IORS Justification_Redacted.pdf

DEPARTMENT OF THE TREASURY

SF 1014 - JUSTIFICATION FOR AN EXCEPTION

TO FAIR OPPORTUNITY

ACQUISITION TITLE: Integrated Data Retrieval System (IDRS) Online Reporting

Services (IORS), Operations and Maintenance Support Services

Treasury Standard Form - 1014 (Rev. June 2026)

Prescribed by Treasury: DTAP 1016.507

1. Identification of the requiring activity and the contracting activity:

The requiring activity is the Internal Revenue Service (IRS), Information Technology (IT), Applications Development (AD), Legal Systems Section (LSS), responsible for the operational oversight, maintenance, and technical support of the Integrated Data Retrieval System (IDRS) Online Reporting Services (IORS) application. The contracting activity is the Internal Revenue Service (IRS), Office of the Chief Procurement Officer (OCPO), responsible for acquisition planning, contract award, administration, and oversight of the procurement in accordance with applicable Federal Acquisition Regulation (FAR) and Department of the Treasury acquisition requirements.

2.a Nature and/or description of the action being approved:

The purpose of this Justification for an Exception to Fair Opportunity (JEFO) is to obtain approval for a logical follow-on, sole-source Firm-Fixed-Price (FFP) task order to continue Operations and Maintenance (O&M), application development, testing, cybersecurity remediation, and technical support services for the Internal Revenue Service (IRS) Integrated Data Retrieval System (IDRS) Online Reporting Services (IORS) application. This acquisition will maintain continuity of mission-critical security reporting capabilities used by IDRS Unit Security Representatives (USRs) and management to monitor employee system activity and support security oversight responsibilities. The proposed action is intended to preserve operational stability, retain specialized technical knowledge, minimize transition risks, and prevent service disruptions while maintaining the existing scope of support. The exception is requested under FAR 16.507-6(b)(3), based on economy and efficiency associated with a logical follow-on to the existing task order.

2.b Name of the vendor.

2.c Requisition No.: ITRI270120 2.d Bridge contract: ☐ Yes No 2.e Brand name: ☐ Yes No 3.a A description of the supplies or services required to meet the agency’s needs:

The Internal Revenue Service (IRS) requires continued Operations and Maintenance (O&M), application development, testing, and technical support services for the Integrated Data Retrieval System (IDRS) Online Reporting Services (IORS) application. IORS is a mission-critical, web-based application that enables IDRS Unit Security Representatives (USRs) and managers to electronically access, review, analyze, and certify employee activity reports, supporting security oversight, compliance monitoring, and the identification of potential unauthorized access to taxpayer information. Required services include application maintenance and enhancements, software and hardware patching, database administration support, cybersecurity vulnerability remediation, system testing, defect resolution, technical documentation, and knowledge transfer. The Contractor shall maintain application availability, operational reliability, and compliance with IRS Enterprise Life Cycle (ELC), cybersecurity, and Section 508 requirements. These services are essential to sustaining existing IORS functionality, preventing interruptions to security reporting and certification activities, and ensuring continued support for approximately 4,500 users. The proposed acquisition will maintain continuity of existing services without introducing new functional requirements or expanding the current scope of work.

TO FAIR OPPORTUNITY

ACQUISITION TITLE: Integrated Data Retrieval System (IDRS) Online Reporting

Services (IORS), Operations and Maintenance Support Services

The requested exception to fair opportunity is justified under FAR 16.507-6(b)(3), as the proposed acquisition represents a logical follow-on to the existing Integrated Data Retrieval System (IDRS) Online Reporting Services (IORS) Operations and Maintenance (O&M) task order. Continuation of services with the incumbent contractor would promote economy and efficiency by preserving specialized institutional knowledge, established technical capabilities, and operational continuity while avoiding duplicative transition activities, additional training costs, and potential service disruptions.

The IORS application provides mission-critical security reporting capabilities to approximately 4,500 IDRS Unit Security Representatives (USRs) and management personnel responsible for monitoring employee system activity, reviewing security reports, and supporting IRS internal security oversight requirements. Transitioning these responsibilities to a new contractor would require extensive knowledge transfer, technical onboarding, system access provisioning, and familiarization with the application's architecture, databases, security controls, and operational procedures.

The proposed follow-on action would maintain the existing scope of services, minimize transition-related costs and operational risks, and ensure uninterrupted application support.

The Government anticipates achieving cost avoidance and schedule efficiencies through the continued use of established resources and technical expertise. The original task order was awarded after all eligible contract holders received a fair opportunity to compete, as required by FAR 16.507-6(b)(3).

5. A determination that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer will determine that the anticipated price for the proposed Integrated Data Retrieval System (IDRS) Online Reporting Services (IORS) Operations and Maintenance (O&M) task order is fair and reasonable based on an evaluation of the Independent Government Cost Estimate (IGCE), historical contract pricing, current labor rates, and the proposed contractor's pricing. The Government will assess the proposed costs against comparable services performed under the existing contract to ensure pricing remains consistent with established requirements and prevailing market conditions. The proposed logical follow-on acquisition is expected to promote economy and efficiency by retaining existing technical expertise, minimizing duplicative transition and onboarding expenses, and avoiding potential operational disruptions associated with introducing a new contractor. The acquisition will maintain the existing scope of services without introducing additional requirements or unnecessary costs. The Contracting Officer's final price reasonableness determination will be documented in the acquisition file and supported by applicable cost analysis, historical pricing comparisons, and the Government's independent estimate.

TO FAIR OPPORTUNITY

ACQUISITION TITLE: Integrated Data Retrieval System (IDRS) Online Reporting

Services (IORS), Operations and Maintenance Support Services

6.a Any other facts supporting this justification:

The Integrated Data Retrieval System (IDRS) Online Reporting Services (IORS) application supports critical IRS security oversight functions by providing approximately 4,500 Unit Security Representatives (USRs) and management personnel with electronic access to employee activity reports, enabling timely monitoring, review, and certification of system activity. The application eliminates manual printing and distribution of security reports, improving operational efficiency, accountability, and security compliance.

The incumbent contractor possesses specialized technical knowledge of the IORS application architecture, C#/.NET framework, SQL Server databases, security configurations, and established operational procedures. Transitioning these responsibilities to a new contractor would require additional onboarding, knowledge transfer, security clearances, and technical familiarization, potentially resulting in increased costs, operational disruptions, and delays in security reporting and certification activities.

The proposed logical follow-on acquisition maintains the existing scope of Operations and Maintenance (O&M) services without introducing additional requirements or labor categories.

Continuation of services with the incumbent contractor would preserve institutional knowledge, minimize duplicative transition expenses, reduce operational risks, and ensure uninterrupted support of mission-critical security reporting capabilities. These considerations further support the Government's determination that the proposed acquisition promotes economy, efficiency, and continuity of essential IRS operations.

6.b Attachments: Yes No

7. A statement of the actions, if any, the Requiring Activity and Contracting Activity may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies and services is made:

The Requiring Activity and Contracting Activity will continue coordinating efforts to promote full and open competition for future Integrated Data Retrieval System (IDRS) Online Reporting Services (IORS) Operations and Maintenance (O&M) requirements. The Contracting Activity will conduct market research, identify qualified vendors, evaluate alternative acquisition strategies, and pursue competitive solicitation opportunities in accordance with applicable Federal Acquisition Regulation (FAR) requirements. The Requiring Activity will support these efforts by maintaining current technical documentation, facilitating knowledge transfer, identifying opportunities to reduce contractor dependencies, and developing performance-based requirements that encourage broader vendor participation.

The proposed logical follow-on acquisition will provide the Government sufficient time to complete acquisition planning, market research, and competitive procurement activities while maintaining uninterrupted IORS operations and critical security reporting capabilities. Should the Government have a continued need for this requirement, the Government intends to pursue

TO FAIR OPPORTUNITY

ACQUISITION TITLE: Integrated Data Retrieval System (IDRS) Online Reporting

Services (IORS), Operations and Maintenance Support Services a competitive acquisition with the anticipated solicitation issuance in FY27 and projected contract award in FY27, subject to acquisition planning and procurement schedules. These actions will help eliminate barriers to competition, reduce transition risks, and ensure continued economy, efficiency, and responsible stewardship of Government resources.\

8. Certifications and Approvals:

8.a Program Office Certification (Requiring Activity). I hereby certify that any supporting information and data provided, which form the basis for this justification for an exception to fair opportunity, are accurate and complete to the best of my knowledge and belief.

8.b Contracting Officer Certification and Approval. I certify this justification for an exception to fair opportunity is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve the processing of this requirement based on the authority specified in 4.a above.

Name: Joleen Dedmon-Rinato Title: Contracting Officer

Signature: Date: 11/12/2026

Joleen R. Dedmon- Rinato

Digitally signed by Joleen R.

Dedmon-Rinato Date: 2026.11.12 14:22:37 -07'00'