Treasury's $9.9M Computer Systems Design Contract with Leidos Management Systems Designers, Inc. Awarded in 2006
Contract Overview
Contract Amount: $9,892,058 ($9.9M)
Contractor: Leidos Management Systems Designers, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2006-08-31
End Date: 2013-08-07
Contract Duration: 2,533 days
Daily Burn Rate: $3.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: ADD TO NEW TIPSS 3 RTCP #2122 FOR DI
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $9.9 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: ADD TO NEW TIPSS 3 RTCP #2122 FOR DI Key points: 1. Contract value of $9.9M over 7 years. 2. Leidos Management Systems Designers, Inc. is the sole awardee. 3. Risk associated with sole-source award and long duration. 4. IT sector spending on computer systems design services.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The total award value is $9.9M, but without specific performance metrics or benchmarks, it's difficult to assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the data indicates only one awardee, which warrants further investigation into the competition dynamics and price discovery.
Taxpayer Impact: The total value of $9.9M represents taxpayer funds allocated to IT services. The effectiveness of the competition and contract management will determine the ultimate taxpayer impact.
Public Impact
Taxpayers funded IT services for the IRS. The contract duration of 7 years impacts long-term IT strategy. Potential for cost efficiencies or overruns based on contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (7 years)
- Cost Plus Fixed Fee contract type
- Limited competition indicated by single awardee
Positive Signals
- Awarded under full and open competition
- Services provided to the IRS
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending in this area is crucial for government operations, but requires careful oversight to ensure cost-effectiveness and alignment with technological advancements.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or if opportunities were missed.
Oversight & Accountability
The contract's long duration and Cost Plus Fixed Fee structure necessitate robust oversight to ensure performance, control costs, and prevent waste. The agency's monitoring mechanisms are critical for accountability.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Long contract duration may lead to outdated technology
- Single awardee despite full and open competition raises questions about competition effectiveness
- Lack of small business participation
Tags
computer-systems-design-services, department-of-the-treasury, va, do, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $9.9 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. ADD TO NEW TIPSS 3 RTCP #2122 FOR DI
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 $9.9 million.
What is the period of performance?
Start: 2006-08-31. End: 2013-08-07.
What specific computer systems design services were provided under this contract, and how did they align with the IRS's mission objectives?
The contract was for Computer Systems Design Services (NAICS 541512) awarded to Leidos Management Systems Designers, Inc. by the Department of the Treasury's Internal Revenue Service. While the specific services are not detailed, they likely encompassed the design, development, integration, and maintenance of IT systems critical for tax administration, data processing, and taxpayer services, directly supporting the IRS's core functions.
Given the Cost Plus Fixed Fee structure and long duration, what measures were in place to mitigate cost overruns and ensure fair pricing?
Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns. Effective mitigation would involve stringent oversight of allowable costs, clear performance metrics, regular audits, and potentially incentive clauses tied to cost savings or performance. The agency's contract management team would be responsible for actively monitoring expenditures against the fixed fee and ensuring the contractor's costs were reasonable and allocable.
How did the 'full and open competition' process result in a single awardee, and what was the competitive landscape for these services at the time?
A 'full and open competition' designation means the solicitation was broadly advertised. A single awardee could result from several factors: highly specialized requirements that only one firm could meet, a lack of sufficient qualified bidders, or a superior proposal from one contractor. Understanding the number of proposals received and the evaluation criteria would clarify the competitive dynamics and whether the pricing achieved truly reflected market competition.
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: 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: $37,358,856
Exercised Options: $15,761,327
Current Obligation: $9,892,058
Parent Contract
Parent Award PIID: TIRNO06D00013
IDV Type: IDC
Timeline
Start Date: 2006-08-31
Current End Date: 2013-08-07
Potential End Date: 2013-08-07 00:00:00
Last Modified: 2013-08-21
More Contracts from Leidos Management Systems Designers, Inc.
- SNS Contract — $107.9M (Federal Trade Commission)
- Contractor - Tipss - 3 — $85.5M (Department of the Treasury)
- FOR Critical Functions - Paper and Remittance Processing Support (prps) II - Operations and Maintenance on Isrp and Scrips Systems — $80.4M (Department of the Treasury)
- Tipss-4 ITS Task Order for Eservices/Icce Operations and Maintenance Development, Modernization, Enhancements and Upgrades — $73.7M (Department of the Treasury)
- Professional Support Services — $45.4M (Department of Health and Human Services)
View all Leidos Management Systems Designers, Inc. federal contracts →
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)