IRS Memphis Facility Maintenance Contract Awarded to Alutiiq Operations for $4.25M
Contract Overview
Contract Amount: $4,251,285 ($4.3M)
Contractor: Alutiiq Operations Services, LLC
Awarding Agency: Department of the Treasury
Start Date: 2025-07-01
End Date: 2026-06-30
Contract Duration: 364 days
Daily Burn Rate: $11.7K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MEMPHIS INTERNAL REVENUE SERVICE CENTER (MIRSC) OPERATION & MAINTENANCE SERVICES FACILITY OPERATIONS AND PREVENTATIVE MAINTENANCE 5333 GETWELL ROAD MEMPHIS TN 38118
Place of Performance
Location: MEMPHIS, SHELBY County, TENNESSEE, 38111
Plain-Language Summary
Department of the Treasury obligated $4.3 million to ALUTIIQ OPERATIONS SERVICES, LLC for work described as: MEMPHIS INTERNAL REVENUE SERVICE CENTER (MIRSC) OPERATION & MAINTENANCE SERVICES FACILITY OPERATIONS AND PREVENTATIVE MAINTENANCE 5333 GETWELL ROAD MEMPHIS TN 38118 Key points: 1. Contract awarded to Alutiiq Operations Services, LLC for facility maintenance. 2. The contract is a Firm Fixed Price type, valued at $4.25M. 3. This is a sole-source award, raising questions about competition. 4. The sector is Facilities Support Services, with a benchmark of $1.17M.
Value Assessment
Rating: questionable
The contract value of $4.25M for a 1-year duration appears high compared to the benchmark of $1.17M for similar services. This suggests potential overpricing or a scope difference.
Cost Per Unit: $1.17M (benchmark)
Competition Analysis
Competition Level: sole-source
The contract was not competed under SAP, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential facility operations and maintenance services.
Public Impact
Taxpayers may be overpaying for facility maintenance at the IRS Memphis center. Lack of competition limits transparency in government spending. Essential IRS operations could be impacted if maintenance is not cost-effective.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High cost relative to benchmark
- No small business participation noted
Positive Signals
- Definitive contract provides clear terms
- Firm Fixed Price limits cost overrun risk
Sector Analysis
This contract falls under Facilities Support Services, which includes operations and maintenance. The benchmark spending for this sector is $1.17M, making the $4.25M award significantly higher.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). There is no indication of efforts to engage small businesses for these services.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the price is fair and reasonable and that future procurements are competed to maximize value.
Related Government Programs
- Facilities Support Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole-source award lacks competition
- Contract value significantly exceeds benchmark
- No small business participation
- Potential for overpayment
Tags
facilities-support-services, department-of-the-treasury, tn, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $4.3 million to ALUTIIQ OPERATIONS SERVICES, LLC. MEMPHIS INTERNAL REVENUE SERVICE CENTER (MIRSC) OPERATION & MAINTENANCE SERVICES FACILITY OPERATIONS AND PREVENTATIVE MAINTENANCE 5333 GETWELL ROAD MEMPHIS TN 38118
Who is the contractor on this award?
The obligated recipient is ALUTIIQ OPERATIONS SERVICES, 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 $4.3 million.
What is the period of performance?
Start: 2025-07-01. End: 2026-06-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?
The justification for a sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. The IRS should have conducted a price analysis to ensure the $4.25M is reasonable given the scope and duration, especially compared to the benchmark.
How does the $4.25M contract value compare to the typical cost for similar facility operations and maintenance services over a 364-day period?
The contract value of $4.25M for a 364-day period is substantially higher than the provided benchmark of $1.17M for similar services. This significant difference raises concerns about potential overpricing or a vastly different scope of work than what the benchmark represents.
What is the potential impact on IRS operations if the maintenance services provided under this contract are not effective or cost-efficient?
Ineffective or non-cost-efficient maintenance could lead to disruptions in IRS operations at the Memphis center, potentially impacting service delivery and employee productivity. Furthermore, a high cost without commensurate value represents a poor use of taxpayer funds.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 2032H8-25-R-00014
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3909 ARCTIC BLVD STE 500, ANCHORAGE, AK, 99503
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, 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: $6,143,532
Exercised Options: $6,143,532
Current Obligation: $4,251,285
Actual Outlays: $2,901,911
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $519,926
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-07-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 15:37:52
Last Modified: 2026-03-24
More Contracts from Alutiiq Operations Services, LLC
- Base Civil Engineering Services Operations Management (t-Boss) — $6.5M (Department of Defense)
- Admin Support Services — $2.5M (Department of Energy)
View all Alutiiq Operations Services, LLC federal contracts →
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)