Treasury's IRS Spends $48.4M on IT Services via Delivery Order, Raising Oversight Questions
Contract Overview
Contract Amount: $48,375,501 ($48.4M)
Contractor: Insysco, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2012-08-21
End Date: 2018-03-27
Contract Duration: 2,044 days
Daily Burn Rate: $23.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF FMIS-RPI O&M COMPLIANCE CHECKS
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $48.4 million to INSYSCO, INC. for work described as: IGF::CT::IGF FMIS-RPI O&M COMPLIANCE CHECKS Key points: 1. Significant spending on IT services for IRS financial management systems. 2. Competition method appears to be full and open, but specific details are limited. 3. Contract duration is substantial, spanning over 17 years. 4. No small business participation noted, which could be a missed opportunity.
Value Assessment
Rating: fair
The total award amount of $48.4M over a 17-year period suggests a moderate annual spend. Benchmarking against similar IT O&M contracts would be necessary to fully assess value, but the long duration may indicate potential for cost savings if managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the nature of a delivery order against a larger contract framework means the specific price negotiation for this order is key.
Taxpayer Impact: The substantial investment in IT infrastructure aims to improve government operations, but the long-term cost and effectiveness require ongoing scrutiny to ensure taxpayer funds are used efficiently.
Public Impact
Impacts IRS's ability to manage financial systems and compliance. Long-term IT investment affects operational efficiency and modernization efforts. Potential for improved data accuracy and reporting for tax administration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (17 years)
- No small business participation
- Limited details on specific performance metrics
Positive Signals
- Awarded under full and open competition
- Firm fixed price contract type
Sector Analysis
This contract falls within the IT services sector, specifically related to IT operations and maintenance for financial management systems. Benchmarks for similar long-term IT service contracts vary widely based on scope and complexity.
Small Business Impact
The contract data indicates no small business participation. This suggests that opportunities for small businesses to contribute to this significant IT project were either not pursued or not met.
Oversight & Accountability
The long duration of the contract and the delivery order structure warrant close oversight to ensure continued value and performance. Regular reviews of performance metrics and cost-effectiveness are crucial for accountability.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Long contract duration may lead to price inflexibility.
- Lack of small business participation.
- Potential for scope creep over an extended period.
- Reliance on a single vendor for critical IT functions over many years.
Tags
other-computer-related-services, department-of-the-treasury, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $48.4 million to INSYSCO, INC.. IGF::CT::IGF FMIS-RPI O&M COMPLIANCE CHECKS
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 $48.4 million.
What is the period of performance?
Start: 2012-08-21. End: 2018-03-27.
What specific IT services are covered under this delivery order, and how do they align with the IRS's current and future financial management needs?
The data indicates 'Other Computer Related Services' (NAICS 541519) for IGF FMIS-RPI O&M Compliance Checks. This likely encompasses maintenance, support, and potentially upgrades for the Integrated Government Financial Management Information System (IGF MIS) and its associated components, ensuring compliance checks are performed effectively.
Given the 17-year duration, what mechanisms are in place to ensure the pricing remains competitive and reflects evolving market conditions for IT services?
While the contract is firm fixed price, the long duration necessitates periodic reviews or re-negotiations, especially if significant scope changes occur. The initial full and open competition should have established a competitive baseline, but ongoing market surveillance by the agency is critical.
How effectively has this contract supported the IRS's compliance checks and overall financial management operations over its lifespan?
Effectiveness is difficult to gauge solely from award data. Success would be measured by the system's uptime, the accuracy and timeliness of compliance checks, and the reduction of financial system vulnerabilities. Without performance reports, a definitive assessment is not possible.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Maximus Inc
Address: 3130 FAIRVIEW PARK DR STE 800, FALLS CHURCH, VA, 22042
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,010,577
Exercised Options: $60,010,577
Current Obligation: $48,375,501
Actual Outlays: $-112
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: TIRNO11D00023
IDV Type: IDC
Timeline
Start Date: 2012-08-21
Current End Date: 2018-03-27
Potential End Date: 2019-03-27 09:39:59
Last Modified: 2023-08-17
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