Treasury's IRS Spends $27.7M on IT Support via Leidos under TIPSS-3
Contract Overview
Contract Amount: $27,661,338 ($27.7M)
Contractor: Leidos Management Systems Designers, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2006-06-30
End Date: 2016-03-16
Contract Duration: 3,547 days
Daily Burn Rate: $7.8K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IT SUPPORT SERVICES UNDER TIPSS-3
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $27.7 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: IT SUPPORT SERVICES UNDER TIPSS-3 Key points: 1. Leidos secured a significant contract for IT support services. 2. The contract was awarded under the TIPSS-3 vehicle. 3. The IRS utilized a competitive delivery order for this acquisition. 4. The total value reached $27.7 million over its period of performance.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar IT support contracts is difficult without detailed scope and performance data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
A competitive delivery order under an existing contract vehicle (TIPSS-3) suggests some level of pre-competition. However, the specific competition details and price discovery effectiveness are not fully detailed.
Taxpayer Impact: Taxpayer funds were used for IT support services. The competitive nature of the award aims to ensure reasonable pricing, but the CPFF structure warrants oversight.
Public Impact
Ensures critical IT infrastructure and support for the IRS. Supports the agency's mission through technology services. Funds are allocated to a major IT services provider.
Waste & Efficiency Indicators
Waste Risk Score: 77 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- No small business participation reported.
Positive Signals
- Awarded via competitive delivery order.
- Long-term contract provides stable IT support.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a crucial area for government operations. Spending benchmarks for IT support services vary widely based on scope and complexity.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor, Leidos, handled the entire scope of work, potentially missing opportunities for small business subcontracting.
Oversight & Accountability
The contract was awarded as a delivery order under the TIPSS-3 vehicle, implying some level of pre-existing oversight. However, the CPFF structure necessitates diligent monitoring of costs and performance to ensure accountability.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation.
- Limited detail on performance metrics.
- Long contract duration (over 9 years).
Tags
computer-systems-design-services, department-of-the-treasury, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $27.7 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. IT SUPPORT SERVICES UNDER TIPSS-3
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 $27.7 million.
What is the period of performance?
Start: 2006-06-30. End: 2016-03-16.
What was the specific scope of IT support services provided under this contract, and how did it align with IRS needs?
The contract was for Computer Systems Design Services (NAICS 541512). While the exact scope isn't detailed, it likely encompassed a range of IT support functions such as system maintenance, network management, help desk services, and potentially software development or integration, all crucial for the IRS's operational continuity and technological advancement.
What were the key performance indicators (KPIs) used to evaluate Leidos's performance, and were they met?
Specific Key Performance Indicators (KPIs) are not detailed in the provided data. For a CPFF contract, performance evaluation typically focuses on meeting service level agreements (SLAs), project milestones, and adherence to technical specifications. Without this information, it's difficult to assess the effectiveness of the services provided and whether they represented good value.
How did the competitive delivery order process ensure fair pricing and value for the taxpayer, given the CPFF structure?
The competitive delivery order process likely involved multiple bidders vying for the task order under the TIPSS-3 IDIQ. This competition, even at the task order level, is intended to drive down prices and ensure value. However, the CPFF structure itself carries inherent risks of cost escalation, making robust government oversight of contractor expenditures and performance critical to realizing true taxpayer value.
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: 3
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: $27,710,058
Exercised Options: $27,683,040
Current Obligation: $27,661,338
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: TIRNO06D00013
IDV Type: IDC
Timeline
Start Date: 2006-06-30
Current End Date: 2016-03-16
Potential End Date: 2016-03-16 00:00:00
Last Modified: 2016-06-02
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