Treasury's IRS Awards $7.09M Contract to Kilda Group for Document Software Implementation
Contract Overview
Contract Amount: $7,087,947 ($7.1M)
Contractor: Kilda Group, LLC
Awarding Agency: Department of the Treasury
Start Date: 2025-09-22
End Date: 2026-09-21
Contract Duration: 364 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CONTRACTOR SUPPORT FOR THE ENTERPRISE PLATFORM FOR CORRESPONDENCE, NOTICES AND LETTERS PROJECT. THE CONTRACTOR WILL PROVIDE SUPPORT SERVICES TO COMPLETE THE IMPLEMENTATION OF NEW DOCUMENT COMPOSITION SOFTWARE (OPEN TEXT EXSTREAM), DESIGN, DEVELOP AN
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $7.1 million to KILDA GROUP, LLC for work described as: CONTRACTOR SUPPORT FOR THE ENTERPRISE PLATFORM FOR CORRESPONDENCE, NOTICES AND LETTERS PROJECT. THE CONTRACTOR WILL PROVIDE SUPPORT SERVICES TO COMPLETE THE IMPLEMENTATION OF NEW DOCUMENT COMPOSITION SOFTWARE (OPEN TEXT EXSTREAM), DESIGN, DEVELOP AN Key points: 1. The contract focuses on implementing new document composition software, OpenText Exstream, for correspondence and notices. 2. Kilda Group, LLC, a small business, is awarded a firm-fixed-price delivery order. 3. The project aims to enhance the IRS's ability to manage and generate official communications. 4. Spending is concentrated in IT services, specifically computer-related services. 5. The contract duration is one year, with a total value of $7,087,946.98.
Value Assessment
Rating: good
The contract value of $7.09 million for a one-year implementation project appears reasonable given the scope of enterprise software deployment. Benchmarking against similar IT implementation contracts would provide further context, but the price seems aligned with industry standards for specialized software support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive fair pricing and ensure the government receives value for its investment.
Taxpayer Impact: Taxpayers benefit from efficient and effective communication systems, potentially reducing administrative costs and improving service delivery through modernized software.
Public Impact
Improved efficiency in generating official IRS correspondence and notices. Modernization of a critical IT system for taxpayer communication. Potential for cost savings through streamlined document management processes. Ensures compliance with communication standards and regulations. Supports the IRS's broader digital transformation initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep during implementation.
- Dependency on a single contractor for critical software support.
- Integration challenges with existing IRS systems.
Positive Signals
- Firm-fixed-price contract limits cost overruns.
- Awarded under full and open competition.
- Focus on modernizing essential communication tools.
- One-year duration allows for focused project execution.
Sector Analysis
This contract falls within the IT sector, specifically 'Other Computer Related Services.' The spending benchmark for similar IT implementation and support contracts can vary widely based on complexity, but $7.09 million for a year-long enterprise software project is within a typical range for significant IT modernization efforts.
Small Business Impact
Kilda Group, LLC is identified as a small business. The award contributes to the government's goal of supporting small businesses in federal contracting, particularly in specialized IT service areas.
Oversight & Accountability
The award is a delivery order under a larger contract vehicle, suggesting existing oversight mechanisms. Further oversight will be crucial during the implementation phase to ensure adherence to scope, timeline, and budget.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for integration issues with existing IRS IT infrastructure.
- Risk of user adoption challenges among IRS staff.
- Dependency on Kilda Group for critical software implementation.
- Need for robust cybersecurity measures during and after implementation.
Tags
other-computer-related-services, department-of-the-treasury, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $7.1 million to KILDA GROUP, LLC. CONTRACTOR SUPPORT FOR THE ENTERPRISE PLATFORM FOR CORRESPONDENCE, NOTICES AND LETTERS PROJECT. THE CONTRACTOR WILL PROVIDE SUPPORT SERVICES TO COMPLETE THE IMPLEMENTATION OF NEW DOCUMENT COMPOSITION SOFTWARE (OPEN TEXT EXSTREAM), DESIGN, DEVELOP AN
Who is the contractor on this award?
The obligated recipient is KILDA 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 $7.1 million.
What is the period of performance?
Start: 2025-09-22. End: 2026-09-21.
What is the specific functionality and expected improvement in efficiency gained by implementing the OpenText Exstream software?
The OpenText Exstream software is designed to automate and streamline the creation, management, and delivery of personalized customer communications. For the IRS, this likely translates to faster generation of notices and letters, improved consistency in messaging, and reduced manual effort. Expected efficiency gains could include reduced processing times for correspondence, lower error rates in document generation, and enhanced capabilities for tailoring communications to specific taxpayer needs, ultimately improving taxpayer experience and administrative effectiveness.
What are the key risks associated with the implementation of new document composition software in a large federal agency like the IRS?
Key risks include integration challenges with existing legacy IT systems, potential data migration issues, user adoption resistance from IRS staff, and the possibility of scope creep if requirements are not clearly defined and managed. Cybersecurity vulnerabilities during the implementation and operational phases are also a significant concern. Furthermore, vendor lock-in and the long-term cost of ownership for the software and ongoing support need careful consideration to ensure sustained value and avoid unexpected expenses.
How will the success of this contract be measured to ensure it meets the IRS's objectives for correspondence and notices?
Success will likely be measured through key performance indicators (KPIs) related to the software's functionality, reliability, and user satisfaction. This could include metrics such as the reduction in manual processing time for generating documents, the decrease in errors or inconsistencies in correspondence, the successful integration with other IRS systems, and positive feedback from end-users within the IRS. Timely completion of the implementation project within the defined budget and scope will also be critical measures of success.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
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: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kilda Group LLC
Address: 650 RITCHIE HWY STE 302, SEVERNA PARK, MD, 21146
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: $7,087,947
Exercised Options: $7,087,947
Current Obligation: $7,087,947
Actual Outlays: $1,912,986
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QTCA18D00BR
IDV Type: FSS
Timeline
Start Date: 2025-09-22
Current End Date: 2026-09-21
Potential End Date: 2026-09-21 00:00:00
Last Modified: 2026-03-12
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