SAP Software Subscription, Maintenance, and SAP N2 Cloud Hosting

Closed Pre-Solicitation Posted Sep 24, 2026

Solicitation number: IRS27-220503
Agency: Internal Revenue Service Department of the Treasury
Responses due: Oct 2, 2026, 12:00 PM ET
Set-aside: Total Small Business

Opportunity facts

NAICS code: 541519 Other Computer Related Services
PSC: DE01 IT and Telecom - End User: Help Desk; Tier 1-2, Workspace, Print, Output, Productivity Tools (Labor)
Place of performance: United States
Points of contact: Alfreda Zackery alfreda.d.zackery@irs.gov

Notice details come from SAM.gov. Updated Sep 28, 2026.

About this opportunity

Written by GovTribe AI · Sep 28, 2026

The Internal Revenue Service intends to solicit SAP software subscription, maintenance, and NS2 cloud hosting services as a total small business set-aside, with responses due by October 2, 2026.

The procurement supports the Integrated Financial System (IFS), the core financial management system for IRS administrative accounting. IFS operates jointly under the Financial Services Branch and Chief Financial Officer organization, delivering budget formulation, funds execution, general ledger, accounts payable and receivable, procurement-to-check, asset accounting, financial reporting, and federal acquisition process management. The system runs on NS2 cloud infrastructure and currently implements SAP ECC, SAP Business Warehouse, SAP Enterprise Portal, and Supplier Relationship Management/Procurement Public Sector components.

The contract requires FedRAMP high certification, FISMA-moderate compliance, NIST SP800-37 and SP800-53 alignment, and security controls including FIPS 140-2 compliant AES-256 encryption and audit logging per IRS Internal Revenue Manual 10.8.24. The contractor shall not conduct license compliance audits on the IRS. All hardware must deploy within U.S. states and territories; the solution must be IPv6 compliant and meet Section 508 accessibility requirements.

Performance spans a twelve-month base year plus four optional twelve-month renewal periods. Service Level Agreements require one-hour response to Priority 1 support and four-hour corrective action, with 99.50% availability for standard applications and 99.80% for HANA production. Optional services include SAP Solution Manager, Business Objects, infrastructure upgrades, and additional production and test environments.

Notice text

2 versions

Update #2 · Latest · Sep 28, 2026

he Internal Revenue Service (IRS) Financial Services Branch (FSB) within the Information Technology (IT), Filing Season and Legislative Delivery, Travel and Procurement organization operates the Integrated Financial System (IFS) jointly with the Chief Financial Officer (CFO) organization. The CFO is the primary business customers of the solution. IFS is the core financial system for IRS administrative accounting, supporting budget formulation/labor forecasting and execution (funds management) of the IRS annual budget. Other financial functions include general ledger, managerial cost accounting, accounts payable, accounts receivable, purchase card transaction processing and payments, asset accounting, all financial reporting, and budgetary and management reporting. In addition, it provides functionality supporting the management and administration of the federal acquisition/ procurement processes.

The IFS application was migrated to National Security Services (NS2) cloud. The current contract provides services/solution - NS2 hosting (Platform as a Service), SAP (software licenses, maintenance etc.) and network connectivity and security solutions. This SOW is for continuation of the services/solution by SAP.

The following major business processes were implemented within IFS:

SAP ECC (Enterprise Resource Planning Central Component) Budget Execution, Payroll, Procurement (Req-to-check), eTravel, Financial Reporting, Fund Accounting, Cost Accounting, Reimbursable Agreements, User Fees, Homeland Security Presidential Directive 12 (HSPD-12), Private Collection Agencies (PCA), Federal Highway Trust Fund, Direct Appropriations (annual/multi-year/no-year), Procurement Card Processing, Government-Wide Accounting, Healthcare Tax Credit.
SAP Business Warehouse (BW): IFS data combined by users with other external data (e.g., payroll data) to provide accurate, informative, and timely financial reports; Budget Formulation; and 3-Year Rolling Forecast.
SAP Enterprise Portal (EP): Access to single sign-on provided through the IRS Employee User Portal (EUP).
SAP Supplier Relationship Management – Procurement Public Sector ( SRM/PPS) – Supplies government compliant procurement services to the IRS.

The Department of Treasury/IRS is seeking an experienced and reliable provider of SAP Software subscriptions, cloud hosting, and maintenance.

Proposed CLINS:

CLIN 1 - SAP BW NetWeaver Cloud, private edition (L, 2048 GB) (Block of 1 Entitlements Package; Per Year)

CLIN 2 - SAP BusinessObjects Enterprise Cloud, private edition (CS) (1-180 Tier; Block of 1 Concurrent Sessions; Per Year)

CLIN 3 - SAP BusinessObjects Enterprise Cloud, private edition (user) (1-500 Tier; Block of 1 Users; Per Year)

CLIN 4 - SAP ERP, additional productive tier (XS), private cloud edition (Block of 1 Entitlements Package; Per Year)

CLIN 5 - SAP ERP, private cloud edition (1-550 Tier; Block of 1 FUE Users; Per Year)

CLIN 6 - SAP HANA, EE Cloud, base package, private edition (Block of 1 Tenants; Per Year)

CLIN 7 - SAP Solution Manager for SAP ERP, private cloud edition, full version (Block of 2 Tenants; Per Year)

CLIN 8 - SAP ERP, Digital Access, private cloud edition (1-1000 Tier; Block of 1000 Documents; Per Year)

CLIN 9 - SAP ERP, disaster recovery, private cloud edition

CLIN 10 - SAP BW/4HANA Cloud, additional non-productive, private edition (XS, 256 GB) (Block of 256 GB of Memory; Per Year)

CLIN 11 - SAP BW NetWeaver Cloud, additional non-productive, private edition (L, 2048 GB) (Block of 2048 GB of Memory; Per Year)

CLIN 12 - SAP ERP, addit tier, private cloud edition (L) (Block of 1 Entitlements Package; Per Year)

CLIN 13 - SAP ERP, addit tier, private cloud edition (XS) (Block of 1 Entitlements Package; Per Year)

CLIN 14 - Custom tailored scope extension at custom fixed price (Block of 1 HR - CAS Service; Per Year)

CLIN 15 - Custom tailored scope extension at custom fixed price (Block of 1 HR - CAS Service; Per Year)

CLIN 16 - ERP, addt non-prod tier, Priv Cld Ed (L)***

CLIN 17 - ERP, add nonprod tier, Priv Cld Ed (XS)***

CLIN 18 - SAP BW NW Cld Ad N-P base package PrivEd***

CLIN 19 - SAP Cld, mem ext f. nonprd, Priv Ed***

CLIN 20 - SAP Ap Srvr Linx Cld Prv Ed, add nprd up***

CLIN 21 - HANA Enterprise Cloud, BYOL

CLIN 22 - HANA Enterprise Cloud, BYOL

CLIN 23 - SAP Additional Dbase Storage priv

CLIN 24 - SAP ERP, disaster rec, Priv Cld Ed

CLIN 25 - SAP Cloud Application Svcs Cust Scope

CLIN 26 - Services - Firm Fixed Price: Labor/Hardware/Software – AFS

CLIN 27 - SAP Secure Enterprise Support SES

Amendment 1 - Please provide a written capability statement, no longer than 5 pages. This capability statement shall provide at a minimum, technical and teaming capabilities for the CLIN(s) listed above. Also, list if your company has any Government Wide Acquisition Contracts (GWAC).

Update #1 · Sep 24, 2026

The following major business processes were implemented within IFS:

SAP ECC (Enterprise Resource Planning Central Component) Budget Execution, Payroll, Procurement (Req-to-check), eTravel, Financial Reporting, Fund Accounting, Cost Accounting, Reimbursable Agreements, User Fees, Homeland Security Presidential Directive 12 (HSPD-12), Private Collection Agencies (PCA), Federal Highway Trust Fund, Direct Appropriations (annual/multi-year/no-year), Procurement Card Processing, Government-Wide Accounting, Healthcare Tax Credit.
SAP Business Warehouse (BW): IFS data combined by users with other external data (e.g., payroll data) to provide accurate, informative, and timely financial reports; Budget Formulation; and 3-Year Rolling Forecast.
SAP Enterprise Portal (EP): Access to single sign-on provided through the IRS Employee User Portal (EUP).
SAP Supplier Relationship Management – Procurement Public Sector ( SRM/PPS) – Supplies government compliant procurement services to the IRS.