IB Solutions LLC contract for critical functions support services awarded $24.1M by IRS

Contract Overview

Contract Amount: $24,112,228 ($24.1M)

Contractor: IB Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2016-09-30

End Date: 2020-09-30

Contract Duration: 1,461 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF FOR CRITICAL FUNCTIONS - IGF::CT::IGF FOR CRITICAL FUNCTIONS REQUIREMENTS ENGINEERING SUPPORT SERVICES

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $24.1 million to IB SOLUTIONS, LLC for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS - IGF::CT::IGF FOR CRITICAL FUNCTIONS REQUIREMENTS ENGINEERING SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1461 days indicates a long-term need for these services. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. The North American Industry Classification System (NAICS) code 541519 points to specialized IT services. 5. Awarded by the Internal Revenue Service, highlighting a focus on critical IT functions. 6. The contract was a delivery order, suggesting it was part of a larger indefinite-delivery indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The total award amount of $24.1 million over approximately four years suggests a moderate investment for critical IT functions. Benchmarking against similar IT support services contracts would provide a clearer picture of value for money. The firm fixed-price structure is generally favorable for cost control, but the specific pricing details and comparison to market rates are not available in the provided data. Without more granular cost data or comparisons to similar contracts, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' While this indicates a competitive process, the 'exclusion of sources' clause suggests specific criteria or limitations were applied during the competition. The presence of two bidders (no: 2) indicates some level of competition, but a higher number of bidders would typically lead to more robust price discovery and potentially better pricing for the government.

Taxpayer Impact: A competitive award process, even with a limited number of bidders, generally benefits taxpayers by encouraging multiple firms to offer their best pricing and technical solutions.

Public Impact

The Internal Revenue Service (IRS) benefits from enhanced support for its critical IT functions, ensuring operational continuity and efficiency. Services delivered likely include requirements engineering and other computer-related support, crucial for maintaining complex government IT systems. The geographic impact is primarily within the operational scope of the IRS, likely concentrated in areas where IRS IT operations are managed. Workforce implications may include the need for specialized IT personnel within IB SOLUTIONS, LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type warrants further investigation to understand any potential limitations on broader market participation.
The limited number of bidders (2) could indicate barriers to entry or a niche market for these specific services.
Lack of detailed performance metrics or outcomes makes it difficult to assess the true effectiveness and impact of the services provided.

Positive Signals

The contract was awarded through a full and open competition, indicating an effort to leverage market capabilities.
The firm fixed-price contract type provides cost certainty for the government.
The contract duration suggests a stable, long-term need for these critical IT support services.

Sector Analysis

This contract falls within the IT services sector, specifically under 'Other Computer Related Services' (NAICS 541519). This category encompasses a wide range of IT support, consulting, and development services. The market for such services is large and competitive, with numerous firms offering specialized expertise. The IRS's spending on IT support is a significant component of its overall technology budget, reflecting the complexity and criticality of its systems. Comparable spending benchmarks would involve analyzing IT support contracts across various federal agencies with similar IT infrastructure needs.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract, as it was not set aside for small businesses and there is no indication of subcontracting requirements for small businesses. This suggests that the competition was likely geared towards larger, more established IT service providers capable of meeting the complex requirements of critical IRS functions. The impact on the small business ecosystem is minimal for this particular award, as it did not prioritize small business engagement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the IRS. As a delivery order under a potential IDIQ contract, oversight mechanisms would align with the terms of the base contract. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected related to the contract's execution.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian IT Services Contracts
Requirements Engineering Support Services
Computer Systems Design Services

Risk Flags

Competition level may be limited due to 'exclusion of sources'.
Specific performance metrics are not detailed, hindering effectiveness assessment.
Small business participation was not prioritized.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $24.1 million to IB SOLUTIONS, LLC. IGF::CT::IGF FOR CRITICAL FUNCTIONS - IGF::CT::IGF FOR CRITICAL FUNCTIONS REQUIREMENTS ENGINEERING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is IB 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 $24.1 million.

What is the period of performance?

Start: 2016-09-30. End: 2020-09-30.

What specific IT functions were considered 'critical' under this contract, and what was the scope of 'requirements engineering support services'?

The provided data does not detail the specific IT functions deemed 'critical' or the precise scope of 'requirements engineering support services.' Typically, critical functions in an agency like the IRS would encompass core operational systems, taxpayer data management, security infrastructure, and essential processing capabilities. Requirements engineering support services usually involve activities such as eliciting, analyzing, documenting, validating, and managing requirements for IT systems. This could include activities like stakeholder interviews, use case development, system specification writing, and ensuring that the developed systems align with business needs and regulatory compliance. A deeper dive into the contract's statement of work (SOW) would be necessary for a precise understanding.

How does the $24.1 million award compare to other similar IT support contracts awarded by the IRS or other federal agencies?

Benchmarking the $24.1 million award requires comparing it against contracts with similar scopes of work, durations, and service types (e.g., requirements engineering, IT support) awarded by the IRS or comparable federal agencies. Without access to detailed contract line item pricing, specific service levels, and the competitive landscape for each benchmarked contract, a direct comparison is difficult. However, for a four-year contract supporting critical IT functions, $24.1 million (averaging approximately $6 million per year) appears to be within a reasonable range for specialized IT services, assuming the scope is substantial. A more precise analysis would involve identifying comparable contracts and analyzing their total values, duration, and the specific services rendered.

What were the key performance indicators (KPIs) or metrics used to evaluate the performance of IB SOLUTIONS, LLC under this contract?

The provided summary data does not include information on the specific Key Performance Indicators (KPIs) or metrics used to evaluate IB SOLUTIONS, LLC's performance. Federal contracts, especially for IT services, typically include a Performance Work Statement (PWS) or Statement of Work (SOW) that outlines measurable performance standards. These might include metrics related to response times, system uptime, accuracy of requirements documentation, adherence to project schedules, and client satisfaction. Without the PWS/SOW or performance reports, assessing the contractor's performance effectiveness is not possible from this dataset.

What is the significance of the contract being a 'Delivery Order' and 'Full and Open Competition After Exclusion of Sources'?

Being a 'Delivery Order' implies that this contract was likely issued under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. IDIQs allow agencies to procure services or supplies over a period of time, with specific orders placed as needed. This provides flexibility. 'Full and Open Competition After Exclusion of Sources' is a specific type of competitive procurement. It means the solicitation was made available to all responsible sources (full and open), but certain sources were excluded based on predefined criteria, possibly related to security, capability, or specific technological requirements. This suggests a balance between broad competition and ensuring specialized needs are met by qualified entities.

What is the track record of IB SOLUTIONS, LLC in performing similar federal IT support contracts?

The provided data identifies IB SOLUTIONS, LLC as the contractor for this $24.1 million IRS contract. To assess their track record, one would need to examine their past performance on other federal contracts, particularly those involving IT support, requirements engineering, and services for agencies with similar critical functions, like the IRS. Information on contract values, durations, performance ratings, and any past performance issues or awards would be crucial. A review of federal procurement databases (like FPDS or SAM.gov) and past performance questionnaires would offer insights into their reliability, technical capabilities, and overall success in fulfilling government obligations.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8117 LEESBURG PIKE, SUITE 304, VIENNA, VA, 22182

Business Categories: Category Business, Joint Venture Women Owned Small Business, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $86,656,977

Exercised Options: $38,849,794

Current Obligation: $24,112,228

Actual Outlays: $7,638,343

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO11D00076

IDV Type: IDC

Timeline