Treasury's IRS awards $205M ITAMS & ESM Support contract to General Dynamics IT
Contract Overview
Contract Amount: $204,989,136 ($205.0M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2010-03-31
End Date: 2015-02-27
Contract Duration: 1,794 days
Daily Burn Rate: $114.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: CSC ITAMS&ESM SUPPORT THRU FY10
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $205.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CSC ITAMS&ESM SUPPORT THRU FY10 Key points: 1. Contract value of $205M over 5 years. 2. General Dynamics IT is the sole awardee. 3. The contract falls under Computer Systems Design Services (NAICS 541512). 4. Awarded via Full and Open Competition.
Value Assessment
Rating: good
The contract's Cost Plus Incentive Fee (CPIF) structure allows for shared savings, potentially driving efficiency. The total award value of $205M over nearly 5 years suggests a significant investment in IT support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through Full and Open Competition, indicating a robust price discovery process. The use of Delivery Orders (aw) suggests task-based awards against a larger contract vehicle.
Taxpayer Impact: The competitive nature of the award aims to ensure taxpayer funds are used efficiently for essential IT support services.
Public Impact
Ensures continued IT support for the Internal Revenue Service's critical systems. Supports the modernization and maintenance of tax administration technology. Impacts taxpayers through the efficiency and reliability of IRS IT operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is substantial (1794 days).
- No small business participation noted.
- Cost Plus Incentive Fee can lead to cost overruns if not managed carefully.
Positive Signals
- Awarded via Full and Open Competition.
- CPIF structure incentivizes cost savings.
- Supports critical IRS IT infrastructure.
Sector Analysis
This contract falls within the IT services sector, specifically Computer Systems Design Services. Spending benchmarks for similar IT support contracts vary widely based on scope and complexity, but $205M over five years represents a substantial investment.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is likely a large business, and there's no explicit mention of subcontracting goals for small businesses.
Oversight & Accountability
The use of Delivery Orders against a competitively awarded contract provides a degree of oversight. However, the CPIF structure requires diligent monitoring by the agency to ensure cost controls and performance targets are met.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- No small business participation.
- Long contract duration.
- Potential for cost overruns with CPIF.
- Reliance on a single vendor for critical IT support.
Tags
computer-systems-design-services, department-of-the-treasury, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $205.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CSC ITAMS&ESM SUPPORT THRU FY10
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 $205.0 million.
What is the period of performance?
Start: 2010-03-31. End: 2015-02-27.
What specific ITAMS & ESM systems are covered by this contract, and what is the projected impact on IRS operational efficiency?
The contract covers IT Asset Management Systems (ITAMS) and Enterprise Service Management (ESM) support. These systems are crucial for managing the IRS's technology infrastructure, software licenses, and service delivery. Improved efficiency is expected through streamlined IT operations, reduced downtime, and better resource allocation, ultimately supporting the IRS's mission to administer tax laws effectively.
Given the CPIF structure, what are the key performance indicators (KPIs) and incentive targets that General Dynamics IT must meet to achieve maximum fee?
While specific KPIs are not detailed in the provided data, CPIF contracts typically tie incentives to performance metrics such as system uptime, response times for service requests, project completion milestones, and adherence to budget targets. The IRS would have established specific, measurable, achievable, relevant, and time-bound (SMART) goals within the contract's Statement of Work (SOW) to govern the incentive fee payout.
How does the $205M award value compare to historical spending on similar IT support services by the IRS or other large federal agencies?
A $205M award over five years for comprehensive ITAMS & ESM support is a significant but not unprecedented figure for a large federal agency like the IRS. Benchmarking requires comparing it against contracts with similar scope, duration, and service complexity. Factors like the specific technologies supported, the number of users, and the criticality of the systems influence cost. Without detailed comparisons, it's difficult to definitively label it high or low, but it reflects a substantial commitment to IT infrastructure.
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)
Contractor Details
Parent Company: Csra LLC (UEI: 080011988)
Address: MARYLAND TECHNOLOGY CENTER, LANHAM, MD, 20706
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $204,989,136
Exercised Options: $204,989,136
Current Obligation: $204,989,136
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: TIRNO99D00001
IDV Type: IDC
Timeline
Start Date: 2010-03-31
Current End Date: 2015-02-27
Potential End Date: 2015-02-27 00:00:00
Last Modified: 2017-07-17
More Contracts from General Dynamics Information Technology, Inc.
- Global Security Engineering&supply Chain Services — $1.5B (Department of State)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (Department of State)
- Cloud Products&tools (CPT) — $902.0M (Department of Health and Human Services)
- Beneficiary Contact Center Operations — $879.1M (Department of Health and Human Services)
- Award of Task Order 47qfca210051-Nawcad Wolf Ship and AIR C5isr Systems Support — $832.3M (General Services Administration)
View all General Dynamics Information Technology, Inc. federal contracts →
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)