Treasury's IRS awarded $25.8M for computer systems design, with a 2704-day duration

Contract Overview

Contract Amount: $25,798,168 ($25.8M)

Contractor: Apptis, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2002-09-25

End Date: 2010-02-19

Contract Duration: 2,704 days

Daily Burn Rate: $9.5K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BPA REFRESHMENT

Place of Performance

Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $25.8 million to APPTIS, INC. for work described as: BPA REFRESHMENT Key points: 1. The contract's long duration suggests a sustained need for computer systems design services. 2. The firm fixed-price contract type indicates that costs were determined upfront, potentially limiting cost overruns. 3. The award was made to a single entity, Apptis, Inc., raising questions about competition. 4. The contract's value of $25.8 million over its lifespan requires careful benchmarking against similar services. 5. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this $25.8 million contract for computer systems design services is challenging without more specific details on the scope of work and deliverables. The firm fixed-price nature provides some cost certainty. However, the long duration (over 7 years) means that the initial pricing may not reflect current market rates for such services, potentially impacting overall value for money. A comparison to other similar IT services contracts awarded by the IRS or Treasury would be necessary for a more robust assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source action, meaning only one vendor, Apptis, Inc., was considered. This significantly limits the opportunity for price discovery and competition. While sole-source awards can be justified for specific reasons, such as unique capabilities or urgent needs, the lack of competition here means taxpayers may not have received the most competitive pricing. The IRS would need to provide a strong justification for why full and open competition was not feasible.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium compared to what could have been achieved through a competitive bidding process.

Public Impact

The primary beneficiaries are likely the Internal Revenue Service (IRS) and its employees, who will receive updated or maintained computer systems. The services delivered are computer systems design, which could encompass software development, system integration, or infrastructure support. The geographic impact is primarily within the IRS's operational areas, likely concentrated where its IT personnel and contractors are located. Workforce implications could include the employment of IT professionals and support staff by Apptis, Inc. to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Long contract duration may lead to outdated technology or services by the end of the term if not managed effectively.
Lack of transparency on the specific services rendered makes it difficult to assess performance and value.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The contract was awarded to a single entity, potentially indicating a specialized or long-standing relationship that could ensure continuity of service.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer systems design. This is a critical area for government agencies like the IRS, which rely heavily on complex IT infrastructure for operations, data management, and taxpayer services. The market for IT services is highly competitive, but specific niche capabilities or existing system integration can sometimes lead to sole-source awards. The value of $25.8 million over nearly 7 years is substantial, indicating a significant IT undertaking.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss=false, sb=false). This means that large businesses, like Apptis, Inc., were eligible and likely the primary focus of the award. There is no explicit information on subcontracting plans for small businesses. Without specific set-aside goals or reporting requirements, the direct impact on the small business IT ecosystem from this particular contract is likely minimal, though large prime contractors may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's Inspector General, as well as internal IRS program management. The firm fixed-price nature provides some level of financial oversight by limiting cost increases. Transparency regarding the specific deliverables and performance metrics would be crucial for effective accountability. The long duration necessitates regular reviews to ensure the services remain relevant and effective.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian IT Services Contracts
Computer Systems Design and Related Services
Department of the Treasury IT Procurement

Risk Flags

Sole-source award limits competition.
Long contract duration may pose risks of obsolescence or cost inefficiency.
Lack of detailed performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $25.8 million to APPTIS, INC.. BPA REFRESHMENT

Who is the contractor on this award?

The obligated recipient is APPTIS, 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 $25.8 million.

What is the period of performance?

Start: 2002-09-25. End: 2010-02-19.

What specific computer systems design services were provided under this contract?

The provided data indicates the contract was for 'Computer Systems Design Services' (NAICS 541512) awarded to Apptis, Inc. by the IRS. However, the specific nature of these services is not detailed. This could range from developing new software applications, integrating existing systems, designing network architectures, or providing IT infrastructure consulting. Without a detailed statement of work or task orders, it's impossible to ascertain the precise services rendered. Understanding the scope is crucial for evaluating the contract's value and performance. For instance, if it involved critical system upgrades, the $25.8 million over 2704 days might represent a reasonable investment. Conversely, if it covered more routine maintenance, the cost per day could be high.

How does the $25.8 million contract value compare to similar IT services contracts awarded by the IRS or Treasury?

Comparing the $25.8 million contract value requires context regarding the specific services and duration. For a nearly 7-year contract (2704 days), this averages approximately $3.7 million per year. The IRS, being a large agency with complex IT needs, frequently awards contracts in the millions for IT services. Benchmarking this against other 'Computer Systems Design Services' contracts (NAICS 541512) awarded by the IRS or Treasury during the contract period (2002-2010) would be necessary. If similar contracts for comparable scope and duration were awarded at significantly lower or higher price points, it would indicate whether this contract represented good or questionable value. The sole-source nature also complicates direct comparison, as competitive bids often drive prices down.

What is the track record of Apptis, Inc. in performing government IT contracts, particularly with the IRS?

Apptis, Inc. has a history of performing government IT contracts. To assess their track record for this specific contract, one would need to examine past performance evaluations, any contract disputes, or awards received by the company during the contract period. Information on whether Apptis successfully met the requirements, delivered on time, and stayed within budget (if applicable beyond the fixed price) would be critical. A review of federal procurement databases and contract award histories could reveal patterns of performance, including their success rate with sole-source awards and their ability to handle large, long-term IT projects for agencies like the IRS. Positive past performance would lend confidence to the execution of this contract.

What were the key performance indicators (KPIs) for this contract, and how was performance measured?

The provided data does not specify the Key Performance Indicators (KPIs) or the performance measurement methods used for this contract. For a computer systems design services contract, typical KPIs might include system uptime, response times, successful deployment of new features, adherence to security protocols, and user satisfaction. The IRS program office responsible for overseeing the contract would have been tasked with monitoring Apptis's performance against these metrics. Without access to performance reports or contract close-out documentation, it is difficult to definitively assess whether the contractor met expectations and delivered the required value. The firm fixed-price nature implies penalties might not be directly tied to performance unless specific service level agreements (SLAs) were included.

How did the IRS justify the sole-source award to Apptis, Inc. for this computer systems design work?

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required supplies or services, or when a critical need arises that cannot be met through competition. For this contract, the IRS would have needed to document why full and open competition was not feasible. Potential justifications could include the need for specialized expertise unique to Apptis, the requirement to maintain continuity with an existing system designed by Apptis, or a situation where only Apptis possessed the necessary security clearances or proprietary knowledge. The justification would need to be robust and approved by appropriate authorities to ensure proper use of taxpayer funds.

What is the historical spending trend for computer systems design services at the IRS, and how does this contract fit in?

To understand the historical spending trend, one would need to analyze IRS's procurement data for NAICS code 541512 (Computer Systems Design Services) over several years, both before and after this contract's period of performance (2002-2010). This contract, valued at $25.8 million over approximately 7 years, represents a significant but not necessarily outlier investment for an agency of the IRS's size and IT complexity. Examining trends would reveal if spending on such services has increased, decreased, or remained stable. It would also show whether the IRS typically uses sole-source awards for these services or prefers competitive bidding. This contract's value and duration would then be contextualized within that broader spending pattern.

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 › ADP AND TELECOMMUNICATIONS

Contractor Details

Parent Company: Apptis Holdings Inc. (UEI: 165295606)

Address: 4800 WESTFIELDS BLVD, CHANTILLY, VA, 90

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

Financial Breakdown

Contract Ceiling: $25,798,168

Exercised Options: $25,798,168

Current Obligation: $25,798,168

Parent Contract

Parent Award PIID: GS35F4460G

IDV Type: FSS

Timeline