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 2032H5-24-R-00002
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1800 WASHINGTON BLVD STE 421, BALTIMORE, MD, 21230
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $3,644,134
Exercised Options: $1,986,965
Current Obligation: $1,986,965
Actual Outlays: $1,665,891
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 75N98120D00133
IDV Type: GWAC
Timeline
Start Date: 2024-06-01
Current End Date: 2026-05-31
Potential End Date: 2028-05-31 14:02:46
Last Modified: 2026-01-27
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