IRS contract for call center support awarded to National Telecommuting Institute for over $3.5M

Contract Overview

Contract Amount: $3,532,393 ($3.5M)

Contractor: National Telecommuting Institute, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2026-04-04

End Date: 2026-12-31

Contract Duration: 271 days

Daily Burn Rate: $13.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: MANDATORY SOURCE ABILITYONE CONTRACT. CONTRACT FOR TOLL FREE ORDER FORM CALL SERVICES TO PROVIDE CONTRACT CENTER SUPPORT SERVICES FOR THE IRS TO MANAGE TAXPAYER PRODUCT REQUESTS DIRECTED TO IRS TOLL-FREE TELEPHONE FORMS LINE.

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02114

State: Massachusetts Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.5 million to NATIONAL TELECOMMUTING INSTITUTE, INC. for work described as: MANDATORY SOURCE ABILITYONE CONTRACT. CONTRACT FOR TOLL FREE ORDER FORM CALL SERVICES TO PROVIDE CONTRACT CENTER SUPPORT SERVICES FOR THE IRS TO MANAGE TAXPAYER PRODUCT REQUESTS DIRECTED TO IRS TOLL-FREE TELEPHONE FORMS LINE. Key points: 1. Contract aims to enhance taxpayer access to IRS forms via toll-free lines. 2. Focus on contract center support services for managing product requests. 3. Awarded under the AbilityOne program, prioritizing individuals with disabilities. 4. Contract duration extends through December 2026. 5. Performance metrics will be key to assessing service quality and efficiency.

Value Assessment

Rating: fair

The contract value of $3.53 million for a period of approximately two years appears reasonable for specialized call center services. Benchmarking against similar government contracts for telephone answering services is challenging without more detailed service level agreements and performance data. However, given the AbilityOne designation, the pricing may reflect a balance between cost and social impact objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under the AbilityOne program, which is a mandatory source for federal agencies. This means the contract was not competed in the traditional sense, as AbilityOne providers are prioritized. While this ensures support for individuals with disabilities, it limits the potential for competitive pricing and innovation that might arise from a full and open competition.

Taxpayer Impact: Taxpayers benefit from the IRS's ability to provide essential services, but the lack of competition means potential savings from a competitive bidding process are not realized.

Public Impact

Taxpayers will benefit from improved access to IRS forms and product requests through dedicated call center support. The contract supports the IRS's mission to assist taxpayers effectively. The contract is administered by the Treasury Department's Internal Revenue Service. The contract supports employment opportunities for individuals with disabilities through the AbilityOne program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters.
Limited transparency into performance metrics and quality assurance processes.
Reliance on a single provider may reduce incentive for continuous improvement.

Positive Signals

Direct support for the IRS's taxpayer service mission.
Fulfillment of AbilityOne program requirements, supporting employment for individuals with disabilities.
Established contractor with a defined role in government service delivery.

Sector Analysis

The contract falls within the broader administrative and support services sector, specifically focusing on call center operations. The North American Industry Classification System (NAICS) code 561421 for Telephone Answering Services categorizes this type of work. Government spending in this area is substantial, supporting various agencies' communication needs. This contract represents a specific instance of federal agencies outsourcing essential communication functions.

Small Business Impact

This contract is not a small business set-aside; rather, it is awarded under the AbilityOne program, which prioritizes contracts for agencies that employ individuals with significant disabilities. While not directly impacting small businesses through set-asides, the AbilityOne program ensures a significant portion of federal contracting dollars are directed towards a specific social mission.

Oversight & Accountability

Oversight will primarily be conducted by the Internal Revenue Service (IRS) through contract management and performance monitoring. The Treasury Inspector General for Tax Administration (TIGTA) may also conduct audits or investigations related to the efficiency and effectiveness of IRS operations, including contracted services. Transparency is facilitated through contract award data, but detailed performance reports are typically internal.

Related Government Programs

IRS Taxpayer Services
Federal Call Center Contracts
AbilityOne Program Contracts
Treasury Department Procurement

Risk Flags

Sole-source award limits competitive pricing.
Performance metrics not publicly detailed.
Potential for service disruption if contractor fails.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.5 million to NATIONAL TELECOMMUTING INSTITUTE, INC.. MANDATORY SOURCE ABILITYONE CONTRACT. CONTRACT FOR TOLL FREE ORDER FORM CALL SERVICES TO PROVIDE CONTRACT CENTER SUPPORT SERVICES FOR THE IRS TO MANAGE TAXPAYER PRODUCT REQUESTS DIRECTED TO IRS TOLL-FREE TELEPHONE FORMS LINE.

Who is the contractor on this award?

The obligated recipient is NATIONAL TELECOMMUTING INSTITUTE, 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 $3.5 million.

What is the period of performance?

Start: 2026-04-04. End: 2026-12-31.

What is the historical performance of National Telecommuting Institute, Inc. on federal contracts?

National Telecommuting Institute, Inc. has a history of performing federal contracts, particularly those aligned with the AbilityOne program. As a mandatory source provider, their track record often involves fulfilling specific social and employment objectives alongside service delivery. Detailed performance reviews and past performance evaluations are typically held by the contracting agency and may not be publicly available in full. However, their continued selection for such contracts suggests a satisfactory level of performance in meeting the requirements of federal agencies, especially concerning the employment of individuals with disabilities. Specific metrics on timeliness, quality, and cost-effectiveness would be found in agency-specific contract files and performance reports.

How does the cost of this contract compare to similar government call center services?

Direct cost comparison is difficult without detailed service level agreements and performance metrics. However, contracts awarded under the AbilityOne program often have pricing structures that reflect both the cost of service delivery and the social mission of employing individuals with disabilities. While potentially higher than a purely commercial, competitively bid contract, the value is assessed against the dual objectives of service provision and social impact. Benchmarking against other government contracts for similar telephone answering services (NAICS 561421) would require access to detailed contract data, including labor hours, complexity of calls handled, and service level agreements, which are not readily available for public comparison.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. Typically, for call center support services, KPIs would include metrics such as average speed of answer, call abandonment rate, first call resolution rate, customer satisfaction scores, and adherence to schedule. The IRS, as the contracting agency, would establish these KPIs in the contract's Performance Work Statement (PWS). Measurement would likely involve regular reporting from the contractor, supplemented by government quality assurance checks and potentially customer feedback mechanisms. The effectiveness of the contract hinges on the IRS's robust monitoring of these KPIs.

What is the risk associated with relying on a sole-source provider for essential IRS taxpayer services?

The primary risk associated with a sole-source provider, even under the AbilityOne program, is the potential for reduced incentive to innovate or improve service quality compared to a competitive environment. If National Telecommuting Institute, Inc. faces operational challenges, service disruptions could directly impact taxpayer access to essential forms and information. Mitigation strategies employed by the IRS would include strong contract management, clearly defined performance standards, and contingency planning. However, the lack of alternative providers in a sole-source scenario means that addressing any significant performance issues might be more complex and time-consuming.

How does this contract contribute to the IRS's overall mission of taxpayer assistance?

This contract directly supports the IRS's mission by ensuring that taxpayers can efficiently request and receive necessary tax forms and related information through a dedicated toll-free line. By outsourcing the management of these calls to a specialized center, the IRS can focus its internal resources on more complex tax administration and enforcement activities. The contract enhances taxpayer accessibility and service delivery, which are critical components of the IRS's goal to provide excellent service to taxpayers and to uphold the law.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telephone Answering Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 47 KING RD, BEDFORD, NH, 03110

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,795,262

Exercised Options: $27,795,262

Current Obligation: $3,532,393

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline