Leidos Management Systems Designers Inc. contract for IT infrastructure support valued at $10.8M over 8 years

Contract Overview

Contract Amount: $10,827,348 ($10.8M)

Contractor: Leidos Management Systems Designers, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2006-11-12

End Date: 2014-08-01

Contract Duration: 2,819 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ESM TIVIOLI INFRASTRUCTURESUPPORT

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75244

State: Texas Government Spending

Plain-Language Summary

Department of the Treasury obligated $10.8 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: ESM TIVIOLI INFRASTRUCTURESUPPORT Key points: 1. The contract provided essential IT infrastructure support services, contributing to the operational continuity of the IRS. 2. Competition dynamics for this contract were robust, indicating a healthy market for IT infrastructure services. 3. The duration of the contract suggests a long-term need for these services, potentially leading to stable contractor performance. 4. Performance context is crucial; understanding the specific deliverables and outcomes would provide a clearer picture of value. 5. The sector positioning is within IT services, a critical area for government operations and modernization efforts. 6. Risk indicators are moderate, given the long-term nature and the reliance on a single contractor for a critical function.

Value Assessment

Rating: fair

Benchmarking the value of this $10.8 million contract over nearly 8 years requires more granular data on the specific services rendered and their market rates. Without detailed performance metrics or comparisons to similar IRS IT infrastructure contracts, it's difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not managed tightly, but it also allows for flexibility in evolving IT needs. The total value spread over a significant period suggests a consistent need, but the efficiency and effectiveness of the spending remain areas for further scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of at least one bidder (Leidos Management Systems Designers, Inc.) suggests a competitive marketplace for these services. The specific number of bids received would provide a more precise understanding of the competition level and its potential impact on pricing. However, the 'full and open' designation generally implies a good level of price discovery.

Taxpayer Impact: A full and open competition process typically benefits taxpayers by fostering competitive pricing and encouraging multiple vendors to offer their best value, potentially leading to cost savings.

Public Impact

Taxpayers benefit from the reliable functioning of IRS IT systems, ensuring efficient tax processing and administration. The contract delivered critical IT infrastructure support, including system design and maintenance, essential for government operations. The geographic impact is primarily national, supporting IRS operations across the United States. Workforce implications include the direct employment by the contractor and potential indirect impacts on IRS IT staff who manage or interact with the supported systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep in Cost Plus Fixed Fee contracts if not rigorously monitored.
Long contract duration may reduce flexibility to adopt newer technologies or vendors if performance dips.
Reliance on a single vendor for critical infrastructure could pose a risk if the vendor faces financial or operational challenges.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract duration indicates a stable, long-term requirement met by the vendor.
The vendor, Leidos, is a large, established company with significant experience in government IT services.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design services. The U.S. government is a major consumer of IT services, with significant annual spending across various agencies. This contract represents a portion of the Department of the Treasury's investment in maintaining and upgrading its IT infrastructure, which is crucial for its operations. Comparable spending benchmarks would involve analyzing IT infrastructure support contracts across other large federal agencies like the Department of Defense or HHS.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major IT services provider, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified in the contract terms. The focus appears to be on a large prime contractor fulfilling a substantial IT infrastructure need, rather than a strategy to bolster the small business ecosystem through this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the IRS. Accountability measures would be defined in the contract's statement of work, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS-NG, which provide basic award details. Specific Inspector General jurisdiction would depend on the nature of any potential issues, with the Treasury Inspector General for Tax Administration (TIGTA) likely having oversight over IRS-related contracts.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian IT Infrastructure Support
Department of the Treasury IT Services Contracts
Computer Systems Design Services (NAICS 541512)
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Long contract duration may limit adoption of newer technologies.
CPFF contract type requires robust oversight to manage costs.
Lack of specific performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $10.8 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. ESM TIVIOLI INFRASTRUCTURESUPPORT

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 $10.8 million.

What is the period of performance?

Start: 2006-11-12. End: 2014-08-01.

What was the specific performance history of Leidos Management Systems Designers, Inc. on this contract?

Detailed performance history for this specific contract (ESM TIVIOLI INFRASTRUCTURESUPPORT) is not publicly available in the provided data. However, Leidos is a large, established government contractor with extensive experience in IT services. Assessing their performance would require reviewing contract performance reports, user feedback, and any documented issues or commendations. Given the contract's duration (2006-2014), consistent performance would have been necessary for its continuation. Without access to internal government performance evaluations, a definitive assessment is challenging. Typically, agencies maintain internal records of contractor performance, which inform future award decisions and potential contract modifications.

How does the total contract value compare to similar IT infrastructure support contracts at the IRS?

The total value of $10.8 million spread over approximately 8 years equates to an average annual value of roughly $1.35 million. Comparing this to similar IRS IT infrastructure support contracts requires access to a broader dataset of federal procurement. However, for a contract covering potentially broad IT infrastructure needs for a large agency like the IRS, this annual value appears moderate. Larger, more complex IT modernization projects or enterprise-wide system procurements would likely command significantly higher values. This contract seems to represent a specific, ongoing support function rather than a large-scale system overhaul.

What were the key risks identified during the solicitation and award process for this contract?

The provided data does not detail the specific risks identified during the solicitation and award process. However, common risks for IT infrastructure support contracts include technical obsolescence, cybersecurity vulnerabilities, contractor performance issues, cost overruns (especially with CPFF contracts), and dependency on a single vendor. Given the 'full and open' competition, the agency likely assessed the capabilities of multiple bidders to mitigate performance and technical risks. The long duration might have prompted considerations regarding future technological shifts and the contractor's ability to adapt. Cybersecurity would be a paramount concern for the IRS.

How effective was this contract in ensuring the operational continuity of IRS IT systems?

The effectiveness of this contract in ensuring operational continuity is difficult to quantify without specific performance metrics. However, the contract's duration of nearly 8 years suggests that the IRS found the services provided by Leidos Management Systems Designers, Inc. to be necessary and satisfactory for maintaining its IT infrastructure. Continuous operation of critical systems like those supporting tax processing is vital for the IRS. The absence of major reported disruptions attributed to this contract would imply a degree of effectiveness, but a formal assessment would require reviewing system uptime data, incident reports, and user satisfaction surveys.

What is the historical spending trend for similar IT infrastructure support services at the IRS?

Historical spending trends for similar IT infrastructure support services at the IRS are not detailed in the provided data. This single contract award offers a snapshot from 2006-2014. To understand trends, one would need to analyze IRS IT spending over multiple fiscal years, identifying patterns in contract types, service providers, and overall investment in infrastructure support versus modernization initiatives. Generally, federal agencies like the IRS face increasing demands on their IT infrastructure, often leading to fluctuating or increasing spending on support and upgrades over time, influenced by technological advancements and evolving security requirements.

What was the rationale for choosing a Cost Plus Fixed Fee (CPFF) contract type?

The rationale for choosing a Cost Plus Fixed Fee (CPFF) contract type typically stems from situations where the scope of work is not precisely defined at the outset, or when there is a high degree of uncertainty regarding the costs involved. For IT infrastructure support, especially over a long period, requirements can evolve. A CPFF contract allows the government to reimburse the contractor for allowable costs plus a predetermined fixed fee representing profit. This structure provides flexibility to adapt to changing technical requirements while incentivizing the contractor to control costs to protect their fixed fee. It balances flexibility with cost control, though it requires diligent government oversight.

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: $12,509,576

Exercised Options: $10,978,241

Current Obligation: $10,827,348

Parent Contract

Parent Award PIID: TIRNO06D00013

IDV Type: IDC

Timeline