Opportunity
U.S. Government Accountability Office (GAO) Bid Protests #B-424249
IRS Virtualization Modernization Platform Migration (Nutanix or Equal)
Buyer
Treasury Department, Internal Revenue Service
Posted
May 13, 2026
Respond By
May 13, 2026
Identifier
B-424249
NAICS
541512, 518210
The Department of the Treasury, Internal Revenue Service (IRS) is seeking solutions for its virtualization modernization initiative, focusing on migrating approximately 10,000 virtual machines from VMware to a scalable enterprise platform. - Government Buyer: - Department of the Treasury - Internal Revenue Service (IRS) - OEMs and Vendors: - Nutanix (preferred brand) - 'Brand name or equal' alternatives permitted - Products/Services Requested: - Nutanix NX-8170-G9 nodes (or equal) - Nutanix NTX-HCI-BNDL hyperconverged infrastructure bundle (or equal) - Nutanix Cloud Platform Ultimate Software License (or equal) - Migration services for 10,000 virtual machines, including hardware, software, installation, and support - Technical Requirements: - Live, in-place hypervisor conversion without data movement - Shared storage pooling - Integrated disaster recovery (no add-on software) - Installation and configuration within seven days of delivery - Notable Details: - Small business set-aside under NASA's SEWP GWAC - 1-year base period with four 1-year option periods - Procurement valued above $35 million - Salient characteristics for 'equal' products specified - NAICS codes: 237110 and 541330
Description
The solicitation RFQ No. 2032H5-26-Q-0011, issued by the Department of the Treasury, IRS, is a small business set-aside under NASA's SEWP GWAC for a brand name or equal procurement supporting the agency's virtualization modernization initiative. The procurement involves migrating approximately 10,000 virtual machines from VMware to an alternative scalable enterprise platform, with Nutanix identified as the preferred brand. The solicitation requires vendors to provide hardware, software, services, and support for a 1-year base period and four 1-year option periods, with specific technical requirements such as live hypervisor conversion without data movement, shared storage pooling, disaster recovery without add-on software, and installation within seven days. The GAO denied the protest challenging the solicitation's terms, finding the agency's requirements justified and the solicitation not a sole-source procurement despite references to Nutanix products.