Treasury's $26.7M TIPSS contract for IT services awarded to INSYSCO, Inc. via competitive delivery order
Contract Overview
Contract Amount: $26,675,360 ($26.7M)
Contractor: Insysco, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2009-09-25
End Date: 2014-08-01
Contract Duration: 1,771 days
Daily Burn Rate: $15.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TIPSS
Place of Performance
Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $26.7 million to INSYSCO, INC. for work described as: TIPSS Key points: 1. The contract value of $26.7M over 5 years represents a moderate investment in IT services. 2. Competition was present, indicated by a competitive delivery order, suggesting potential for price discovery. 3. Risk appears moderate given the fixed-fee structure, but performance monitoring is crucial. 4. The sector is IT services, specifically Computer Systems Design, a common area for government spending.
Value Assessment
Rating: good
The contract's cost-plus-fixed-fee structure suggests a balance between contractor incentive and government cost control. Benchmarking against similar IT service contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, this indicates that multiple vendors likely competed for the task. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price for the services rendered.
Public Impact
IRS relies on these IT services for critical internal operations. The duration of the contract (nearly 5 years) implies a significant, ongoing need. Successful IT service delivery is essential for efficient tax administration and public service.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in cost-plus contracts if not managed tightly.
- Dependence on a single vendor for critical IT systems.
- Ensuring continued relevance of IT services over the contract's lifespan.
Positive Signals
- Competitive award process.
- Clear definition of services (Computer Systems Design).
- Fixed fee component provides some cost certainty.
Sector Analysis
This contract falls within the IT services sector, specifically Computer Systems Design. Government spending in this area is substantial, with benchmarks varying widely based on complexity and scope.
Small Business Impact
The data does not indicate if small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.
Oversight & Accountability
Oversight would focus on performance metrics, adherence to the fixed-fee structure, and timely delivery of IT services. The Department of the Treasury's contracting office is responsible for this oversight.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost-plus contracts can lead to scope creep and cost overruns if not managed diligently.
- Long contract duration may result in technology obsolescence.
- Dependence on a single vendor for critical systems poses a risk.
- Performance monitoring is crucial to ensure service quality and value.
Tags
computer-systems-design-services, department-of-the-treasury, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $26.7 million to INSYSCO, INC.. TIPSS
Who is the contractor on this award?
The obligated recipient is INSYSCO, 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 $26.7 million.
What is the period of performance?
Start: 2009-09-25. End: 2014-08-01.
What was the specific scope of 'Computer Systems Design Services' and how did it align with IRS needs?
The scope likely encompassed the design, development, and integration of computer systems to support IRS operations. This could include software development, network architecture, and system implementation. Alignment with IRS needs would be assessed by examining performance reports and user satisfaction.
How effectively did the competitive delivery order process ensure optimal pricing for these IT services?
A competitive delivery order generally fosters price discovery by allowing multiple vendors to bid. The effectiveness hinges on the clarity of the solicitation, the number and capability of bidders, and the government's negotiation strategy. Comparing the final price to independent cost estimates or market research would further validate its effectiveness.
What are the key performance indicators (KPIs) used to measure the effectiveness of INSYSCO, INC.'s services?
Typical KPIs for IT service contracts include system uptime, response times, bug resolution rates, project completion on schedule and within budget, and user satisfaction surveys. The specific KPIs would be detailed in the contract's Statement of Work (SOW) and monitored by the Contracting Officer's Representative (COR).
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: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Maximus Federal Systems, LLC (UEI: 831503482)
Address: 40 WINSOME LN, FREDERICKSBURG, VA, 07
Business Categories: Category Business, Small Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $31,916,565
Exercised Options: $31,916,565
Current Obligation: $26,675,360
Parent Contract
Parent Award PIID: TIRNO06D00024
IDV Type: IDC
Timeline
Start Date: 2009-09-25
Current End Date: 2014-08-01
Potential End Date: 2014-08-01 00:00:00
Last Modified: 2014-11-06
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