Treasury's IRS awards $5.58M for Computer Systems Design Services to SAIC via Delivery Order
Contract Overview
Contract Amount: $5,584,237 ($5.6M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of the Treasury
Start Date: 2023-10-01
End Date: 2026-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $5.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ESUS SOFTWARE TASK ORDER
Place of Performance
Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430
Plain-Language Summary
Department of the Treasury obligated $5.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ESUS SOFTWARE TASK ORDER Key points: 1. The contract is for Computer Systems Design Services, a critical area for IRS operations. 2. SAIC, a large established contractor, secured this award. 3. The award is a delivery order under a larger contract, indicating potential for follow-on work. 4. The lack of competition raises questions about potential overpricing and value for taxpayer money.
Value Assessment
Rating: questionable
Without a competitive process, it's difficult to assess if the $5.58M price is optimal. Benchmarking against similar Computer Systems Design Services contracts awarded competitively would be necessary to determine fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This award was not competed, suggesting it was likely issued under an existing contract vehicle with limited or no opportunity for other vendors to bid. This limits price discovery and potentially leads to higher costs.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these essential IT services.
Public Impact
Taxpayers may be paying more than necessary due to the absence of a competitive bidding process. The IRS relies on these services for its critical IT infrastructure, impacting tax processing and citizen services. The long-term implications of awarding significant contracts without competition could affect the overall efficiency and cost-effectiveness of IRS IT modernization efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award process
Positive Signals
- Award to established contractor
- Clear service description
Sector Analysis
Computer Systems Design Services are a significant part of government IT spending. Benchmarks for similar services vary widely based on complexity and scope, but competitive awards typically yield better value.
Small Business Impact
The awardee, Science Applications International Corporation (SAIC), is a large business. There is no indication that small businesses were involved in this specific delivery order, missing an opportunity for their participation.
Oversight & Accountability
The award was made via a delivery order, suggesting it falls under a previously established contract. Oversight would focus on whether the original contract vehicle allowed for fair competition and if this specific order was justified as non-competed.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Lack of competition
- Potential for price gouging
- Limited transparency
- No small business participation indicated
Tags
computer-systems-design-services, department-of-the-treasury, wv, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $5.6 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ESUS SOFTWARE TASK ORDER
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $5.6 million.
What is the period of performance?
Start: 2023-10-01. End: 2026-09-30.
What was the original contract vehicle under which this delivery order was issued, and did it allow for fair competition?
The data indicates this is a 'Delivery Order' but does not specify the parent contract. Further investigation into the contract vehicle is needed to determine if it was competitively awarded and if this specific task order was appropriately justified as limited or sole-source, impacting the overall value and fairness of the procurement process for taxpayers.
How does the pricing of this $5.58M contract compare to similar, competitively awarded Computer Systems Design Services contracts?
Without access to a benchmark of similar, competitively awarded contracts for Computer Systems Design Services, it is impossible to definitively assess if the $5.58M price is fair. The lack of competition for this specific award prevents a direct comparison and raises concerns about potential overpayment by taxpayers.
What is the specific impact of these Computer Systems Design Services on IRS operations and taxpayer experience?
These services are crucial for the IRS's IT infrastructure, likely supporting systems related to tax processing, data management, and citizen interaction. The effectiveness and efficiency of these services directly influence the IRS's ability to operate smoothly, impacting everything from tax return processing times to the security of taxpayer data.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - COMPUTE
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12010 SUNSET HILLS ROAD, 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: $7,791,754
Exercised Options: $5,584,237
Current Obligation: $5,584,237
Actual Outlays: $5,584,237
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,405,114
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2032H523D00001
IDV Type: IDC
Timeline
Start Date: 2023-10-01
Current End Date: 2026-09-30
Potential End Date: 2028-09-30 08:31:05
Last Modified: 2025-12-03
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