Treasury's IRS awards $9.5M for network support, with 15 task orders issued under a full and open competition

Contract Overview

Contract Amount: $9,473,961 ($9.5M)

Contractor: Agovx LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-02-21

End Date: 2026-02-20

Contract Duration: 364 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS IS A TASK ORDER TO ACQUIRE NETWORK MANAGEMENT CONTROL CENTER (NMCC) CONTRACTOR SUPPORT FOR MANAGEMENT AND DELIVERY OF THE ENTERPRISE NETWORK DATA AND VOICE SERVICES LOCATED AT THE NEW CARROLLTON FEDERAL BUILDING (NCFB) IN LANHAM MD.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $9.5 million to AGOVX LLC for work described as: THIS IS A TASK ORDER TO ACQUIRE NETWORK MANAGEMENT CONTROL CENTER (NMCC) CONTRACTOR SUPPORT FOR MANAGEMENT AND DELIVERY OF THE ENTERPRISE NETWORK DATA AND VOICE SERVICES LOCATED AT THE NEW CARROLLTON FEDERAL BUILDING (NCFB) IN LANHAM MD. Key points: 1. The contract focuses on essential network management and delivery of data and voice services, indicating a critical operational need. 2. A firm-fixed-price contract type suggests predictable costs for the government, though it may limit flexibility for unforeseen changes. 3. The award was made under a full and open competition after exclusion of sources, implying a broad search for qualified vendors. 4. The duration of 364 days suggests a short-term need or a bridge to a longer-term solution. 5. The contractor, AGOVX LLC, has been awarded this task order, highlighting their role in providing IT services to the IRS. 6. The service falls under Computer Systems Design Services, a common category for IT support contracts. 7. The contract is geographically located in Lanham, Maryland, specifying the operational site for these services.

Value Assessment

Rating: good

The contract value of approximately $9.5 million for a one-year period for network management and data/voice services appears reasonable given the scope. Benchmarking against similar IT support contracts for federal agencies suggests that pricing is within expected ranges for specialized network operations. The firm-fixed-price structure helps control costs, but a detailed breakdown of labor categories and rates would be needed for a more precise value assessment. The total award amount of $9.5M is for 15 task orders, indicating an average task order value of $631,597.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition after exclusion of sources' mechanism. This typically means that the agency initially considered all responsible sources but then excluded certain ones based on specific criteria, or that it was a competitive process where only a subset of potential bidders were invited after an initial broad solicitation. The presence of 15 task orders suggests a potentially active competition or a framework that allows for multiple awards or subsequent task orders. The level of competition, while not explicitly detailed by the number of bidders for this specific task order, is implied to be robust by the 'full and open' designation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. It ensures that the government is not limited to a few providers, increasing the likelihood of securing the best value for public funds.

Public Impact

Federal employees and operations at the New Carrollton Federal Building (NCFB) will benefit from reliable network infrastructure and communication services. The contract ensures the continuous delivery of enterprise network data and voice services, crucial for the IRS's day-to-day operations. The services are geographically focused within Maryland, specifically at the NCFB. The contract supports IT professionals and potentially other roles involved in network management and support, impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the current contractor's solutions become deeply integrated and difficult to replace.
Risk of cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen technical challenges or scope creep.
Dependence on a single contractor for critical network infrastructure could pose a risk if the contractor experiences performance issues or financial instability.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Awarding under a full and open competition suggests a thorough vetting process and potential for competitive pricing.
The contractor, AGOVX LLC, is being tasked to provide essential network services, indicating their capability in this domain.
The contract specifies clear performance periods, allowing for structured evaluation of the contractor's delivery.

Sector Analysis

The IT services sector, particularly computer systems design and related services, is a significant area of federal spending. Agencies rely heavily on these services for maintaining and upgrading their complex technological infrastructures. This contract fits within the broader category of IT support and network management, which is essential for government operations. Comparable spending benchmarks for similar network support contracts can vary widely based on scope, duration, and complexity, but a contract of this size for a year of service is typical for specialized IT functions within a large federal agency like the IRS.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The competition was open, which may have allowed small businesses to bid if they met the qualifications, but it was not a targeted set-aside. The primary focus appears to be on securing the necessary IT services through the most competitive means available.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the designated contract specialist or program manager within the IRS. Performance monitoring against the contract's requirements and deliverables would be ongoing. As a task order under a larger contract vehicle, it may also be subject to the oversight of the parent contract's administration. Transparency is generally maintained through contract databases like FPDS, where award details are published. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential fraud, waste, or abuse identified.

Related Government Programs

IRS IT Modernization Programs
Federal Network Infrastructure Support Contracts
Enterprise IT Services Contracts
Computer Systems Design Services
Network Management and Operations

Risk Flags

Potential for performance issues impacting critical IRS operations.
Risk of cost escalation if contract terms are not strictly managed.
Dependence on a single vendor for essential network services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $9.5 million to AGOVX LLC. THIS IS A TASK ORDER TO ACQUIRE NETWORK MANAGEMENT CONTROL CENTER (NMCC) CONTRACTOR SUPPORT FOR MANAGEMENT AND DELIVERY OF THE ENTERPRISE NETWORK DATA AND VOICE SERVICES LOCATED AT THE NEW CARROLLTON FEDERAL BUILDING (NCFB) IN LANHAM MD.

Who is the contractor on this award?

The obligated recipient is AGOVX 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 $9.5 million.

What is the period of performance?

Start: 2025-02-21. End: 2026-02-20.

What is the track record of AGOVX LLC in providing similar network management services to federal agencies?

Assessing the track record of AGOVX LLC requires a review of their past performance on federal contracts, particularly those involving network management, data, and voice services. Information from the Federal Procurement Data System (FPDS) or other contract databases would be crucial to identify previous awards, contract values, and performance ratings. A detailed analysis would look for patterns in contract types (e.g., firm-fixed-price, cost-plus), agencies served, and the duration and complexity of past projects. Positive indicators would include a history of successful contract completions, positive past performance reviews, and experience with similar technical requirements. Conversely, a history of contract disputes, performance failures, or significant cost overruns would raise concerns.

How does the $9.5 million value compare to similar network support contracts for federal agencies of the IRS's size?

The $9.5 million award for one year of network management and data/voice services for the New Carrollton Federal Building is a significant but not extraordinary amount for specialized IT support within a large federal agency. Benchmarking against similar contracts requires comparing scope, duration, labor mix, and geographic location. For instance, contracts supporting enterprise-wide network operations for agencies with thousands of employees often run into tens or hundreds of millions of dollars annually. This specific award appears to be for a defined scope at a single location, making it a mid-tier value for specialized support. A more precise comparison would involve analyzing the number of users supported, the complexity of the network architecture, and the specific services included (e.g., 24/7 monitoring, cybersecurity integration).

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential performance failures by the contractor (AGOVX LLC), leading to network disruptions, and the possibility of cost overruns if the firm-fixed-price contract doesn't adequately cover unforeseen technical challenges. Another risk is vendor lock-in, where the agency becomes overly reliant on the contractor's specific technologies or processes. Mitigation strategies typically involve robust performance monitoring by the IRS, clearly defined Service Level Agreements (SLAs) within the contract, and regular performance reviews. The firm-fixed-price structure itself is a risk mitigation tool for cost certainty. For vendor lock-in, the contract might include provisions for knowledge transfer and documentation to facilitate future transitions. The 'full and open competition' aspect also mitigates risk by ensuring a competitive landscape.

What is the expected effectiveness of the network management services provided by AGOVX LLC in supporting IRS operations?

The expected effectiveness hinges on AGOVX LLC's ability to deliver reliable and secure network data and voice services as per the contract's specifications. High effectiveness would translate to minimal network downtime, efficient data transmission, clear voice communication, and robust security protocols. The IRS will likely measure effectiveness through key performance indicators (KPIs) such as network uptime percentages, response times for issue resolution, and adherence to security standards. Given that this is a task order under a competitive process, the IRS anticipates that AGOVX LLC possesses the necessary expertise and resources to meet these operational demands, thereby ensuring the continuity and efficiency of critical IRS functions reliant on this network infrastructure.

How does this contract align with historical spending patterns for IT support services at the IRS or Treasury?

This contract aligns with historical spending patterns as federal agencies, particularly large ones like the IRS, consistently allocate substantial budgets to IT infrastructure and support. Network management, data, and voice services are fundamental operational requirements. The IRS, like many tax authorities globally, relies heavily on secure and efficient IT systems to process information, communicate internally and externally, and maintain taxpayer data. Spending on computer systems design and related services has been a significant and growing component of federal IT budgets for years. This $9.5 million task order represents a specific, defined need within that broader, ongoing investment in maintaining and upgrading the agency's technological backbone.

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 - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8251 GREENSBORO DR STE 200, MCLEAN, VA, 22102

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $44,542,320

Exercised Options: $9,473,961

Current Obligation: $9,473,961

Actual Outlays: $4,168,331

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCB21D0168

IDV Type: GWAC

Timeline