Treasury's IRS Awards $13.7M for ECM O&M to Avfederal Tech Solutions, LLC

Contract Overview

Contract Amount: $13,721,770 ($13.7M)

Contractor: Avfederal Tech Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-10-17

End Date: 2025-10-31

Contract Duration: 379 days

Daily Burn Rate: $36.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ECM O&M

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $13.7 million to AVFEDERAL TECH SOLUTIONS, LLC for work described as: ECM O&M Key points: 1. Spending on ECM O&M totals $13.7M. 2. AVFEDERAL TECH SOLUTIONS, LLC is the sole awardee. 3. The contract is for Computer Systems Design Services. 4. This award represents a risk due to limited competition.

Value Assessment

Rating: questionable

The contract value of $13.7M for ECM O&M is significant. Without comparable contract data or a competitive bidding process, it is difficult to assess if this price is optimal or reflects market rates for Computer Systems Design Services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: The absence of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive process.

Public Impact

Taxpayers may be paying a premium due to the sole-source award. The IRS relies on this contract for essential ECM O&M. Lack of transparency in pricing could impact future contract negotiations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Contract awarded to a specific vendor
Addresses ECM O&M needs

Sector Analysis

The IT sector, particularly Computer Systems Design Services, is a significant area of government spending. Benchmarks for O&M services can vary widely based on complexity and vendor, but competitive bidding typically drives better value.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or if opportunities were missed.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the government received fair value and that justification for non-competition is robust.

Related Government Programs

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

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $13.7 million to AVFEDERAL TECH SOLUTIONS, LLC. ECM O&M

Who is the contractor on this award?

The obligated recipient is AVFEDERAL TECH SOLUTIONS, 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 $13.7 million.

What is the period of performance?

Start: 2024-10-17. End: 2025-10-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. Without specific details from the agency, it's impossible to confirm the validity of this justification. However, sole-source contracts often bypass competitive processes, potentially leading to higher costs and reduced transparency for taxpayers.

What are the risks associated with a sole-source contract for ECM O&M?

The primary risks of a sole-source contract include inflated pricing due to lack of competition, potential for vendor lock-in, and reduced incentive for the vendor to innovate or provide superior service. Taxpayers may bear the cost of these risks through higher expenditures and potentially less effective service delivery compared to a competitively bid contract.

How can the IRS ensure value for money on this sole-source contract?

The IRS can ensure value by conducting thorough market research to establish a fair price, negotiating strong contract terms, and implementing robust performance monitoring. Independent cost analysis and regular reviews of the vendor's performance against established metrics are crucial to mitigate risks associated with sole-source 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 - APLLICATIONS

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: 47 E SOUTH ST UNIT 002, FREDERICK, MD, 21701

Business Categories: Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,572,088

Exercised Options: $13,721,770

Current Obligation: $13,721,770

Actual Outlays: $13,253,665

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline