Treasury's IRS awards $29.2M for IT support to Leidos, raising questions on value
Contract Overview
Contract Amount: $29,182,016 ($29.2M)
Contractor: Leidos Management Systems Designers, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2008-01-09
End Date: 2012-09-26
Contract Duration: 1,722 days
Daily Burn Rate: $16.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: TOTAL INFORMATION PROCESSING SUPPORT SER
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $29.2 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: TOTAL INFORMATION PROCESSING SUPPORT SER Key points: 1. Contract awarded to Leidos Management Systems Designers, Inc. for $29.2M. 2. Service category is Computer Systems Design Services (NAICS 541512). 3. Contract duration was 1722 days, ending in 2012. 4. Award type was Cost Plus Award Fee (PT). 5. No small business participation noted.
Value Assessment
Rating: questionable
The Cost Plus Award Fee structure can incentivize performance but may lead to higher costs if not managed tightly. Without specific performance metrics and outcomes, assessing the value for $29.2M over nearly five years is difficult.
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 Cost Plus Award Fee structure might have influenced the final pricing and potential for cost overruns.
Taxpayer Impact: Taxpayer funds totaling $29.2M were expended. The effectiveness and efficiency of the IT support services directly impact the IRS's operational capabilities and taxpayer service delivery.
Public Impact
Impacts IRS's ability to process tax information and serve taxpayers. Potential for IT system disruptions if support is inadequate. Funds allocated could have been used for other critical government functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of transparency on performance outcomes.
- Cost-plus fee structure can inflate costs.
- No small business participation.
Positive Signals
- Awarded under full and open competition.
- Provided essential IT support services.
Sector Analysis
The IT services sector is crucial for government operations, enabling efficient data processing and service delivery. Benchmarks for similar IT support contracts vary widely based on scope and duration, making direct comparison challenging without more detail.
Small Business Impact
The contract data indicates no small business participation (SB: false). This suggests that opportunities for small businesses to contribute to this significant IT support contract were not realized.
Oversight & Accountability
Oversight of a Cost Plus Award Fee contract is critical to ensure that costs are reasonable and that award fees are justified by performance. The effectiveness of this oversight is not detailed in the provided data.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost Plus Award Fee structure can lead to higher costs.
- Lack of detailed performance metrics and outcomes.
- No small business participation.
- Contract ended over a decade ago, making current relevance limited.
Tags
computer-systems-design-services, department-of-the-treasury, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $29.2 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. TOTAL INFORMATION PROCESSING SUPPORT SER
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 $29.2 million.
What is the period of performance?
Start: 2008-01-09. End: 2012-09-26.
What specific IT support services were provided under this contract, and how did they contribute to the IRS's mission?
The contract was for 'TOTAL INFORMATION PROCESSING SUPPORT SER,' falling under Computer Systems Design Services. These services likely encompassed a range of IT functions critical to the IRS's operations, such as system maintenance, network management, software support, and potentially IT infrastructure development. The effectiveness of these services directly impacts the IRS's ability to process tax information, manage taxpayer data securely, and deliver essential services to the public.
How was the 'Award Fee' component determined, and what were the criteria for achieving performance targets?
The 'Cost Plus Award Fee' (CPAF) structure means the contractor receives costs plus a fee that is based on performance against pre-defined criteria. Without access to the contract's Performance Work Statement (PWS) and the contractor's performance evaluations, it's impossible to know the specific metrics used or how Leidos performed. Effective oversight would involve rigorous evaluation of these metrics to ensure taxpayer money was well-spent.
Given the contract ended in 2012, what has been the IRS's approach to IT support since then, and have subsequent contracts demonstrated better value?
The contract's conclusion in 2012 means the IRS has likely engaged in multiple subsequent IT support contracts. Analyzing these later contracts would be necessary to understand the IRS's evolving IT support strategy and whether they have achieved better cost-effectiveness or performance outcomes compared to this 2008-2012 award. Trends in IT spending and technology adoption would also be relevant factors.
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: 5
Pricing Type: COST PLUS AWARD FEE (R)
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: $40,517,351
Exercised Options: $40,517,351
Current Obligation: $29,182,016
Parent Contract
Parent Award PIID: TIRNO06D00013
IDV Type: IDC
Timeline
Start Date: 2008-01-09
Current End Date: 2012-09-26
Potential End Date: 2012-09-26 00:00:00
Last Modified: 2015-08-10
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