Treasury's IRS awards $35.1M SPAR II contract to Deloitte Consulting LLP for Engineering Services

Contract Overview

Contract Amount: $35,141,737 ($35.1M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of the Treasury

Start Date: 2021-09-30

End Date: 2026-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STRATEGIC PRIORITIES AND ACCELERATED RESULTS II (SPAR II)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $35.1 million to DELOITTE CONSULTING LLP for work described as: STRATEGIC PRIORITIES AND ACCELERATED RESULTS II (SPAR II) Key points: 1. Deloitte Consulting LLP secured a significant contract valued at $35.1 million. 2. The contract was awarded under full and open competition, indicating a competitive bidding process. 3. The primary risk appears to be the reliance on a single vendor for a substantial period. 4. The sector is Engineering Services, supporting the Internal Revenue Service's strategic priorities.

Value Assessment

Rating: good

The contract's value of $35.1 million for a 5-year period seems reasonable given the scope of 'Strategic Priorities and Accelerated Results II'. Benchmarking against similar large-scale consulting and engineering service contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

Enhances IRS strategic priorities and accelerates results through engineering services. Supports critical government functions within the Department of the Treasury. Long-term contract (5 years) provides stability for project execution and vendor relationship.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may limit flexibility for future technological shifts.
Potential for vendor lock-in despite initial open competition.

Positive Signals

Awarded via full and open competition.
Firm Fixed Price contract type provides cost certainty.

Sector Analysis

The Engineering Services sector (NAICS 541330) encompasses a wide range of professional services. This contract's value of $35.1 million over five years falls within the typical range for large-scale federal engineering and consulting engagements.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is Deloitte Consulting LLP, a large business. There is no direct indication of small business participation in this specific award.

Oversight & Accountability

The contract is a delivery order under a larger IDIQ or similar vehicle, suggesting some level of pre-qualification. Oversight will be crucial to ensure the IRS achieves its strategic priorities and results effectively within the defined budget.

Related Government Programs

Engineering Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Long-term commitment may not adapt well to rapid technological change.
Potential for vendor lock-in despite initial competition.
Lack of explicit small business participation noted.
Scope definition for 'Engineering Services' is broad and requires clear definition of deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $35.1 million to DELOITTE CONSULTING LLP. STRATEGIC PRIORITIES AND ACCELERATED RESULTS II (SPAR II)

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $35.1 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-09-29.

What specific engineering services are included under SPAR II, and how do they align with the IRS's current strategic objectives?

The SPAR II contract likely encompasses a broad range of engineering and technical consulting services aimed at improving the IRS's operational efficiency, technological infrastructure, and strategic program execution. Specific services could include systems engineering, process improvement, IT modernization support, and project management. Alignment with IRS objectives would involve ensuring these services directly contribute to tax administration modernization, enhanced taxpayer services, and improved data security.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure value for money?

Key performance indicators would likely focus on project milestones, delivery timelines, quality of deliverables, and cost control. Measurement would involve regular progress reviews, performance assessments against contract requirements, and potentially user satisfaction surveys. Ensuring value for money requires rigorous monitoring of these KPIs to confirm that the services provided are meeting or exceeding expectations and contributing to the IRS's strategic goals effectively.

Given the 5-year duration, what mechanisms are in place to ensure the services remain relevant and effective amidst evolving technological landscapes?

Mechanisms for ensuring relevance could include contract clauses allowing for scope adjustments based on technological advancements, regular technical reviews, and performance-based incentives tied to innovation. The firm-fixed-price nature, combined with potential for modifications, allows for adaptation. However, proactive government oversight and vendor collaboration are essential to anticipate and integrate emerging technologies throughout the contract lifecycle.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,141,737

Exercised Options: $35,141,737

Current Obligation: $35,141,737

Actual Outlays: $31,709,852

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $9,189,474

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU113

IDV Type: IDC

Timeline