IRS Spends $12.5M on Microsoft Unified Support Services via SEWP Solutions LLC
Contract Overview
Contract Amount: $12,506,719 ($12.5M)
Contractor: Sewp Solutions LLC
Awarding Agency: Department of the Treasury
Start Date: 2024-12-30
End Date: 2026-12-29
Contract Duration: 729 days
Daily Burn Rate: $17.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS IS A DELIVERY ORDER TO ACQUIRE MICROSOFT UNIFIED SUPPORT SERVICES (USS) TO DEFINE TECHNICAL SKILLS, CAPABILITIES, AND SPECIALIZED SERVICES.
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $12.5 million to SEWP SOLUTIONS LLC for work described as: THIS IS A DELIVERY ORDER TO ACQUIRE MICROSOFT UNIFIED SUPPORT SERVICES (USS) TO DEFINE TECHNICAL SKILLS, CAPABILITIES, AND SPECIALIZED SERVICES. Key points: 1. Significant investment in essential IT support for IRS operations. 2. Procurement through SEWP Solutions LLC, a NASA SEWP contract vehicle. 3. Potential for cost savings through unified support model. 4. Focus on technical skills and specialized services for IRS.
Value Assessment
Rating: good
The $12.5M contract value for Microsoft Unified Support Services appears reasonable given the scope of defining technical skills and specialized services. Benchmarking against similar enterprise-level support 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, likely leveraging the NASA SEWP contract vehicle. This method promotes competitive pricing and ensures a broad range of vendors could bid, leading to potentially better value.
Taxpayer Impact: Taxpayer funds are being used for critical IT infrastructure support, aiming to ensure efficient IRS operations and service delivery.
Public Impact
Ensures IRS has access to critical Microsoft technical support. Supports the modernization and maintenance of IRS IT systems. Aims to improve efficiency and effectiveness of tax administration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with Microsoft-specific support.
- Ensuring the defined skills and services directly align with IRS needs.
Positive Signals
- Leverages established contract vehicle (SEWP) for efficient procurement.
- Focus on specialized services could lead to improved IT performance.
Sector Analysis
This contract falls within the Information Technology sector, specifically IT support services. Spending benchmarks for enterprise-level IT support can vary widely based on agency size and complexity, but $12.5M for comprehensive support is within a typical range for large federal agencies.
Small Business Impact
While the primary contract vehicle is SEWP, which facilitates access for various contractors, this specific award to SEWP SOLUTIONS LLC does not explicitly indicate a direct benefit or set-aside for small businesses. Further analysis of the prime contractor's subcontracting plan would be needed.
Oversight & Accountability
The use of a GWAC like NASA SEWP implies a degree of pre-vetting and oversight. However, ongoing monitoring of service delivery and performance against the defined technical skills and capabilities will be crucial for accountability.
Related Government Programs
- Electronic Computer Manufacturing
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for vendor lock-in
- Scope definition clarity
- Performance metric establishment
- Alignment with evolving IRS needs
Tags
electronic-computer-manufacturing, department-of-the-treasury, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $12.5 million to SEWP SOLUTIONS LLC. THIS IS A DELIVERY ORDER TO ACQUIRE MICROSOFT UNIFIED SUPPORT SERVICES (USS) TO DEFINE TECHNICAL SKILLS, CAPABILITIES, AND SPECIALIZED SERVICES.
Who is the contractor on this award?
The obligated recipient is SEWP 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 $12.5 million.
What is the period of performance?
Start: 2024-12-30. End: 2026-12-29.
How will the defined technical skills and specialized services be measured for effectiveness and alignment with IRS operational needs?
Effectiveness will likely be measured through key performance indicators (KPIs) established in the contract, such as response times, resolution rates, and successful implementation of specialized services. Regular performance reviews between the IRS and SEWP Solutions LLC will ensure alignment with evolving operational needs and strategic IT goals.
What is the risk of cost overruns or scope creep given the nature of defining technical skills and specialized services?
The risk of cost overruns exists if the scope of 'defining' becomes overly broad or if unforeseen technical challenges arise. Mitigation strategies include clearly defined deliverables, change control processes, and regular budget reviews. The firm-fixed-price nature of the contract provides some cost certainty, but careful scope management is essential.
Does this unified support model offer a demonstrable improvement in IT service delivery compared to previous support arrangements?
The 'unified' aspect suggests an aim for streamlined support and potentially reduced redundancy. Demonstrable improvement would be evident if the new model leads to faster issue resolution, better integration of Microsoft services, and more proactive IT management, ultimately enhancing the IRS's ability to perform its mission.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4050 LEGATO RD #700, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,536,427
Exercised Options: $20,956,051
Current Obligation: $12,506,719
Actual Outlays: $11,030,330
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC19B
IDV Type: GWAC
Timeline
Start Date: 2024-12-30
Current End Date: 2026-12-29
Potential End Date: 2029-12-29 12:38:13
Last Modified: 2026-03-24
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