Treasury's IRS Awards $2.47M for CSS Application Support to Case Engineering Group LLC

Contract Overview

Contract Amount: $2,468,774 ($2.5M)

Contractor: THE Case Engineering Group LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-02-10

End Date: 2027-02-09

Contract Duration: 729 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COMPLIANCE DOMAIN REQUIRES CONTRACTOR SUPPORT FOR TECHNICAL SUPPORT AND SERVICES FOR OPERATION AND MAINTENANCE ON THE COLLECTION SERVICES SYSTEMS (CSS) APPLICATION.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.5 million to THE CASE ENGINEERING GROUP LLC for work described as: COMPLIANCE DOMAIN REQUIRES CONTRACTOR SUPPORT FOR TECHNICAL SUPPORT AND SERVICES FOR OPERATION AND MAINTENANCE ON THE COLLECTION SERVICES SYSTEMS (CSS) APPLICATION. Key points: 1. Contract awarded for essential technical support and maintenance of the Collection Services Systems (CSS) application. 2. Case Engineering Group LLC secured the contract, indicating potential specialization in this niche IT service. 3. The contract's fixed-price structure aims to control costs for the IRS. 4. This IT service contract falls under custom computer programming, a common area for federal IT spending.

Value Assessment

Rating: good

The contract value of $2.47 million over two years appears reasonable for specialized IT application support. Benchmarking against similar custom computer programming services contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method allows multiple vendors to bid, theoretically leading to competitive pricing.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes efficiency and cost-effectiveness in government spending.

Public Impact

Taxpayers benefit from the continued operation and maintenance of the Collection Services Systems (CSS) application, crucial for IRS functions. Ensures the IRS can effectively manage and process collections through reliable IT systems. Supports the government's ability to maintain critical financial infrastructure through contracted IT expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if CSS application is highly proprietary.
Reliance on a single contractor for critical system maintenance.

Positive Signals

Clear contract duration and defined scope of work.
Awarded under full and open competition.
Firm Fixed Price contract type helps manage cost certainty.

Sector Analysis

This contract falls within the IT sector, specifically custom computer programming services. Federal IT spending is substantial, and contracts like this are vital for maintaining agency operations and digital infrastructure.

Small Business Impact

The contract was not awarded to a small business, indicating that larger or specialized firms were deemed most suitable for this particular requirement. Further analysis would be needed to determine if small businesses had an opportunity to compete.

Oversight & Accountability

The IRS, as part of the Department of the Treasury, is subject to various oversight mechanisms. The use of a definitive contract and the competitive award process suggest adherence to procurement regulations.

Related Government Programs

Custom Computer Programming Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Contract duration of 729 days.
Awarded to a single entity (The Case Engineering Group LLC).
No small business set-aside.
Specific application support may indicate a niche requirement.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.5 million to THE CASE ENGINEERING GROUP LLC. COMPLIANCE DOMAIN REQUIRES CONTRACTOR SUPPORT FOR TECHNICAL SUPPORT AND SERVICES FOR OPERATION AND MAINTENANCE ON THE COLLECTION SERVICES SYSTEMS (CSS) APPLICATION.

Who is the contractor on this award?

The obligated recipient is THE CASE ENGINEERING GROUP 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 $2.5 million.

What is the period of performance?

Start: 2025-02-10. End: 2027-02-09.

What is the specific functionality of the Collection Services Systems (CSS) application and its criticality to IRS operations?

The Collection Services Systems (CSS) application is integral to the IRS's ability to manage and process tax collections. Its criticality lies in ensuring efficient revenue collection, maintaining taxpayer records, and supporting enforcement activities. Understanding its specific functions, such as payment processing, debt management, and communication with taxpayers, is key to appreciating the importance of its continuous operation and maintenance.

Are there any potential risks associated with the long-term maintenance of a specific application by a single contractor?

Yes, there are potential risks. Long-term reliance on a single contractor can lead to vendor lock-in, reduced bargaining power, and a potential lack of knowledge transfer to internal staff. If the contractor's performance declines or they exit the market, the agency could face significant disruption. Mitigating these risks often involves clear performance metrics, knowledge sharing clauses, and contingency planning.

How does the firm fixed price contract type ensure value for money in this custom computer programming service context?

A firm fixed price (FFP) contract provides the greatest cost certainty for the government, as the price is set and not subject to adjustment based on the contractor's cost experience. For custom computer programming services, an FFP contract is most effective when the scope of work is well-defined and unlikely to change significantly. It incentivizes the contractor to manage their costs efficiently to maximize profit, thereby potentially delivering value for money if the scope is accurately estimated.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1907 TURLEYGREEN PL, UPPER MARLBORO, MD, 20774

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,980,825

Exercised Options: $2,468,774

Current Obligation: $2,468,774

Actual Outlays: $1,986,899

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline