Treasury's IRS Awards $88.5M for DISM Computer Systems Design Services to Maximus Federal Services
Contract Overview
Contract Amount: $88,494,313 ($88.5M)
Contractor: Maximus Federal Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2021-06-17
End Date: 2024-12-16
Contract Duration: 1,278 days
Daily Burn Rate: $69.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: LABOR HOURS
Sector: IT
Official Description: DEVELOPMENT, INFRASTRUCTURE, SECURITY AND MODERNIZATION (DISM)
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $88.5 million to MAXIMUS FEDERAL SERVICES, INC. for work described as: DEVELOPMENT, INFRASTRUCTURE, SECURITY AND MODERNIZATION (DISM) Key points: 1. The contract is for Computer Systems Design Services, a critical area for government operations. 2. Maximus Federal Services, Inc. is the awardee, indicating a specific vendor's role. 3. The contract duration is over three years, suggesting a significant, ongoing need. 4. The award was made under full and open competition, implying a competitive bidding process.
Value Assessment
Rating: good
The award amount of $88.5 million over three years for computer systems design services appears reasonable given the scope. Benchmarking against similar large-scale IT service contracts suggests this falls within expected pricing ranges for complex modernization efforts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and allows for a wide range of potential contractors to bid. This method is designed to achieve best value for the government.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the services rendered, maximizing the value of federal investment.
Public Impact
Modernization of IRS systems can lead to improved taxpayer services and more efficient tax administration. The contract supports critical infrastructure for a major federal agency, impacting millions of taxpayers. Investments in IT security and modernization are crucial for protecting sensitive taxpayer data.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for scope creep in long-term IT modernization projects.
- Dependence on a single vendor for critical system development.
Positive Signals
- Awarded under full and open competition.
- Long-term contract duration indicates sustained need and potential for stable service delivery.
Sector Analysis
Computer Systems Design Services are a significant part of the IT sector, encompassing a broad range of activities from software development to system integration. Federal spending in this area is substantial, driven by the need to modernize legacy systems and enhance digital capabilities.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific set-asides for small businesses. While Maximus Federal Services, Inc. is a large business, the prime contractor may engage small businesses as subcontractors.
Oversight & Accountability
The contract's duration and scope necessitate ongoing oversight to ensure performance, cost control, and adherence to security protocols. Regular reviews and performance metrics will be key to accountability.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Long-term contract duration.
- High award value.
- Critical IT infrastructure support.
- Awarded to a large business prime.
Tags
computer-systems-design-services, department-of-the-treasury, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $88.5 million to MAXIMUS FEDERAL SERVICES, INC.. DEVELOPMENT, INFRASTRUCTURE, SECURITY AND MODERNIZATION (DISM)
Who is the contractor on this award?
The obligated recipient is MAXIMUS FEDERAL SERVICES, 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 $88.5 million.
What is the period of performance?
Start: 2021-06-17. End: 2024-12-16.
What specific modernization goals does the DISM contract aim to achieve for the IRS, and how will success be measured?
The DISM contract likely aims to modernize critical IRS infrastructure, enhance cybersecurity, and improve the efficiency of tax administration systems. Success will be measured through key performance indicators (KPIs) related to system uptime, security compliance, user satisfaction, and the successful implementation of new functionalities or upgrades. Specific metrics would be detailed in the contract's statement of work.
What are the primary risks associated with a multi-year, high-value IT modernization contract like this, and how are they being mitigated?
Primary risks include potential cost overruns due to scope creep, technological obsolescence, vendor performance issues, and cybersecurity vulnerabilities. Mitigation strategies typically involve robust contract management, phased implementation with clear milestones, regular performance reviews, strong security protocols, and contingency planning. The competitive award process also helps mitigate some risks by selecting a vendor with a proven track record.
How does this contract contribute to the IRS's overall mission and its ability to serve taxpayers effectively?
This contract is crucial for enabling the IRS to modernize its aging IT systems, which directly impacts its ability to process tax returns efficiently, provide accurate information to taxpayers, and protect sensitive financial data. Improved systems can lead to faster refunds, better customer service, and enhanced compliance, ultimately strengthening the IRS's mission of administering the nation's tax laws.
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 › IT AND TELECOM - PLATFORM
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Address: 1600 TYSONS BLVD STE 300, MC LEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $96,747,069
Exercised Options: $93,494,288
Current Obligation: $88,494,313
Actual Outlays: $88,445,841
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCK18D0044
IDV Type: GWAC
Timeline
Start Date: 2021-06-17
Current End Date: 2024-12-16
Potential End Date: 2025-06-16 14:56:33
Last Modified: 2025-04-09
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