Treasury's IRS awards $9.99M BPA Refreshment for Computer Systems Design Services to Apptis, Inc
Contract Overview
Contract Amount: $9,993,997 ($10.0M)
Contractor: Apptis, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2005-08-10
End Date: 2005-09-21
Contract Duration: 42 days
Daily Burn Rate: $238.0K/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 $10.0 million to APPTIS, INC. for work described as: BPA REFRESHMENT Key points: 1. Contract value represents a modest portion of overall IT spending for the IRS. 2. The fixed-price contract type suggests a defined scope and potential for cost control. 3. Limited competition is indicated by the single award, raising questions about price discovery. 4. The contract duration is relatively short, allowing for periodic re-evaluation of needs. 5. Apptis, Inc. has a track record with federal contracts, requiring review of past performance. 6. The specific services (Computer Systems Design) are critical for IRS operations.
Value Assessment
Rating: fair
The contract value of $9.99 million for computer systems design services is moderate. Benchmarking against similar contracts for IT design services requires access to a broader dataset of comparable awards. The firm fixed-price nature of the contract provides some cost certainty, but without detailed task orders, a precise value-for-money assessment is difficult. The limited competition may have impacted the final negotiated price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source BPA Refreshment. This indicates that the agency likely had an existing relationship or specific need that led to a direct award without a broad solicitation. The lack of open competition means that potential savings from a competitive bidding process were not realized. The agency's justification for a sole-source award would be critical to understanding the necessity and potential impact on pricing.
Taxpayer Impact: Sole-source awards limit opportunities for other businesses to compete and can potentially lead to higher prices for taxpayers compared to competitively bid contracts.
Public Impact
The Internal Revenue Service (IRS) benefits from these computer systems design services, crucial for its operational efficiency. The services delivered are expected to enhance or maintain the IRS's IT infrastructure. The geographic impact is primarily within the IRS's operational centers, likely concentrated in Maryland. Workforce implications may include the need for specialized IT personnel to implement and manage the designed systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
- Lack of transparency in the sole-source justification requires further investigation.
- Dependence on a single contractor for critical IT design services could pose a risk if performance issues arise.
Positive Signals
- Firm fixed-price contract provides cost certainty for the defined scope.
- BPA Refreshment suggests an established need and potentially streamlined procurement process.
- Apptis, Inc.'s existing federal contract experience may indicate familiarity with government requirements.
Sector Analysis
The federal IT services market is vast and highly competitive, encompassing a wide range of services from system design to cybersecurity. Computer systems design services, specifically NAICS code 541512, are a core component of this sector. This contract fits within the broader category of IT modernization and support for government agencies. Comparable spending benchmarks would involve analyzing IT service contracts across various agencies, with the IRS being a significant spender in this area.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false). As a sole-source award, it also does not present direct subcontracting opportunities for small businesses through a competitive process. The impact on the small business ecosystem is minimal in terms of direct award, but the agency should ensure that overall IT procurement strategies include avenues for small business participation.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Treasury's Inspector General, who is responsible for auditing and investigating fraud, waste, and abuse within the department. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed-upon cost. Transparency regarding the justification for the sole-source award and the specific deliverables would be key oversight elements.
Related Government Programs
- IRS IT Modernization Programs
- Federal Civilian Agency IT Services
- Computer Systems Design Services Contracts
- Apptis, Inc. Federal Contracts
Risk Flags
- Sole-source award raises concerns about competition and potential cost overruns.
- Limited public information on the specific justification for the sole-source award.
- Contract performance history of Apptis, Inc. needs thorough review.
- Potential for vendor lock-in due to sole-source nature.
Tags
it-services, computer-systems-design, department-of-the-treasury, internal-revenue-service, maryland, firm-fixed-price, sole-source, bpa-refreshment, apptis-inc, moderate-value
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $10.0 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 $10.0 million.
What is the period of performance?
Start: 2005-08-10. End: 2005-09-21.
What is Apptis, Inc.'s track record with federal contracts, particularly for computer systems design services?
Apptis, Inc. has a history of receiving federal contracts. A thorough review of their past performance, including contract awards, completion records, and any past performance evaluations or disputes, is necessary to assess their reliability and capability for this specific BPA Refreshment. Examining their performance on similar computer systems design contracts would provide the most relevant insights into their ability to meet the IRS's requirements effectively and efficiently. Information on past contract values, durations, and agencies served would help establish a baseline for comparison.
How does the $9.99 million contract value compare to similar computer systems design services contracts awarded by the IRS or other federal agencies?
Benchmarking the $9.99 million contract value requires access to a comprehensive database of federal procurement data. Without specific details on the scope of work, duration, and deliverables, a direct comparison is challenging. However, for computer systems design services (NAICS 541512), this value appears moderate for a single contract. Larger IT modernization efforts or enterprise-wide system designs can run into tens or hundreds of millions of dollars. The IRS, being a large agency, typically awards significant IT contracts. A detailed analysis would involve comparing this award to other BPA refreshers or task orders for similar services within the IRS and across agencies like the Department of Defense or other civilian agencies with substantial IT needs.
What are the primary risks associated with a sole-source award for critical IT services like computer systems design?
The primary risks associated with a sole-source award for critical IT services include a lack of price competition, which can lead to inflated costs for taxpayers. There's also a potential for reduced innovation and service quality, as the contractor faces less pressure to outperform competitors. Furthermore, sole-source awards can create vendor lock-in, making it difficult and costly to switch providers in the future. Dependence on a single vendor for essential services also increases the risk of disruption if the contractor experiences financial difficulties, operational issues, or fails to meet performance expectations. The agency's justification for the sole-source award needs to be robust to mitigate these inherent risks.
How effective are firm fixed-price contracts in managing costs for complex IT design services?
Firm fixed-price (FFP) contracts are generally considered effective for managing costs when the scope of work is well-defined and unlikely to change significantly. For IT design services, FFP provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This contract structure incentivizes the contractor to control costs and deliver within the agreed-upon budget. However, if the scope is not precisely defined upfront, changes can lead to costly change orders, negating some of the FFP benefits. The success of FFP in this BPA Refreshment depends on the clarity and completeness of the task orders issued under it and the contractor's ability to accurately estimate and manage design efforts.
What is the historical spending pattern for computer systems design services at the IRS?
Analyzing historical spending patterns for computer systems design services at the IRS is crucial for understanding the agency's IT investment trends and the significance of this $9.99 million award. The IRS, like many large federal agencies, relies heavily on IT to manage tax administration, taxpayer services, and internal operations. Historical data would reveal the typical contract vehicles used (e.g., GWACs, IDIQs, BPAs), the average contract values, and the primary contractors involved in providing these services. Understanding these patterns can help assess whether this BPA Refreshment aligns with past spending, represents an increase or decrease in investment, and whether it's part of a larger strategic IT initiative.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
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: $9,993,997
Exercised Options: $9,993,997
Current Obligation: $9,993,997
Parent Contract
Parent Award PIID: GS35F4460G
IDV Type: FSS
Timeline
Start Date: 2005-08-10
Current End Date: 2005-09-21
Potential End Date: 2005-09-21 00:00:00
Last Modified: 2010-01-12
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