Treasury's IRS awards $27.3M contract for UNISYS software and OS support to Science Applications International Corp

Contract Overview

Contract Amount: $27,324,269 ($27.3M)

Contractor: Science Applications International Corp

Awarding Agency: Department of the Treasury

Start Date: 2020-10-01

End Date: 2024-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: UNISYS SOFTWARE MIPS AND OPERATING SYSTEM

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $27.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORP for work described as: UNISYS SOFTWARE MIPS AND OPERATING SYSTEM Key points: 1. Contract value represents a significant investment in maintaining critical IRS IT infrastructure. 2. The firm-fixed-price structure aims to control costs for software and operating system services. 3. Competition was full and open, suggesting a potentially competitive bidding process. 4. The contract duration of 1460 days indicates a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of IT services. 6. The award to a large, established contractor like SAIC suggests a focus on reliability and proven capability.

Value Assessment

Rating: good

The contract value of $27.3 million over approximately four years for UNISYS software and operating system support appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for mainframe software maintenance and support is challenging without more specific details on the exact UNISYS products and the scope of operating system services. However, the firm-fixed-price contract type suggests an effort to lock in costs, which can be advantageous for the government. The contract's value relative to the duration indicates a moderate annual spend, which aligns with typical IT maintenance contracts for large federal agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competitive environment. This approach is designed to foster price discovery and ensure the government receives the best possible value by considering a wide range of potential contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages innovation among bidders, ultimately leading to more cost-effective solutions for government IT needs.

Public Impact

The primary beneficiaries are the IRS, which relies on this software and operating system support for its critical tax processing and administrative functions. The services delivered include maintenance and support for UNISYS software and operating systems, ensuring the continued operation of essential IT systems. The geographic impact is primarily within the United States, supporting the IRS's national operations. Workforce implications may include the need for specialized IT personnel with expertise in UNISYS systems and mainframe operating environments, potentially supporting existing jobs within SAIC and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if UNISYS-specific expertise is highly concentrated.
Reliance on a single contractor for critical software and OS support could pose a risk if performance issues arise.
The long contract duration may limit opportunities for adopting newer technologies if not managed proactively.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty for the government.
Award to a large, experienced contractor like SAIC indicates a focus on proven performance and reliability.
The contract supports essential IRS functions, ensuring continuity of operations for tax administration.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT services and software maintenance. The market for mainframe software support and operating system services, particularly for legacy systems like those potentially supported by UNISYS, is a niche but critical segment of the IT services industry. Large federal agencies often require specialized support for their extensive IT infrastructures, and contracts of this nature are common for maintaining the operational integrity of these systems. Comparable spending benchmarks would typically involve analyzing other large federal IT maintenance contracts, particularly those involving mainframe environments or specialized software platforms.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Science Applications International Corp (SAIC), is a large business. While there is no direct set-aside, large federal contracts often include subcontracting requirements. It is possible that SAIC may engage small businesses for certain aspects of the work, but this is not explicitly mandated by the contract details provided. The impact on the small business ecosystem would depend on whether SAIC actively seeks small business partners for this specific contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the IRS or the Department of the Treasury. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering services within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian IT Services Contracts
Mainframe Support Services
Operating System Maintenance Contracts
UNISYS Software Support

Risk Flags

Potential for aging technology infrastructure
Reliance on specialized, potentially scarce expertise
Cybersecurity risks associated with legacy systems
Integration challenges with modern IT environments

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $27.3 million to SCIENCE APPLICATIONS INTERNATIONAL CORP. UNISYS SOFTWARE MIPS AND OPERATING SYSTEM

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORP.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $27.3 million.

What is the period of performance?

Start: 2020-10-01. End: 2024-09-30.

What is the specific UNISYS software being supported under this contract, and what is its criticality to IRS operations?

The provided data does not specify the exact UNISYS software product. However, given the context of the IRS and the NAICS code for 'Other Computer Related Services,' it is highly probable that this contract pertains to the maintenance and support of UNISYS mainframe hardware and/or associated operating system software critical for the IRS's legacy data processing systems. These systems are often the backbone for core functions like tax processing, taxpayer account management, and historical record-keeping. The criticality is likely very high, as disruptions to these systems could severely impact the IRS's ability to perform its mission, process tax returns, issue refunds, and manage taxpayer information.

How does the annual cost of this contract compare to other similar IT maintenance contracts for federal agencies?

Without specific details on the exact UNISYS software and operating system services, a precise comparison is difficult. However, the contract value of approximately $6.83 million per year ($27.3 million / 4 years) for specialized mainframe software and OS support for a large agency like the IRS is within a reasonable range. Large federal IT maintenance contracts, especially those involving legacy systems and specialized hardware/software, can be substantial. For instance, similar contracts for enterprise software licenses, hardware maintenance, or specialized IT support for agencies like the Department of Defense or Social Security Administration can range from several million to tens of millions of dollars annually, depending on the scope and complexity.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a contract of this nature supporting critical IRS IT infrastructure, typical SLAs would likely focus on system uptime and availability (e.g., 99.9% or higher), response times for issue resolution, patch and update deployment timelines, and performance metrics for the supported software and operating systems. The firm-fixed-price nature of the contract implies that SAIC is responsible for meeting these performance standards to receive full payment, and penalties might be associated with failing to meet critical SLAs.

What is Science Applications International Corp's (SAIC) track record with similar federal IT support contracts, particularly involving mainframe systems?

Science Applications International Corp (SAIC) has a significant and extensive track record of providing IT services to various federal agencies, including the Department of the Treasury and the IRS. They are known for their capabilities in supporting complex IT infrastructures, including legacy systems and mainframe environments. SAIC has historically held numerous large-scale IT support contracts involving software maintenance, system integration, cybersecurity, and operational support across different branches of the government. Their experience with large, mission-critical systems suggests they possess the necessary expertise and resources to manage contracts like this one, which involves specialized UNISYS software and operating system support.

Are there any known risks or challenges associated with maintaining UNISYS software and operating systems in the current federal IT landscape?

Yes, there are several known risks and challenges associated with maintaining legacy systems like UNISYS software and operating systems. One primary risk is the declining availability of specialized expertise, as fewer IT professionals are trained on older mainframe technologies. This can lead to higher labor costs and potential staffing shortages. Another challenge is the integration of these legacy systems with modern IT infrastructure and cloud environments, which can be complex and costly. Furthermore, older systems may present greater cybersecurity vulnerabilities if not rigorously maintained and updated, posing a risk to sensitive government data. Finally, the cost of maintaining aging hardware and software can become prohibitive compared to migrating to more modern, agile platforms.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: CMS2020-0088

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Science Applications International Corporation

Address: 11720 PLAZA AMERICA DR, RESTON, VA, 20190

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,324,269

Exercised Options: $27,324,269

Current Obligation: $27,324,269

Actual Outlays: $27,324,269

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO13D00001

IDV Type: IDC

Timeline