Leidos Management Systems Designers Inc. contract for IT Program & Project Management BI/CSD valued at $17.17M

Contract Overview

Contract Amount: $17,173,016 ($17.2M)

Contractor: Leidos Management Systems Designers, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2006-05-31

End Date: 2016-05-19

Contract Duration: 3,641 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IT PROGRAM &PROJECT MGMT BI/CSD

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $17.2 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: IT PROGRAM &PROJECT MGMT BI/CSD Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 3641 days indicates a long-term engagement for IT services. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The award was a Delivery Order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541512 points to Computer Systems Design Services. 6. The contract was awarded to a single vendor, Leidos Management Systems Designers, Inc.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services rendered and comparable contracts. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex IT projects, carries inherent risks of cost escalation if not meticulously managed. The total award amount of $17.17 million over approximately 10 years suggests a moderate annual spend, but the true value-for-money depends heavily on the successful delivery of IT program and project management, business intelligence, and customer service delivery functions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 7 bidders suggests a reasonably competitive environment, which typically benefits price discovery and can lead to more favorable pricing for the government. However, the specific details of the bidding process and the evaluation criteria are not provided, making it difficult to definitively assess the extent of competition's impact on the final price.

Taxpayer Impact: A competitive bidding process generally leads to better value for taxpayers by encouraging vendors to offer competitive pricing and innovative solutions to win the contract.

Public Impact

The primary beneficiaries of this contract are likely internal departments within the Department of the Treasury, specifically the Internal Revenue Service (IRS), who will receive enhanced IT program and project management, business intelligence, and customer service delivery. The services delivered are expected to improve the efficiency and effectiveness of IT operations and data analysis within the IRS. The geographic impact is primarily within Virginia, where the contractor is located, and potentially wherever the IRS operates its IT infrastructure. The contract supports a workforce involved in IT program management, system design, and data analysis, contributing to specialized IT employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to increase fee, requiring robust oversight.
Long contract duration (over 10 years) increases the risk of scope creep and potential for outdated technology if not actively managed.
Reliance on a single vendor for critical IT program and project management functions could pose a risk if performance degrades or the vendor faces financial instability.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified vendors and potential for competitive pricing.
The contract was awarded to Leidos Management Systems Designers, Inc., a known entity in the IT services sector, suggesting a level of established capability.
The contract specifies Computer Systems Design Services, a core IT function that, if executed well, can lead to significant operational improvements.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT industry focused on providing expertise in IT strategy, system implementation, and management. The market for such services is large and competitive, with government contracts representing a substantial portion. This specific contract for IT program and project management, BI, and CSD is crucial for agencies like the IRS to maintain and modernize their complex technological infrastructure and data-driven operations. Comparable spending benchmarks would typically involve analyzing other large-scale IT service contracts awarded to system integrators and management consulting firms by federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct recipients of this prime contract. However, there may be opportunities for small businesses to participate as subcontractors to Leidos Management Systems Designers, Inc., depending on the prime contractor's subcontracting plan and the specific needs of the project. The absence of a small business set-aside means the primary focus was on securing the best overall solution from the broader market.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury and the Internal Revenue Service's contracting and program management offices. Given the Cost Plus Fixed Fee structure, rigorous financial oversight and performance monitoring are essential to ensure costs remain reasonable and deliverables are met. Transparency would be facilitated through contract reporting mechanisms and potentially through the Treasury Inspector General for Tax Administration (TIGTA) if the contract falls within their audit jurisdiction. Accountability measures would be tied to the contract's performance metrics and milestones.

Related Government Programs

IRS IT Modernization Programs
Federal IT Services and Support Contracts
Department of the Treasury IT Procurement
Business Intelligence and Data Analytics Services
Computer Systems Design Services

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to prevent cost overruns.
Long contract duration increases risk of scope creep and technological obsolescence.
Potential for vendor lock-in if not managed with exit strategies.
Dependence on a single vendor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $17.2 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. IT PROGRAM &PROJECT MGMT BI/CSD

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 $17.2 million.

What is the period of performance?

Start: 2006-05-31. End: 2016-05-19.

What specific IT program and project management, BI, and CSD services were delivered under this contract?

The contract, awarded to Leidos Management Systems Designers, Inc., focused on IT Program & Project Management, Business Intelligence (BI), and Customer Service Delivery (CSD) for the Department of the Treasury's Internal Revenue Service (IRS). While the specific deliverables are not detailed in the provided data, such contracts typically encompass a range of services including strategic IT planning, project execution and oversight, development and implementation of data analytics solutions, business process improvement, and potentially customer support systems management. The goal is generally to enhance the IRS's operational efficiency, data utilization, and service delivery through robust IT program management and advanced analytical capabilities. The Cost Plus Fixed Fee structure suggests a need for flexibility in addressing complex, evolving IT challenges within the agency.

How does the $17.17 million award compare to similar IT program management contracts within the federal government?

The $17.17 million total award for IT Program & Project Management BI/CSD over its duration (approximately 10 years) represents a moderate investment in IT services for a large federal agency like the IRS. To provide a precise comparison, one would need to analyze the scope, duration, and specific services of other IT program management contracts awarded by agencies of similar size and complexity. However, in the broader federal IT landscape, contracts of this magnitude are common for specialized services. For instance, large-scale system integrations or cybersecurity overhauls can reach hundreds of millions or even billions. This contract appears to be focused on a specific set of critical IT functions rather than a complete agency-wide IT overhaul, making direct comparisons difficult without granular data on comparable contract scopes.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Leidos Management Systems Designers, Inc., is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This can incentivize contractors to incur higher costs, as the fixed fee remains constant regardless of the actual costs incurred. For the government, this necessitates stringent oversight to ensure that all costs are reasonable, allocable, and necessary. Without robust monitoring and control, the total project cost can exceed initial estimates. Additionally, the contractor may focus on maximizing billable hours rather than project efficiency, potentially leading to delays or scope creep if not managed proactively by the government.

What is the significance of the contract being a Delivery Order under a larger IDIQ contract?

The fact that this award is a Delivery Order (DO) signifies that it was issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract vehicle. IDIQ contracts establish terms and conditions for future orders but do not guarantee a specific quantity or dollar amount. Delivery Orders are then used to procure specific services or supplies under those established terms. This approach allows agencies to streamline procurement for recurring needs, benefiting from pre-negotiated pricing and contract terms. For taxpayers, this can mean more efficient procurement processes and potentially better pricing due to the established framework. However, it also means that the overall value and scope are tied to the parent IDIQ contract, which itself would have undergone a separate, often competitive, award process.

How does the contractor, Leidos Management Systems Designers, Inc., perform on similar government contracts?

Assessing the specific performance track record of Leidos Management Systems Designers, Inc. on this particular contract requires access to performance evaluations, such as Contractor Performance Assessment Reporting System (CPARS) data, which is not provided in the initial data. Generally, Leidos is a large, established government contractor with a broad portfolio of IT and professional services across various federal agencies. Their performance can vary significantly depending on the specific contract, agency, and project management team. To evaluate their track record for this contract, one would need to examine past performance reviews related to IT program management, BI, and CSD services, looking for indicators of timely delivery, quality of work, cost control, and customer satisfaction. Without this specific data, a definitive assessment of their performance history is not possible.

What are the potential implications of having 7 bidders for this contract?

Having 7 bidders for this contract, awarded under full and open competition, suggests a healthy level of market interest and competition for the services required by the IRS. A larger number of bidders generally increases the likelihood that the government will receive competitive pricing and a wider range of technical solutions. It indicates that the contract requirements were well-defined and accessible to multiple capable firms. From a taxpayer perspective, this level of competition is positive as it drives down costs and encourages innovation. However, the ultimate benefit depends on the evaluation criteria used and how effectively the government selected the best value proposal among the seven.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

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, 22031

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,251,926

Exercised Options: $18,354,893

Current Obligation: $17,173,016

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: TIRNO06D00013

IDV Type: IDC

Timeline