Treasury's $14.5M contract for PPM Contract Support awarded to Innovative Management Concepts, Inc

Contract Overview

Contract Amount: $14,543,043 ($14.5M)

Contractor: Innovative Management Concepts, Inc

Awarding Agency: Department of the Treasury

Start Date: 2020-02-01

End Date: 2025-03-31

Contract Duration: 1,885 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PPM CONTRACT SUPPORT

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $14.5 million to INNOVATIVE MANAGEMENT CONCEPTS, INC for work described as: PPM CONTRACT SUPPORT Key points: 1. Value for money appears fair given the 1885-day duration and firm-fixed-price structure. 2. Competition was conducted via full and open competition after exclusion of sources, suggesting a deliberate selection process. 3. Risk indicators are moderate, with a long performance period and a single award. 4. Performance context shows this is a delivery order under a larger contract. 5. Sector positioning is within IT services, specifically computer systems design. 6. The contract's duration of nearly five years warrants close monitoring of performance and cost efficiency.

Value Assessment

Rating: fair

The contract value of $14.5 million over approximately 1885 days suggests an average annual spend of around $7.7 million. Benchmarking this against similar IT support contracts is challenging without more specific service details. However, the firm-fixed-price structure provides cost certainty for the government. The award to a single contractor for this duration implies a focus on established capability, but also limits opportunities for competitive re-evaluation during the performance period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded based on pre-defined criteria. The number of bidders is not specified, but the 'exclusion of sources' phrasing suggests a potentially narrowed field compared to a completely unrestricted full and open competition. This could impact price discovery if fewer than expected vendors were able to participate.

Taxpayer Impact: While the competition was broad, the exclusion of certain sources might have limited the number of competitive bids, potentially impacting the most favorable pricing for taxpayers.

Public Impact

The primary beneficiaries are likely the Department of the Treasury and the Internal Revenue Service, receiving essential computer systems design services. The services delivered are critical for the operational efficiency and management of contract support functions within the agency. The geographic impact is centered around the contractor's location and the agency's operational hubs, likely within Maryland (ST: MD). Workforce implications include the creation or maintenance of jobs for individuals with expertise in computer systems design and management consulting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1885 days) increases the risk of cost overruns if not managed effectively.
Potential for vendor lock-in due to the extended performance period.
Limited transparency on the specific 'excluded sources' could obscure the full competitive landscape.

Positive Signals

Firm-fixed-price contract type provides budget certainty.
Awarded through a full and open competition, indicating a structured procurement process.
Contractor has a significant duration to demonstrate performance and build institutional knowledge.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under Computer Systems Design Services (NAICS 541512). This is a large and competitive market driven by government and commercial demand for IT infrastructure, software development, and systems integration. The contract value of $14.5 million is moderate within the broader IT services landscape, but significant for a single delivery order. Comparable spending benchmarks would depend on the specific nature of the 'PPM Contract Support' services.

Small Business Impact

The data indicates that small business participation (SB: false) was not a primary set-aside consideration for this contract. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the required IT services from a capable vendor, rather than specifically promoting small business engagement through this particular award.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Department of the Treasury's Internal Revenue Service. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through contract databases like FPDS, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
Contract Administration Support
Systems Integration Services
Management and Consulting Services
Federal IT Procurement

Risk Flags

Long contract duration
Single award vehicle
Potential for vendor lock-in
Limited visibility into specific excluded sources

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $14.5 million to INNOVATIVE MANAGEMENT CONCEPTS, INC. PPM CONTRACT SUPPORT

Who is the contractor on this award?

The obligated recipient is INNOVATIVE MANAGEMENT CONCEPTS, 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 $14.5 million.

What is the period of performance?

Start: 2020-02-01. End: 2025-03-31.

What is the specific nature of the 'PPM Contract Support' services being provided?

The provided data identifies the contract's North American Industry Classification System (NAICS) code as 541512, which corresponds to 'Computer Systems Design Services.' This suggests the support involves the design, development, integration, and potentially maintenance of computer systems. 'PPM' likely refers to Project Portfolio Management or Program Planning and Management, indicating that the services are focused on supporting the agency's management of its various projects or programs through IT systems. This could encompass software development, system configuration, data analysis, or IT consulting related to project execution and oversight.

How does the awarded price compare to market rates for similar IT systems design services?

Directly comparing the awarded price to market rates is difficult without granular details on the specific services rendered under 'PPM Contract Support.' However, the contract's total value of $14.5 million over approximately 1885 days (about 5.16 years) implies an average annual value of roughly $2.8 million. This figure needs to be assessed against the complexity, scope, and criticality of the systems being designed or supported. Given the firm-fixed-price nature, the government has a defined cost ceiling. Further analysis would require benchmarking against government-wide IT services contracts or industry reports for comparable system design and management support.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for Computer Systems Design Services and contract support, KPIs might include system uptime, response times for issue resolution, successful project completion rates, adherence to budget and schedule for specific tasks, user satisfaction, and compliance with security protocols. The contracting officer and program managers within the IRS would be responsible for monitoring these KPIs and ensuring the contractor meets the performance standards outlined in the contract's Performance Work Statement (PWS).

What is the track record of Innovative Management Concepts, Inc. with federal contracts, particularly in IT services?

Innovative Management Concepts, Inc. (IMC) has a history of receiving federal contracts. While the provided data doesn't detail their entire contract history, its award for 'PPM Contract Support' under NAICS 541512 suggests experience in IT services. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would reveal the full scope of their past performance, including contract values, agencies served, types of services rendered, and performance ratings. Examining their past performance on similar IT system design or management support contracts would provide insight into their reliability and capability.

What are the potential risks associated with a single award contract of this duration?

A single award contract, especially one spanning nearly five years (1885 days), carries several potential risks. Firstly, there's a risk of vendor complacency or reduced innovation over time, as the contractor may feel less pressure to continuously improve services compared to a more competitive environment. Secondly, if the contractor experiences financial difficulties or significant operational issues, the government has limited immediate alternatives, potentially leading to service disruptions. Thirdly, the government may miss out on potentially better pricing or innovative solutions that could emerge from subsequent competitive procurements. Finally, 'key personnel' risk is heightened; if critical employees leave the contractor, it could significantly impact service delivery.

How does this contract align with the IRS's broader IT modernization or strategic goals?

The contract for 'PPM Contract Support' in Computer Systems Design Services likely aligns with the IRS's ongoing efforts to modernize its IT infrastructure and improve its ability to manage complex projects and programs. Effective Project Portfolio Management (PPM) is crucial for ensuring that IT investments are aligned with strategic objectives, resources are allocated efficiently, and projects are delivered on time and within budget. This contract could be supporting the development or enhancement of systems that provide visibility into the IT project pipeline, track progress, manage risks, and facilitate decision-making, all of which are vital for a large agency undergoing transformation.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 428 HONAKER RD, BLAIRSVILLE, GA, 30512

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Service Disabled Veteran Owned Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,543,043

Exercised Options: $14,543,043

Current Obligation: $14,543,043

Actual Outlays: $14,543,015

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $6,138,728

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCH18D0028

IDV Type: GWAC

Timeline