Treasury's IRS awards $362K contract for custom programming services to Lightbox Parent, L.P

Contract Overview

Contract Amount: $36,225 ($36.2K)

Contractor: Lightbox Parent, L.P.

Awarding Agency: Department of the Treasury

Start Date: 2025-07-11

End Date: 2026-07-10

Contract Duration: 364 days

Daily Burn Rate: $100/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LIGHTBOX VISION. COMMERCIAL REAL ESTATE EDITION. QUOTE DATED 07/11/2025 QUOTE NUMBER Q-45435 PER MARY KANE TREASURY APPROVAL # TRACS0004761 REFERENCE SECTION C FOR THE STATEMENT OF WORK. PERIOD OF PERFORMANCE: BASE YEAR: 07/11/2025 - 07/10/2026 OPT

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94102

State: California Government Spending

Plain-Language Summary

Department of the Treasury obligated $36,225 to LIGHTBOX PARENT, L.P. for work described as: LIGHTBOX VISION. COMMERCIAL REAL ESTATE EDITION. QUOTE DATED 07/11/2025 QUOTE NUMBER Q-45435 PER MARY KANE TREASURY APPROVAL # TRACS0004761 REFERENCE SECTION C FOR THE STATEMENT OF WORK. PERIOD OF PERFORMANCE: BASE YEAR: 07/11/2025 - 07/10/2026 OPT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract is for custom computer programming services, a critical area for IRS operations. 3. Performance period is one year, suggesting a need for ongoing or project-specific support. 4. The award is a purchase order, typically used for smaller value acquisitions. 5. No small business set-aside was utilized for this procurement. 6. The contractor, Lightbox Parent, L.P., is the sole awardee.

Value Assessment

Rating: questionable

The contract value of $362,250 for one year of custom computer programming services appears to be within a reasonable range for specialized IT support. However, without a competitive bidding process, it is difficult to benchmark the value for money effectively. Comparing this to similar sole-source contracts for comparable services would be necessary for a more definitive assessment of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The absence of competition means that multiple vendors were not given the opportunity to bid on this requirement. This approach is typically used when only one source is capable of meeting the agency's needs, or in specific emergency situations. The lack of competition limits price discovery and may result in higher costs for the government.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the lack of competitive pressure on the contractor.

Public Impact

The Internal Revenue Service (IRS) is the primary beneficiary, receiving custom computer programming services. These services are likely to support the IRS's complex IT infrastructure and operational needs. The geographic impact is primarily within the IRS's operational centers, likely nationwide. Workforce implications are indirect, potentially supporting IRS employees by enhancing their technological tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards reduce transparency in the procurement process.
Reliance on a single vendor could pose a risk if performance issues arise.

Positive Signals

Contract awarded to a specific entity, indicating a known relationship or capability.
Firm fixed-price contract type provides cost certainty for the government.

Sector Analysis

The custom computer programming services sector is a vital component of the IT industry, supporting government agencies in developing and maintaining specialized software solutions. The market is characterized by a wide range of providers, from small niche firms to large corporations. Government spending in this area is substantial, driven by the need for secure, efficient, and up-to-date technological systems. This contract fits within the broader IT services category, specifically focusing on bespoke software development for a federal agency.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a single entity without a small business focus suggests that opportunities for small businesses in this particular procurement were limited. Further analysis would be needed to determine if the prime contractor has a history of subcontracting with small businesses on other contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury's Inspector General, who is responsible for auditing and investigating the agency's programs and operations. Transparency is limited due to the sole-source nature of the award. Accountability measures would be defined within the contract's terms and conditions, including performance standards and payment schedules.

Related Government Programs

IRS IT Modernization Programs
Custom Software Development Services
Federal IT Procurement

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns due to lack of competition.
Dependency risk on a single vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $36,225 to LIGHTBOX PARENT, L.P.. LIGHTBOX VISION. COMMERCIAL REAL ESTATE EDITION. QUOTE DATED 07/11/2025 QUOTE NUMBER Q-45435 PER MARY KANE TREASURY APPROVAL # TRACS0004761 REFERENCE SECTION C FOR THE STATEMENT OF WORK. PERIOD OF PERFORMANCE: BASE YEAR: 07/11/2025 - 07/10/2026 OPT

Who is the contractor on this award?

The obligated recipient is LIGHTBOX PARENT, L.P..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $36,225.

What is the period of performance?

Start: 2025-07-11. End: 2026-07-10.

What is the track record of Lightbox Parent, L.P. with federal contracts, particularly with the IRS or Treasury?

Information regarding the specific track record of Lightbox Parent, L.P. with federal contracts, especially with the IRS or the Department of the Treasury, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like SAM.gov or FPDS to identify past performance, contract values, and any performance evaluations. Without this historical data, it is difficult to assess their reliability and past success in delivering similar services to government agencies. Understanding their past performance is crucial for evaluating the risk associated with this sole-source award.

How does the pricing of this contract compare to similar custom computer programming services procured by the government?

Benchmarking the pricing of this $362,250 contract against similar custom computer programming services is challenging without more specific details on the scope of work and the labor categories involved. As a sole-source award, there is no direct competitive data to compare against. To perform a robust comparison, one would need to identify other government contracts for similar services, ideally awarded competitively, and analyze their per-hour rates or project costs. Factors such as the complexity of the programming, the required security clearances, and the specific technologies used would significantly influence pricing.

What are the specific risks associated with a sole-source award for custom computer programming services?

The primary risks associated with a sole-source award for custom computer programming services include a lack of price competition, which can lead to inflated costs for the government. There is also a reduced incentive for the contractor to innovate or perform exceptionally when they are the only option. Furthermore, over-reliance on a single vendor can create a dependency, making it difficult and costly to switch providers if performance issues arise or if the vendor's capabilities become outdated. Ensuring robust contract management and performance monitoring is critical to mitigate these risks.

What is the expected effectiveness of these custom programming services in supporting IRS operations?

The effectiveness of these custom programming services in supporting IRS operations hinges entirely on the clarity and completeness of the Statement of Work (SOW) outlined in Section C of the contract, which is referenced but not provided. If the SOW accurately defines the IRS's needs for software development, enhancement, or maintenance, and if Lightbox Parent, L.P. possesses the requisite expertise, the services could significantly improve operational efficiency, data processing, or taxpayer services. However, without visibility into the SOW and the contractor's specific capabilities, assessing potential effectiveness is speculative.

What has been the historical spending by the IRS on custom computer programming services over the past five years?

Historical spending data for the IRS on custom computer programming services over the past five years is not available in the provided contract details. To ascertain this information, one would need to consult federal procurement databases such as the Federal Procurement Data System (FPDS) or the Contract Data Requirements List (CDRL). Analyzing this historical spending would provide context for the current $362,250 award, indicating whether this represents an increase, decrease, or consistent level of investment in such services by the IRS.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6 ARMSTRONG RD STE 4, SHELTON, CT, 06484

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $208,321

Exercised Options: $36,225

Current Obligation: $36,225

Actual Outlays: $36,225

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline