Treasury's IRS awards $5.4M Unisys support contract to SAIC, raising questions about competition
Contract Overview
Contract Amount: $5,446,530 ($5.4M)
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: $5.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE SERVICES UNISYS SUPPORT CONFIGURATION MANAGEMENT SUPPORT
Place of Performance
Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430
Plain-Language Summary
Department of the Treasury obligated $5.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: ENTERPRISE SERVICES UNISYS SUPPORT CONFIGURATION MANAGEMENT SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract duration of three years suggests a need for sustained enterprise services. 3. Focus on configuration management and enterprise services indicates critical IT infrastructure support. 4. The award to Science Applications International Corporation (SAIC) warrants a review of their past performance in similar roles. 5. Lack of competition raises concerns about value for money and potential for overpayment. 6. The contract's value, while significant, is moderate within the context of large federal IT procurements.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to its sole-source nature and specific technical focus. Without competitive bids, it's difficult to ascertain if the $5.4 million over three years represents a fair market price for Unisys support and configuration management. Comparisons to similar sole-source IT support contracts would be necessary to provide a more robust value assessment. The firm-fixed-price structure offers some cost certainty, but the absence of competition limits the government's ability to negotiate the best possible terms.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning the IRS did not solicit bids from multiple vendors. This approach is typically used when a specific vendor possesses unique capabilities or when circumstances preclude full and open competition. The lack of competition means that taxpayers did not benefit from the potential cost savings and innovation that can arise from a competitive bidding process. It also limits the government's leverage in negotiating pricing.
Taxpayer Impact: The sole-source award means taxpayers may not have received the most cost-effective solution, as competitive pressures that drive down prices were absent.
Public Impact
The Internal Revenue Service (IRS) benefits from continued support for its Unisys enterprise systems. Configuration management services ensure the stability and integrity of critical IT infrastructure. The contract supports IT operations within the Department of the Treasury. Workforce implications are likely internal to the IRS IT department and SAIC's support staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure, potentially leading to higher costs for taxpayers.
- Lack of transparency in the procurement process due to sole-source nature.
- Reliance on a single contractor for critical IT support could pose a risk if performance falters.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Contract duration of three years indicates a stable, ongoing need for these services.
- Award to SAIC, a large and experienced federal contractor, suggests a degree of reliability.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. This sector encompasses a wide range of activities, including IT consulting, systems integration, and IT support. The federal government is a major consumer of these services, with significant spending allocated to maintaining and upgrading its complex IT infrastructure. Comparable spending benchmarks for enterprise IT support contracts can vary widely based on scope, duration, and the specific technologies involved.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans for small businesses. The award to a large prime contractor like SAIC suggests that opportunities for small businesses may be limited unless they are part of SAIC's subcontracting team. Further investigation into SAIC's subcontracting practices would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Treasury's contracting officers and the IRS's program management. As a delivery order under an existing contract, the initial oversight was likely conducted during the parent contract's award. Transparency is limited due to the sole-source nature of the award. There is no specific mention of an Inspector General's direct jurisdiction over this particular award, though the Treasury OIG would have broad oversight authority over departmental spending.
Related Government Programs
- IT Enterprise Support Services
- Computer Systems Design Services
- Configuration Management Services
- Federal IT Procurement
- Sole-Source IT Contracts
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns
- Contractor performance risk
Tags
it-services, computer-systems-design, configuration-management, enterprise-support, sole-source, department-of-the-treasury, irs, firm-fixed-price, medium-value, west-virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $5.4 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. ENTERPRISE SERVICES UNISYS SUPPORT CONFIGURATION MANAGEMENT SUPPORT
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 $5.4 million.
What is the period of performance?
Start: 2023-10-01. End: 2026-09-30.
What is the track record of Science Applications International Corporation (SAIC) in providing similar enterprise support and configuration management services to federal agencies, particularly the IR
Science Applications International Corporation (SAIC) is a large, established federal contractor with extensive experience in IT services, including enterprise support and configuration management. They have a history of supporting various government agencies, often involving complex IT systems. To assess their track record specifically for this contract, a review of their past performance evaluations on similar contracts would be crucial. This would involve examining CPARS (Contractor Performance Assessment Reporting System) data, if available, to understand their performance history, adherence to schedules, quality of work, and customer satisfaction. For the IRS, SAIC has previously been awarded contracts related to IT modernization and support, indicating a familiarity with the agency's environment. However, the specific nature and scale of past Unisys support contracts would be the most relevant indicator of their capability for this particular award.
How does the $5.4 million contract value compare to similar enterprise support contracts awarded by the IRS or other Treasury bureaus?
Comparing the $5.4 million contract value for three years of Unisys support requires context. This equates to approximately $1.8 million per year. Without knowing the exact scope of services, the number of users supported, and the complexity of the Unisys environment, a direct comparison is difficult. However, within the federal IT services market, contracts of this size are common for specialized support functions. If this contract were competed, the number of bids and the range of proposed prices would offer valuable insights into market rates. Given its sole-source nature, it's harder to benchmark against competitive awards. A review of historical IRS IT support contracts, particularly those for enterprise systems or specific software maintenance, would be necessary to determine if this pricing is within an expected range, considering inflation and the evolution of technology.
What are the primary risks associated with awarding this contract on a sole-source basis, and what mitigation strategies are in place?
The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. This can lead to reduced value for taxpayer money. Another risk is the potential for complacency from the contractor, as there is no immediate threat of losing the business to a competitor. Furthermore, it limits the government's ability to benefit from innovative solutions that might be proposed by other vendors. Mitigation strategies typically involve rigorous negotiation of terms and pricing by the contracting officer, thorough market research to ensure the price is fair and reasonable, and robust performance management throughout the contract's life. For this specific contract, the firm-fixed-price structure provides some cost control, but the IRS would need to actively monitor SAIC's performance and costs to ensure value.
What is the expected impact of this contract on the IRS's ability to maintain and upgrade its enterprise systems, particularly those relying on Unisys technology?
This contract is directly intended to ensure the continued operational stability and support for IRS enterprise systems that utilize Unisys technology. By awarding this contract to SAIC, the IRS aims to secure the necessary expertise for configuration management, maintenance, and potentially minor upgrades or enhancements. This support is crucial for the day-to-day functioning of critical IRS operations, including tax processing and taxpayer services. The three-year duration suggests a commitment to maintaining these systems over a significant period. The effectiveness will depend on SAIC's technical proficiency with the specific Unisys environment and the IRS's ability to manage the contract effectively to ensure that system performance and reliability are maintained or improved.
Are there any historical spending patterns with SAIC or for Unisys support at the IRS that this contract continues or deviates from?
To determine historical spending patterns, one would need to analyze past contracts awarded to SAIC by the IRS, as well as previous contracts for Unisys support. If SAIC has been a long-term provider of similar services to the IRS, this contract may represent a continuation of an established relationship. The value of this contract ($5.4 million over three years) should be compared to the total amount spent on Unisys support in previous fiscal years. A significant increase or decrease could indicate a change in the scope of services, market conditions, or the government's strategy. If this is a new award to SAIC for this specific type of support, it might signal a shift in contracting strategy or a response to a change in vendor capabilities or market availability. Analyzing the 'NOT COMPETED' status historically for Unisys support at the IRS would also reveal patterns in procurement approaches.
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 - END USER
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: $11,750,066
Exercised Options: $6,677,362
Current Obligation: $5,446,530
Actual Outlays: $4,836,269
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $887,408
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 13:44:37
Last Modified: 2026-03-12
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