IRS Spends $39.9M on Computing Infrastructure, Data Processing, and Web Hosting with IAP World Services
Contract Overview
Contract Amount: $39,947,301 ($39.9M)
Contractor: IAP World Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2006-04-28
End Date: 2008-09-30
Contract Duration: 886 days
Daily Burn Rate: $45.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IRS FILES ACTIVITY (COMPETITIVE SOURCING)
Place of Performance
Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920
State: Florida Government Spending
Plain-Language Summary
Department of the Treasury obligated $39.9 million to IAP WORLD SERVICES, INC. for work described as: IRS FILES ACTIVITY (COMPETITIVE SOURCING) Key points: 1. Contract awarded to IAP World Services, Inc. for $39.9M. 2. Services include computing infrastructure, data processing, and web hosting. 3. Full and open competition was utilized. 4. Contract duration was 886 days. 5. The contract was awarded under a Firm Fixed Price type.
Value Assessment
Rating: fair
The contract value of $39.9M over approximately 2.5 years suggests a significant investment. Benchmarking against similar contracts for computing infrastructure and data processing services is necessary to assess if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer dollars are spent efficiently by securing the best value.
Public Impact
Taxpayers benefit from competitive bidding potentially leading to lower costs for essential IT services. The IRS ensures continuity of critical computing and data processing operations. Transparency in government IT procurement is maintained through open competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics provided.
- Limited insight into the specific services rendered for the $39.9M.
- No mention of small business participation.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type can provide cost certainty.
- Contract duration is clearly defined.
Sector Analysis
The $39.9M contract falls within the IT sector, specifically computing infrastructure and data processing. Spending benchmarks for similar services vary widely based on scope and duration, but this amount represents a substantial investment for the IRS.
Small Business Impact
The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Treasury's Internal Revenue Service. Oversight would typically involve contract management by the agency to ensure service delivery and adherence to terms.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Lack of detailed performance data.
- No information on small business utilization.
- Limited insight into the specific deliverables and their impact.
- Contract duration of 886 days is substantial, requiring ongoing monitoring.
Tags
computing-infrastructure-providers-data-, department-of-the-treasury, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $39.9 million to IAP WORLD SERVICES, INC.. IRS FILES ACTIVITY (COMPETITIVE SOURCING)
Who is the contractor on this award?
The obligated recipient is IAP WORLD SERVICES, 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 $39.9 million.
What is the period of performance?
Start: 2006-04-28. End: 2008-09-30.
What specific computing infrastructure, data processing, and web hosting services were provided under this contract, and how do they align with the IRS's operational needs?
The contract details are limited, but the NAICS code 518210 suggests services like server hosting, data storage, cloud computing, and potentially managed IT services. These are crucial for the IRS's operations, including tax processing, data management, and online taxpayer services. A deeper dive into the Statement of Work would clarify the exact services and their alignment with IRS requirements.
Given the $39.9M value and full and open competition, what was the competitive landscape like, and were there significant cost savings compared to a sole-source or limited competition award?
Full and open competition typically involves multiple bidders, driving down prices. While specific bid data isn't available, this method is designed to achieve best value. The absence of a sole-source or limited competition designation suggests that the IRS sought a broad range of offers, likely resulting in a more favorable price than if competition was restricted.
What was the effectiveness of IAP World Services, Inc. in delivering the contracted services, and how was performance measured?
The provided data does not include performance metrics or evaluations for this contract. Effectiveness would typically be assessed through contract performance reports, user feedback, and adherence to service level agreements. Without this information, it's impossible to definitively state the effectiveness of the services rendered by IAP World Services, Inc.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Cerberus Capital Management, L.P. (UEI: 014784388)
Address: 7315 N. ATLANTIC AVE, CAPE CANAVERAL, FL, 08
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $40,711,426
Exercised Options: $40,711,426
Current Obligation: $39,947,301
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-04-28
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2009-07-07
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