Treasury's IRS awards $46.8M for computer systems design, emphasizing firm fixed-price contracts
Contract Overview
Contract Amount: $46,828,144 ($46.8M)
Contractor: Science Applications International Corporation
Awarding Agency: Department of the Treasury
Start Date: 2023-09-29
End Date: 2025-12-02
Contract Duration: 795 days
Daily Burn Rate: $58.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TCLOUD BPA ORDER 0001
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $46.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION for work described as: TCLOUD BPA ORDER 0001 Key points: 1. The contract value of $46.8M for computer systems design services represents a significant investment in IT infrastructure. 2. The use of a Firm Fixed Price (FFP) contract type suggests a clear scope of work and predictable costs. 3. Awarded under a BPA Call, this indicates a streamlined procurement process leveraging existing agreements. 4. The duration of 795 days points to a medium-term project requiring sustained support. 5. The absence of small business set-asides warrants further investigation into subcontracting opportunities. 6. Virginia is the primary location for this contract, potentially impacting the local tech workforce.
Value Assessment
Rating: good
The contract value of $46.8M for computer systems design services is substantial. Benchmarking against similar contracts for IT systems design and integration services is crucial for a precise value assessment. The firm fixed-price nature of the award suggests that the government has a well-defined scope, which can lead to better cost control compared to cost-reimbursement contracts. However, without specific performance metrics or comparisons to industry benchmarks for similar services, a definitive value-for-money judgment remains preliminary.
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 offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. The use of a BPA Call suggests that the underlying Blanket Purchase Agreement (BPA) itself was competed, further supporting a competitive award process.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and increasing the likelihood of selecting the best value solution.
Public Impact
The Internal Revenue Service (IRS) is the primary beneficiary, likely receiving enhanced computer systems and design services to support its operations. The services delivered are focused on computer systems design, which could encompass software development, system integration, or IT infrastructure improvements. The contract is geographically focused in Virginia, potentially creating or sustaining jobs within the state's technology sector. Federal employees and taxpayers will benefit from potentially more efficient and modern IRS systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the number of bidders in the full and open competition limits the assessment of competitive intensity.
- The absence of small business set-aside information raises questions about opportunities for small businesses to participate in this significant contract.
- The duration of the contract (795 days) requires ongoing monitoring to ensure continued value and performance.
Positive Signals
- Awarded under a BPA Call suggests a potentially efficient procurement process, leveraging pre-competed agreements.
- The Firm Fixed Price contract type provides cost certainty for the government, reducing financial risk.
- Full and open competition generally leads to a wider range of solutions and potentially better pricing.
Sector Analysis
The computer systems design services sector is a critical component of the IT industry, supporting government and private sector modernization efforts. This contract falls within the broader IT services market, which is characterized by rapid technological advancements and a diverse range of specialized providers. Spending in this area is often driven by the need for system upgrades, cybersecurity enhancements, and the implementation of new digital capabilities. Comparable spending benchmarks would typically involve analyzing IT services contracts awarded by other federal agencies for similar system design and integration projects.
Small Business Impact
This contract does not appear to have a specific small business set-aside. The absence of explicit small business participation goals or set-asides suggests that opportunities for small businesses may be limited to subcontracting roles, if any. Further analysis would be needed to determine if subcontracting plans are in place or if the prime contractor has a history of engaging small businesses. The impact on the small business ecosystem depends heavily on the subcontracting provisions and the prime contractor's outreach efforts.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and program managers within the IRS. As a BPA Call order, the underlying BPA likely has established oversight mechanisms. Transparency is facilitated by public contract databases, but detailed performance reports and specific oversight activities are not publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- IT Systems Modernization
- Cloud Computing Services (if BPA is cloud-related)
- Enterprise Resource Planning (ERP) Systems
- Software Development Services
- IT Consulting Services
Risk Flags
- Potential for scope creep if requirements evolve significantly under FFP.
- Risk of contractor performance issues if scope is not well-defined.
- Limited visibility into specific competition details (number of bidders).
- Uncertainty regarding small business participation and subcontracting.
Tags
it-services, computer-systems-design, science-applications-international-corporation, department-of-the-treasury, internal-revenue-service, firm-fixed-price, full-and-open-competition, bpa-call, virginia, federal-contract, it-modernization, tcloud
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $46.8 million to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. TCLOUD BPA ORDER 0001
Who is the contractor on this award?
The obligated recipient is SCIENCE APPLICATIONS INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $46.8 million.
What is the period of performance?
Start: 2023-09-29. End: 2025-12-02.
What is the specific nature of the computer systems design services being procured under this BPA Call?
The provided data indicates the contract is for 'Computer Systems Design Services' (NAICS code 541512) awarded to SCIENCE APPLICATIONS INTERNATIONAL CORPORATION. While the specific tasks are not detailed, this category typically includes services such as designing and integrating hardware and software systems, developing custom software, and providing IT infrastructure consulting. Given the agency is the IRS, these services could relate to tax processing systems, data management, cybersecurity enhancements, or modernization of existing IT infrastructure to improve efficiency and taxpayer services. Further details would likely be found in the Statement of Work (SOW) associated with the BPA Call.
How does the $46.8M contract value compare to typical spending for similar IRS IT projects?
A direct comparison of the $46.8M contract value requires access to historical IRS IT spending data and benchmarks for similar 'Computer Systems Design Services' contracts. The IRS, like many large federal agencies, invests heavily in IT to manage complex operations and vast amounts of data. This value is substantial but not necessarily out of line for a multi-year IT systems design project supporting a critical agency function. Benchmarking would involve looking at the number of bidders, contract duration, and specific deliverables of comparable contracts to assess if the pricing is competitive and reflects fair market value for the scope of work.
What are the potential risks associated with a Firm Fixed Price (FFP) contract of this magnitude and duration?
While FFP contracts offer cost certainty, risks can arise if the scope of work is not precisely defined or if unforeseen technical challenges emerge. For a $46.8M contract over approximately two years (ending Dec 2025), the primary risk is that the contractor may encounter difficulties in meeting the FFP requirements without incurring significant cost overruns, potentially leading to pressure to reduce quality or scope. Conversely, if the scope is too narrowly defined, the government might not receive all necessary services if requirements evolve. Effective project management, clear communication, and robust change control processes are crucial to mitigate these risks.
What does the 'TCLOUD BPA ORDER 0001' designation imply about the nature of the services?
The 'TCLOUD BPA ORDER 0001' designation strongly suggests that this contract is an order placed under a Blanket Purchase Agreement (BPA) specifically related to cloud services or cloud-enabling technologies. The 'TCLOUD' likely refers to a Treasury-wide cloud initiative or contract vehicle. This implies that the computer systems design services procured might be in support of migrating systems to the cloud, managing cloud environments, developing cloud-native applications, or integrating existing systems with cloud infrastructure. This aligns with the broader federal trend towards cloud adoption for scalability, flexibility, and cost-efficiency.
What is the significance of this contract being awarded via a BPA Call?
Awarding this contract via a BPA Call signifies that the underlying Blanket Purchase Agreement (BPA) was previously established through a competitive process. A BPA is a simplified way to fill anticipated repetitive needs for supplies or services. By issuing an order against an existing BPA, the agency can often expedite the procurement process compared to a full, open-competition solicitation from scratch. This suggests that the requirements were anticipated, and a pre-vetted list of vendors (or a framework for competition) was already in place, potentially leading to faster delivery and administrative savings.
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 › IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12010, SUNSET HILLS ROAD, 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: $64,550,008
Exercised Options: $46,828,144
Current Obligation: $46,828,144
Actual Outlays: $46,826,508
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $25,120,001
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 2032H523A00010
IDV Type: BPA
Timeline
Start Date: 2023-09-29
Current End Date: 2025-12-02
Potential End Date: 2025-12-12 00:00:00
Last Modified: 2026-01-21
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