Treasury's $14.6M PACER Support Services contract awarded to Computer Sciences Corporation, spanning over four years

Contract Overview

Contract Amount: $14,599,570 ($14.6M)

Contractor: Computer Sciences Corporation

Awarding Agency: Department of the Treasury

Start Date: 2004-03-04

End Date: 2008-03-31

Contract Duration: 1,488 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PACER SUPPORT SERVICES

Place of Performance

Location: HYATTSVILLE, PRINCE GEORGE'S County, MARYLAND, 20782

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $14.6 million to COMPUTER SCIENCES CORPORATION for work described as: PACER SUPPORT SERVICES Key points: 1. Value for money appears fair given the duration and scope, though specific performance metrics are not detailed. 2. Competition dynamics indicate a full and open process, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with a Time and Materials contract type potentially leading to cost overruns if not managed closely. 4. Performance context is limited without specific deliverables or success metrics. 5. Sector positioning places this within IT services for financial management. 6. The contract duration of nearly four years suggests a need for stable, long-term support.

Value Assessment

Rating: fair

The contract's total value of approximately $14.6 million over nearly four years averages around $3.8 million annually. Without detailed performance data or comparison to similar IT support contracts for financial management systems, a precise value-for-money assessment is challenging. However, the duration suggests a significant scope of work. The Time and Materials pricing structure warrants careful monitoring to ensure costs remain aligned with the value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically fosters a competitive environment, which can lead to more favorable pricing for the government. The presence of multiple bidders, though not specified in number, is implied by the 'full and open' designation, suggesting a robust price discovery process.

Taxpayer Impact: A full and open competition generally benefits taxpayers by promoting competitive bidding, which tends to drive down prices and encourage innovation from contractors seeking to win the award.

Public Impact

Federal employees within the Financial Management Service likely benefited from enhanced IT support, ensuring the smooth operation of financial systems. The services delivered were crucial for maintaining the infrastructure supporting government financial operations. The geographic impact is primarily within the District of Columbia, where the Financial Management Service is likely headquartered or operates. Workforce implications could include the need for skilled IT professionals to manage and support the PACER system, potentially creating or sustaining jobs within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed and monitored for scope creep.
Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness and efficiency.
The contract's age means current market rates and technologies may have evolved significantly since its inception.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Long contract duration indicates a stable, ongoing need for the services provided.
Awarded to a large, established IT services provider (Computer Sciences Corporation), implying a certain level of capability and experience.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on support for financial management systems. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are essential for ensuring the operational continuity of critical government functions. Comparable spending benchmarks would typically involve other IT support contracts for large-scale financial systems within federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, with the primary award going to a large prime contractor. Further analysis would be needed to determine if any subcontracting opportunities were pursued.

Oversight & Accountability

Oversight for this contract would have been managed by the Financial Management Service within the Department of the Treasury. Accountability measures would typically be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance reviews are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Financial Management Systems Modernization
Government Financial IT Support
Treasury Department IT Services
Enterprise Resource Planning (ERP) Support

Risk Flags

Time and Materials contract type carries inherent cost overrun risk.
Limited performance data makes objective assessment of value difficult.
Contract awarded over 15 years ago; current relevance of pricing and technology is questionable.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $14.6 million to COMPUTER SCIENCES CORPORATION. PACER SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is COMPUTER SCIENCES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Financial Management Service).

What is the total obligated amount?

The obligated amount is $14.6 million.

What is the period of performance?

Start: 2004-03-04. End: 2008-03-31.

What were the specific services provided under the PACER SUPPORT SERVICES contract?

The PACER SUPPORT SERVICES contract, awarded to Computer Sciences Corporation, likely encompassed a range of IT support functions critical to the Financial Management Service (FMS) of the Department of the Treasury. While specific details are not provided in the abbreviated data, typical services for such contracts include system maintenance, help desk support, software updates and patching, database administration, network support, and potentially application development or enhancement for the PACER (Program and Contract Execution Reporting) system. The Time and Materials (T&M) contract type suggests that the scope might have been flexible, allowing for adjustments in effort based on evolving needs, but also requiring diligent oversight to control costs. The duration of nearly four years indicates a sustained requirement for these support activities.

How does the $14.6 million contract value compare to similar federal IT support contracts?

Comparing the $14.6 million value of the PACER SUPPORT SERVICES contract requires context regarding the specific services, duration, and agency. For a nearly four-year contract supporting a financial management system, $14.6 million (averaging approximately $3.8 million annually) appears to be within a reasonable range for large federal IT support engagements. However, without knowing the exact scope, number of users supported, complexity of the system, and specific deliverables, a precise benchmark is difficult. Larger, more complex enterprise-wide systems or those requiring extensive development might command significantly higher annual expenditures. Conversely, smaller, more specialized support contracts would be valued lower. The 'full and open competition' award suggests the government sought competitive pricing, which should have influenced the final value.

What are the primary risks associated with a Time and Materials (T&M) contract of this nature?

The primary risk associated with a Time and Materials (T&M) contract, such as the PACER SUPPORT SERVICES award, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred. If the scope of work is not clearly defined or if there is scope creep without adequate controls, the contractor may expend more hours or resources than initially anticipated, leading to a higher final cost for the government. Effective risk mitigation requires robust oversight, detailed tracking of hours and materials, and clear communication channels to manage any changes in requirements. The government must actively monitor the contractor's performance and expenditures to ensure the work remains aligned with the intended objectives and budget.

What does the 'full and open competition' designation imply about the contractor selection process and potential outcomes?

The 'full and open competition' designation for the PACER SUPPORT SERVICES contract signifies that the Department of the Treasury followed a procurement process that allowed all responsible sources to submit bids. This is generally considered the preferred method for government contracting as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This process implies that multiple companies likely vied for the contract, leading to a more rigorous evaluation of technical capabilities and pricing. For taxpayers, this typically translates into better value, as competition tends to drive down prices and encourage contractors to offer their best terms and performance to win the award. It also promotes innovation and efficiency as contractors strive to differentiate themselves.

How has the IT support landscape for federal financial management systems evolved since this contract was awarded in 2004?

The IT support landscape for federal financial management systems has undergone significant evolution since the PACER SUPPORT SERVICES contract was awarded in 2004. Key trends include a major shift towards cloud computing (SaaS, PaaS, IaaS), increased emphasis on cybersecurity and data protection, adoption of agile development methodologies, and the rise of data analytics and business intelligence tools for financial reporting and decision-making. Furthermore, there's been a growing focus on shared services models to reduce redundancy and costs across agencies. Modern contracts often incorporate requirements for continuous monitoring, automated testing, and integration with broader enterprise architectures. The technologies and best practices prevalent today, such as DevSecOps and AI-driven support, were nascent or non-existent in 2004, suggesting that the support model for systems like PACER would likely be structured very differently if procured today.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2100 E GRAND AVE, EL SEGUNDO, CA, 36

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,300,948

Exercised Options: $20,300,948

Current Obligation: $14,599,570

Parent Contract

Parent Award PIID: 26301D0049

IDV Type: IDC

Timeline