Treasury's $38.7M IRS Contract for Computer Systems Design Services Awarded to General Dynamics
Contract Overview
Contract Amount: $38,724,162 ($38.7M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2006-05-02
End Date: 2021-07-16
Contract Duration: 5,554 days
Daily Burn Rate: $7.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: PRIME CONTRACT - CADE RELEASE 3
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $38.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PRIME CONTRACT - CADE RELEASE 3 Key points: 1. The contract, valued at $38.7 million, was awarded to General Dynamics Information Technology, Inc. 2. It falls under the Computer Systems Design Services NAICS code (541512). 3. The contract utilized full and open competition, suggesting a competitive bidding process. 4. The period of performance spanned from May 2006 to July 2021, indicating a long-term engagement.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee (CPIF), which can lead to cost overruns if not managed carefully. Benchmarking CPIF contracts for similar services is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the CPIF contract type introduces potential for costs to exceed initial estimates.
Taxpayer Impact: The competitive award process likely aimed to secure fair market value, but the CPIF structure necessitates careful oversight to ensure taxpayer funds are used efficiently.
Public Impact
Impacts IRS's ability to maintain and design its computer systems. Long contract duration suggests critical and ongoing IT support needs. Potential for technology evolution and system upgrades over the contract's lifespan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPIF contract type can incentivize higher costs.
- Long performance period may not reflect current technology needs.
- No indication of small business participation.
Positive Signals
- Awarded via full and open competition.
- Long-term engagement indicates sustained need for services.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government agencies, with benchmarks varying based on complexity and service scope.
Small Business Impact
The data indicates that this contract was not awarded to a small business (sb: false). There is no specific information provided regarding subcontracting opportunities for small businesses.
Oversight & Accountability
The contract utilized a Cost Plus Incentive Fee structure, which requires robust oversight from the agency to ensure cost control and performance targets are met. The long duration also implies ongoing monitoring.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) contract type.
- Long contract duration (15 years).
- No small business participation indicated.
- Lack of detailed cost performance data.
- Potential for technology obsolescence over time.
Tags
computer-systems-design-services, department-of-the-treasury, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $38.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. PRIME CONTRACT - CADE RELEASE 3
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $38.7 million.
What is the period of performance?
Start: 2006-05-02. End: 2021-07-16.
What were the key performance metrics and incentive structures within the Cost Plus Incentive Fee arrangement, and how effectively were they managed to control costs?
The provided data does not detail the specific performance metrics or incentive structures of the Cost Plus Incentive Fee (CPIF) arrangement. Effective management of CPIF contracts relies heavily on clear, measurable performance standards and rigorous oversight by the contracting officer to ensure that incentives align with desired outcomes without unduly inflating costs. Without this information, assessing cost control effectiveness is challenging.
Given the 15-year performance period, how did the IRS ensure the IT systems and services remained current and effective against evolving technological landscapes?
The long 15-year performance period suggests a need for adaptive contract management. Agencies typically address evolving technology through contract modifications, option periods, or by incorporating clauses that allow for technology refreshes and service level adjustments. Regular reviews and potential re-competition of services would be crucial to ensure the IRS's IT infrastructure remained effective and aligned with current technological advancements.
What was the total cost growth or savings realized under this CPIF contract compared to initial projections, and how did this impact overall value for the IRS?
The data does not provide information on the initial projections or the final cost growth/savings for this Cost Plus Incentive Fee (CPIF) contract. CPIF contracts are designed to share risks and rewards between the government and contractor, aiming for cost efficiency. However, without specific financial performance data, it's impossible to assess the actual value realized or the impact of cost variations on the IRS's budget.
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
Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: MARYLAND TECHNOLOGY CENTER, LANHAM, MD, 20706
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $77,679,130
Exercised Options: $77,679,130
Current Obligation: $38,724,162
Actual Outlays: $2,353
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: TIRNO99D00001
IDV Type: IDC
Timeline
Start Date: 2006-05-02
Current End Date: 2021-07-16
Potential End Date: 2021-07-16 00:00:00
Last Modified: 2021-08-20
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