Treasury's $27.8M TIPSS-4 Contract for CAPS: Leidos Provided Computer Assisted Publishing Support

Contract Overview

Contract Amount: $27,872,869 ($27.9M)

Contractor: Leidos Management Systems Designers, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2012-08-29

End Date: 2017-09-07

Contract Duration: 1,835 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF CRITICAL FUNCTION- TIPSS-4 SUPPORT CONTRACT FOR COMPUTER ASSISTED PUBLISHING SYSTEM (CAPS)TIPPS 4

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $27.9 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: IGF::CT::IGF CRITICAL FUNCTION- TIPSS-4 SUPPORT CONTRACT FOR COMPUTER ASSISTED PUBLISHING SYSTEM (CAPS)TIPPS 4 Key points: 1. The contract, valued at $27.8 million, supported the IRS's Computer Assisted Publishing System (CAPS). 2. Leidos Management Systems Designers, Inc. was the contractor, indicating a specific vendor relationship. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract was 1835 days, spanning from August 2012 to September 2017.

Value Assessment

Rating: fair

The contract's value of $27.8M over five years for IT support services appears within a reasonable range for similar government contracts. However, without specific details on the services rendered and performance metrics, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, this method generally promotes competitive pricing. The use of a delivery order under a larger contract structure suggests that pricing was likely established through the initial competitive process for the parent contract.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently by securing services at market-driven prices.

Public Impact

Ensured the operational continuity of the IRS's Computer Assisted Publishing System. Supported critical IRS functions related to document generation and dissemination. Provided essential IT services to a major federal agency, impacting tax administration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it hard to gauge value for money.
Contract duration is long, potentially leading to outdated technology or services if not managed well.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Firm Fixed Price contract type helps control costs and manage budget predictability.

Sector Analysis

This contract falls under IT services, specifically computer-related services. IT spending benchmarks vary widely, but for a five-year support contract of this magnitude, it represents a significant investment in maintaining critical agency infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the prime contractor is a large entity. There is no information provided on small business subcontracting participation.

Oversight & Accountability

The contract was awarded via a delivery order, suggesting it was part of a larger, pre-competed vehicle. Oversight would focus on the execution of this specific order against the terms of the parent contract and the IRS's needs.

Related Government Programs

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

Risk Flags

Contract duration of 5 years may lead to technology obsolescence.
Limited detail on specific services and performance metrics.
No clear indication of small business participation.
Potential for cost overruns if scope creep occurred, despite fixed price.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $27.9 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. IGF::CT::IGF CRITICAL FUNCTION- TIPSS-4 SUPPORT CONTRACT FOR COMPUTER ASSISTED PUBLISHING SYSTEM (CAPS)TIPPS 4

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 $27.9 million.

What is the period of performance?

Start: 2012-08-29. End: 2017-09-07.

What specific IT services were provided under the CAPS contract, and how did they align with IRS operational needs?

The contract supported the Computer Assisted Publishing System (CAPS) for the IRS. While specific services aren't detailed, CAPS likely involved software, hardware, and personnel to manage the creation, formatting, and distribution of IRS publications and documents. This is crucial for tax administration, ensuring timely and accurate information dissemination to taxpayers and internal staff.

How effectively did the full and open competition process ensure competitive pricing for this $27.8M contract?

Full and open competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that drives down prices. The effectiveness in this case depends on the number of bids received and the final negotiated price relative to market rates. Without bid data, we assume the process achieved its goal of fair pricing.

What was the overall impact of this contract on taxpayer value and efficiency within the IRS?

The contract's value to taxpayers lies in ensuring the IRS can efficiently produce and distribute necessary tax forms, publications, and communications. By maintaining the CAPS, the IRS likely improved its ability to inform taxpayers, collect revenue, and operate effectively. The firm fixed price structure also provided budget certainty for this essential function.

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: Leidos Holdings, Inc. (UEI: 611641312)

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: $28,466,642

Exercised Options: $28,466,642

Current Obligation: $27,872,869

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO11D00024

IDV Type: IDC

Timeline