Treasury's IRS Spends $29.5M on Critical Audit Program Computer Support via Vectrus Systems LLC
Contract Overview
Contract Amount: $29,543,872 ($29.5M)
Contractor: Vectrus Systems LLC
Awarding Agency: Department of the Treasury
Start Date: 2013-04-01
End Date: 2018-03-31
Contract Duration: 1,825 days
Daily Burn Rate: $16.2K/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 COMPUTER PROGRAMMING SUPPORT OF AUDIT PROGRAM SERVICES
Place of Performance
Location: DALLAS, DALLAS County, TEXAS, 75244
State: Texas Government Spending
Plain-Language Summary
Department of the Treasury obligated $29.5 million to VECTRUS SYSTEMS LLC for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS COMPUTER PROGRAMMING SUPPORT OF AUDIT PROGRAM SERVICES Key points: 1. Significant contract value of $29.5 million over five years. 2. Vectrus Systems LLC is the sole awardee for this specific delivery order. 3. Potential risk associated with a single vendor for critical IT functions. 4. Services fall under 'Other Computer Related Services' (NAICS 541519).
Value Assessment
Rating: fair
The contract was awarded via delivery order, making direct pricing comparisons difficult. The firm fixed price structure suggests some price certainty, but the lack of competitive bidding for this specific order raises questions about optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive process was initially used. However, this specific delivery order was placed with a single vendor, Vectrus Systems LLC, suggesting a specific need or existing relationship.
Taxpayer Impact: While competition was initially broad, the single-vendor award for this order may not have achieved the lowest possible price for taxpayers.
Public Impact
Taxpayers rely on the IRS's audit program for fair tax administration. Efficient IT support is crucial for the IRS's operational effectiveness. The use of external contractors for critical functions raises questions about long-term government capability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Single vendor for critical IT support.
- Lack of competition for this specific delivery order.
- Potential for vendor lock-in.
Positive Signals
- Firm fixed price contract provides cost predictability.
- Contract duration of five years offers stability.
Sector Analysis
This contract falls within the IT services sector, specifically computer programming and related services. Spending benchmarks for similar IT support contracts vary widely based on scope and complexity, but $29.5 million over five years represents a substantial investment.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
The contract was awarded via a delivery order under a larger contract vehicle. Oversight would typically involve monitoring performance against the Statement of Work and ensuring compliance with contract terms by the IRS contracting officer.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for vendor lock-in.
- Limited competition for this specific delivery order.
- Reliance on a single vendor for critical functions.
- Lack of transparency on specific service delivery metrics.
Tags
other-computer-related-services, department-of-the-treasury, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $29.5 million to VECTRUS SYSTEMS LLC. IGF::CT::IGF FOR CRITICAL FUNCTIONS COMPUTER PROGRAMMING SUPPORT OF AUDIT PROGRAM SERVICES
Who is the contractor on this award?
The obligated recipient is VECTRUS SYSTEMS LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $29.5 million.
What is the period of performance?
Start: 2013-04-01. End: 2018-03-31.
What was the rationale for awarding this specific delivery order to a single vendor under a full and open competition contract vehicle?
The rationale for a single-vendor delivery order under a full and open contract could stem from various factors, including specialized expertise required, urgency of need, or the existence of a pre-negotiated pricing structure that was deemed advantageous at the time of award. Without further documentation, it's difficult to ascertain the precise justification, but it implies a specific requirement that Vectrus Systems LLC was uniquely positioned to fulfill.
What are the potential risks associated with relying on a single vendor for critical audit program IT support over a five-year period?
Relying on a single vendor for critical IT support over an extended period introduces several risks. These include potential vendor lock-in, where switching providers becomes difficult and costly. There's also a risk of reduced innovation if the vendor faces less competitive pressure to improve services. Furthermore, the government's negotiating power may diminish over time, potentially leading to less favorable pricing in future renewals or modifications.
How does the $29.5 million expenditure compare to industry benchmarks for similar IT support services for a federal audit program?
Directly comparing this $29.5 million expenditure requires detailed knowledge of the specific services rendered, service levels, and the complexity of the IRS's audit program. However, for large-scale IT support contracts in the federal government, this figure is substantial but not necessarily outside the norm, especially for critical functions spanning five years. Benchmarking would ideally involve analyzing contracts with similar scope, duration, and agency type, considering factors like personnel costs, software licenses, and infrastructure.
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: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vectrus, Inc.
Address: 1101 KING ST STE 550, ALEXANDRIA, VA, 22314
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,584,934
Exercised Options: $30,973,030
Current Obligation: $29,543,872
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: TIRNO11D00033
IDV Type: IDC
Timeline
Start Date: 2013-04-01
Current End Date: 2018-03-31
Potential End Date: 2018-03-31 12:07:06
Last Modified: 2022-09-19
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