LSJ_Creating Helpful Incentives Bridge.pdf

DEPARTMENT OF THE TREASURY

LIMITED-SOURCES JUSTIFICATION

Acquisition Title: IRA Clean Energy (CE) Special Handling Portfolio This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

Treasury Standard Form – 1012 (Rev 12/24)

Prescribed by Treasury: DTAP 1008.405-6

Tracking No.

1. Identification of the agency and the contracting activity:

The requiring activity is Internal Revenue Service (IRS), Enterprise Program Management Office (EPMO), Clean Energy Special Handling (CE) Office.

The contracting activity is IRS Procurement, Office of the Chief Procurement Office, IT Modernization & Strategy Division, Enterprise Program Management Office (EPMO).

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

The purpose of this limited-sources justification is to obtain approval to award a Sole Source Firm Fixed Price (FFP) contract to FedTec LLC for Clean Energy Creating Helpful Incentives to Produce Semiconductors (CHIPS) as described in section 3.a below, based on an urgent and compelling need.

The need-by date is September 22, 2025. The period of performance (PoP) will be a base period of six (6) months (September 22, 2025 – March 21, 2026) with a two (2)-month transition-out period (January 22, 2026 – March 21, 2026).

2.b Name of the vendor: FedTec LLC 2.c Requisition No.:

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 contractor support to design, implement, and maintain critical information technology systems, taxpayer-facing portals, and compliance processes necessary for the administration of clean energy tax provisions enacted under the Inflation Reduction Act (IRA) of 2022 and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act of 2022. These services are essential to ensure taxpayers can properly claim, and the IRS can properly administer, more than twenty energy-related tax provisions.

The required contractor services include:

System Development and Maintenance: Updating IRS platforms, including the Energy Credits Online (ECO) portal and related registration systems, to reflect new statutory and regulatory requirements such as elective payment elections, transferability of credits, and pre-filing registration numbers.

Regulatory Implementation Support: Rapidly incorporating guidance issued in 2024–2025, including the January 2025 revisions to §§ 25C and 25D credits, the construction-start requirements under Notice 2025-42 for §§ 45Y and 48E, and the accelerated termination guidance for multiple clean energy credits issued in August 2025.

Help Desk and Taxpayer Assistance: Providing technical and functional support for taxpayers and entities seeking to comply with newly effective compliance requirements, including clarification of eligibility, credit limits, and documentation standards.

Program Management and Transition Services: Ensuring continuity of operations as two existing awards expire, preventing gaps in taxpayer-facing systems and maintaining support for legislative mandates that remain active.

Acquisition Title: IRA Clean Energy (CE) Special Handling Portfolio This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

These supplies and services are necessary to prevent disruption in taxpayer compliance and to safeguard the timely and accurate administration of statutory tax credits. Any lapse in service would create immediate risks of noncompliance, improper payments, and delayed processing of billions of dollars in tax incentives.

3.b Includes IT: Yes No NAICS Code: 541519 PSC Code: DF01 3.c IGCE/Estimated dollar value:

The Independent Government Cost Estimate (IGCE) is inclusive of 6-month base period, and 2-month transition-out period.

4.a Identification of the authority being used (Check the appropriate box that applies).

FAR 8.405-6(a)(1)(i)(A) – An urgent and compelling need exists, and following the procedures would result in unacceptable delays.

FAR 8.405-6(a)(1)(i)(B) – Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

FAR 8.405-6(a)(1)(i)(C) – In the interest of economy and efficiency, the new work is a logical follow-on to an original Federal Supply Schedule order or BPA provided that the original order or BPA was placed in accordance with FSS procedures in accordance with the applicable Federal Supply Schedule ordering procedures. The original order or BPA must not have been previously issued under sole-source or limited-sources procedures.

FAR 8.405-6(b) – Items peculiar to one manufacturer. (i.e., Brand Name specifications) 4.b Supporting Rationale:

The Internal Revenue Service (IRS) has determined that the use of other than full and open competition is justified under FAR 6.302-2, “Unusual and Compelling Urgency.” This determination is based on the following facts and circumstances:

Recent External Developments Created Immediate Needs Although the Inflation Reduction Act (IRA) and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act were enacted in 2022, key compliance obligations and administrative requirements were only finalized in 2024 and 2025.

These include the following:

The March 2024 final regulations establishing elective payment and transferability processes, which introduced mandatory pre-filing registration and new ECO portal functionality.

The January 2025 FAQ revisions (FS-2025-01 / IR-2025-17), which substantially altered eligibility criteria and limits for §§ 25C and 25D credits.

Notice 2025-42 (August 2025), which redefined the “beginning of construction” rules for §§ 45Y and 48E, applicable to projects beginning September 2, 2025.

IR-2025-86 FAQs (August 2025), which accelerated the termination of several clean energy provisions, requiring immediate IRS systems updates to enforce new expiration dates.

Acquisition Title: IRA Clean Energy (CE) Special Handling Portfolio This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401)

These developments were outside the Agency’s control and materially changed taxpayer obligations within the past year, creating an urgent and compelling need for uninterrupted contractor support.

Risk of Mission Failure Without Immediate Award Any lapse in services would result in taxpayers being unable to comply with statutory provisions or improperly claiming credits. Such failures would expose the IRS to:

Delayed or inaccurate processing of billions of dollars in tax incentives.

Increased legal, operational, and reputational risk.

Harm to Congressional intent by preventing timely delivery of clean energy and semiconductor credits.

Why Competitive Procurement is Not Feasible Although the IRS anticipated the expiration of the current contracts, the scope and timing of the most critical requirements became clear only after the issuance of the above-referenced guidance. At this late stage, initiating a full and open competition would require several months of procurement lead time and transition, creating a gap in services that would be unacceptable to the Agency’s mission. The incumbent contractor are uniquely positioned to continue performance without disruption due to their existing knowledge of IRS systems and current involvement in implementing these regulatory changes.

5. A determination by the ordering activity Contracting Officer that the order or BPA represents the best value consistent with FAR 8.404(d):

The award will be based on General Services Administration (GSA) Multiple Award Schedule (MAS) SIN 54151S - Information Technology Professional Services. GSA has already determined prices under schedule contracts to be fair and reasonable for supplies, fixed-price services, and hourly rates. Although GSA has already negotiated fair and reasonable pricing, the Contracting Officer will seek additional discounts to MAS prices. FedTec LLC also has significant experience in providing similar services to the Government. Therefore, the Contracting Officer has determined that this task order procurement represents the best value to the Government and the IRS.

6. A description of the market research conducted among schedule holders and the results or a statement why market research was not conducted:

This requirement will be a Limited Justification for an Exception to Fair Opportunity for an order against a General Services Administration (GSA) Multiple-Award Schedule (MAS) to be awarded as a sole source to Fedtec LLC. Due to the urgent and compelling nature of this requirement, on June 26, 2025, the Contract Specialist, Schantel Tompkins, conducted market research using Small Business Administration (SBA) Small Business Search and National Aeronautics and Space Administration (NASA) Solutions for Enterprise-Wide Procurement (SEWP) V, to identify vendors capable of meeting the requirement. NAICS code 541519 was utilized to identify vendors that are capable on meeting the requirement on both SBA and

NASA SEWP.

Several vendors including small businesses were identified as capable of meeting the requirement. However, due to the urgent and compelling nature of the requirement, extensive

Acquisition Title: IRA Clean Energy (CE) Special Handling Portfolio This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401) market research such as issuing of a request for information (RFI) or sources sought notice was not conducted. Additionally, since a new long-term solution is in-progress, the CO and PM will ensure that extensive market research is conducted.

7.a Any other facts supporting this justification:

This requirement is consolidating the requirements of both 205AE9-25-F-00027 and 2032H5-24-F-00210 into one requirement. The current task order 205AE9-25-F-00027 expires on September 21, 2025, and task order 2032H5-24-F-00210 expires on September 21, 2025. Due to the critical nature of this requirement, urgent and compelling need, and to prevent a break in service, the six (6) month extension in accordance with (IAW) FAR 52.217-8 for task order 2032H5-24-F-00210 has been fully exercised and therefore, this bridge requirement is needed. This bridge requirement will ensure that there is continuity of service whiles the Government work on procuring a long-term contract.

7.b

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

For any subsequent acquisition for similar requirement, the Government will seek competition to the maximum extent possible. Additionally, the Government is currently working on a long-term follow-on requirement that will be procured competitively.

9. Certifications and Approvals:

9.a Program Office Certification (Requiring Activity). I hereby certify that any supporting information and data provided (e.g., the Government’s minimum needs or requirements, or other rationale for the limited sources) and 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.

Name:

Signature:

9.b Contracting Officer Certification and Approval. I hereby determine the circumstances of this acquisition support the justification to acquire these supplies or services on a limited source basis. I also certify this limited-sources justification 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 on a limited-source basis.

Name:

Signature:

10. Additional Reviews and Approvals (As applicable):

10.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $75 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the

Jasmine M. Baltimore

Ebenezer K. Owusu

Acquisition Title: IRA Clean Energy (CE) Special Handling Portfolio This acquisition is conducted under the authority of the Multiple Award Schedule Program (see FAR 8.401) approval of this justification. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $15 million to the Associate Bureau CIO(s).)

Name: Date:

Signature:

10.b Advocate for Competition (if over $750,000, but not exceeding $15 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the ordering activity’s Advocate for competition, I hereby approve this limited-sources justification.

Name: Date:

Signature:

10.c Head of the Procuring Activity or Authorized Designee (if over $15 million, but not exceeding $75 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this limited-sources justification.

Name: Date:

Signature:

10.d Treasury Chief Information Officer (for IT requirements that are over $75 million).

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

Name: Date:

Signature:

10.e Senior Procurement Executive (if over $75 million) (Contracting Activity). I have reviewed this limited-sources justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, I hereby approve this limited-sources justification.

Name: Date:

Signature:

Frederick R.

Thomas