Treasury's IRS Awards $105M IT Task Order to Peraton for Infrastructure Shared Services
Contract Overview
Contract Amount: $105,133,812 ($105.1M)
Contractor: Peraton Inc.
Awarding Agency: Department of the Treasury
Start Date: 2019-07-16
End Date: 2025-05-29
Contract Duration: 2,144 days
Daily Burn Rate: $49.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: INFRASTRUCTURE SHARED SERVICES (ISS) -(FOLLOW-ON TASK ORDER TO TIPSS4 TO 14.)
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $105.1 million to PERATON INC. for work described as: INFRASTRUCTURE SHARED SERVICES (ISS) -(FOLLOW-ON TASK ORDER TO TIPSS4 TO 14.) Key points: 1. The contract is a follow-on to TIPSS4, indicating a continued need for these services. 2. Peraton Inc. is the sole awardee, raising questions about the breadth of competition. 3. The contract spans over five years, suggesting a significant long-term investment. 4. The IT sector, specifically computer systems design, is a critical area for government operations.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. Benchmarking against similar CPFF IT contracts is difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although awarded under full and open competition, the task order went to a single contractor, Peraton Inc. This suggests that while the initial solicitation was broad, the final award may have had limited direct competition for this specific task.
Taxpayer Impact: Taxpayers are funding a significant IT infrastructure project over several years. The CPFF structure necessitates close oversight to ensure cost efficiency and value for money.
Public Impact
Ensures continued operation and modernization of critical IRS IT infrastructure. Supports tax processing and taxpayer services through reliable systems. Potential for long-term IT support impacting millions of taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires diligent oversight.
- Long contract duration increases risk of scope creep or obsolescence.
- Single awardee for task order may limit competitive pressure on pricing.
Positive Signals
- Follow-on nature suggests proven performance.
- Full and open competition for the parent contract.
- Critical IT services for a major government agency.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services, which is a substantial area of federal spending. Benchmarks for similar large-scale IT infrastructure contracts vary widely based on scope and complexity.
Small Business Impact
The data indicates the awardee is Peraton Inc., and the 'ss' (small business set-aside) field is false. There is no indication of small business participation in this specific task order.
Oversight & Accountability
The Cost Plus Fixed Fee contract type requires robust oversight from the Department of the Treasury to ensure costs are controlled and the fixed fee remains appropriate. Monitoring performance against the contract's objectives is crucial.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost Overruns Risk (CPFF)
- Contractor Performance Risk
- Scope Creep Risk
- Technological Obsolescence Risk
- Limited Competition on Task Order
Tags
computer-systems-design-services, department-of-the-treasury, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $105.1 million to PERATON INC.. INFRASTRUCTURE SHARED SERVICES (ISS) -(FOLLOW-ON TASK ORDER TO TIPSS4 TO 14.)
Who is the contractor on this award?
The obligated recipient is PERATON INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $105.1 million.
What is the period of performance?
Start: 2019-07-16. End: 2025-05-29.
What specific IT infrastructure services are included in this task order, and how do they align with the IRS's modernization goals?
The task order is for Infrastructure Shared Services (ISS) and is a follow-on to TIPSS4. While specific services aren't detailed, it likely encompasses network management, data center operations, cloud integration, and cybersecurity support critical for the IRS's mission. Alignment with modernization goals would depend on the specific technical refresh and service improvements outlined in the task order's SOW.
Given the CPFF structure and single awardee for the task order, what mechanisms are in place to ensure cost control and prevent contractor inefficiency?
The Department of the Treasury must implement stringent financial controls and performance monitoring. This includes regular audits of costs, detailed review of invoices against the Statement of Work (SOW), and performance metrics tied to the fixed fee. Regular progress reviews and clear communication channels are essential to manage the contractor's efforts effectively.
How does this $105 million, multi-year contract contribute to the IRS's overall IT effectiveness and taxpayer service delivery?
This significant investment aims to ensure the reliability, security, and potentially the modernization of the IRS's core IT infrastructure. Effective infrastructure directly supports the agency's ability to process tax returns accurately and timely, manage taxpayer data securely, and deliver essential services. The contract's success is therefore directly linked to the IRS's operational effectiveness and taxpayer satisfaction.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 12975 WORLDGATE DR STE 7322, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $114,555,926
Exercised Options: $114,362,561
Current Obligation: $105,133,812
Actual Outlays: $97,554,724
Subaward Activity
Number of Subawards: 300
Total Subaward Amount: $209,106,975
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0011
IDV Type: GWAC
Timeline
Start Date: 2019-07-16
Current End Date: 2025-05-29
Potential End Date: 2025-05-29 12:27:54
Last Modified: 2025-09-30
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