IRS Awards $80.6M Contract to Dell for Computer Services, Highlighting Firm Fixed Price Structure
Contract Overview
Contract Amount: $80,612,756 ($80.6M)
Contractor: Dell Federal Systems L.P
Awarding Agency: Department of the Treasury
Start Date: 2023-06-01
End Date: 2024-05-31
Contract Duration: 365 days
Daily Burn Rate: $220.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MS IRS BRIDGE AWARD
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75267
State: Texas Government Spending
Plain-Language Summary
Department of the Treasury obligated $80.6 million to DELL FEDERAL SYSTEMS L.P for work described as: MS IRS BRIDGE AWARD Key points: 1. The contract value of $80.6 million for 'Other Computer Related Services' is significant. 2. Dell Federal Systems L.P. is the sole awardee under full and open competition. 3. The firm fixed price contract type aims to control costs. 4. This award falls under the 'Other Computer Related Services' NAICS code, indicating a broad scope.
Value Assessment
Rating: good
The $80.6 million award for 'Other Computer Related Services' appears reasonable given the scope and the provider. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The selection of Dell Federal Systems L.P. indicates they offered the best value among competing proposals.
Taxpayer Impact: The firm fixed price contract aims to provide cost certainty for taxpayers, preventing potential cost overruns on this substantial IT services award.
Public Impact
Taxpayers benefit from essential IT services supporting the IRS's mission. The use of a large, established vendor like Dell suggests a focus on reliable service delivery. The contract's duration and value indicate a significant investment in the IRS's technological infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with a single large provider.
- Scope creep could increase costs if not managed tightly.
- Dependence on Dell for critical IT infrastructure.
Positive Signals
- Firm fixed price contract provides cost predictability.
- Awarded under full and open competition, suggesting competitive pricing.
- Long-term contract may foster stability in IT operations.
Sector Analysis
This contract for 'Other Computer Related Services' falls within the broader Information Technology sector. Spending benchmarks for IT services vary widely, but large federal contracts like this often represent significant investments in maintaining and upgrading agency infrastructure.
Small Business Impact
While awarded to Dell Federal Systems L.P., a large business, the contract details do not specify any small business subcontracting goals or participation. Further review would be needed to assess any indirect impact on small businesses.
Oversight & Accountability
The award under full and open competition suggests a degree of oversight in the procurement process. However, ongoing monitoring of performance and adherence to the firm fixed price terms will be crucial for accountability.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Lack of specific service details.
- No explicit mention of small business participation.
- Potential for scope creep impacting final cost.
- Dependence on a single vendor for critical services.
Tags
other-computer-related-services, department-of-the-treasury, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $80.6 million to DELL FEDERAL SYSTEMS L.P. MS IRS BRIDGE AWARD
Who is the contractor on this award?
The obligated recipient is DELL FEDERAL SYSTEMS L.P.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $80.6 million.
What is the period of performance?
Start: 2023-06-01. End: 2024-05-31.
What specific 'Other Computer Related Services' are included in this contract, and how do they align with the IRS's strategic IT goals?
The specific services are not detailed in the provided data but typically encompass a range of IT support, maintenance, and potentially specialized consulting. Alignment with IRS strategic goals would require examining the IRS's IT modernization plans and how this contract contributes to achieving objectives like enhanced data security, improved taxpayer services, or more efficient internal operations.
What is the benchmarked cost per unit or per service for this contract compared to similar government or commercial contracts?
A precise per-unit cost benchmark is not available without detailed service breakdowns. However, the overall contract value of $80.6 million over one year for 'Other Computer Related Services' suggests a substantial investment. Further analysis would require comparing specific service deliverables and their associated costs against industry standards and other federal IT service contracts.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to ensure the effectiveness and quality of Dell's services?
The provided data does not include specific KPIs or SLAs. Effective oversight would necessitate clearly defined metrics for service availability, response times, issue resolution, and overall performance. These would be crucial for ensuring the IRS receives the expected value and that Dell meets its contractual obligations throughout the performance period.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Francisco Partners Management, L.P.
Address: 1 DELL WAY, ROUND ROCK, TX, 78682
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $103,009,338
Exercised Options: $80,612,756
Current Obligation: $80,612,756
Actual Outlays: $80,507,041
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F0884P
IDV Type: FSS
Timeline
Start Date: 2023-06-01
Current End Date: 2024-05-31
Potential End Date: 2024-05-31 11:00:47
Last Modified: 2024-04-25
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