Treasury's IRS Spends $73.7M on IT Services for E-services Operations and Maintenance
Contract Overview
Contract Amount: $73,693,507 ($73.7M)
Contractor: Leidos Management Systems Designers, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2012-07-18
End Date: 2017-09-29
Contract Duration: 1,899 days
Daily Burn Rate: $38.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: IGF::CT::IGF TIPSS-4 ITS TASK ORDER FOR ESERVICES/ICCE OPERATIONS AND MAINTENANCE DEVELOPMENT, MODERNIZATION, ENHANCEMENTS AND UPGRADES
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20703
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $73.7 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: IGF::CT::IGF TIPSS-4 ITS TASK ORDER FOR ESERVICES/ICCE OPERATIONS AND MAINTENANCE DEVELOPMENT, MODERNIZATION, ENHANCEMENTS AND UPGRADES Key points: 1. Significant investment in IT infrastructure modernization and upgrades. 2. Leidos Management Systems Designers, Inc. is the primary contractor. 3. Contract duration of nearly 5 years indicates long-term operational needs. 4. Focus on 'Other Computer Related Services' suggests a broad scope of IT support.
Value Assessment
Rating: fair
The contract is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar IT operations and maintenance contracts is difficult without more granular cost data.
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 specific pricing mechanisms and discovery of fair market value are not detailed.
Taxpayer Impact: Taxpayer funds are being utilized for essential IT infrastructure supporting tax administration and e-services.
Public Impact
Ensures continuity and modernization of critical IRS e-services. Supports tax filing and processing for millions of taxpayers. Potential for improved efficiency and user experience through system enhancements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee structure requires careful monitoring.
- Lack of detailed cost breakdown makes precise value assessment challenging.
Positive Signals
- Awarded through full and open competition.
- Addresses essential IT operations and modernization needs.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on operations, maintenance, and modernization of complex government IT systems. Spending benchmarks for similar large-scale IT support contracts vary widely based on scope and complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no direct analysis of small business participation or subcontracting opportunities within this specific task order.
Oversight & Accountability
Oversight would typically involve regular performance reviews, financial audits, and adherence to contract terms by the IRS contracting officer and potentially an IG oversight body.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost Plus Incentive Fee structure.
- Lack of detailed cost breakdown.
- Limited public information on performance metrics.
- No indication of small business subcontracting.
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 $73.7 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. IGF::CT::IGF TIPSS-4 ITS TASK ORDER FOR ESERVICES/ICCE OPERATIONS AND MAINTENANCE DEVELOPMENT, MODERNIZATION, ENHANCEMENTS AND UPGRADES
Who is the contractor on this award?
The obligated recipient is LEIDOS MANAGEMENT SYSTEMS DESIGNERS, 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 $73.7 million.
What is the period of performance?
Start: 2012-07-18. End: 2017-09-29.
What specific metrics were used to determine the 'incentive fee' and how effectively did they drive desired outcomes?
The incentive fee structure is designed to reward the contractor for achieving specific performance targets or cost savings. Without access to the contract's detailed performance work statement and the contractor's actual performance data, it's impossible to assess the effectiveness of these incentives. A review of post-award performance reports would be necessary to gauge if the incentives successfully drove value and met IRS objectives.
How does the per-unit cost of specific IT services (e.g., server maintenance, software development hours) compare to industry benchmarks?
Determining per-unit costs for this contract is challenging as it's a Cost Plus Incentive Fee award covering a broad range of 'operations and maintenance development, modernization, enhancements and upgrades.' A detailed cost breakdown by service category and comparison to industry benchmarks would require access to the contract's financial data and a thorough analysis of the specific services rendered, which is not publicly available.
What was the competitive landscape like for this task order, and did the full and open competition result in optimal pricing?
While the contract was awarded under 'full and open competition,' the specific details of the bidding process and the number of competing offers are not provided. This method generally promotes competitive pricing. However, the Cost Plus Incentive Fee structure means the final price is not fixed upfront, making it harder to definitively state if optimal pricing was achieved without post-award performance and cost analysis.
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
Solicitation ID: RTCP 4055
Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 2677 PROSPERITY AVE STE 700, FAIRFAX, VA, 22031
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $82,966,918
Exercised Options: $82,240,531
Current Obligation: $73,693,507
Actual Outlays: $177,245
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: TIRNO11D00024
IDV Type: IDC
Timeline
Start Date: 2012-07-18
Current End Date: 2017-09-29
Potential End Date: 2017-09-29 06:50:33
Last Modified: 2025-04-15
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