IRS Spends $36.5M on Consulting for Tax Compliance Improvement
Contract Overview
Contract Amount: $36,500,557 ($36.5M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of the Treasury
Start Date: 2014-03-26
End Date: 2015-05-31
Contract Duration: 431 days
Daily Burn Rate: $84.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF THE INTERNAL REVENUE SERVICE (IRS) REQUIRES COMMERCIAL CONSULTING SERVICES TO STRATEGICALLY IMPROVE TAX COMPLIANCE; TO ASSIST WITH OPPORTUNITY ANALYSIS, STRATEGY AND INITIATIVE DEVELOPMENT; AND PILOT IMPLEMENTATION SUPPORT.
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $36.5 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF THE INTERNAL REVENUE SERVICE (IRS) REQUIRES COMMERCIAL CONSULTING SERVICES TO STRATEGICALLY IMPROVE TAX COMPLIANCE; TO ASSIST WITH OPPORTUNITY ANALYSIS, STRATEGY AND INITIATIVE DEVELOPMENT; AND PILOT IMPLEMENTATION SUPPORT. Key points: 1. Significant investment in strategic consulting for tax compliance. 2. Booz Allen Hamilton Inc. secured the contract. 3. Contract duration was 431 days. 4. The contract was awarded under full and open competition.
Value Assessment
Rating: good
The contract value of $36.5M for a 13-month period appears reasonable for strategic consulting services aimed at improving tax compliance. Benchmarking against similar large-scale consulting engagements for federal agencies suggests this pricing is within expected ranges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method likely ensured competitive pricing by allowing multiple qualified vendors to bid on the requirement.
Taxpayer Impact: Taxpayer funds were used for this contract. The ultimate impact on taxpayers depends on the effectiveness of the implemented strategies in improving tax compliance and revenue collection.
Public Impact
Improved tax compliance could lead to increased government revenue. Consulting services may result in more efficient IRS operations. Taxpayers may benefit from a fairer and more effective tax system. Potential for modernization of IRS strategies and technology.
Waste & Efficiency Indicators
Waste Risk Score: 84 / 10
Warning Flags
- Contract duration is relatively short for strategic transformation.
- Reliance on external consultants for core strategic functions.
Positive Signals
- Awarded via full and open competition.
- Focus on critical area of tax compliance.
- Experienced contractor selected.
Sector Analysis
The IT consulting sector for government agencies is substantial. Spending on strategic improvement initiatives like this is common, especially for large organizations like the IRS seeking to enhance efficiency and effectiveness.
Small Business Impact
This contract was awarded to Booz Allen Hamilton Inc. and does not indicate any specific benefit or set-aside for small businesses. The nature of the services likely favored large, established consulting firms.
Oversight & Accountability
Awarded under the Department of the Treasury's umbrella agency, the Internal Revenue Service, this contract falls under standard federal procurement oversight. The effectiveness of the consulting will be a key measure of accountability.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Contract awarded as a Delivery Order.
- Contract type is Cost Plus Fixed Fee.
- No small business participation noted.
- Short contract duration for strategic initiative.
Tags
other-computer-related-services, department-of-the-treasury, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $36.5 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF THE INTERNAL REVENUE SERVICE (IRS) REQUIRES COMMERCIAL CONSULTING SERVICES TO STRATEGICALLY IMPROVE TAX COMPLIANCE; TO ASSIST WITH OPPORTUNITY ANALYSIS, STRATEGY AND INITIATIVE DEVELOPMENT; AND PILOT IMPLEMENTATION SUPPORT.
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON 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 $36.5 million.
What is the period of performance?
Start: 2014-03-26. End: 2015-05-31.
What specific metrics were used to evaluate the success of the consulting services in improving tax compliance?
The provided data does not detail the specific metrics for success. Typically, such contracts would define key performance indicators (KPIs) related to increased revenue collection, reduced audit times, improved taxpayer satisfaction, or enhanced operational efficiency. A thorough review would require access to the contract's statement of work and performance reports.
What is the risk associated with relying on external consultants for strategic tax compliance improvements?
The primary risks include knowledge transfer gaps, potential over-reliance on external expertise, and the possibility that recommendations may not be fully integrated or sustainable long-term. There's also a risk that the consultants' focus might be on billable hours rather than optimal, cost-effective solutions for the IRS.
How effectively did the 'full and open competition' process ensure value for taxpayer money in this specific contract?
Full and open competition is designed to maximize value by encouraging multiple bids and driving down prices. While the process itself is sound, the ultimate value depends on the IRS's ability to clearly define requirements and evaluate proposals effectively. Without detailed proposal and award data, it's difficult to definitively assess the value achieved beyond the competitive nature of the award.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)
Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $39,185,125
Exercised Options: $37,694,129
Current Obligation: $36,500,557
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: TIRNO11D00011
IDV Type: IDC
Timeline
Start Date: 2014-03-26
Current End Date: 2015-05-31
Potential End Date: 2015-05-31 00:00:00
Last Modified: 2017-07-27
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