Treasury's IRS awards $5.6M for ABIS maintenance, with a 5-year duration

Contract Overview

Contract Amount: $5,635,298 ($5.6M)

Contractor: Datasource, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2020-07-01

End Date: 2025-05-31

Contract Duration: 1,795 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MAINTENANCE OF THE AUTOMATED BACKGROUND INVESTIGATION SYSTEM (ABIS)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $5.6 million to DATASOURCE, INC. for work described as: MAINTENANCE OF THE AUTOMATED BACKGROUND INVESTIGATION SYSTEM (ABIS) Key points: 1. Value for money appears fair given the 5-year contract term and fixed-price nature. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long contract duration and reliance on a single vendor for maintenance. 4. Performance context is critical for ensuring the continuity of the Automated Background Investigation System. 5. Sector positioning is within IT services, specifically computer systems design, a common area for federal IT contracts.

Value Assessment

Rating: fair

The contract's total value of $5.6 million over approximately five years suggests an average annual cost of $1.12 million. Benchmarking this against similar IT maintenance contracts is challenging without more specific service level agreements and scope details. However, the firm fixed-price structure provides cost certainty for the government, which is a positive aspect. The duration of the contract implies a need for stable, long-term support for the ABIS system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but the competitive nature of the award process generally supports price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition contracts.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially leading to cost savings and higher quality outcomes.

Public Impact

The Internal Revenue Service (IRS) benefits from the continued operation and maintenance of the Automated Background Investigation System (ABIS). This contract ensures the delivery of essential IT maintenance services for a critical government system. The geographic impact is primarily within Virginia, where the contractor is located, but the system's function supports national IRS operations. Workforce implications include the employment of IT professionals by the contractor to perform the maintenance tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (5 years) could lead to vendor lock-in and potential price increases in future renewals.
Reliance on a single vendor for maintenance of a critical system may pose continuity risks if the vendor faces financial or operational issues.
The specific scope of 'maintenance' is broad and may not fully capture evolving system needs or potential upgrade requirements.

Positive Signals

Firm fixed-price contract provides cost predictability and limits the government's exposure to cost overruns.
Awarded through full and open competition, suggesting a competitive process that likely yielded a reasonable price.
The contract duration indicates a stable, long-term commitment to maintaining a vital system, ensuring operational continuity.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The federal government is a significant consumer of these services, with substantial annual spending on software development, maintenance, and IT support. The market for these services is competitive, with numerous large and small businesses capable of providing such solutions. This contract represents a portion of the broader federal IT spending aimed at maintaining and modernizing essential government systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The primary contractor, DATASOURCE, INC., is likely a mid-to-large-sized business given the contract value and duration.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the IRS. The firm fixed-price nature of the contract simplifies some aspects of financial oversight by providing cost certainty. Accountability measures are tied to the performance of maintenance services as defined in the contract's statement of work. Transparency is facilitated by the public availability of contract award data, though detailed performance metrics are usually internal.

Related Government Programs

Federal IT Services Contracts
Software Maintenance and Support
Background Investigation Systems
IRS IT Modernization Efforts
Computer Systems Design Services

Risk Flags

Long-term contract duration
Reliance on single vendor for critical system maintenance
Potential for evolving system requirements not fully captured in fixed-price scope

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $5.6 million to DATASOURCE, INC.. MAINTENANCE OF THE AUTOMATED BACKGROUND INVESTIGATION SYSTEM (ABIS)

Who is the contractor on this award?

The obligated recipient is DATASOURCE, 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 $5.6 million.

What is the period of performance?

Start: 2020-07-01. End: 2025-05-31.

What is the track record of DATASOURCE, INC. with federal contracts, particularly with the IRS?

DATASOURCE, INC. has a history of federal contracting, though specific details on their performance with the IRS for the Automated Background Investigation System (ABIS) require deeper analysis of past performance reviews and contract histories. Federal procurement databases often contain award data and sometimes past performance information. A review of their contract portfolio would reveal the types of services they have provided, their success rates, and any reported issues or commendations. For this specific $5.6 million contract, the IRS's decision to award it through full and open competition suggests that DATASOURCE, INC. was deemed a capable and competitive bidder based on their qualifications and past performance, or that the competition itself drove the selection process effectively.

How does the annual cost of this contract compare to similar IT maintenance contracts for government systems?

Comparing the annual cost of approximately $1.12 million ($5.6M / 5 years) for ABIS maintenance requires access to a benchmark database of similar federal IT maintenance contracts. Factors influencing cost include the complexity of the system, the criticality of its function, the required service levels (e.g., uptime guarantees, response times), and the specific technologies involved. Without detailed service level agreements (SLAs) and system complexity metrics for ABIS, a precise comparison is difficult. However, for a system supporting background investigations, which implies high security and reliability needs, this annual cost may be within a reasonable range, especially considering it was awarded via full and open competition.

What are the primary risks associated with a 5-year firm fixed-price contract for system maintenance?

A significant risk with a 5-year firm fixed-price contract for system maintenance is the potential for scope creep or the need for unforeseen upgrades that are not adequately covered by the original agreement. If the system's requirements evolve significantly over the five years, the fixed price might become insufficient to cover the necessary work, leading to potential disputes or the need for contract modifications. Another risk is that the contractor may become complacent or less innovative over the long term, especially if competition for future renewals is perceived as limited. Furthermore, if the contractor's costs increase substantially (e.g., labor, software licensing) beyond what was anticipated, they may struggle to maintain profitability, potentially impacting service quality or leading to requests for contract renegotiation.

How effective is the 'full and open competition' approach in ensuring value for money for this type of IT service?

Full and open competition is generally considered the most effective method for ensuring value for money in federal procurement, including for IT services. By allowing all responsible sources to compete, the government maximizes the potential for receiving competitive bids, which drives down prices and encourages innovation. For this ABIS maintenance contract, the competitive process likely pressured DATASOURCE, INC. to offer a compelling price and service package. However, the ultimate value for money also depends on the clarity of the statement of work, the effectiveness of performance monitoring, and the contractor's ability to deliver as promised throughout the contract's duration. A competitive award is a strong starting point, but ongoing oversight is crucial.

What is the historical spending trend for the Automated Background Investigation System (ABIS) maintenance?

Historical spending data for the ABIS maintenance is not provided in the given data snippet. To assess historical spending trends, one would need to examine previous contracts awarded for the maintenance and support of ABIS. Analyzing these past awards would reveal whether spending has been consistent, increasing, or decreasing over time. It would also help determine if this $5.6 million, 5-year contract represents a significant change in investment for ABIS maintenance compared to previous periods. Understanding these trends is crucial for budget forecasting and identifying potential inefficiencies or escalating costs.

Are there specific performance metrics or KPIs tied to this contract to measure success?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) associated with this contract. Typically, IT maintenance contracts, especially those for critical systems like ABIS, would include detailed performance standards related to system uptime, response times for issue resolution, patch management, and security compliance. The effectiveness of the contractor's performance would be measured against these metrics. The IRS contracting officer and technical monitors are responsible for tracking these KPIs and ensuring the contractor meets the contractual obligations. Without access to the Statement of Work (SOW) or Performance Work Statement (PWS), the specific measures of success remain unknown.

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: 2032H5-20-Q-00063

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Datasource Inc.

Address: 1749 OLD MEADOW RD, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,635,298

Exercised Options: $5,635,298

Current Obligation: $5,635,298

Actual Outlays: $5,635,298

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F410GA

IDV Type: FSS

Timeline