Treasury's IRS awarded $19.9M to Alqimi Technology Solutions for middleware support

Contract Overview

Contract Amount: $19,902,059 ($19.9M)

Contractor: Alqimi Technology Solutions, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2007-11-08

End Date: 2011-04-30

Contract Duration: 1,269 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: O&M MIDDLEWARE SUPPORT DELIVERY ORDER 0001,

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $19.9 million to ALQIMI TECHNOLOGY SOLUTIONS, INC. for work described as: O&M MIDDLEWARE SUPPORT DELIVERY ORDER 0001, Key points: 1. Contract value appears reasonable given the duration and scope of IT support services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration of over three years indicates a need for sustained IT support. 4. Fixed-price contract type may offer cost certainty for the government. 5. The contractor's performance and adherence to schedule will be key indicators of value. 6. This contract falls within the broader category of IT services for government operations.

Value Assessment

Rating: good

The contract value of approximately $19.9 million over 1269 days (roughly 3.5 years) for middleware support services appears to be within a reasonable range for IT services of this nature. Benchmarking against similar contracts for custom computer programming services (NAICS 541511) would provide a more precise assessment, but the price per day is approximately $15,683. Without specific details on the scope of work and service levels, a definitive value-for-money assessment is challenging, but the fixed-price nature suggests an effort to control costs.

Cost Per Unit: Approximately $15,683 per day.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded for defined reasons. The presence of 'full and open' suggests multiple bidders were likely considered, which is generally positive for price discovery. The number of bidders is not specified, but the competition type implies a structured process aimed at achieving fair market value.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among potential contractors.

Public Impact

The Internal Revenue Service (IRS) benefits from enhanced and reliable middleware support, crucial for its IT infrastructure. This contract ensures the continued operation and maintenance of critical software components supporting IRS functions. The primary beneficiaries are IRS employees and, indirectly, taxpayers who rely on the IRS for tax processing and services. The geographic impact is primarily within the IRS's operational centers, likely supporting nationwide services. Workforce implications include the employment of IT professionals by Alqimi Technology Solutions to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized middleware knowledge is not transferable.
Dependence on a single contractor for critical IT infrastructure support.
Risk of scope creep if requirements are not clearly defined and managed.
Performance issues could impact IRS operational efficiency and taxpayer services.

Positive Signals

Fixed-price contract provides cost predictability for the agency.
Full and open competition suggests a robust selection process.
Longer contract duration allows for stability in IT support.
The contractor, Alqimi Technology Solutions, has experience in IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming and IT support services. The market for IT services supporting government agencies is substantial, with significant spending allocated to maintaining and upgrading complex systems. Comparable spending benchmarks would involve analyzing other federal contracts for similar middleware support and custom programming services, often categorized under NAICS code 541511. The IRS, as a large federal agency, represents a significant client within this sector.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by 'ss: false' and 'sb: false'. The award to Alqimi Technology Solutions, Inc., suggests a focus on larger, established IT service providers. There is no explicit information regarding subcontracting plans for small businesses within this data. The impact on the small business ecosystem would likely be minimal unless subcontracting opportunities arise, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the IRS. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian IT Services
Custom Computer Programming Services
Middleware and Application Support Contracts
Department of the Treasury IT Spending

Risk Flags

Potential for vendor lock-in
Performance degradation risk
Security vulnerability exposure
Dependence on contractor expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $19.9 million to ALQIMI TECHNOLOGY SOLUTIONS, INC.. O&M MIDDLEWARE SUPPORT DELIVERY ORDER 0001,

Who is the contractor on this award?

The obligated recipient is ALQIMI TECHNOLOGY SOLUTIONS, 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 $19.9 million.

What is the period of performance?

Start: 2007-11-08. End: 2011-04-30.

What is the track record of Alqimi Technology Solutions, Inc. with federal contracts, particularly in IT support and middleware?

Alqimi Technology Solutions, Inc. has a history of federal contracting, primarily within the IT services domain. Reviewing their past performance on similar contracts, especially those involving custom computer programming and support for complex systems, is crucial. Data from the Federal Procurement Data System (FPDS) would reveal the number and value of previous awards, the agencies they've served, and any reported performance issues or successes. Understanding their experience with middleware support specifically, and their ability to meet the demands of an agency like the IRS, provides insight into their capability to successfully execute this contract. A positive track record with timely delivery, adherence to budget, and high customer satisfaction ratings would be strong indicators of reliability.

How does the awarded price compare to market rates for similar middleware support services?

The awarded price of approximately $19.9 million over 1269 days, equating to roughly $15,683 per day, needs to be benchmarked against market rates for comparable middleware support services. This comparison should consider factors such as the specific technologies supported, the complexity of the IRS environment, the required service levels (e.g., 24/7 support), and the geographic location of service delivery. Industry reports on IT services pricing, data from similar government contracts (especially those under NAICS 541511), and quotes from other potential vendors can serve as benchmarks. If the daily rate is significantly lower or higher than comparable contracts, it warrants further investigation into the reasons, such as differences in scope, service quality, or competitive pressures.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

Key performance indicators (KPIs) for this middleware support contract would likely focus on system availability, response times for issue resolution, successful implementation of updates and patches, and adherence to security protocols. The contract documents should detail these specific metrics and the acceptable performance thresholds. Performance measurement typically involves regular reporting by the contractor, validated by the government's technical point of contact or contracting officer's representative. Failure to meet KPIs could result in penalties, reduced payment, or contract termination. Understanding these KPIs is essential for assessing the contractor's accountability and the overall effectiveness of the support provided.

What is the historical spending pattern for middleware support at the IRS, and how does this contract fit within that trend?

Analyzing historical spending patterns for middleware support at the IRS is vital to contextualize this $19.9 million award. This involves examining previous contracts for similar services, noting their values, durations, and awarded contractors over the past several years. Understanding whether spending has been increasing, decreasing, or remaining stable provides insight into the IRS's IT strategy and budget allocation for critical infrastructure. This contract's value and duration should be compared to these historical figures to determine if it represents a continuation of existing support, an expansion, or a reduction. Significant deviations from historical trends might indicate a shift in technology, a change in outsourcing strategy, or evolving operational needs within the IRS.

What are the potential risks associated with relying on Alqimi Technology Solutions for critical IRS middleware?

Potential risks associated with this contract include vendor lock-in, where the IRS becomes overly dependent on Alqimi's specific expertise and proprietary knowledge, making future transitions difficult and costly. There's also the risk of performance degradation over the contract's duration, especially if the contractor faces staffing challenges or fails to keep pace with technological advancements. Security vulnerabilities introduced or not adequately addressed by the contractor could pose a significant risk to sensitive IRS data. Furthermore, if the competition was less robust than indicated, there might be a risk of paying above-market rates or receiving suboptimal service. The exclusion of certain sources in the 'full and open' competition also warrants scrutiny to ensure it did not unduly limit viable options.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9210 CORPORATE BLVD STE 1, ROCKVILLE, MD, 08

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $25,271,506

Exercised Options: $25,271,506

Current Obligation: $19,902,059

Parent Contract

Parent Award PIID: TIRNO08D00001

IDV Type: IDC

Timeline