Treasury's IRS awards $3.99M for enterprise field operations deskside services to Epsilon Inc

Contract Overview

Contract Amount: $3,992,706 ($4.0M)

Contractor: Epsilon Inc

Awarding Agency: Department of the Treasury

Start Date: 2024-11-01

End Date: 2025-10-31

Contract Duration: 364 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: UNS ENTERPRISE FIELD OPERATIONS DESKSIDE SERVICES

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.0 million to EPSILON INC for work described as: UNS ENTERPRISE FIELD OPERATIONS DESKSIDE SERVICES Key points: 1. Contract value of $3.99M for one year of service. 2. Awarded under full and open competition, indicating broad market engagement. 3. Service category is Computer Systems Design Services, a common IT support function. 4. Firm Fixed Price contract type suggests predictable costs for the government. 5. Delivery Order awarded to Epsilon Inc. for deskside support. 6. Contract duration is 364 days, aligning with annual IT support needs.

Value Assessment

Rating: good

The contract value of $3.99M for a year of enterprise field operations deskside services appears reasonable given the scope. Benchmarking against similar IT support contracts for large federal agencies suggests this pricing is within expected ranges. The firm fixed price structure helps control costs, but detailed performance metrics would be needed to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 10 bidders indicates a healthy level of competition for this type of IT support service. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

Benefits IRS employees by ensuring reliable IT support for their daily operations. Delivers essential deskside services, including troubleshooting and maintenance of computer systems. Geographic impact is focused on Maryland, where the services are likely delivered. Workforce implications include support for IT professionals and potentially Epsilon Inc.'s technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if service quality is exceptionally high and switching costs are significant.
Dependence on a single vendor for critical IT infrastructure support could pose a risk if the vendor faces operational challenges.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Firm Fixed Price contract type provides cost certainty for the government.
Delivery Order mechanism allows for specific tasking and management of services.

Sector Analysis

The IT services sector, particularly computer systems design and related support, is a significant area of federal spending. This contract for deskside support falls within the broader IT services category, which encompasses a wide range of activities from software development to hardware maintenance. Federal agencies consistently procure these services to maintain their vast technological infrastructure. Comparable spending benchmarks for IT support services vary widely based on scope, duration, and agency size, but this $3.99M award for a year of enterprise-level support is within a common range for large organizations.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a small business set-aside. While Epsilon Inc. is the prime contractor, there is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses are involved in the supply chain or if there are opportunities for them to participate in future similar contracts.

Oversight & Accountability

The contract is a Delivery Order under a larger contract vehicle, which typically has its own oversight mechanisms. The firm fixed price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through contract award databases. The specific oversight for this delivery order would likely fall under the purview of the IRS's contracting officers and potentially the Treasury Inspector General if performance issues or financial irregularities arise.

Related Government Programs

IRS IT Support Services
Federal Deskside Support Contracts
Computer Systems Design Services
Enterprise IT Operations

Risk Flags

Potential for performance issues impacting IRS operations.
Cybersecurity vulnerabilities associated with IT support.
Dependence on a single vendor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.0 million to EPSILON INC. UNS ENTERPRISE FIELD OPERATIONS DESKSIDE SERVICES

Who is the contractor on this award?

The obligated recipient is EPSILON 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 $4.0 million.

What is the period of performance?

Start: 2024-11-01. End: 2025-10-31.

What is Epsilon Inc.'s track record with federal IT support contracts?

Epsilon Inc. has a history of performing IT support and related services for federal agencies. While specific details on past performance for deskside support are not provided in this data, their presence as a bidder and awardee in this competitive bid suggests they possess the necessary qualifications and experience. A deeper dive into their contract history, including past performance evaluations and any reported issues, would provide a more comprehensive understanding of their reliability and capability in delivering similar services. Examining their performance on other IT service contracts, especially those with similar scope and complexity, would be crucial for assessing their suitability for this role.

How does the $3.99M contract value compare to similar deskside support contracts?

The $3.99M contract value for one year of enterprise field operations deskside services appears to be within a reasonable range for a federal agency of the IRS's size and scope. Benchmarking against publicly available data for similar IT support contracts, especially those involving comprehensive deskside services for a large user base, indicates that costs can range significantly. Factors influencing cost include the number of users supported, geographic distribution, service level agreements (SLAs), and the complexity of the IT environment. Without specific details on the number of endpoints or users covered by this contract, a precise comparison is difficult, but the awarded amount suggests a substantial operational requirement.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential service disruptions if Epsilon Inc. fails to meet performance standards, leading to decreased productivity for IRS personnel. There's also a risk of cost overruns if the firm fixed price model doesn't adequately account for unforeseen technical challenges or scope creep, although this is mitigated by the contract type. Vendor lock-in could become a concern if the services are highly specialized and difficult to transition to another provider. Furthermore, cybersecurity risks are inherent in any IT support contract, requiring robust security protocols from the vendor to protect sensitive government data.

How effective is the firm fixed price contract type for managing IT support services?

The firm fixed price (FFP) contract type is generally effective for managing IT support services when the scope of work is well-defined and stable. It provides cost certainty for the government, as the contractor assumes the risk of cost overruns. This encourages the contractor to be efficient and manage resources effectively. For deskside support, where many tasks are routine and predictable, FFP can be advantageous. However, if the IT environment is highly dynamic or requires significant unforeseen troubleshooting, FFP might disincentivize the contractor from addressing complex issues without additional negotiation, potentially leading to delays or requiring contract modifications. Clear performance standards and SLAs are crucial to ensure quality under an FFP structure.

What is the historical spending pattern for enterprise field operations deskside services at the IRS?

Analyzing historical spending patterns for enterprise field operations deskside services at the IRS would provide valuable context for this $3.99M award. Without specific historical data, it's difficult to ascertain trends. However, federal agencies typically maintain consistent spending on IT support services due to the ongoing need to maintain operational readiness. Fluctuations in spending could be attributed to changes in technology, agency restructuring, or shifts in IT strategy (e.g., moving towards cloud-based solutions or managed services). Understanding past contract values, durations, and awarded vendors for similar services would help determine if this current award represents an increase, decrease, or stable level of investment in deskside support.

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 - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: American Systems Corporation

Address: 1 MONTICELLO VILLAGE DR, WEAVERVILLE, NC, 28787

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

Financial Breakdown

Contract Ceiling: $7,992,626

Exercised Options: $3,992,706

Current Obligation: $3,992,706

Actual Outlays: $3,992,706

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0340Y

IDV Type: FSS

Timeline