Treasury's IRS Awards $4.4M Contract to Cedar Technologies for Viewer Editor and Test Data Services
Contract Overview
Contract Amount: $4,420,884 ($4.4M)
Contractor: Cedar Technologies Inc
Awarding Agency: Department of the Treasury
Start Date: 2025-11-10
End Date: 2026-11-09
Contract Duration: 364 days
Daily Burn Rate: $12.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PURPOSE OF THIS CONTRACT IS FOR RETURN VIEWER EDITOR ANDTEST DATA CREATION SERVICES. TOTAL CONTRACT VALUE IS $4,420,883.50 / TRACS APPROVAL #: TRACS0004915.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $4.4 million to CEDAR TECHNOLOGIES INC for work described as: PURPOSE OF THIS CONTRACT IS FOR RETURN VIEWER EDITOR ANDTEST DATA CREATION SERVICES. TOTAL CONTRACT VALUE IS $4,420,883.50 / TRACS APPROVAL #: TRACS0004915. Key points: 1. Contract Value: $4.42 million for viewer editor and test data creation. 2. Competition: Awarded as 'Not Available for Competition', raising questions about price discovery. 3. Risk: Limited competition may lead to suboptimal pricing and reduced innovation. 4. Sector: Falls under Computer Systems Design Services, a critical IT function.
Value Assessment
Rating: questionable
The contract is a definitive contract with a firm fixed price. Without competitive bids, it's difficult to assess if the $4.42 million price is optimal compared to market rates for similar IT services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source or limited source award. This limits price discovery and potentially increases costs for taxpayers.
Taxpayer Impact: The lack of competition may result in higher costs than if multiple vendors had bid, impacting taxpayer value.
Public Impact
Taxpayers may be paying more due to the absence of competitive bidding. The IRS relies on this service for essential data creation and editing functions. Transparency in sole-source contracts is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Limited vendor options
Positive Signals
- Clear contract purpose
- Fixed price contract
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across government, with benchmarks varying widely based on complexity and service type.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or if opportunities were missed.
Oversight & Accountability
The 'Not Available for Competition' status warrants closer oversight to ensure the government is receiving fair value and that such awards are justified and properly documented.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Sole-source award
- Lack of documented competition
- Potential for price inflation
- Limited transparency on justification
Tags
computer-systems-design-services, department-of-the-treasury, va, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $4.4 million to CEDAR TECHNOLOGIES INC. PURPOSE OF THIS CONTRACT IS FOR RETURN VIEWER EDITOR ANDTEST DATA CREATION SERVICES. TOTAL CONTRACT VALUE IS $4,420,883.50 / TRACS APPROVAL #: TRACS0004915.
Who is the contractor on this award?
The obligated recipient is CEDAR TECHNOLOGIES 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 $4.4 million.
What is the period of performance?
Start: 2025-11-10. End: 2026-11-09.
What specific justification was provided for not making this contract available for competition?
The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION'. A full justification would typically detail unique capabilities, urgent needs, or the absence of qualified sources that necessitated a sole-source or limited-source award, rather than a full and open competition.
How does the $4.42 million value compare to industry benchmarks for similar IT services?
Without specific details on the scope of 'Return Viewer Editor and Test Data Creation Services', direct benchmarking is challenging. However, for a two-year contract of this nature, $4.42 million suggests a significant investment, and the lack of competition makes it difficult to ascertain if this aligns with market rates for comparable IT support.
What are the potential risks associated with a sole-source IT services contract of this value?
The primary risks include inflated pricing due to lack of competitive pressure, potential for vendor complacency, and limited access to innovative solutions that might be offered by other qualified vendors. It also raises concerns about the thoroughness of market research conducted prior to the award.
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 - APLLICATIONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2201 COOPERATIVE WAY STE 600, HERNDON, VA, 20171
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,420,884
Exercised Options: $4,420,884
Current Obligation: $4,420,884
Actual Outlays: $1,084,445
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-11-10
Current End Date: 2026-11-09
Potential End Date: 2026-11-09 13:40:07
Last Modified: 2026-03-25
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)