Treasury's IRS spent $16.1M on print maintenance, a service now largely obsolete

Contract Overview

Contract Amount: $16,126,739 ($16.1M)

Contractor: Paradigm Solutions Corporation

Awarding Agency: Department of the Treasury

Start Date: 2009-08-12

End Date: 2015-02-11

Contract Duration: 2,009 days

Daily Burn Rate: $8.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PRINT MAINTENANCE

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48226

State: Michigan Government Spending

Plain-Language Summary

Department of the Treasury obligated $16.1 million to PARADIGM SOLUTIONS CORPORATION for work described as: PRINT MAINTENANCE Key points: 1. The contract value for print maintenance appears high given the declining relevance of physical printing. 2. Competition dynamics are unclear as the contract type is 'Competitive Delivery Order'. 3. The duration of the contract (2009-2015) spans a period where digital alternatives became dominant. 4. Performance context is limited without specific details on the services rendered. 5. Sector positioning is within IT services, specifically Computer Systems Design, though the service itself is dated.

Value Assessment

Rating: questionable

The $16.1 million spent on print maintenance over six years raises questions about value for money, especially considering the significant shift towards digital record-keeping and communication during this period. Benchmarking this against current IT spending trends for similar services is difficult due to the obsolescence of the core service. It's unclear if the cost reflects the actual need or a legacy service that continued to be funded.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'Competitive Delivery Order,' indicating that it was competed among multiple vendors. However, the specific number of bidders and the details of the competition are not provided. The competitive nature suggests an attempt to secure fair pricing, but the relevance of the service itself might have limited the pool of truly competitive bids.

Taxpayer Impact: Taxpayers benefit from competitive bidding through potentially lower prices, but the overall value is diminished if the service procured is no longer essential.

Public Impact

The Internal Revenue Service (IRS) is the primary beneficiary, receiving print maintenance services. The services delivered were related to maintaining printing infrastructure, a function increasingly replaced by digital solutions. The geographic impact is likely limited to IRS facilities where printing equipment was in use. Workforce implications are minimal, as this contract likely supported existing IT or facilities management roles rather than creating new jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Spending on print maintenance may indicate a lag in digital transformation within the IRS.
The significant expenditure on a potentially outdated service raises concerns about resource allocation.
Lack of detailed performance metrics makes it hard to assess the effectiveness of the spending.

Positive Signals

The contract was competitively awarded, suggesting an effort to obtain reasonable pricing.
The service was delivered over a defined period, indicating a structured procurement process.

Sector Analysis

The contract falls under IT services, specifically Computer Systems Design Services (NAICS 541512). However, the service 'PRINT MAINTENANCE' is highly specific and dated. The broader IT services market is vast, but this particular niche has seen significant decline due to digitization. Comparable spending benchmarks for print maintenance in government are scarce and likely decreasing.

Small Business Impact

There is no indication that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The primary contractor, PARADIGM SOLUTIONS CORPORATION, is likely a larger entity, and the nature of the service may not lend itself to typical small business participation.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers and program managers within the IRS. Accountability measures would be tied to the delivery order terms and conditions. Transparency is limited by the available data; further details on performance reviews and audits would be needed to fully assess oversight effectiveness.

Related Government Programs

IRS IT Modernization Efforts
Government Printing Services
Digital Transformation Initiatives
Legacy IT System Support

Risk Flags

Potential for Overspending on Obsolete Technology
Lack of Clear Performance Metrics
Ambiguous Service Scope within IT Classification

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $16.1 million to PARADIGM SOLUTIONS CORPORATION. PRINT MAINTENANCE

Who is the contractor on this award?

The obligated recipient is PARADIGM SOLUTIONS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $16.1 million.

What is the period of performance?

Start: 2009-08-12. End: 2015-02-11.

What was the specific nature of the 'print maintenance' services provided under this contract?

The provided data classifies this contract under NAICS code 541512 (Computer Systems Design Services), which is somewhat incongruous with 'print maintenance.' Typically, print maintenance would involve servicing and repairing printers, copiers, and related hardware. Given the IT services classification, it's possible the contract encompassed the management and maintenance of networked printing systems, including software, drivers, and network integration, rather than just physical hardware repair. However, without further documentation, the exact scope remains ambiguous. The duration (2009-2015) suggests it was a significant undertaking at the time, but the service itself has been increasingly superseded by digital workflows and cloud-based document management solutions.

How does the $16.1 million expenditure compare to similar print maintenance contracts within the federal government during the 2009-2015 period?

Direct comparisons for 'print maintenance' contracts of this magnitude during the 2009-2015 period are challenging to find due to the declining relevance and specific nature of the service. Many agencies were transitioning away from large, centralized print management contracts towards more decentralized, as-needed service agreements or managed print services (MPS) that focused on cost reduction and efficiency. The $16.1 million figure for a single delivery order over six years suggests a substantial scope, potentially covering a large number of devices or a complex managed service. However, without knowing the exact number of devices, locations, and service level agreements, a precise benchmark is difficult. It's plausible that this expenditure was high even for its time, especially if alternative digital solutions were being overlooked.

What were the key performance indicators (KPIs) used to evaluate the success of this contract?

The available data does not specify the Key Performance Indicators (KPIs) used to evaluate the success of this print maintenance contract. Typically, for such services, KPIs might include printer uptime, response time for service calls, cost per page, toner usage efficiency, and user satisfaction. Given the IT services classification, KPIs could also extend to network connectivity of printers, software patch management for print servers, and security compliance. The absence of this information makes it difficult to quantitatively assess whether the $16.1 million investment yielded satisfactory results in terms of service delivery and operational efficiency for the IRS.

What is the current status or replacement strategy for print maintenance services at the IRS?

The current status and replacement strategy for print maintenance services at the IRS are not detailed in the provided data. However, given the contract's end date in February 2015 and the significant advancements in digital document management and cloud services since then, it is highly probable that the IRS has either phased out large-scale print maintenance contracts or significantly modernized its approach. Agencies are increasingly focused on reducing paper usage, implementing secure digital workflows, and leveraging enterprise content management systems. Any remaining print infrastructure is likely managed under more streamlined, potentially smaller, and digitally integrated service agreements.

Were there any identified risks associated with this contract, and how were they mitigated?

Specific risks identified for this contract are not detailed in the provided data. However, potential risks for a print maintenance contract of this nature and value could include vendor lock-in, cost overruns due to unforeseen hardware failures or parts scarcity, service disruptions impacting IRS operations, and the risk of procuring services for an increasingly obsolete technology. Mitigation strategies might have included performance clauses in the contract, regular service reviews, competitive pricing structures, and potentially exploring alternative service providers or technologies. The transition away from physical print towards digital solutions would also serve as a long-term mitigation against the risk of investing in outdated infrastructure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: CACI International Inc (UEI: 045534641)

Address: 6110 EXECUTIVE BLVD, ROCKVILLE, MD, 20852

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Labor Surplus Area Firm, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,646,691

Exercised Options: $16,431,643

Current Obligation: $16,126,739

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5869H

IDV Type: FSS

Timeline