Treasury's $15.9M TIPSS-3 IT Services Contract Awarded to Leidos
Contract Overview
Contract Amount: $15,890,701 ($15.9M)
Contractor: Leidos Management Systems Designers, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2006-05-31
End Date: 2013-08-08
Contract Duration: 2,626 days
Daily Burn Rate: $6.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TIPSS-3 CONTRACTOR ACQUISITION
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $15.9 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: TIPSS-3 CONTRACTOR ACQUISITION Key points: 1. The contract, valued at $15.9 million, was awarded to Leidos Management Systems Designers, Inc. 2. This falls under NAICS code 541512 (Computer Systems Design Services), a common sector for federal IT. 3. The contract was awarded via a competitive delivery order, suggesting some level of price discovery. 4. The duration of the contract was 2626 days, ending in August 2013. 5. The contract type was Cost Plus Fixed Fee, which can sometimes lead to cost overruns if not managed tightly.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can be less predictable in final cost compared to fixed-price contracts. Benchmarking against similar IT services contracts would be needed for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, indicating that multiple vendors likely competed. This method generally promotes better pricing than sole-source awards.
Taxpayer Impact: The competitive nature of the award suggests efforts were made to secure a reasonable price for taxpayers, though the CPFF structure warrants scrutiny.
Public Impact
Taxpayers funded IT services essential for the IRS's operations. The contract supported computer systems design, impacting the agency's technological infrastructure. The long duration suggests a sustained need for these services over several years.
Waste & Efficiency Indicators
Waste Risk Score: 60 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Lack of specific performance metrics makes it difficult to assess effectiveness.
- Contract ended in 2013, making current relevance limited.
Positive Signals
- Awarded competitively, suggesting some level of price negotiation.
- Long contract duration indicates a sustained need and potential for economies of scale.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Federal spending in this area is substantial, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. The primary awardee, Leidos, is a large corporation.
Oversight & Accountability
The contract was awarded by the Department of the Treasury to the IRS. Oversight would typically involve program managers ensuring deliverables met requirements and costs remained within the fixed fee.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of detailed performance metrics.
- Contract expired in 2013.
- Small business participation not specified.
Tags
computer-systems-design-services, department-of-the-treasury, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $15.9 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. TIPSS-3 CONTRACTOR ACQUISITION
Who is the contractor on this award?
The obligated recipient is LEIDOS MANAGEMENT SYSTEMS DESIGNERS, 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 $15.9 million.
What is the period of performance?
Start: 2006-05-31. End: 2013-08-08.
What was the specific scope of 'Computer Systems Design Services' under this contract, and how did it align with IRS operational needs?
The scope likely encompassed the design, development, and potentially integration of computer systems to support IRS functions. This could include software development, system architecture, and IT infrastructure planning. Alignment with IRS needs would depend on specific project objectives, such as modernizing tax processing systems or enhancing data security.
How effectively was the Cost Plus Fixed Fee structure managed to control costs and prevent contractor overspending?
Effective management of a CPFF contract requires rigorous oversight of contractor expenditures and performance. The agency would need to monitor direct costs closely, ensure the fixed fee was justified by the scope, and implement change control processes to prevent scope creep from inflating the total cost beyond initial projections.
Given the contract ended in 2013, what has been the IRS's strategy for IT systems design and acquisition since then?
Since 2013, the IRS has likely engaged in numerous subsequent IT acquisition strategies, potentially including further competitive procurements, task orders under larger IDIQs, or shifts towards cloud-based solutions and agile development methodologies. Understanding these subsequent strategies would reveal evolving IT needs and procurement approaches.
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: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lockheed Martin Corp (UEI: 834951691)
Address: 2677 PROSPERITY AVE., SUITE 700, FAIRFAX, VA, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,472,341
Exercised Options: $16,671,669
Current Obligation: $15,890,701
Parent Contract
Parent Award PIID: TIRNO06D00013
IDV Type: IDC
Timeline
Start Date: 2006-05-31
Current End Date: 2013-08-08
Potential End Date: 2013-08-08 00:00:00
Last Modified: 2013-08-21
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