Treasury's IRS awards $31.18M task order to Leidos for Computer Systems Design Services
Contract Overview
Contract Amount: $31,184,453 ($31.2M)
Contractor: Leidos Management Systems Designers, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2009-02-27
End Date: 2014-08-01
Contract Duration: 1,981 days
Daily Burn Rate: $15.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: NEW TASK ORDER - (PERF BASED)
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $31.2 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: NEW TASK ORDER - (PERF BASED) Key points: 1. Leidos Management Systems Designers, Inc. secured a significant task order valued at $31.18 million. 2. The contract falls under the 'Computer Systems Design Services' category, indicating a focus on IT infrastructure and support. 3. Awarded as a competitive delivery order, it suggests a degree of price discovery and market responsiveness. 4. The Cost Plus Award Fee (CPAF) structure allows for performance-based incentives, potentially driving efficiency.
Value Assessment
Rating: good
The Cost Plus Award Fee (CPAF) contract type, while offering flexibility, can sometimes lead to higher costs if not managed tightly. However, the performance-based nature aims to mitigate this by rewarding efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating that multiple vendors likely had the opportunity to bid. This competitive process is expected to have driven a reasonable price discovery for the services rendered.
Taxpayer Impact: The competitive nature of this award suggests that taxpayers are likely receiving fair value for the $31.18 million spent on essential IT services for the IRS.
Public Impact
Ensures continued IT support for the Internal Revenue Service's critical operations. Supports the modernization and maintenance of complex government computer systems. Potential for improved tax processing and taxpayer services through enhanced IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPAF contracts require diligent oversight to ensure costs remain reasonable and performance targets are met.
- The long duration (1981 days) necessitates ongoing monitoring to adapt to evolving technological needs.
Positive Signals
- Competitive award process likely yielded a fair market price.
- Performance-based incentives in CPAF can drive contractor efficiency.
- Task order supports essential IRS functions.
Sector Analysis
The IT sector, particularly computer systems design services, is crucial for government operations. Spending benchmarks vary widely based on complexity, but $31.18M for a multi-year task order is substantial, reflecting significant scope.
Small Business Impact
The data indicates this was a competitive delivery order, but does not specify if small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The Cost Plus Award Fee structure implies performance metrics and oversight are in place. However, the effectiveness of this oversight in controlling costs and ensuring optimal performance requires detailed review of award fee determinations.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost creep in CPAF contracts.
- Long contract duration requires sustained oversight.
- Lack of specific performance metric details.
- No explicit mention of small business subcontracting.
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 $31.2 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. NEW TASK ORDER - (PERF BASED)
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 $31.2 million.
What is the period of performance?
Start: 2009-02-27. End: 2014-08-01.
What specific performance metrics were used to determine award fees for Leidos, and how did they align with the IRS's strategic IT goals?
The specific performance metrics are not detailed in the provided data. However, for a Cost Plus Award Fee (CPAF) contract, these typically revolve around meeting or exceeding defined objectives related to system uptime, response times, project completion milestones, and user satisfaction. The alignment with IRS goals would depend on the contract's statement of work and the agency's IT modernization or operational priorities during the contract period.
Given the $31.18 million value and the CPAF structure, what were the primary risks associated with cost overruns, and how were they mitigated?
The primary risk with CPAF is potential cost overruns if performance targets are easily met or if the base fee is high. Mitigation strategies typically include clearly defined performance standards, rigorous government oversight of expenditures, independent government cost estimates, and a well-structured award fee determination process that genuinely rewards exceptional performance rather than just satisfactory completion.
How effectively did this task order contribute to the IRS's overall IT modernization efforts or operational efficiency during its period of performance?
The provided data does not offer direct metrics on the task order's contribution to IT modernization or efficiency. Effectiveness would be assessed by examining the IRS's IT project outcomes during 2009-2014, system performance improvements, and whether the services provided by Leidos directly supported key agency initiatives like tax processing enhancements or data security upgrades.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
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, 11
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $38,846,518
Exercised Options: $33,535,518
Current Obligation: $31,184,453
Parent Contract
Parent Award PIID: TIRNO06D00013
IDV Type: IDC
Timeline
Start Date: 2009-02-27
Current End Date: 2014-08-01
Potential End Date: 2014-08-01 00:00:00
Last Modified: 2014-10-28
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