Treasury's $15M IT hardware acquisition contract awarded to Apptis, Inc. for systems design services
Contract Overview
Contract Amount: $14,955,559 ($15.0M)
Contractor: Apptis, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2005-05-05
End Date: 2005-05-31
Contract Duration: 26 days
Daily Burn Rate: $575.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFRASTRUCTURE HARDWARE ACQUISITON, SERV
Place of Performance
Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $15.0 million to APPTIS, INC. for work described as: INFRASTRUCTURE HARDWARE ACQUISITON, SERV Key points: 1. The contract value of $14.96 million for IT hardware acquisition and services appears reasonable for a multi-year engagement. 2. Competition dynamics for this delivery order need further examination to ensure optimal value. 3. Risk indicators are moderate, with a focus on performance and delivery timelines. 4. The contract's duration of 26 days suggests a specific, short-term need within a larger IT infrastructure project. 5. This contract falls within the IT sector, specifically focusing on computer systems design services.
Value Assessment
Rating: good
The contract value of approximately $15 million for IT hardware acquisition and services is within a typical range for government IT procurements of this nature. Benchmarking against similar contracts for computer systems design services would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a competitive delivery order, indicating that multiple vendors had the opportunity to bid. The presence of competition is a positive sign for price discovery and ensuring the government receives competitive pricing. The specific number of bidders is not provided, but the 'full-and-open' designation implies a robust competitive process.
Taxpayer Impact: A full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among vendors.
Public Impact
The Internal Revenue Service (IRS) is the primary beneficiary, likely receiving upgraded or new IT hardware and associated design services. Services delivered include computer systems design, crucial for maintaining and improving the IRS's technological infrastructure. The geographic impact is centered in Maryland, where the contract is managed and likely where services are performed or hardware is delivered. Workforce implications may include IT professionals involved in the design, implementation, and support of the acquired hardware and systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if the initial design requirements are not clearly defined.
- Dependence on contractor performance for timely delivery and system integration.
- Ensuring the acquired hardware meets current and future IRS technological needs.
Positive Signals
- Awarded through a competitive process, suggesting potential for good value.
- Firm fixed-price contract shifts cost risk to the contractor.
- Clear designation of services (Computer Systems Design) aids in performance monitoring.
Sector Analysis
This contract operates within the Information Technology (IT) sector, specifically focusing on computer systems design services (NAICS 541512). This sector is characterized by rapid technological advancements and significant government spending on modernization and maintenance of IT infrastructure. Comparable spending benchmarks for IT hardware acquisition and design services vary widely based on scope, duration, and specific technologies involved.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if Apptis, Inc. chooses to engage small businesses for specialized tasks. Without specific subcontracting plans, the direct impact on small businesses is uncertain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Treasury and the Internal Revenue Service's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services and hardware. Transparency is generally maintained through federal procurement databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Federal IT Infrastructure Modernization Programs
- IRS Technology Modernization Initiatives
- Government-Wide IT Hardware Procurement Schedules
Risk Flags
- Potential for technology obsolescence
- Dependence on contractor performance
- Clarity of system design requirements
Tags
it, department-of-the-treasury, irs, maryland, competitive-delivery-order, firm-fixed-price, computer-systems-design-services, infrastructure-hardware-acquisition, medium-value, full-and-open-competition
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $15.0 million to APPTIS, INC.. INFRASTRUCTURE HARDWARE ACQUISITON, SERV
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 $15.0 million.
What is the period of performance?
Start: 2005-05-05. End: 2005-05-31.
What is the track record of Apptis, Inc. in delivering similar IT hardware acquisition and systems design services to federal agencies?
Apptis, Inc. has a history of providing IT services to various federal agencies. A detailed review of their past performance on contracts with similar scope, size, and complexity, particularly those involving hardware acquisition and systems design for agencies like the IRS, would be necessary. This would involve examining past performance evaluations, on-time delivery rates, and adherence to budget. Information on specific past projects, client satisfaction, and any documented performance issues or commendations would provide a clearer picture of their capabilities and reliability for this specific contract.
How does the awarded value of $14.96 million compare to market rates for similar computer systems design services and hardware acquisition in Maryland?
Benchmarking the $14.96 million contract value against market rates requires detailed analysis of the specific hardware and services procured. Factors such as the type and quantity of hardware, the complexity of the systems design, and the labor rates involved are critical. Comparing this contract to similar publicly available data for IT services in the Maryland region, considering the firm fixed-price nature, would help determine if the price represents good value. Without specific details on the deliverables, a precise comparison is challenging, but the overall value appears within a reasonable range for a government IT project of this scale.
What are the primary risks associated with this contract, and what mitigation strategies are in place?
Key risks include potential delays in hardware delivery or system integration, the possibility of the acquired technology becoming obsolete quickly, and ensuring the contractor meets all performance specifications. Given the firm fixed-price nature, the primary cost risk lies with the contractor. Mitigation strategies likely involve clear contract terms, defined performance metrics, regular progress reviews, and potentially penalties for non-performance or delays. The short duration (26 days) might indicate a lower overall risk profile compared to longer-term engagements, but the criticality of the systems being designed is a key factor.
How effective has the IRS been in managing IT hardware acquisition contracts of this magnitude in the past?
The IRS has managed numerous IT contracts over the years, with varying degrees of success. Their effectiveness in managing contracts like this one depends on factors such as the clarity of requirements, the robustness of their oversight processes, and the expertise of their contracting and program management staff. Historical data on IRS IT project performance, including budget adherence, schedule compliance, and achievement of intended outcomes, would provide insight. The competitive nature of this award suggests a standard procurement process was followed, aiming for effective management.
What are the historical spending patterns for computer systems design services (NAICS 541512) by the Department of the Treasury and the IRS?
The Department of the Treasury and the IRS have consistently allocated significant funds towards IT services, including computer systems design, to support their vast operational needs. Historical spending data would likely show a trend of increasing investment in IT to modernize systems, enhance cybersecurity, and improve taxpayer services. Analyzing spending over the past 5-10 years would reveal the scale of investment in this category, identify major vendors, and highlight any shifts in procurement strategies or technology focus. This specific $14.96 million contract represents a portion of that broader historical spending.
What is the potential impact of this contract on the IRS's ability to fulfill its mission, particularly regarding taxpayer services?
This contract, focused on IT hardware acquisition and systems design, is crucial for the IRS's operational efficiency and its ability to serve taxpayers effectively. Upgraded or newly designed systems can lead to improved data processing, faster response times for inquiries, enhanced security of sensitive taxpayer information, and the development of new digital services. The successful execution of this contract should contribute positively to the IRS's mission by ensuring its technological backbone is robust and capable of meeting current and future demands.
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
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
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: $14,955,559
Exercised Options: $14,955,559
Current Obligation: $14,955,559
Parent Contract
Parent Award PIID: GS35F4460G
IDV Type: FSS
Timeline
Start Date: 2005-05-05
Current End Date: 2005-05-31
Potential End Date: 2005-05-31 00:00:00
Last Modified: 2010-01-12
More Contracts from Apptis, Inc.
- 200212!002479!9700!ZD11 !defense Info. Technology Contrac!dca20002d5000 !A!N! !N!000604 !20020925!20030227!175320761!175320761!175320761!n!seta Corporation !6862 ELM Street, 6TH Floor!mclean !va!22101!48376!059!51!mclean !fairfax !virginia !+000000019324!n!n!000000000000!d399!other ADP & Telecommunication Services !S1 !services !1000!NOT Discernable or Classified !513310!E! !3!B!S!B! !c!20021004!b!f!n!a! !a!n!y!2!002!b! !Z!N!Z! ! !n!b!n!n! ! !C! !a!a!000!a!b!n! ! ! ! !6920!FAA !0001! — $63.0M (Department of Defense)
- Provide Incremental Funding for Labor Hours, Travel, and Odc's Under Apptis Contract Dtfawa-09-C-00039, on Work Authorization #0001 — $34.9M (Department of Transportation)
- Defense Acquisition University IT Support Services — $33.6M (General Services Administration)
- BPA Refreshment — $25.8M (Department of the Treasury)
- Services — $25.3M (Department of Defense)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)