Treasury's $11M TIPSS-3 contract with Leidos for IT services awarded via full and open competition
Contract Overview
Contract Amount: $11,035,760 ($11.0M)
Contractor: Leidos Management Systems Designers, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2007-09-21
End Date: 2015-11-30
Contract Duration: 2,992 days
Daily Burn Rate: $3.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: TIPSS-3
Place of Performance
Location: NEW CARROLLTON, PRINCE GEORGES County, MARYLAND, 20784
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $11.0 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: TIPSS-3 Key points: 1. Contract awarded to Leidos Management Systems Designers, Inc. for $11,035,760.32. 2. Services fall under NAICS code 541512 (Computer Systems Design Services). 3. Awarded through full and open competition, indicating broad market access. 4. Contract duration was 2992 days, ending November 30, 2015. 5. The contract type was Cost Plus Incentive Fee (CPIF).
Value Assessment
Rating: fair
The contract was a delivery order under a larger program (TIPSS-3). Pricing for CPIF contracts can vary based on performance incentives and cost overruns, making direct per-unit cost comparisons difficult without detailed task order data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of delivery orders under a larger contract vehicle allows for competition among qualified vendors for specific needs.
Taxpayer Impact: Full and open competition generally leads to more competitive pricing, potentially resulting in better value for taxpayers compared to sole-source or limited competition awards.
Public Impact
IRS relies on IT services for critical tax administration functions. The contract supported computer systems design, impacting taxpayer data management. Long contract duration suggests ongoing need for these IT services. Leidos is a major government contractor, indicating significant market presence.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee (CPIF) can lead to cost overruns if not managed tightly.
- Lack of specific task order details limits granular cost analysis.
- Contract ended in 2015, historical data may not reflect current market rates.
Positive Signals
- Awarded via full and open competition.
- Multiple delivery orders (no: 2) suggest flexibility and potential for competition within the contract.
- Leidos is a well-established IT services provider.
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design. Spending in this sector is substantial across federal agencies, with benchmarks varying widely based on service type and complexity. The $11M total award is moderate for a multi-year IT services contract.
Small Business Impact
The data indicates this contract was awarded via full and open competition, but does not specify if small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Delivery orders under larger contract vehicles like TIPSS-3 are subject to standard federal procurement oversight. The IRS, as the agency, would have oversight responsibilities, alongside potential oversight from the Treasury Department and relevant congressional committees.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) contracts carry inherent risk of cost growth.
- Contract ended in 2015; current market relevance may be limited.
- Lack of detailed task order data hinders in-depth analysis.
- Potential for cost overruns if performance incentives were not well-defined or achieved.
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 $11.0 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 $11.0 million.
What is the period of performance?
Start: 2007-09-21. End: 2015-11-30.
What was the specific nature of the computer systems design services provided under this contract, and how did they contribute to the IRS's mission?
The contract likely involved the design, development, and integration of computer systems to support the IRS's tax administration functions. This could include systems for taxpayer account management, tax processing, data analysis, or internal IT infrastructure. The specific contribution would be tied to improving efficiency, accuracy, and security in these critical areas.
Given the CPIF contract type, what were the key performance metrics and incentive targets that influenced the final cost to the government?
CPIF contracts tie a portion of the contractor's fee to achieving specific performance targets (e.g., delivery schedules, system performance, quality standards) and cost goals. The final cost would reflect the base fee plus or minus an incentive amount based on how well Leidos met or exceeded these pre-defined metrics, requiring detailed review of the contract's incentive structure and performance reports.
How does the $11 million award for computer systems design services compare to similar contracts awarded by the IRS or other agencies during the 2007-2015 period?
Benchmarking this $11 million award requires comparing it against contracts for similar scope (computer systems design) and duration (approx. 8 years) awarded by federal agencies during that timeframe. Factors like specific technologies used, complexity of integration, and vendor qualifications would influence pricing. Without access to detailed task orders and specific service descriptions, a precise comparison is challenging, but $11M over 8 years suggests a moderate annual spend.
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 FEE (V)
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: $13,812,846
Exercised Options: $12,442,852
Current Obligation: $11,035,760
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: TIRNO06D00013
IDV Type: IDC
Timeline
Start Date: 2007-09-21
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2015-12-01
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