IRS Spends $4.5M on Tax Calculation as a Service to Enhance Enterprise-Wide Operations

Contract Overview

Contract Amount: $4,499,821 ($4.5M)

Contractor: Basecamp Consulting and Solutions LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-12-19

End Date: 2026-06-18

Contract Duration: 181 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: JOINT ENTERPRISE TAX CALCULATION SOLUTION TAX CALCULATOR AS A SERVICE-ENHANCES & EXTEND EXISTING TAX CALCULATION, DATA VALIDATION, RECONCILIATIONS & RELATED SERVICES BEYOND ENTERPRISE CASE MANAGMENT TO THE REST OF THE IRS ENTERPRISE.

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.5 million to BASECAMP CONSULTING AND SOLUTIONS LLC for work described as: JOINT ENTERPRISE TAX CALCULATION SOLUTION TAX CALCULATOR AS A SERVICE-ENHANCES & EXTEND EXISTING TAX CALCULATION, DATA VALIDATION, RECONCILIATIONS & RELATED SERVICES BEYOND ENTERPRISE CASE MANAGMENT TO THE REST OF THE IRS ENTERPRISE. Key points: 1. The contract aims to extend tax calculation and data validation services across the entire IRS. 2. BASECAMP CONSULTING AND SOLUTIONS LLC is the awardee for this custom computer programming service. 3. The contract is a Firm Fixed Price delivery order with a duration of 181 days. 4. This initiative focuses on improving core tax processing functions beyond existing case management.

Value Assessment

Rating: fair

The $4.5M price for an 181-day contract appears high for custom programming services, especially considering the benchmark of $248,610. Further justification for the cost is needed.

Cost Per Unit: $24,861

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the high price relative to the benchmark raises questions about effective price discovery.

Taxpayer Impact: Taxpayers may be impacted by potentially inefficient spending if the contract's value proposition does not justify the cost.

Public Impact

Enhances critical tax calculation and data validation processes for the IRS. Aims to standardize and improve services across the entire IRS enterprise. Potential for improved accuracy and efficiency in tax administration. The project duration is relatively short, suggesting a focused scope.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost compared to benchmark
Short contract duration may limit long-term impact assessment

Positive Signals

Full and open competition utilized
Focus on enhancing core IRS functions

Sector Analysis

This contract falls under Custom Computer Programming Services (NAICS 541511), a sector experiencing significant government investment. Benchmarks for similar services vary widely based on complexity and duration.

Small Business Impact

The contract was awarded to BASECAMP CONSULTING AND SOLUTIONS LLC. Information regarding small business participation or subcontracting is not provided in the data.

Oversight & Accountability

Oversight will be crucial to ensure the delivered services meet the IRS's requirements and that the spending aligns with the expected benefits, especially given the cost concerns.

Related Government Programs

Custom Computer Programming Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

High cost relative to benchmark
Limited duration may hinder full impact realization
Potential for scope creep in enterprise-wide rollouts
Dependence on a single vendor for critical tax functions

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.5 million to BASECAMP CONSULTING AND SOLUTIONS LLC. JOINT ENTERPRISE TAX CALCULATION SOLUTION TAX CALCULATOR AS A SERVICE-ENHANCES & EXTEND EXISTING TAX CALCULATION, DATA VALIDATION, RECONCILIATIONS & RELATED SERVICES BEYOND ENTERPRISE CASE MANAGMENT TO THE REST OF THE IRS ENTERPRISE.

Who is the contractor on this award?

The obligated recipient is BASECAMP CONSULTING AND 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 $4.5 million.

What is the period of performance?

Start: 2025-12-19. End: 2026-06-18.

What specific enhancements does 'Tax Calculator as a Service' offer over existing systems, and how will these translate into measurable improvements in tax administration efficiency and accuracy?

The 'Tax Calculator as a Service' aims to extend current tax calculation, data validation, and reconciliation capabilities beyond the existing Enterprise Case Management system to the entire IRS. This implies a move towards a more centralized, standardized, and accessible platform for these critical functions. Measurable improvements are expected in areas such as reduced manual effort, faster processing times, and fewer errors in tax assessments and data handling across all IRS operations.

Given the significant difference between the contract's per-unit cost ($24,861) and the total award ($4,499,820.62), what factors justify this substantial price variance and ensure value for taxpayer

The large variance between the per-unit cost and the total award likely reflects the scale and complexity of implementing a tax calculation service across the entire IRS enterprise, rather than a simple per-unit metric. Factors justifying the price could include the extensive customization required, integration with numerous existing systems, comprehensive data validation protocols, and the specialized expertise needed for such a critical function. Rigorous oversight and performance metrics are essential to ensure this investment yields tangible benefits.

How will the effectiveness of the 'Tax Calculator as a Service' be measured and evaluated during its 181-day duration to ensure it meets the IRS's objectives?

Effectiveness will likely be measured through key performance indicators (KPIs) tied to the specific enhancements promised. This could include metrics such as the reduction in processing time for tax calculations, the decrease in data validation errors, the successful integration with other IRS systems, and user satisfaction from IRS personnel. Regular progress reviews and a final evaluation report will be critical to assess whether the service meets its intended objectives within the short timeframe.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12001 SUNRISE VALLEY DR STE 350, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $8,999,641

Exercised Options: $4,499,821

Current Obligation: $4,499,821

Actual Outlays: $1,499,940

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCA18D0099

IDV Type: FSS

Timeline