Treasury's IRS awards $21.9M for computing center maintenance to Paradigm Solutions Corp
Contract Overview
Contract Amount: $21,867,478 ($21.9M)
Contractor: Paradigm Solutions Corporation
Awarding Agency: Department of the Treasury
Start Date: 2006-03-28
End Date: 2007-03-31
Contract Duration: 368 days
Daily Burn Rate: $59.4K/day
Competition Type: FOLLOW ON TO COMPETED ACTION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FY06 LONG TERM MAINT FOR COMPUTING CTRS
Place of Performance
Location: OXON HILL, PRINCE GEORGE'S County, MARYLAND, 20745
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $21.9 million to PARADIGM SOLUTIONS CORPORATION for work described as: FY06 LONG TERM MAINT FOR COMPUTING CTRS Key points: 1. Contract value of $21.9M for FY06 long-term maintenance. 2. Awarded to Paradigm Solutions Corporation, a single vendor. 3. Classified as a follow-on to a competed action. 4. Service category is 'Other Computer Related Services'.
Value Assessment
Rating: fair
The contract value of $21.9M for one year of maintenance appears high compared to the benchmark of $59,422. Further analysis is needed to understand the scope and specific services provided to justify this cost.
Cost Per Unit: $59,422
Competition Analysis
Competition Level: unknown
The contract is a follow-on to a competed action, suggesting some prior competition. However, the current award details do not specify the competition method used, making it difficult to assess price discovery.
Taxpayer Impact: The significant contract value raises questions about potential overspending if competition was not fully leveraged or if the pricing is not benchmarked effectively.
Public Impact
Taxpayers may be impacted by the significant expenditure on IT infrastructure maintenance. The long-term nature of the contract suggests ongoing reliance on this vendor for critical computing services. Transparency in the procurement process is crucial to ensure taxpayer funds are used efficiently.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value relative to benchmark.
- Lack of clarity on current competition method.
- Potential for vendor lock-in.
Positive Signals
- Follow-on to a competed action indicates prior market engagement.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This contract falls under IT services, specifically 'Other Computer Related Services'. IT maintenance contracts can vary widely in cost depending on the complexity of the systems and the level of service required. Benchmarks are essential for evaluating value.
Small Business Impact
The data does not indicate whether Paradigm Solutions Corporation is a small business. Further investigation is needed to determine the impact on small business participation in federal contracting.
Oversight & Accountability
Oversight is needed to ensure the IRS is receiving adequate value for the $21.9M spent on computing center maintenance and that the follow-on action was appropriately justified.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- High contract value.
- Limited competition information.
- Potential for cost overruns.
- Lack of detailed service description.
Tags
other-computer-related-services, department-of-the-treasury, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $21.9 million to PARADIGM SOLUTIONS CORPORATION. FY06 LONG TERM MAINT FOR COMPUTING CTRS
Who is the contractor on this award?
The obligated recipient is PARADIGM SOLUTIONS 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 $21.9 million.
What is the period of performance?
Start: 2006-03-28. End: 2007-03-31.
What specific services are included in the 'long term maintenance' to justify the $21.9M cost?
The provided data lacks specific details on the services covered under 'long term maintenance for computing centers'. This could include hardware maintenance, software support, system upgrades, or specialized technical assistance. Without a detailed statement of work, it's impossible to ascertain if the $21.9M is commensurate with the value delivered.
How was the pricing determined for this follow-on action, and was it competitive?
While noted as a 'follow on to competed action,' the current procurement details do not specify the method of competition or how pricing was established. Understanding if competitive quotes were solicited or if pricing is based on historical data is crucial for assessing fairness and value for taxpayer money.
What is the long-term strategy for computing center maintenance, and does this contract align with it?
This contract covers FY06, suggesting a one-year duration. The IRS's long-term IT strategy, including plans for modernization or consolidation of computing centers, would determine if this maintenance contract represents a strategic investment or a short-term solution. Without insight into the broader strategy, assessing effectiveness is challenging.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FOLLOW ON TO COMPETED ACTION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Paradigm Holdings Inc. (UEI: 040701906)
Address: 2600 TOWER OAKS BLVD.,, ROCKVILLE, MD, 08
Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Financial Breakdown
Contract Ceiling: $21,867,478
Exercised Options: $21,867,478
Current Obligation: $21,867,478
Timeline
Start Date: 2006-03-28
Current End Date: 2007-03-31
Potential End Date: 2007-03-31 00:00:00
Last Modified: 2008-03-28
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