Treasury's $25M IT services contract with INSYSCO, INC. awarded under full and open competition

Contract Overview

Contract Amount: $25,147,055 ($25.1M)

Contractor: Insysco, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2012-09-26

End Date: 2015-03-31

Contract Duration: 916 days

Daily Burn Rate: $27.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF CRITICAL FUNCTION FOR IS&R AND IFSV

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75244

State: Texas Government Spending

Plain-Language Summary

Department of the Treasury obligated $25.1 million to INSYSCO, INC. for work described as: IGF::CT::IGF CRITICAL FUNCTION FOR IS&R AND IFSV Key points: 1. Contract awarded for critical IT functions supporting IRS operations. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Contract duration of over 2 years indicates a significant operational need. 4. Fixed-price contract type may offer cost certainty for the government. 5. The contract falls under 'Other Computer Related Services', a broad category. 6. Awarded to INSYSCO, INC., a single contractor for this specific delivery order.

Value Assessment

Rating: fair

Benchmarking the value of this $25.1 million contract is challenging without more specific service details and comparable contract data. The fixed-price nature provides some cost control, but the overall value depends heavily on the efficiency and effectiveness of the services delivered by INSYSCO, INC. The contract's value is moderate within the context of large federal IT procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders suggests a reasonable level of competition for this specific delivery order, which is generally positive for price discovery and achieving fair market value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

Benefits the Internal Revenue Service (IRS) by providing critical IT support. Ensures the continuity of essential Information Systems and Information Services. Services are delivered within Texas, indicating a specific geographic focus. Supports the federal IT workforce through the contractor's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess service quality.
Limited insight into the specific IT functions performed beyond the broad category.
No information on potential vendor lock-in or future competition challenges.

Positive Signals

Awarded through full and open competition, indicating a fair process.
Fixed-price contract type offers budget predictability.
Contract duration is reasonable for the scope of IT services.

Sector Analysis

This contract falls within the broad 'Other Computer Related Services' category, which is a significant segment of the federal IT market. Federal spending on IT services is substantial, encompassing a wide range of support, maintenance, and development activities. This contract represents a portion of the IRS's overall IT expenditure, aimed at maintaining critical operational systems.

Small Business Impact

The provided data indicates that small business participation (sb) was false and there was no specific small business set-aside (ss) for this contract. This suggests that the primary award went to a larger entity, and there is no explicit indication of subcontracting opportunities for small businesses within this specific delivery order.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's contracting officers and the IRS's program managers. The Inspector General for Tax Administration (TIGTA) may also have jurisdiction for audits and investigations related to IRS spending. Transparency is facilitated by contract award databases, but detailed operational oversight specifics are not provided.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian IT Services
Information Systems Support Contracts
Computer Network Support Services

Risk Flags

Potential for performance issues impacting critical IRS functions.
Risk of cybersecurity vulnerabilities.
Lack of detailed service description hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $25.1 million to INSYSCO, INC.. IGF::CT::IGF CRITICAL FUNCTION FOR IS&R AND IFSV

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 $25.1 million.

What is the period of performance?

Start: 2012-09-26. End: 2015-03-31.

What specific IT services were provided under this contract?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' While the data indicates it supports 'CRITICAL FUNCTION FOR IS&R AND IFSV' (Information Systems and Information Services), the precise nature of these services is not detailed. This could range from system maintenance, network support, cybersecurity, data management, or other IT operational functions essential for the IRS's mission. Further analysis would require accessing the contract's statement of work.

How does the contract value of $25.1 million compare to similar IRS IT contracts?

Comparing this $25.1 million contract value requires context on the specific services rendered and the contract duration. The IRS procures a wide array of IT services, with individual contract values varying significantly based on scope and complexity. For critical, long-term IT support functions, $25.1 million over approximately 2.5 years (from Sep 2012 to Mar 2015) is a moderate investment. Larger modernization or system development contracts can reach hundreds of millions or even billions.

What are the key risks associated with this contract for the IRS?

Key risks include potential performance deficiencies by the contractor (INSYSCO, INC.), leading to disruptions in critical IRS IT functions. Vendor lock-in could be a risk if the services are highly specialized and difficult to transition. Cost overruns, although mitigated by the firm-fixed-price structure, could still occur if scope creep is not managed. Cybersecurity vulnerabilities introduced or exploited through the contractor's services also represent a significant risk, given the sensitive data handled by the IRS.

What was the historical spending pattern for similar IT services at the IRS prior to this award?

Historical spending patterns for similar IT services at the IRS would likely show consistent investment in maintaining and upgrading its complex IT infrastructure. The IRS relies heavily on technology for tax processing, taxpayer services, and enforcement. Prior to this 2012 award, the IRS would have had numerous contracts for IT support, network management, and software maintenance, reflecting the ongoing need for robust IT operations. Analyzing past spending would reveal trends in outsourcing IT functions and the types of services most frequently procured.

What is INSYSCO, INC.'s track record with federal IT contracts?

INSYSCO, INC. has a track record of performing federal IT contracts. This specific contract with the Treasury/IRS for critical IT functions indicates they were deemed capable of handling essential government operations. A comprehensive assessment would involve reviewing their performance history across all federal awards, including past performance evaluations, any contract disputes, and their success in delivering on similar scopes of work for other agencies.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $27,973,964

Exercised Options: $25,891,374

Current Obligation: $25,147,055

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO11D00023

IDV Type: IDC

Timeline