Treasury's IRS Awards $14.1M for Data System Modernization to Science Applications International Corp
Contract Overview
Contract Amount: $14,140,766 ($14.1M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of the Treasury
Start Date: 2025-12-12
End Date: 2026-12-11
Contract Duration: 364 days
Daily Burn Rate: $38.8K/day
Competition Type: NOT COMPETED
Pricing Type: LABOR HOURS
Sector: IT
Official Description: INTEGRATED DATA RETRIEVAL SYSTEM MODERNIZATION (UNISYS RETIREMENT/REPLACEMENT INITIATIVE) 12-MONTH BASE + 6-MONTH OPTION
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $14.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: INTEGRATED DATA RETRIEVAL SYSTEM MODERNIZATION (UNISYS RETIREMENT/REPLACEMENT INITIATIVE) 12-MONTH BASE + 6-MONTH OPTION Key points: 1. The contract focuses on modernizing the IRS's data retrieval systems, replacing the UNISYS platform. 2. Awarded to Science Applications International Corporation (SAIC), a major government contractor. 3. The contract is a delivery order under an existing contract, indicating a specific need. 4. The service category is Computer Systems Design Services, a critical area for government IT infrastructure.
Value Assessment
Rating: fair
The total award is $14.1 million. Without a per-unit cost or more detailed breakdown, it's difficult to benchmark against similar contracts. The pricing is based on labor hours, which can be variable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed, suggesting it might be a sole-source award or a delivery order under a pre-existing, potentially competed, contract. Lack of competition limits price discovery and potentially leads to higher costs.
Taxpayer Impact: The lack of competition raises concerns about whether taxpayers are receiving the best possible value for this modernization effort.
Public Impact
Modernizing the IRS's data systems is crucial for efficient tax administration and taxpayer services. This initiative aims to replace an aging UNISYS system, which likely presents operational risks. The contract's success will impact the IRS's ability to process and retrieve data effectively. SAIC's role highlights the reliance on large contractors for complex IT modernization projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for cost overruns due to labor hour pricing
- Reliance on a single vendor for a critical system
Positive Signals
- Addresses a critical need for system modernization
- Awarded to a known government contractor with relevant experience
Sector Analysis
The IT sector, particularly system modernization, is a significant area of government spending. Benchmarks for similar computer systems design services vary widely based on scope and complexity, but $14.1 million for a 12-month base period with an option suggests a substantial project.
Small Business Impact
This contract was not awarded to a small business. The prime contractor, Science Applications International Corporation, is a large business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
As a delivery order under an existing contract, oversight may be embedded within the parent contract's framework. However, the lack of explicit competition warrants close monitoring to ensure cost-effectiveness and performance.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition
- Potential for cost creep with labor hour contracts
- Dependency on a single vendor for critical infrastructure
- Lack of transparency in pricing due to non-competitive award
Tags
computer-systems-design-services, department-of-the-treasury, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $14.1 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. INTEGRATED DATA RETRIEVAL SYSTEM MODERNIZATION (UNISYS RETIREMENT/REPLACEMENT INITIATIVE) 12-MONTH BASE + 6-MONTH OPTION
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 $14.1 million.
What is the period of performance?
Start: 2025-12-12. End: 2026-12-11.
What is the specific scope of work for the UNISYS retirement/replacement initiative, and how does it align with the IRS's long-term IT strategy?
The provided data indicates the contract is for Computer Systems Design Services related to modernizing the IRS's Integrated Data Retrieval System, specifically retiring and replacing the UNISYS platform. A detailed scope of work would clarify the specific functionalities, data migration efforts, and integration requirements. Alignment with the IRS's long-term IT strategy would demonstrate how this modernization fits into a broader plan for technological advancement and operational efficiency.
Given the limited competition, what measures are in place to ensure SAIC delivers this modernization project within budget and on schedule?
With a 'NOT COMPETED' status, robust oversight mechanisms are crucial. This includes clear performance metrics, regular progress reviews, and stringent change control processes. The IRS should actively manage the labor hours, monitor resource allocation, and ensure SAIC adheres to the defined milestones and deliverables to mitigate risks of cost overruns and delays.
What are the potential risks associated with replacing a critical data retrieval system, and how is SAIC expected to mitigate them?
Risks include data loss or corruption during migration, system integration failures, operational disruptions, and user adoption challenges. SAIC is expected to mitigate these through comprehensive testing, phased deployment strategies, robust backup and recovery plans, and thorough user training. A detailed risk management plan from SAIC, reviewed by the IRS, would outline specific mitigation actions.
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 - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: LABOR HOURS (Z)
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: $20,952,492
Exercised Options: $14,140,766
Current Obligation: $14,140,766
Actual Outlays: $5,433,234
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $8,943,021
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 2032H523D00001
IDV Type: IDC
Timeline
Start Date: 2025-12-12
Current End Date: 2026-12-11
Potential End Date: 2027-06-11 12:07:16
Last Modified: 2025-12-11
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