Treasury's IRS Spends $35.4M on Masterfiles Programming Support via Delivery Order

Contract Overview

Contract Amount: $35,415,415 ($35.4M)

Contractor: Insysco, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2016-06-30

End Date: 2020-06-30

Contract Duration: 1,461 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 28

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF FOR CRITICAL FUNCTIONS - MASTERFILES PROGRAMMING SUPPORT CYRBYME-NA

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20703

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $35.4 million to INSYSCO, INC. for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS - MASTERFILES PROGRAMMING SUPPORT CYRBYME-NA Key points: 1. Contract awarded to INSYSCO, INC. for critical function programming support. 2. Significant spending over a 4-year period, ending June 2020. 3. The contract was awarded under full and open competition. 4. No small business participation noted. 5. The contract type is Firm Fixed Price.

Value Assessment

Rating: fair

The total award value of $35.4M over four years averages to $8.85M annually. Benchmarking this against similar IT services contracts is difficult without more granular data on the specific services provided. However, the duration and scale suggest a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust process to solicit bids. This method generally promotes competitive pricing, though the final price is influenced by the specific requirements and the chosen contract vehicle (delivery order).

Taxpayer Impact: Taxpayer funds were used for this contract. The competitive award process aims to ensure value for money, but the total expenditure of $35.4M represents a significant allocation of public resources.

Public Impact

Supports critical IRS functions, impacting tax administration and taxpayer services. The use of a delivery order suggests it was part of a larger indefinite-delivery contract. Long-term IT support is essential for government operations and data management. Lack of small business involvement may limit broader economic participation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Long contract duration without clear performance metrics in provided data

Positive Signals

Full and open competition
Firm Fixed Price contract type

Sector Analysis

This contract falls under IT services, specifically 'Other Computer Related Services'. Spending on IT modernization and support within government agencies is substantial, often driven by the need to maintain legacy systems and implement new digital solutions. Benchmarks vary widely based on service type and complexity.

Small Business Impact

The data indicates that this contract did not involve small businesses (ss: false, sb: false). This suggests that the prime contractor, INSYSCO, INC., did not subcontract with small businesses for this particular award, potentially missing opportunities to leverage specialized capabilities and promote economic diversity.

Oversight & Accountability

Awarded via a delivery order under a larger contract, oversight would typically be managed by the IRS contracting officer and program managers. The firm fixed price structure provides some cost control, but ongoing monitoring of performance and adherence to scope is crucial for accountability.

Related Government Programs

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

Risk Flags

Long contract duration (4 years) may indicate potential for cost overruns or scope creep if not managed tightly.
Lack of small business participation.
Specific services and performance metrics are not detailed, making value assessment challenging.
Reliance on a single vendor for critical programming support over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $35.4 million to INSYSCO, INC.. IGF::CT::IGF FOR CRITICAL FUNCTIONS - MASTERFILES PROGRAMMING SUPPORT CYRBYME-NA

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 $35.4 million.

What is the period of performance?

Start: 2016-06-30. End: 2020-06-30.

What specific programming services were provided under this contract, and how did they contribute to the IRS's critical functions?

The contract supported 'Masterfiles Programming Support' for 'Critical Functions'. This likely involved maintaining, enhancing, or developing software related to the IRS's core master files, which are essential for taxpayer identification, account management, and processing tax returns. The specific contributions would detail how these programming efforts improved system reliability, efficiency, or compliance.

Given the $35.4M expenditure over four years, what was the cost-effectiveness of INSYSCO, INC.'s services compared to potential alternatives?

Assessing cost-effectiveness requires comparing the delivered value against the price paid. While the firm fixed price and full and open competition suggest efforts towards value, a detailed analysis would need to evaluate the quality of deliverables, impact on IRS operations, and comparison with market rates for similar specialized programming support. Without performance metrics, this is difficult.

How effectively did the full and open competition process ensure the best possible outcome for the IRS in terms of both cost and technical capability?

Full and open competition is designed to maximize the pool of potential bidders, fostering a competitive environment that ideally leads to better pricing and technical solutions. The success of this process hinges on the clarity of the solicitation, the evaluation criteria, and the responsiveness of the market. It suggests the IRS sought a broad range of qualified vendors.

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

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: $1,078,357,310

Exercised Options: $1,064,258,715

Current Obligation: $35,415,415

Actual Outlays: $15,176,219

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