Internal Revenue Service

The Department of the Treasury Internal Revenue Service, a civilian independent agency, procures commercial tax software, IT infrastructure, forensic and investigative tools, facilities services, and professional services supporting federal tax administration and criminal investigation operations. The IRS contracts for technology platforms, maintenance and support services, training and certification programs, physical security, and specialized professional expertise across dozens of sub-offices and field locations.

The IRS has issued 151,355 federal contract awards since 1980, with a combined potential value of $445.78 billion and $58.69 billion obligated to date. Recent contract volume is declining: 2,264 awards in 2022, 2,218 in 2023, 1,810 in 2024, 1,200 in 2025, and 708 year-to-date in 2026. The contractor base is highly fragmented. By award count over the last five years, the top five primes—Toby Feldman Inc. (446 awards), Fcn, Inc. (375 awards), Flatwater Solutions Company (373 awards), Gradillas Court Reporters, Inc. (325 awards), and Debra A Sprague (252 awards)—hold only 21 percent of recent awards. By potential value, the top five are more concentrated but still account for only 1 percent of combined potential value over the same window, with Fcn, Inc. leading at $1.43 billion, followed by Deloitte Consulting LLP ($768.3 million) and The Mitre Corporation ($337.9 million). The disparity reflects heavy reliance on Schedule task orders, BPA calls, and below-threshold purchase orders; potential value is not reported for the majority of small awards. The contract set-aside mix is dominated by open competition: 92 percent of awards carry no set-aside designation. Small-business set-asides account for 4 percent of awards; 8(a) sole-source awards represent 2 percent, with all other designations (HUBZone, SDVOSB, WOSB) totaling less than 1 percent each.

The IRS has issued 6,409 federal grant awards since 2002, obligating $946.8 million in federal dollars (with a total combined federal and non-federal share of $1.3 billion). Grant volume has also declined: 580 awards in 2022, 555 in 2023, 478 in 2024, 459 in 2025, and 61 year-to-date in 2026. Grant recipients are highly fragmented. By award count over the last five years, the top five recipients—Alaska Business Development Center Inc. (13 awards), Koreatown Youth And Community Center Inc. (12 awards), University Of Florida (11 awards), Chinese Christian Herald Crusades Inc. (11 awards), and Rural Dynamics Inc. (10 awards)—hold only 3 percent of recent awards. By federal dollars, concentration is stronger: the top five recipients—AARP Foundation ($71.4 million), Accounting Aid Society ($8 million), Campaign For Working Families Inc. ($5.5 million), Koreatown Youth And Community Center Inc. ($4.5 million), and Ladder Up ($3.9 million)—account for 10 percent of obligated federal dollars, with AARP Foundation dominating. Grant funding is structured as Project Grants (91 percent of awards) and Cooperative Agreements (9 percent), predominantly supporting community organizations, nonprofits, and educational institutions in tax-compliance, workforce-development, and financial-literacy missions.

Current contracting activity spans tax-software licensing and modernization, IT infrastructure and cloud hosting, criminal-investigation tools (forensic software, digital-evidence platforms, ballistic shields, ammunition), facilities services (shredding, guard booths, furniture, electrical and data cabling), professional services (business valuation, fraud examiner training, anti-money-laundering certification), and subscription databases supporting large-business and international tax compliance. Recent open solicitations include Tax Software and Support (solicitation 5000230074, due November 18, 2026, firm-fixed-price, best-value tradeoff, no set-aside), IRS Audio-Visual and Video Teleconferencing Enterprise Systems Integration Master IDIQ (solicitation 205AE9-26-Q-00053, due October 30, 2026, multiple-award IDIQ, $24.7 million total ordering ceiling, 100 percent Total Small Business Set-Aside), Enterprise Data Pipeline Modernization and Data Consumption Services (solicitation 5000233302, sources-sought pre-solicitation as of September 15), and SAP Software Subscription, Maintenance, and Cloud Hosting (solicitation IRS27-220503, pre-solicitation, total small business set-aside). Sole-source awards and special notices target proprietary platforms including Tax Notes subscriptions (Tax Analysts), GEN Software Maintenance (Response Systems Limited), and Certified Anti-Money Laundering Specialist training (ACAMS LLC). The most recent recorded award closed on October 20, 2026.

The Internal Revenue Service (IRS) administers and enforces U.S. federal tax laws.