Treasury's IRS Spends $91M on RRP Integration Support via Deloitte Consulting

Contract Overview

Contract Amount: $91,182,277 ($91.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of the Treasury

Start Date: 2016-05-31

End Date: 2020-10-14

Contract Duration: 1,597 days

Daily Burn Rate: $57.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF FOR OTHER FUNCTIONS - RRP INTEGRATION SUPPORT

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $91.2 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF FOR OTHER FUNCTIONS - RRP INTEGRATION SUPPORT Key points: 1. Significant contract value of $91.2M for integration support. 2. Deloitte Consulting LLP is the sole awardee. 3. Contract spans over 4 years, indicating a long-term need. 4. The service falls under 'Other Computer Related Services' (NAICS 541519).

Value Assessment

Rating: fair

The contract value of $91.2M is substantial for IT integration support. Benchmarking against similar contracts for complex system integration is difficult without more specific service details, but the duration and scope suggest a significant investment.

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 award itself is a delivery order, implying it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where competition might have occurred earlier.

Taxpayer Impact: Taxpayer funds are being utilized for essential IT modernization and integration efforts within the IRS, aiming to improve internal functions.

Public Impact

Modernization of IRS systems can lead to improved taxpayer services and efficiency. Data integration is critical for seamless operations and accurate financial reporting. Investment in IT infrastructure supports the government's digital transformation goals. Potential for improved cybersecurity and data management through updated systems.

Waste & Efficiency Indicators

Waste Risk Score: 57 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for cost overruns in long-term IT projects.
Dependence on a single contractor for critical integration.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type can control costs.
Long-term duration suggests sustained need and potential for deep expertise.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer-related services and system integration. Spending benchmarks for such services vary widely based on complexity, but $91M over four years for integration support is a considerable investment, reflecting the critical nature of IRS systems.

Small Business Impact

The data indicates the awardee is Deloitte Consulting LLP, a large business. There is no explicit information provided regarding small business participation or subcontracting opportunities within this specific delivery order.

Oversight & Accountability

Oversight would typically involve regular performance reviews, milestone tracking, and financial audits by the Department of the Treasury and potentially the IRS's own oversight bodies to ensure the contractor meets contractual obligations and taxpayer funds are used effectively.

Related Government Programs

Other Computer Related Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Potential for vendor lock-in due to specialized integration.
Risk of scope creep in long-term IT projects.
Dependence on contractor's key personnel.
Cybersecurity risks associated with system integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $91.2 million to DELOITTE CONSULTING LLP. IGF::OT::IGF FOR OTHER FUNCTIONS - RRP INTEGRATION SUPPORT

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $91.2 million.

What is the period of performance?

Start: 2016-05-31. End: 2020-10-14.

What specific RRP integration functions are being supported, and how do they align with IRS modernization goals?

The 'RRP Integration Support' likely refers to the integration of the Returns, Refunds, and Payments (RRP) system or related processes. This is crucial for modernizing the IRS's financial infrastructure, enabling more efficient processing of taxpayer information, ensuring accurate refund distribution, and streamlining payment collection. Alignment with modernization goals would focus on enhancing data accuracy, improving system interoperability, and potentially reducing manual processing.

What were the key factors considered during the full and open competition that led to Deloitte Consulting LLP's selection?

During a full and open competition, key factors for selecting Deloitte Consulting LLP would likely include their demonstrated technical expertise in complex IT integration, proven track record with government contracts (especially within the financial or tax domain), proposed technical approach, understanding of IRS requirements, past performance, and competitive pricing. The agency would evaluate proposals against established criteria to determine the best value.

How does the $91.2M expenditure compare to industry benchmarks for similar IT integration projects of this scale and duration?

Benchmarking this $91.2M expenditure requires detailed comparison against similar large-scale IT integration projects within the public sector or large enterprises. Factors like system complexity, number of integrations, data migration scope, cybersecurity requirements, and project duration (1597 days) are critical. While specific benchmarks are hard to ascertain without more detail, this figure represents a significant investment, suggesting a complex and critical undertaking for the IRS.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 28

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP (UEI: 216754602)

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $143,597,736

Exercised Options: $91,182,541

Current Obligation: $91,182,277

Actual Outlays: $16,081,916

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,723,913

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO11D00016

IDV Type: IDC

Timeline