Treasury's $21.6M EIS Contract for RRP Mpe-Linux Dite VDE: a Deep Dive
Contract Overview
Contract Amount: $21,606,515 ($21.6M)
Contractor: Executive Information Systems, L.L.C.
Awarding Agency: Department of the Treasury
Start Date: 2011-08-31
End Date: 2014-10-31
Contract Duration: 1,157 days
Daily Burn Rate: $18.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SW PURCHASE FOR RRP MPE-LINUX DITE VDE
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20827
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $21.6 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C. for work described as: SW PURCHASE FOR RRP MPE-LINUX DITE VDE Key points: 1. Contract awarded to EXECUTIVE INFORMATION SYSTEMS, L.L.C. for $21.6M. 2. Competition method was 'FULL AND OPEN COMPETITION'. 3. Contract duration was 1157 days. 4. Primary NAICS code is 334111 (Electronic Computer Manufacturing). 5. Awarded by the Department of the Treasury, specifically the Internal Revenue Service.
Value Assessment
Rating: fair
The contract's value of $21.6M over approximately three years appears moderate for IT hardware and software procurement. Benchmarking against similar large-scale IT system purchases would be necessary for a precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of 'FULL AND OPEN COMPETITION' suggests a robust price discovery process. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market pricing.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more efficient use of funds compared to a sole-source or limited competition scenario.
Public Impact
Impacts IRS operations by providing essential IT infrastructure. Ensures the continuity of critical tax processing systems. Potential for improved efficiency and data management for the IRS.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or outcome data.
- Potential for vendor lock-in if not managed carefully.
- Aging hardware/software could lead to future upgrade costs.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type limits cost overruns.
- Awarded to a single vendor, simplifying management.
Sector Analysis
This contract falls within the IT sector, specifically electronic computer manufacturing. Spending benchmarks for similar IT procurements by federal agencies can vary widely based on scope and technology. The $21.6M value is substantial but not exceptionally high for a multi-year federal IT system.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this procurement.
Oversight & Accountability
Standard federal procurement oversight processes would apply. The IRS, as a large agency, typically has established procedures for contract management and performance monitoring to ensure accountability.
Related Government Programs
- Electronic Computer Manufacturing
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for technology obsolescence given contract end date.
- Lack of detailed performance metrics in provided data.
- Unknown small business participation.
- Need for benchmarking against similar IT procurements.
Tags
electronic-computer-manufacturing, department-of-the-treasury, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $21.6 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C.. SW PURCHASE FOR RRP MPE-LINUX DITE VDE
Who is the contractor on this award?
The obligated recipient is EXECUTIVE INFORMATION SYSTEMS, L.L.C..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $21.6 million.
What is the period of performance?
Start: 2011-08-31. End: 2014-10-31.
What specific IT systems or hardware were procured under this contract, and how do their capabilities align with current IRS needs?
The contract, identified by the description 'SW PURCHASE FOR RRP MPE-LINUX DITE VDE', likely involved the acquisition of software and potentially related hardware for the IRS's Revenue Reconciliation Program (RRP) or a similar critical system. The 'MPE-LINUX DITE VDE' suggests a Linux-based environment for data processing or virtual desktop infrastructure. Understanding the exact components and their specifications is crucial to assess their current relevance and effectiveness for the IRS's evolving technological landscape and operational requirements.
Given the contract's end date in 2014, what has been the long-term impact on IRS IT infrastructure and potential obsolescence?
A contract ending in 2014 suggests that the procured systems are now over a decade old. This raises concerns about potential technological obsolescence, increased maintenance costs, and compatibility issues with newer systems. The IRS would have likely undertaken subsequent procurements or upgrades to maintain its IT infrastructure. Assessing the transition from this contract and the current state of the relevant IRS systems is key to understanding its lasting impact and any associated risks.
How effectively did the 'FULL AND OPEN COMPETITION' process translate into cost savings or superior technological solutions for the IRS compared to other contracting methods?
While 'FULL AND OPEN COMPETITION' is generally favored for promoting competitive pricing, its ultimate effectiveness in delivering cost savings and optimal technology depends on the specific market conditions and the clarity of the solicitation. Without access to the bidding process details, award criteria, and post-award performance data, it's difficult to definitively quantify the savings or technological advantages gained. A comparative analysis against similar sole-source or limited-competition contracts for comparable systems would be needed for a robust assessment.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
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)
Contractor Details
Address: 6901 ROCKLEDGE DR STE 600, BETHESDA, MD, 08
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $21,606,515
Exercised Options: $21,606,515
Current Obligation: $21,606,515
Parent Contract
Parent Award PIID: GS35F0170K
IDV Type: FSS
Timeline
Start Date: 2011-08-31
Current End Date: 2014-10-31
Potential End Date: 2014-10-31 00:00:00
Last Modified: 2014-03-07
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