Leidos Management Systems Designers, Inc. awarded $24.3M for IT systems design, with 2 bidders in a full and open competition

Contract Overview

Contract Amount: $24,307,800 ($24.3M)

Contractor: Leidos Management Systems Designers, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2006-09-25

End Date: 2013-04-21

Contract Duration: 2,400 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE

Sector: IT

Official Description: TIPSS 3

Place of Performance

Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $24.3 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: TIPSS 3 Key points: 1. The contract value of $24.3 million over its period of performance suggests a significant investment in IT infrastructure. 2. With two bidders, the competition level indicates a moderate level of market interest and potential for price negotiation. 3. The Cost Plus Incentive (CPI) contract type introduces performance-based incentives, aiming to align contractor efforts with government objectives. 4. The duration of 2400 days (approximately 6.5 years) points to a long-term need for these IT services. 5. The contract's focus on Computer Systems Design Services places it within a critical segment of IT support for government operations. 6. The award to a single contractor, Leidos Management Systems Designers, Inc., highlights their role in fulfilling this specific IT requirement.

Value Assessment

Rating: fair

Benchmarking the value of this $24.3 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Incentive fee structure suggests that the final cost could vary based on performance outcomes. However, the duration of the contract (over 6 years) indicates a substantial, long-term commitment by the IRS, implying a perceived value in the services provided. Further analysis would require understanding the specific systems designed and their impact on IRS operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit offers. With two bidders, the competition was present but not extensive. This level of competition suggests that while there was interest from multiple firms, the market for this specific type of IT systems design service may be somewhat concentrated, potentially impacting the aggressiveness of pricing.

Taxpayer Impact: A full and open competition with two bidders provides a reasonable baseline for price discovery, offering taxpayers some assurance that the contract was not awarded without exploring market options. However, more bidders could have potentially driven prices lower.

Public Impact

The primary beneficiaries are the Internal Revenue Service (IRS) and its employees, who will receive enhanced or new IT systems. The services delivered include computer systems design, crucial for modernizing and maintaining the IRS's technological infrastructure. The geographic impact is primarily within the IRS's operational centers, likely supporting national tax administration functions. Workforce implications may include the need for specialized IT personnel within the IRS to manage and utilize the new systems, as well as employment opportunities for the contractor's staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Incentive fee structure can lead to cost overruns if not carefully managed and monitored.
The long contract duration (over 6 years) increases the risk of technological obsolescence or changing requirements.
Limited competition (2 bidders) might reduce the incentive for the contractor to offer the most competitive pricing throughout the contract life.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified vendors.
The Cost Plus Incentive fee structure aims to incentivize contractor performance and efficiency.
The contract addresses a critical need for IT systems design within the IRS, supporting core government functions.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. This is a vital area for government agencies, as effective IT infrastructure underpins operational efficiency and data management. The market for such services is competitive, with numerous large and small firms offering specialized expertise. The $24.3 million value is moderate for a long-term IT systems design contract, reflecting the complexity and scope of the IRS's needs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses mandated by this award. The primary contractor, Leidos Management Systems Designers, Inc., is likely a large business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Treasury's Internal Revenue Service. Accountability measures are embedded in the Cost Plus Incentive fee structure, which ties a portion of the payment to performance outcomes. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details may be sensitive.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian IT Services Contracts
Computer Systems Design and Related Services
Cost-Plus Contract Vehicles

Risk Flags

Long contract duration may lead to technology obsolescence.
Cost Plus Incentive fee structure requires careful monitoring to control costs.
Limited competition could impact price competitiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $24.3 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. 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 $24.3 million.

What is the period of performance?

Start: 2006-09-25. End: 2013-04-21.

What specific IT systems were designed under this contract, and what was their impact on IRS operations?

The provided data does not specify the exact IT systems designed under this contract (TIPSS 3). However, given the agency (IRS) and the service category (Computer Systems Design Services), it is highly probable that these systems relate to tax processing, taxpayer services, data management, or internal operational support. The impact could range from improved efficiency in tax return processing, enhanced security of taxpayer data, better accessibility of services for taxpayers, or streamlined internal workflows for IRS employees. Without more granular information on the system's purpose and implementation, a precise impact assessment is not possible. The contract's duration of over six years suggests a significant undertaking, likely involving complex system architecture and development.

How does the $24.3 million contract value compare to other similar IT systems design contracts awarded by the IRS or other federal agencies?

The $24.3 million total value for this contract, awarded over approximately 6.5 years, represents a moderate investment for a comprehensive IT systems design project within a large federal agency like the IRS. Comparable contracts for large-scale IT modernization or system development within civilian agencies can range from tens of millions to hundreds of millions of dollars, depending on the scope, complexity, and duration. For instance, major enterprise resource planning (ERP) implementations or large data center consolidations often exceed this figure significantly. However, contracts focused on specific system enhancements or design phases might fall within this range. The fact that it was competed and awarded suggests it aligns with typical spending for such specialized IT services.

What are the key risks associated with a Cost Plus Incentive (CPI) contract type for IT systems design, and how were they mitigated?

Cost Plus Incentive (CPI) contracts carry inherent risks, primarily the potential for cost overruns if the incentive targets are not well-defined or if the contractor's cost estimation is inaccurate. The government agrees to cover all allowable costs plus a target profit, with adjustments based on performance against pre-defined metrics. For IT systems design, risks include scope creep, unforeseen technical challenges, and difficulties in objectively measuring performance. Mitigation strategies typically involve rigorous oversight, detailed performance work statements, clear and measurable incentive criteria, and regular reviews of contractor progress and costs. The IRS would have had program managers and contracting officers responsible for monitoring these aspects throughout the contract's lifecycle to ensure value and control costs.

What was the contractor's track record prior to or during this contract that might indicate performance quality or risk?

The provided data does not include specific details about Leidos Management Systems Designers, Inc.'s track record prior to or during this particular contract (TIPSS 3). To assess their performance quality or risk, one would need to examine past performance evaluations, any contract disputes or claims, and their history with similar government IT projects. Companies like Leidos are generally established federal contractors, suggesting a baseline level of experience. However, a thorough risk assessment would require delving into their specific performance metrics on this and other contracts, including on-time delivery, budget adherence, and quality of deliverables, which are not available in the summary data.

How has the IRS's spending on computer systems design services evolved over time, and does this contract represent a trend?

The provided data focuses on a single contract (TIPSS 3) awarded to Leidos Management Systems Designers, Inc. from 2006 to 2013. It does not offer historical spending trends for the IRS in computer systems design services. To understand IRS spending evolution, one would need to analyze contract awards over multiple fiscal years, looking at the total value, number of contracts, and types of services procured. This single contract represents a specific investment during its period of performance. Whether it signifies a broader trend would depend on comparing it to other IRS IT procurements during that era and subsequent years, considering factors like technological shifts and agency priorities.

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: 2

Pricing Type: COST PLUS INCENTIVE (V)

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: $44,844,381

Exercised Options: $31,030,595

Current Obligation: $24,307,800

Parent Contract

Parent Award PIID: TIRNO06D00013

IDV Type: IDC

Timeline