Treasury's IRS Awards $2.27M IT Contract to ZERMOUNT, INC. for Opentext Project Support

Contract Overview

Contract Amount: $2,266,567 ($2.3M)

Contractor: Zermount, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2025-09-09

End Date: 2026-09-08

Contract Duration: 364 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INFORMATION TECHNOLOGY (IT) SERVICES TO SUPPORT THE OPENTEXT PROJECT AND PORTFOLIO (PPM) PROGRAM.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.3 million to ZERMOUNT, INC. for work described as: INFORMATION TECHNOLOGY (IT) SERVICES TO SUPPORT THE OPENTEXT PROJECT AND PORTFOLIO (PPM) PROGRAM. Key points: 1. Contract awarded for IT services supporting the Opentext Project and Portfolio Management (PPM) Program. 2. ZERMOUNT, INC. secured the contract through full and open competition after exclusion of sources. 3. The contract has a fixed price of $2.27 million and a duration of 364 days. 4. This award falls under the Computer Systems Design Services NAICS code 541512. 5. The contract is a delivery order under an existing contract.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty. Benchmarking against similar IT service contracts for PPM support would be beneficial to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and fair market value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the IT services procured.

Public Impact

Supports critical IRS IT infrastructure for project and portfolio management. Ensures continuity of operations for essential government IT services. Potential for improved efficiency and effectiveness in IRS project execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited duration may require future re-competition or extension.
Reliance on a single vendor for critical support.

Positive Signals

Competitive award process.
Clear scope of work for IT services.
Fixed price contract provides budget predictability.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across federal agencies, supporting a wide range of digital infrastructure and modernization efforts.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-asides were considered or if subcontracting opportunities exist.

Oversight & Accountability

The award is a delivery order, suggesting it's part of a larger contracting vehicle. Oversight would focus on the performance of ZERMOUNT, INC. against the contract's requirements and the effectiveness of the initial competition.

Related Government Programs

Computer Systems Design Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Potential for vendor lock-in if not managed properly.
Dependence on a single vendor for critical IT support.
Need for ongoing performance monitoring.
Limited contract duration may necessitate future procurement actions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.3 million to ZERMOUNT, INC.. INFORMATION TECHNOLOGY (IT) SERVICES TO SUPPORT THE OPENTEXT PROJECT AND PORTFOLIO (PPM) PROGRAM.

Who is the contractor on this award?

The obligated recipient is ZERMOUNT, 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 $2.3 million.

What is the period of performance?

Start: 2025-09-09. End: 2026-09-08.

What is the specific nature of the Opentext Project and Portfolio Management (PPM) Program, and how critical is its function to the IRS's operations?

The Opentext Project and Portfolio Management (PPM) Program likely involves software and services for managing IT projects, resources, and strategic initiatives within the IRS. Its criticality stems from ensuring efficient project execution, resource allocation, and alignment with agency goals, directly impacting the IRS's ability to deliver taxpayer services and manage its vast IT landscape effectively.

Given the 'exclusion of sources' clause, what specific circumstances led to this exclusion, and were alternative competitive approaches considered?

The 'exclusion of sources' clause, when used with 'full and open competition,' typically means that while the competition was open, certain pre-qualified vendors or specific types of solutions were considered. The exact circumstances would need to be detailed in the contract's justification. It implies that the initial pool of potential bidders was narrowed based on specific criteria, but the remaining pool was still competed openly.

How does the $2.27 million contract value compare to historical spending on similar IT support services for PPM programs within the IRS or other large federal agencies?

Without specific benchmark data for comparable PPM IT support contracts, a direct comparison is difficult. However, $2.27 million for a one-year contract for specialized IT services supporting a critical program like PPM is within a reasonable range for federal IT procurements. A detailed analysis would involve comparing scope, duration, and vendor capabilities against similar awards.

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

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1621 N KENT ST STE 1002, ARLINGTON, VA, 22209

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,574,028

Exercised Options: $2,266,567

Current Obligation: $2,266,567

Actual Outlays: $271,580

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N98120D00115

IDV Type: GWAC

Timeline