IRS Renews Andover O&M Services Contract for $43.1M with American Systems Corp

Contract Overview

Contract Amount: $43,129,868 ($43.1M)

Contractor: American Systems Corporation

Awarding Agency: Department of the Treasury

Start Date: 2001-12-11

End Date: 2016-11-01

Contract Duration: 5,439 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ANDOVER O&M SERVICES - RENEWAL OF TIRSE-02-C-00001

Place of Performance

Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810

State: Massachusetts Government Spending

Plain-Language Summary

Department of the Treasury obligated $43.1 million to AMERICAN SYSTEMS CORPORATION for work described as: ANDOVER O&M SERVICES - RENEWAL OF TIRSE-02-C-00001 Key points: 1. Contract value of $43.1M for facilities support services. 2. Awarded via full and open competition, indicating market availability. 3. Long contract duration (5439 days) may warrant review for efficiency. 4. No small business participation noted, potentially a missed opportunity.

Value Assessment

Rating: fair

The contract value of $43.1M over approximately 15 years suggests a moderate annual spend. Benchmarking against similar facilities support contracts would be necessary to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair value.

Taxpayer Impact: The competitive award process likely resulted in a fair price, minimizing unnecessary taxpayer expenditure for these essential services.

Public Impact

Ensures continued operation of IRS facilities. Supports essential government functions through facility maintenance. Long-term commitment may impact flexibility for future service needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration
No small business participation

Positive Signals

Full and open competition
Firm fixed price contract

Sector Analysis

This contract falls under Facilities Support Services, a broad category often involving maintenance, operations, and management of government buildings. Spending in this sector is consistent across federal agencies for maintaining infrastructure.

Small Business Impact

The data indicates that small businesses were not involved in this contract, either as prime contractors or subcontractors. Agencies should explore opportunities to include small businesses in contracting to foster economic growth and competition.

Oversight & Accountability

The contract was awarded via full and open competition, suggesting a structured procurement process. Ongoing oversight would focus on performance metrics and adherence to the firm fixed price terms to ensure accountability.

Related Government Programs

Facilities Support Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Long contract duration may lead to inefficiencies or outdated services.
Lack of small business participation.
Potential for price creep if not managed tightly despite fixed price.
Service scope may not align with evolving IRS needs over 15 years.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $43.1 million to AMERICAN SYSTEMS CORPORATION. ANDOVER O&M SERVICES - RENEWAL OF TIRSE-02-C-00001

Who is the contractor on this award?

The obligated recipient is AMERICAN SYSTEMS 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 $43.1 million.

What is the period of performance?

Start: 2001-12-11. End: 2016-11-01.

What is the annual cost of this contract and how does it compare to industry benchmarks for similar services?

The total contract value is $43.1M over approximately 5439 days (about 15 years), equating to roughly $2.87M per year. A detailed comparison with industry benchmarks for facilities support services of similar scope and scale would be required to determine if this annual cost is competitive and represents good value for the taxpayer.

Given the long duration, what mechanisms are in place to ensure the services remain effective and cost-efficient over time?

The firm fixed price structure provides cost certainty. However, the long duration (15 years) necessitates robust performance monitoring and potential for contract modifications or renegotiations if service needs or market conditions significantly change. Regular reviews of service delivery and cost-effectiveness are crucial.

Were there specific reasons for the lack of small business participation in this full and open competition?

The absence of small business participation in a full and open competition could stem from various factors, such as the specific technical requirements of the services, the contract size making it less accessible for smaller firms, or a lack of targeted outreach. Further investigation into the solicitation details and market research conducted would clarify this.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 13990 PARKEAST CIR, CHANTILLY, VA, 20151

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $43,171,062

Exercised Options: $43,171,062

Current Obligation: $43,129,868

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline