BREAKING: IRS $118M BPA for Hiring and Training - 3 more companies including Gauntlet AI added to join FedStack and Lantec/Codesmith. More companies coming soon.
BREAKING: IRS $118M BPA for Hiring and Training - 3 more companies including Gauntlet AI added to join FedStack and Lantec/Codesmith. More companies coming soon.
SOURCE: [https://orangeslices.ai/treasury-dept-ocio-awards-118m-technical-workforce-development-and-training-bpa/](https://orangeslices.ai/treasury-dept-ocio-awards-118m-technical-workforce-development-and-training-bpa/)
Some news broke earlier this year with a press release from Codesmith: "Codesmith Selected for $118M IRS Contract" and a number of people felt this meant that Codesmith received a check for $118M. That's not the case.
The $118M is a ceiling for training and hiring for the IRS, and the IRS just added three more partners to the contract, with more expected to be added.
Super interesting to see the pie being split up and fought over by competing companies and it seems they want as many contenders as possible.
If you are a Gauntlet or Codesmith you have to train people to be IRS-ready, like dealing with COBAL and other legacy systems, and then you get those people to pass the government interview process, get hired, you get a fee.
But with increased competition, I think this is going to get spicy!
Gauntlet for America had 10 placements already in the government and is moving fast.
I'm very curious to see how this plays out.
u/Real-Set-1210 wrote (the comment Michael replied to):
So they're going to get an $118 Million loan to continue their program that literally does not get people jobs? How do I get in on this scam???
u/michaelnovatireplied·★ FEATURED
This isn't a loan at all no.
The way it works is the IRS has earmarked $118M of budget towards a huge bucket of AI initiatives.
As they carve out specific projects with specific dollar amounts, the partners will be able to pitch themselves and one or more will take the project.
It's possible the $118M won't be used up. In fact, historically, most BPAs do not use up anywhere near the allocated amount. It's there so that it's preserved on paper. But if priorities change or government shuts down or shrinks the IRS, etc... then its possible they pay out $0.
So in reality individual companies might get $0.
Codesmith said they had a huge vetting process and being selected was a sign of how good Codesmith is, but looking at the growing list of companies... it seems like everyone with their paperwork in order will get a chance and that the real competition is for delivering future results, not for the BPA to begin with.
u/Real-Set-1210 wrote (the comment Michael replied to):
So how do I get in then.
u/michaelnovatireplied·
As a provider, you register in SAM and bid on opportunies like 2032L226Q00008
u/Real-Set-1210 wrote (the comment Michael replied to):
Sounds good you want to join me and make a quick M
u/michaelnovatireplied·★ FEATURED
It's not like the movie War Dogs haha!
The IRS has had so many cuts and freezes I really don't think they are dishing out millions for garbage. I think they are creating a highly competitive process to get all the services they want for the cheapest possible price.
Gauntlet claims to be doing well so they might have the money to underprice but being in a competitive business is not the way to make money.
Mom&Pop corner restaurants often don't make it.
Having a monopoly is how you make money.
I feel like this is probably a trap.
Codesmith's press release about "being selected" was fully of blatant manipulations of the truth and given then full pivot to "enterprise" and the fact that they made a Case Study document of all of their IRS work they claim to have done (which government sources still show as $0 paid out), it seems like the play here is to leverage the IRS branding to try to get enterprise customers.
I don't know any company where this is a good thing to be showing off...
I'm all for IRS and government modernization and many of the providers selected are long time government contractors who will probably truly make the $$$ and the others are probably using it for branding.
Codesmith is super desperate and like on the verge of collapse, they are trying to put together a Physical AI program but they are really all over the place and I suspect Will wants to do that as a new company, with new funding, with a fresh start because no one will put money into an LLC that has allegedly unclear ownership.
u/portugese_fruit wrote (the comment Michael replied to):
COBAL is same as COBOL?
u/michaelnovatireplied·
will fix, 😃
u/portugese_fruit wrote (the comment Michael replied to):
i think they would need to pivot to mainframe programming rather than the traditional curriculum,
>>>If you are a Gauntlet or Codesmith you have to train people to be IRS-ready, like dealing with COBOL and other legacy systems, and then you get those people to pass the governme
u/michaelnovatireplied·★ FEATURED
So the partners that have been around for 10 years doing government contracting have expertise in this.
The new people who have like 3 employees and chatgpt heo to do it have zero value to offer
Which is my point in another thread. I think Codesmith and Gauntlet benefit more by making it seem like they are partnered with the IRS for legitimacy and they probably won't make a lot of money from this.
The people who have taught five other government agencies about COBOL already have an edge, even if Codesmith or Gauntlet could do a better job... the cost of them developing the COBOL expertise to teach it at the bar they want might not even break even for them financially.
Like I said, maybe Gauntlet has the cash to burn to build that position. Codesmith doesn't appear to given the public appearance of no or few non-Future Code students there recently.
u/portugese_fruit wrote (the comment Michael replied to):
>>>the cost of them developing the COBOL expertise to teach it at the bar they want might not even break even for them financially.<<<
you are right generally. thats based on the return of investment window... year one : nothing, losing $ /pp , year two: break even ... you see
u/michaelnovatireplied·★ FEATURED
The 118m is a total maximum for all partners for all 5 years of the BPA, and historically BPAs pay only a fraction of that.
What this looks like is that the IRS allocated $118M to a big bucket for hiring people and upskilling people over the next 5 years but with zero commitment to how that happens yet.
The IRS has a large contract with Palantir to modernize stuff already that is separate for example and maybe that works better than expected.
u/momo_0 wrote (the comment Michael replied to):
Would love to see you do a piece of Gauntlet, more specifically Austen Allred.
While Will Sentance lacks self awareness and is floundering, Codesmith was genuinely best-in-class-ish for a long run.
Allred is a convicted multi-time scammer who keeps getting sued and failing up.
u/michaelnovatireplied·★ FEATURED
I was doing research into Lambda but another person published and I stopped then. People are starting to send me stuff about Gauntlet and I'm asking questions.
I never had any issue whatsoever looking into bootcamps because they had no conflict of interest, but Gauntlet overlaps more in 'upsklling' or helping existing engineers so I have to be more careful to maintain transparency.
People are telling me about a lot of non-engineers doing Gauntlet so if it's really a bootcamp in disguise, it's fair game. If it's more competitive with my company then I have to run in by legal.
Based on the whole Lars Lofgren bullshit though, like it might not be worth it... very torn between trying to help people but if all it gets me is negative attacks, I have to weight if it's worth it.
u/momo_0 wrote (the comment Michael replied to):
I hear you, I'd be shy to speak out again, especially against someone like Allred who has shown that he is an expert in litigation.
Still can't believe anyone listened to anything Lars "this definitely isn't a paid piece" Lofgren had to say, but that's what a heavy hitpiece budg
u/michaelnovatireplied·
I mean he spends a lot of money on litigation. I actually understand where he's coming from and he's delusional in different ways. I don't agree with it but I understand.
Gauntlet is free, free food, free housing, and it certainly changes the path compared to the Lambda stuff.
u/metalreflectslime wrote (the comment Michael replied to):
Named Awardees:
2032L226A00008 FEARLESS SOLUTIONS
2032L226A00009 GAUNTLET AI
2032L226A00010 SOKAT CONSULTING
Why is Codesmith not listed here?
u/michaelnovatireplied·
This was wave two. The original bidding record is like 404'ing now so I'm actually not too sure the paper trail to tie it all together: 2032L226Q00008
The five BPA entries are:
2032L226A00003
2032L226A00004
2032L226A00008
2032L226A00009
2032L226A00010