IRS awarded $35.9M for IT requirements and demand management support to Science Applications International Corporation

Contract Overview

Contract Amount: $35,907,628 ($35.9M)

Contractor: Science Applications International Corporation

Awarding Agency: Department of the Treasury

Start Date: 2013-09-27

End Date: 2017-09-29

Contract Duration: 1,463 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF REQUIREMENTS AND DEMAND MANAGEMENT REQUIREMENTS ENGINEERING SUPPORT

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $35.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: IGF::CT::IGF REQUIREMENTS AND DEMAND MANAGEMENT REQUIREMENTS ENGINEERING SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1463 days indicates a long-term need for these services. 3. Fixed-price contract type aims to control costs by establishing a set price for services. 4. The North American Industry Classification System (NAICS) code 541519 points to specialized IT services. 5. Awarded to a single vendor, Science Applications International Corporation, for the entire duration. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The firm fixed-price structure is generally favorable for cost control. However, the total value of $35.9 million over approximately four years suggests a significant investment in IT support services. Further analysis would require understanding the scope of 'requirements engineering support' and comparing it to industry standards for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process designed to foster price discovery and potentially secure competitive pricing. The presence of 3 delivery orders implies that the initial contract vehicle was likely an IDIQ (Indefinite Delivery, Indefinite Quantity) contract, which would have undergone a competitive process itself.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, leading to potentially lower overall costs for the government.

Public Impact

The Internal Revenue Service (IRS) benefits from enhanced IT requirements and demand management, potentially leading to more efficient operations. Services delivered likely include analysis, documentation, and strategic planning for IT systems and projects. The geographic impact is primarily within the IRS's operational footprint, likely concentrated in Maryland where the vendor is located. Workforce implications include support for IT professionals and project managers within the IRS, and employment for personnel at Science Applications International Corporation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if requirements are highly specific to SAIC's approach.
Risk of scope creep if requirements management is not rigorously enforced.
Dependence on a single contractor for critical IT support functions.
Ensuring continued alignment with evolving IRS IT strategies over the contract's duration.

Positive Signals

Firm fixed-price contract helps manage cost overruns.
Full and open competition suggests a competitive environment for initial award.
Long contract duration allows for stable support and knowledge retention.
Award to a large, established contractor like SAIC may indicate a focus on reliability and experience.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on IT management and consulting. The market for IT support services to government agencies is substantial, with significant spending allocated to areas like requirements engineering, project management, and system integration. Comparable spending benchmarks would involve looking at other large federal contracts for similar IT support services, particularly those awarded to agencies with complex IT infrastructures like the IRS.

Small Business Impact

The contract details do not indicate any specific small business set-asides. Given the award to Science Applications International Corporation, a large prime contractor, it is possible that subcontracting opportunities may exist for small businesses. However, without specific subcontracting plans or goals outlined in the award data, the direct impact on the small business ecosystem is unclear. Further investigation into subcontracting reports would be necessary to assess this.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the IRS. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon budget. Transparency would be enhanced through contract award databases and potentially through public reporting on IT investments. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IRS IT Modernization Programs
Federal IT Acquisition Reform Act (FITARA) Compliance
Government IT Consulting Services
Enterprise Resource Planning (ERP) Support

Risk Flags

Potential for cost overruns if scope is not tightly managed, despite FFP.
Dependence on a single contractor for critical IT support functions.
Risk of outdated technology or processes if contract doesn't adapt to evolving IT landscape.
Ensuring adequate performance metrics are in place to measure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $35.9 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. IGF::CT::IGF REQUIREMENTS AND DEMAND MANAGEMENT REQUIREMENTS ENGINEERING SUPPORT

Who is the contractor on this award?

The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $35.9 million.

What is the period of performance?

Start: 2013-09-27. End: 2017-09-29.

What specific IT requirements and demand management activities were performed under this contract?

The contract likely encompassed a range of activities related to defining, documenting, and managing the IRS's IT needs. This could include requirements elicitation from stakeholders, analysis of business processes, creation of functional and technical specifications, development of use cases, and the establishment of processes for managing changes to requirements throughout the IT project lifecycle. Demand management aspects would involve forecasting IT resource needs, prioritizing projects, and ensuring alignment between IT capabilities and organizational objectives. The specific deliverables would depend on the detailed statement of work within the contract, but generally aim to improve the clarity, accuracy, and efficiency of IT project planning and execution.

How does the $35.9 million cost compare to similar IT support contracts for federal agencies of the IRS's size?

Comparing the $35.9 million cost requires context regarding the contract's scope, duration, and specific services. The IRS is a large agency with complex IT needs, so a multi-year contract of this magnitude for specialized IT support is not unusual. To benchmark effectively, one would need to identify contracts with similar NAICS codes (e.g., 541519) awarded to agencies of comparable size and complexity, such as other large cabinet-level departments. Factors like the level of security clearance required, the criticality of the systems supported, and the specific expertise demanded would also influence pricing. Without access to detailed statements of work and performance metrics for comparable contracts, a precise value-for-money assessment is difficult, but the amount suggests a significant investment in critical IT functions.

What is the track record of Science Applications International Corporation (SAIC) in delivering IT support services to the federal government?

Science Applications International Corporation (SAIC) is a well-established federal contractor with a long history of providing a wide range of IT and technical services to various government agencies. They have a significant presence in areas such as systems engineering, cybersecurity, cloud computing, and IT modernization. SAIC typically handles large, complex contracts and has experience supporting agencies with critical missions, including defense, intelligence, and civilian sectors. Their track record generally indicates a capacity to manage substantial programs and deliver complex solutions. However, as with any large contractor, specific contract performance can vary, and a detailed review of past performance evaluations for similar contracts would provide a more granular understanding of their success in meeting government requirements.

What are the potential risks associated with a sole-source award for delivery orders under a larger IDIQ contract?

While this specific award was made under 'full and open competition' for the initial IDIQ vehicle, the data indicates it was a single delivery order awarded to SAIC. The primary risk with a sole-source delivery order (if it were one, which this isn't explicitly stated as, but implied by single vendor for the duration) is the potential for reduced price competition and less incentive for the contractor to offer the most competitive pricing. It can also lead to a lack of innovation if alternative solutions are not explored. For taxpayers, this could mean paying a higher price than might be achieved through competitive bidding. However, sole-source awards are sometimes justified for specific reasons, such as urgency, unique capabilities, or follow-on work where switching contractors would be impractical or costly. In this case, the initial IDIQ was competed, mitigating some of the sole-source risk.

How does the firm fixed-price contract type influence cost control and risk for the IRS?

A firm fixed-price (FFP) contract type is generally considered advantageous for the government when the scope of work is well-defined and unlikely to change significantly. Under an FFP contract, the contractor assumes most of the risk for cost overruns. SAIC is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to manage their resources efficiently and control expenses. For the IRS, this means greater predictability in budgeting and a reduced risk of unexpected cost increases. The primary risk for the contractor is underestimating costs, while the IRS's main risk is ensuring the defined scope is adequately met within the fixed price.

What is the historical spending pattern for IT requirements and demand management support at the IRS?

Analyzing historical spending patterns for IT requirements and demand management support at the IRS would require access to multi-year budget data and contract databases. This specific contract, valued at approximately $35.9 million over four years, represents a significant but potentially consistent investment in these critical IT functions. To understand the pattern, one would need to examine: 1) whether similar contracts have been awarded consistently over time, 2) if the value of these contracts has increased or decreased, and 3) how this spending aligns with overall IRS IT budgets and modernization initiatives. Without this historical data, it's difficult to determine if this contract represents a new trend, a continuation of established spending, or a deviation from past practices. It's plausible that as the IRS modernizes its systems, investments in requirements engineering and demand management would remain a priority.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1710 SAIC DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,827,016

Exercised Options: $37,077,704

Current Obligation: $35,907,628

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO11D00031

IDV Type: IDC

Timeline