IRS Spends $210M on Enterprise Storage with SAIC Under Full and Open Competition
Contract Overview
Contract Amount: $209,799,476 ($209.8M)
Contractor: Science Applications International Corp
Awarding Agency: Department of the Treasury
Start Date: 2012-08-30
End Date: 2022-12-28
Contract Duration: 3,772 days
Daily Burn Rate: $55.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE STORAGE ACQUISITION ADD FUNDS. IGF::CL::IGF
Place of Performance
Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430
Plain-Language Summary
Department of the Treasury obligated $209.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORP for work described as: ENTERPRISE STORAGE ACQUISITION ADD FUNDS. IGF::CL::IGF Key points: 1. Significant investment in enterprise storage infrastructure. 2. SAIC is a major IT services provider, indicating established competition. 3. Long contract duration (10 years) may present risks of obsolescence or price creep. 4. Spending falls within the Computer Systems Design Services sector.
Value Assessment
Rating: fair
The contract value of $210M over 10 years averages $21M annually. Benchmarking against similar large-scale enterprise storage acquisitions is difficult without more granular data on scope and technology, but this appears to be a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for this significant IT expenditure.
Public Impact
Ensures IRS data storage capabilities are maintained and potentially upgraded. Supports critical IRS operations and taxpayer services. Potential for technology refresh or obsolescence over the contract's 10-year lifespan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years) may lead to outdated technology.
- Potential for cost overruns if not managed effectively.
- Dependence on a single vendor for critical storage infrastructure.
Positive Signals
- Awarded through full and open competition.
- Supports essential government functions.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls under the Computer Systems Design Services sector, which is a broad category encompassing IT infrastructure and support. Benchmarks for enterprise storage acquisitions of this scale are highly variable depending on specific requirements and market conditions.
Small Business Impact
The data indicates the primary awardee is Science Applications International Corp (SAIC), a large business. There is no explicit information provided regarding small business participation or subcontracting goals within this specific delivery order.
Oversight & Accountability
The contract was awarded by the Department of the Treasury's Internal Revenue Service. Oversight would typically involve contract management officials ensuring performance, adherence to terms, and proper invoicing. The long duration necessitates ongoing monitoring.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Long contract duration (10 years) increases risk of technology obsolescence.
- Potential for price increases or scope creep over the contract's life.
- Dependence on a single vendor for critical infrastructure.
- Lack of specific technology details makes value assessment difficult.
Tags
computer-systems-design-services, department-of-the-treasury, wv, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $209.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORP. ENTERPRISE STORAGE ACQUISITION ADD FUNDS. IGF::CL::IGF
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORP.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $209.8 million.
What is the period of performance?
Start: 2012-08-30. End: 2022-12-28.
What specific enterprise storage technologies were acquired, and how do they align with current IRS needs and future scalability?
The provided data lacks specifics on the exact storage technologies procured. Understanding the technology is crucial to assess if it meets current IRS operational demands and possesses the scalability required for future data growth. Without this detail, evaluating the true value and potential for obsolescence is challenging.
How was the $210M price determined to be fair and reasonable given the 10-year duration and the rapid evolution of storage technology?
The 'fair and reasonable' price determination for a 10-year storage contract requires robust cost analysis, including projections for technological advancements and potential price erosion. The firm fixed price structure offers some certainty, but the initial baseline price needs justification against market trends and anticipated performance.
What mechanisms are in place to ensure the IRS receives modern, efficient storage solutions throughout the contract's 10-year term, rather than outdated technology?
Mechanisms for ensuring technology modernization could include contract clauses for periodic technology reviews, upgrade options, or performance-based metrics tied to storage efficiency and speed. The long duration necessitates proactive contract management to mitigate the risk of acquiring and maintaining obsolete hardware or software.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: TIRNO12Z00016
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Science Applications International Corporation
Address: 11720 PLAZA AMERICA DR, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,813,284,099
Exercised Options: $3,134,615,888
Current Obligation: $209,799,476
Actual Outlays: $86,570,736
Subaward Activity
Number of Subawards: 106
Total Subaward Amount: $52,767,002
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0060
IDV Type: GWAC
Timeline
Start Date: 2012-08-30
Current End Date: 2022-12-28
Potential End Date: 2022-12-28 00:00:00
Last Modified: 2025-04-26
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