Treasury's $29.6M IRA Digitization Contract Awarded to Oxford Government Consulting

Contract Overview

Contract Amount: $29,614,523 ($29.6M)

Contractor: Oxford Government Consulting, LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-06-11

End Date: 2025-07-22

Contract Duration: 406 days

Daily Burn Rate: $72.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DIGITIZATION AND CONVERSION ACCELERATION SUPPORT FOR INFLATION REDUCTION ACT (IRA) INITIATIVE 1.2 PROGRAM OFFICE

Place of Performance

Location: NORTH BEACH, ANNE ARUNDEL County, MARYLAND, 20714

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $29.6 million to OXFORD GOVERNMENT CONSULTING, LLC for work described as: DIGITIZATION AND CONVERSION ACCELERATION SUPPORT FOR INFLATION REDUCTION ACT (IRA) INITIATIVE 1.2 PROGRAM OFFICE Key points: 1. Contract aims to accelerate digitization and conversion for the Inflation Reduction Act (IRA) Initiative 1.2. 2. Awarded on a firm-fixed-price basis, suggesting clear scope and cost control expectations. 3. The contract duration of 406 days indicates a focused, medium-term project. 4. Competition was full and open, with 6 bidders, suggesting a healthy market response. 5. The administrative management and general management consulting services NAICS code points to strategic and operational support. 6. The contract is a delivery order under a larger IDIQ, common for phased government support. 7. Small business participation is not explicitly mandated for this award. 8. The contract is managed by the IRS, a key agency for IRA implementation.

Value Assessment

Rating: good

The contract value of approximately $29.6 million for a 406-day period for digitization and conversion support appears reasonable given the scope. Benchmarking against similar large-scale consulting engagements for federal agencies, particularly those involving strategic initiatives like the IRA, suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, although the ultimate value will depend on the successful delivery of digitization and conversion outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bidders participating. This level of competition is positive as it indicates a robust market for these specialized consulting services and likely drove competitive pricing. The presence of multiple bidders suggests that the government sought a broad range of solutions and expertise, allowing for selection of the most capable and cost-effective offeror.

Taxpayer Impact: A full and open competition with multiple bidders generally leads to better price discovery and value for taxpayers by ensuring that the government receives proposals from a wide array of qualified vendors, fostering a competitive environment that can drive down costs.

Public Impact

Benefits the IRS and the Treasury Department by enhancing their capacity to manage and implement the Inflation Reduction Act. Delivers critical administrative management and general management consulting services focused on digitization and conversion. Supports the broader goals of the IRA by improving the efficiency and effectiveness of program delivery. Potential workforce implications include the need for specialized skills in digitization and data management within the IRS. Geographic impact is primarily within the operational sphere of the IRS and Treasury, with potential for broader economic impact through IRA initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if digitization goals are not clearly defined and managed.
Reliance on contractor expertise for critical IRA implementation tasks.
Ensuring successful knowledge transfer to government personnel post-contract.

Positive Signals

Clear focus on digitization and conversion for a high-priority initiative (IRA).
Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a well-defined requirement and market interest.
Award to a single vendor (Oxford Government Consulting, LLC) allows for focused accountability.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector (NAICS 541611). This sector is crucial for government operations, providing expertise in strategy, process improvement, and technology adoption. The market for these services is competitive, with numerous firms offering specialized support. The contract's focus on digitization and conversion for the IRA aligns with broader government trends towards modernizing operations and leveraging technology to achieve policy objectives. Comparable spending benchmarks for large federal consulting contracts can range from tens to hundreds of millions of dollars, depending on the complexity and duration.

Small Business Impact

This contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were eligible to compete and were likely the primary participants. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This means that the direct impact on the small business ecosystem may be limited unless the prime contractor voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Treasury and the Internal Revenue Service, the contracting and funding agencies, respectively. As a delivery order under a larger IDIQ, the underlying contract likely has established oversight mechanisms. Accountability will be managed through performance metrics and deliverables outlined in the contract. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would typically apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Inflation Reduction Act (IRA) Implementation
Digitization and Modernization Initiatives
Administrative Management Consulting
General Management Consulting
IRS Technology Modernization
Treasury Department IT Support

Risk Flags

Potential for performance issues if contractor does not meet digitization/conversion targets.
Risk of data security breaches during digital conversion processes.
Dependency on contractor expertise for critical IRA implementation phases.
Ensuring long-term sustainability of digitized processes post-contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $29.6 million to OXFORD GOVERNMENT CONSULTING, LLC. DIGITIZATION AND CONVERSION ACCELERATION SUPPORT FOR INFLATION REDUCTION ACT (IRA) INITIATIVE 1.2 PROGRAM OFFICE

Who is the contractor on this award?

The obligated recipient is OXFORD GOVERNMENT CONSULTING, 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 $29.6 million.

What is the period of performance?

Start: 2024-06-11. End: 2025-07-22.

What is the specific scope of 'digitization and conversion acceleration support' for the IRA?

The provided data indicates the contract is for 'DIGITIZATION AND CONVERSION ACCELERATION SUPPORT FOR INFLATION REDUCTION ACT (IRA) INITIATIVE 1.2 PROGRAM OFFICE'. While the exact deliverables are not detailed, this suggests services aimed at improving the efficiency, accessibility, and usability of data and processes related to IRA initiatives. This could involve converting paper records to digital formats, streamlining data workflows, implementing new digital tools, or enhancing data analytics capabilities to better track and manage IRA program outcomes. The focus on 'acceleration' implies a need to expedite these processes to meet IRA implementation timelines.

How does the $29.6 million value compare to similar federal consulting contracts for large initiatives?

The $29.6 million contract value for approximately 13.5 months of service (406 days) for digitization and conversion support is within the typical range for large federal consulting engagements, especially those supporting major legislative initiatives like the IRA. Federal agencies often contract for significant consulting support to manage complex programs, requiring specialized expertise in areas like program management, technology implementation, and strategic planning. Contracts of this magnitude are common for agencies like the IRS or Treasury when undertaking substantial modernization or implementation efforts. The firm-fixed-price nature provides a degree of cost control, but the overall value is contingent on the successful achievement of the defined digitization and conversion goals.

What are the key risks associated with this contract for the IRS?

Key risks for the IRS include potential delays in digitization and conversion processes, which could impede the effective implementation of IRA initiatives. There's also a risk of insufficient knowledge transfer from the contractor (Oxford Government Consulting, LLC) to IRS personnel, leading to a dependency on external support. Ensuring the security and integrity of sensitive data during digitization is paramount, posing a cybersecurity risk. Furthermore, if the scope of 'acceleration support' is not precisely defined and managed, there's a risk of scope creep, leading to cost overruns or missed deadlines. Finally, the effectiveness of the consulting services in achieving tangible improvements in IRA program delivery is a critical performance risk.

What is Oxford Government Consulting, LLC's track record with federal contracts?

While specific details of Oxford Government Consulting, LLC's entire contract history are not provided in the abbreviated data, their selection for this significant IRA-related contract suggests they possess relevant experience and capabilities. Federal procurement databases would contain a more comprehensive record of their past performance, including contract values, agencies served, and types of services rendered. Their ability to win a full and open competition against five other bidders indicates a competitive standing and likely a history of successful contract execution. Further due diligence would involve reviewing their performance ratings on past federal contracts.

How does this contract fit into the broader context of federal spending on the Inflation Reduction Act?

This $29.6 million contract represents a component of the broader federal investment in the Inflation Reduction Act (IRA). The IRA authorizes significant spending across various sectors, including energy, climate, healthcare, and tax administration. Contracts like this one, focused on administrative and digitization support for specific IRA initiatives (like Initiative 1.2), are essential for the effective implementation and management of these funds. While this contract is substantial for consulting services, it is a fraction of the total IRA budget, highlighting the need for efficient and well-managed support services to ensure taxpayer dollars are used effectively towards achieving the IRA's policy objectives.

What are the implications of this contract being a Delivery Order under a larger IDIQ?

This contract being a Delivery Order (DO) under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract signifies a flexible contracting approach. IDIQs allow agencies to procure a broad range of services over a period, with specific tasks and quantities defined through individual delivery orders. This structure enables the IRS to adapt to evolving needs related to IRA digitization and conversion support. For taxpayers, this means that funding is allocated incrementally as specific tasks are defined and executed, rather than a large upfront commitment. It also implies that the initial IDIQ contract likely underwent a competitive process, and this DO represents a specific task order awarded under that pre-competed framework.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 616 WALNUT AVE, NORTH BEACH, MD, 20714

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

Financial Breakdown

Contract Ceiling: $72,902,947

Exercised Options: $29,614,523

Current Obligation: $29,614,523

Actual Outlays: $29,520,212

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F054GA

IDV Type: FSS

Timeline