Treasury's IRS awards $8.1M for BMC Control-M Software and Maintenance via Full and Open Competition

Contract Overview

Contract Amount: $8,140,066 ($8.1M)

Contractor: Colossal Contracting LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-05-30

End Date: 2026-05-29

Contract Duration: 364 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BMC CONTROL M SOFTWARE AND MAINTENANCE

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85701

State: Arizona Government Spending

Plain-Language Summary

Department of the Treasury obligated $8.1 million to COLOSSAL CONTRACTING LLC for work described as: BMC CONTROL M SOFTWARE AND MAINTENANCE Key points: 1. Software and maintenance contract valued at $8.1 million. 2. Awarded to Colossal Contracting LLC. 3. Competition method was full and open, suggesting market availability. 4. Sector is IT services, specifically Other Computer Related Services.

Value Assessment

Rating: fair

The contract value of $8.1 million for BMC Control-M software and maintenance over one year appears to be within a reasonable range for enterprise-level software licensing and support. Benchmarking against similar large-scale software procurement would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to secure favorable terms.

Taxpayer Impact: The use of full and open competition is expected to result in a fair market price, maximizing the value of taxpayer dollars spent on this essential IT service.

Public Impact

Ensures continuity of critical IT operations for the IRS. Supports tax administration and processing functions. Potential impact on IRS efficiency and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across federal agencies, supporting critical infrastructure and operational needs. Benchmarks for similar software maintenance contracts can vary widely based on the software's complexity and vendor.

Small Business Impact

The contract was awarded to Colossal Contracting LLC, and there is no indication that small businesses were involved as subcontractors or prime contractors in this specific award. Further analysis would be needed to determine if small business participation goals were met through other means or if opportunities were missed.

Oversight & Accountability

The use of full and open competition suggests a standard procurement process. Oversight will be crucial to ensure the software and maintenance meet IRS requirements and that the pricing remains competitive throughout the contract period.

Related Government Programs

Risk Flags

Tags

other-computer-related-services, department-of-the-treasury, az, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $8.1 million to COLOSSAL CONTRACTING LLC. BMC CONTROL M SOFTWARE AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is COLOSSAL CONTRACTING 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 $8.1 million.

What is the period of performance?

Start: 2025-05-30. End: 2026-05-29.

What is the specific functionality of BMC Control-M software utilized by the IRS, and how critical is it to their operations?

BMC Control-M is a workload automation software that helps organizations manage and automate complex IT processes and batch jobs. For the IRS, it is likely critical for scheduling, orchestrating, and monitoring essential tax processing workflows, ensuring timely and accurate data handling. Its failure or underperformance could significantly disrupt tax administration.

What are the potential risks associated with relying on a single vendor for this critical software and its maintenance?

Reliance on a single vendor, BMC in this case, presents risks such as vendor lock-in, limited negotiation power for future renewals, and potential price escalations. If BMC discontinues support or significantly alters its product roadmap, the IRS might face costly transitions or be forced to accept unfavorable terms. Ensuring robust service level agreements is paramount.

How does the firm fixed price contract type ensure cost-effectiveness and value for the taxpayer in this software maintenance agreement?

A firm fixed price (FFP) contract establishes a set price for the software and maintenance, providing cost certainty for the IRS and taxpayers. This contract type shifts the risk of cost overruns to the contractor, Colossal Contracting LLC. It incentivizes the contractor to manage their costs efficiently to maintain profitability, thereby potentially securing better value.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 HARRY S TRUMAN PKWY, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $42,215,056

Exercised Options: $8,140,066

Current Obligation: $8,140,066

Actual Outlays: $8,140,066

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0336Y

IDV Type: FSS

Timeline

Start Date: 2025-05-30

Current End Date: 2026-05-29

Potential End Date: 2030-05-29 14:56:45

Last Modified: 2026-02-03

More Contracts from Colossal Contracting LLC

View all Colossal Contracting LLC federal contracts →

Other Department of the Treasury Contracts

View all Department of the Treasury contracts →

Explore Related Government Spending