HII Mission Driven Innovative Government Solutions Inc. awarded $10.19M contract for IT services by the Treasury Department

Contract Overview

Contract Amount: $10,193,239 ($10.2M)

Contractor: HII Mission Driven Innovative Government Solutions Inc.

Awarding Agency: Department of the Treasury

Start Date: 2001-06-15

End Date: 2012-03-22

Contract Duration: 3,933 days

Daily Burn Rate: $2.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48103

State: Michigan Government Spending

Plain-Language Summary

Department of the Treasury obligated $10.2 million to HII MISSION DRIVEN INNOVATIVE GOVERNMENT SOLUTIONS INC. for work described as: Key points: 1. Contract awarded via competitive delivery order, suggesting a degree of market vetting. 2. Long contract duration of over 10 years indicates a significant, long-term need. 3. Cost Plus Fixed Fee pricing structure can incentivize cost overruns if not closely monitored. 4. The contract was awarded to a single entity, HII Mission Driven Innovative Government Solutions Inc. 5. The contract falls under the IT sector, a critical area for government operations. 6. The award was made by the Department of the Treasury, specifically the Internal Revenue Service.

Value Assessment

Rating: fair

The total award amount of $10.19 million over a period of more than 10 years suggests a moderate annual spend. Without specific details on the services rendered or comparable contract data, it is difficult to definitively benchmark the value for money. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for R&D or uncertain scope projects, carries inherent risks of cost escalation if not managed with rigorous oversight. Benchmarking against similar IT service contracts within the Treasury or other federal agencies would be necessary for a more precise assessment of pricing fairness and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating that it was competed among multiple vendors. The presence of 21 offers suggests a robust competitive process. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government. The specific details of the competition, such as the evaluation criteria and the number of bids that met the minimum requirements, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: A competitive award process for this contract is beneficial for taxpayers as it likely resulted in a more cost-effective solution compared to a sole-source award. The active participation of 21 bidders indicates that taxpayer funds were likely used efficiently to secure necessary IT services.

Public Impact

The primary beneficiary of this contract is the Department of the Treasury, specifically the Internal Revenue Service, which receives essential IT services. The services delivered likely support the core functions of tax administration, data management, and IT infrastructure for the IRS. The geographic impact is primarily national, supporting the IRS's nationwide operations. Workforce implications may include the direct employment of individuals by HII Mission Driven Innovative Government Solutions Inc. and potentially indirect employment through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns if not managed effectively.
Long contract duration (over 10 years) increases the risk of scope creep or outdated technology if not regularly reviewed.
Lack of specific details on performance metrics makes it difficult to assess the contractor's effectiveness.
The contract was awarded to a single entity, potentially limiting future competition or innovation if the market evolves.

Positive Signals

Awarded through a competitive process with 21 offers, indicating potential for good value.
The contract supports critical IT functions for a major federal agency (IRS).
The contractor, HII Mission Driven Innovative Government Solutions Inc., is a known entity in government contracting.
The contract was awarded to a single entity, which can provide stability and continuity of services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, a broad category encompassing software development, hardware, network services, and IT support. The federal IT market is substantial, with agencies across all branches relying heavily on technology to deliver services. Contracts like this are crucial for maintaining and modernizing government IT infrastructure. Comparable spending benchmarks would typically involve analyzing IT service contracts of similar scope and duration awarded to large system integrators within the federal government.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The prime contractor, HII Mission Driven Innovative Government Solutions Inc., is a large business. Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed here. The absence of a set-aside suggests that the primary focus was on securing the best overall solution from the available market, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Treasury. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract databases like FPDS, which provide award details. The Inspector General for the Department of the Treasury would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Services
Software Development
IT Support Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to prevent cost overruns.
Long contract duration (over 10 years) may lead to technology obsolescence or scope creep if not actively managed.
Lack of specific performance metrics in the summary data makes it difficult to assess contractor performance.
The contract was awarded to a single entity, potentially limiting future competitive opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $10.2 million to HII MISSION DRIVEN INNOVATIVE GOVERNMENT SOLUTIONS INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is HII MISSION DRIVEN INNOVATIVE GOVERNMENT SOLUTIONS INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2001-06-15. End: 2012-03-22.

What specific IT services were provided under this contract?

The provided data does not specify the exact IT services rendered under this contract. However, given the awarding agency (Internal Revenue Service) and the contract type (Cost Plus Fixed Fee), it likely encompassed a range of services such as software development, system maintenance, IT infrastructure support, data management, or modernization efforts. The long duration and CPFF structure suggest a project with potentially evolving requirements or significant research and development components. A deeper dive into the contract's statement of work (SOW) or task orders would be necessary to ascertain the precise services delivered.

How does the $10.19 million award compare to other IT contracts awarded by the IRS?

The $10.19 million award over a period exceeding 10 years represents an average annual spend of approximately $1 million. This figure is moderate when compared to the vast IT spending of the IRS, which often involves multi-year, multi-billion dollar modernization efforts and large-scale system procurements. For instance, major IRS IT initiatives related to tax processing systems, data analytics, or cybersecurity often command significantly larger contract values. Therefore, while substantial, this $10.19 million contract is likely a component of a larger IT strategy rather than a flagship program in itself.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor receives a fixed fee, the 'cost plus' portion means the government reimburses the contractor's allowable costs. If these costs are not meticulously managed and scrutinized, they can escalate beyond initial projections. For the government, this necessitates robust oversight, detailed cost tracking, and stringent auditing processes to ensure that only legitimate and necessary expenses are reimbursed. The contractor may have less incentive to control costs compared to fixed-price contracts, as their fee is fixed regardless of the final cost.

What is the significance of the contract being awarded to HII Mission Driven Innovative Government Solutions Inc.?

HII Mission Driven Innovative Government Solutions Inc. (formerly Huntington Ingalls Industries) is a major defense contractor and a significant player in the government IT services market. Awarding a contract to such a large and established company suggests the IRS sought a vendor with proven capabilities, extensive experience, and the capacity to handle complex IT projects. This can provide a degree of assurance regarding the contractor's ability to deliver, but it also means the contract value is concentrated within a large corporation rather than being distributed among smaller, potentially more specialized firms. Their track record would need to be reviewed for performance on similar contracts.

How has federal IT spending in the Treasury Department evolved over the life of this contract?

This contract spans from June 15, 2001, to March 22, 2012. During this period, federal IT spending, particularly within agencies like the Treasury and IRS, saw significant increases driven by modernization needs, cybersecurity imperatives, and the expansion of digital services. Early 2000s saw a focus on Y2K remediation and foundational IT infrastructure. By the late 2000s and early 2010s, the emphasis shifted towards data analytics, cloud adoption, and enhanced cybersecurity measures. The IRS, in particular, has consistently invested heavily in IT to manage tax administration, combat fraud, and improve taxpayer services, making this contract a part of a broader, evolving IT investment landscape.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Avaya Holdings Corp. (UEI: 808284181)

Address: 12730 FAIR LAKES CIR, FAIRFAX, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Parent Contract

Parent Award PIID: TIRNO00D00010

IDV Type: IDC

Timeline