Treasury's IRS Spends $80.4M on IT Operations and Maintenance for Critical Systems
Contract Overview
Contract Amount: $80,382,265 ($80.4M)
Contractor: Leidos Management Systems Designers, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2016-01-01
End Date: 2021-06-30
Contract Duration: 2,007 days
Daily Burn Rate: $40.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF FOR CRITICAL FUNCTIONS - PAPER AND REMITTANCE PROCESSING SUPPORT (PRPS) II - OPERATIONS AND MAINTENANCE ON ISRP AND SCRIPS SYSTEMS
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $80.4 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC. for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS - PAPER AND REMITTANCE PROCESSING SUPPORT (PRPS) II - OPERATIONS AND MAINTENANCE ON ISRP AND SCRIPS SYSTEMS Key points: 1. Leidos Management Systems Designers, Inc. secured a significant contract for IT support. 2. The contract covers operations and maintenance for IRS's ISRP and SCRIPS systems. 3. Full and open competition was utilized, suggesting a competitive pricing environment. 4. The duration of the contract (2007-2021) indicates a long-term need for these services.
Value Assessment
Rating: good
The total award amount of $80.4M over approximately 4.5 years suggests a substantial investment. Benchmarking against similar IT operations and maintenance contracts would be necessary for a precise value assessment, but the firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process generally leads to more favorable pricing for the government.
Taxpayer Impact: The competitive nature of the award is expected to have resulted in a fair market price, maximizing taxpayer value for the IT support services.
Public Impact
Ensures continuity of critical IRS financial processing systems. Supports tax administration and revenue collection functions. Impacts taxpayer services through reliable system operations. Maintains the integrity of sensitive financial data.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in due to long-term system reliance.
- Risk of cost escalation if system complexity increases beyond initial scope.
- Dependence on a single vendor for critical IT infrastructure.
Positive Signals
- Long-term contract provides stability for essential IRS functions.
- Firm fixed-price contract offers budget predictability.
- Full and open competition likely secured competitive pricing.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer systems operations and maintenance. Spending in this area is crucial for government agencies to maintain aging infrastructure and support digital transformation efforts.
Small Business Impact
The data indicates that this contract was not awarded to small businesses, as both the 'ss' and 'sb' fields are false. This suggests that the scale and complexity of the requirement favored larger, established IT service providers.
Oversight & Accountability
The contract was awarded by the Department of the Treasury's Internal Revenue Service. Oversight would typically involve contract management reviews, performance monitoring, and adherence to federal acquisition regulations to ensure accountability.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Long contract duration may indicate legacy systems.
- Lack of small business participation.
- Potential for vendor lock-in.
- Dependence on a single vendor for critical functions.
Tags
other-computer-related-services, department-of-the-treasury, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $80.4 million to LEIDOS MANAGEMENT SYSTEMS DESIGNERS, INC.. IGF::CT::IGF FOR CRITICAL FUNCTIONS - PAPER AND REMITTANCE PROCESSING SUPPORT (PRPS) II - OPERATIONS AND MAINTENANCE ON ISRP AND SCRIPS SYSTEMS
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 $80.4 million.
What is the period of performance?
Start: 2016-01-01. End: 2021-06-30.
What is the specific breakdown of costs for operations versus maintenance within this contract?
The provided data does not detail the specific cost allocation between operations and maintenance. A deeper dive into the contract's line-item details or performance reports would be necessary to ascertain this breakdown. Understanding this split is crucial for assessing the efficiency of resource allocation and identifying potential areas for cost optimization in future procurements.
How has the performance of Leidos Management Systems Designers, Inc. been on this contract, and were there any significant performance issues?
Performance data for this specific contract is not included in the provided summary. A thorough risk assessment would require reviewing past performance evaluations, contractor award histories, and any documented issues or disputes. Positive performance trends would mitigate risks, while recurring problems could indicate a need for closer oversight or potential contract modification.
What is the long-term strategy for these critical systems, and does this contract align with modernization plans?
The contract's duration (2007-2021) suggests it supported systems over a significant period. Understanding the IRS's IT modernization roadmap is key to evaluating this contract's alignment. If the systems are slated for replacement, this contract might represent a bridge, whereas if they are core, it highlights a long-term reliance that needs strategic planning for future upgrades or replacements.
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-4226
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
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: $251,819,309
Exercised Options: $109,508,618
Current Obligation: $80,382,265
Actual Outlays: $34,146,605
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: 2016-01-01
Current End Date: 2021-06-30
Potential End Date: 2021-06-30 16:03:02
Last Modified: 2024-08-13
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