SAIC's TIPSS-2 contract awarded $12.6M to Leidos, Inc. for IT support services
Contract Overview
Contract Amount: $12,640,294 ($12.6M)
Contractor: Leidos, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2003-11-20
End Date: 2006-09-30
Contract Duration: 1,045 days
Daily Burn Rate: $12.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SAIC, TIPSS-2
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002
Plain-Language Summary
Department of the Treasury obligated $12.6 million to LEIDOS, INC. for work described as: SAIC, TIPSS-2 Key points: 1. The contract's value of $12.6M over its period of performance suggests a moderate investment in IT support. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The contract was awarded to Leidos, Inc., a large federal contractor with a significant presence in the IT sector. 4. The duration of the contract (1045 days) allowed for sustained IT support delivery. 5. The Cost Plus Fixed Fee (CPFF) pricing structure can incentivize contractors to manage costs effectively while ensuring a defined profit margin. 6. The contract's focus on IT support aligns with the ongoing need for technological infrastructure maintenance and enhancement within federal agencies.
Value Assessment
Rating: good
The contract's total value of $12.6M over approximately three years represents a moderate expenditure for IT support services. Benchmarking against similar large-scale IT support contracts within the federal government, this amount appears reasonable, especially considering the scope of services typically required by an agency like the IRS. The CPFF structure, while requiring careful oversight, can be effective in managing costs for complex IT projects where the exact scope may evolve. Without specific details on the services rendered, a precise value-for-money assessment is challenging, but the competitive award process suggests a degree of price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The fact that it was fully competed suggests that the agency sought to maximize value and innovation by engaging a broad range of potential contractors. The specific number of bidders is not provided, but the method of competition itself is a positive indicator for price discovery and potential cost savings for the government.
Taxpayer Impact: A full and open competition allows taxpayers to benefit from potentially lower prices and higher quality services due to the competitive pressure on bidders. It ensures that the government is not limited to a single provider, which could lead to inflated costs or reduced service levels.
Public Impact
The primary beneficiaries of this contract are the agencies and personnel within the Department of the Treasury, specifically the Internal Revenue Service (IRS), who received essential IT support. The services delivered likely included maintenance, upgrades, and support for the IRS's critical IT infrastructure, ensuring operational continuity. The geographic impact is centered around the District of Columbia, where the IRS's primary operations and IT needs are often concentrated. The contract supported the IT workforce, potentially involving skilled technicians, engineers, and project managers employed by Leidos, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to fully assess the effectiveness and efficiency of the IT support provided.
- The CPFF contract type can sometimes lead to cost overruns if not managed diligently by the government.
- Limited information on the specific scope of work makes it challenging to compare the value received against the expenditure.
Positive Signals
- Awarded through full and open competition, suggesting a robust and fair bidding process.
- Leidos, Inc. is a well-established contractor with a proven track record in federal IT services.
- The contract duration allowed for stable and consistent IT support, minimizing disruptions.
Sector Analysis
The Information Technology sector within the federal government is characterized by continuous evolution and significant spending. Contracts like TIPSS-2 are crucial for maintaining and modernizing the complex IT systems that underpin agency operations. The market for IT services is highly competitive, with numerous large and small businesses vying for government contracts. Spending in this sector often focuses on areas such as software development, cybersecurity, cloud computing, and IT infrastructure support, reflecting the increasing reliance on digital solutions. The $12.6M award to Leidos, Inc. for IT support services falls within the typical range for such contracts, supporting the operational needs of a major federal agency.
Small Business Impact
This contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. Therefore, its direct impact on small business set-asides is likely minimal. However, as a large prime contractor, Leidos, Inc. may have subcontracting opportunities for small businesses as part of its overall contract performance. The extent to which small businesses were involved as subcontractors would depend on the specific requirements and the prime contractor's subcontracting plan, which is not detailed here. The absence of a small business set-aside suggests the primary focus was on obtaining the best overall solution from the broadest possible pool of offerors.
Oversight & Accountability
Oversight for this contract would have been the responsibility of the contracting officer and the relevant program managers within the Department of the Treasury. The CPFF structure necessitates close monitoring of costs and performance to ensure that the fixed fee remains appropriate and that the overall cost does not exceed expectations. Transparency would be facilitated through contract reporting mechanisms and potentially through the Federal Procurement Data System (FPDS). Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arose during the contract's performance.
Related Government Programs
- General Services Administration (GSA) IT Schedule Contracts
- Department of Defense (DoD) IT Support Contracts
- National Institutes of Health (NIH) Information Technology Acquisition and Assessment Center (NITAAC) Contracts
- Other agency-specific IT support vehicles
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage potential cost escalations.
- Limited public information on specific performance metrics makes it difficult to fully assess value for money.
- The contract was awarded to a large prime contractor, raising questions about potential subcontracting opportunities for small businesses.
Tags
it, department-of-the-treasury, internal-revenue-service, cost-plus-fixed-fee, full-and-open-competition, large-contract, it-support, district-of-columbia, leidos-inc, saic, tips-2
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $12.6 million to LEIDOS, INC.. SAIC, TIPSS-2
Who is the contractor on this award?
The obligated recipient is LEIDOS, 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 $12.6 million.
What is the period of performance?
Start: 2003-11-20. End: 2006-09-30.
What was the specific scope of IT services provided under the TIPSS-2 contract?
The provided data does not detail the specific scope of IT services rendered under the SAIC TIPSS-2 contract awarded to Leidos, Inc. Generally, IT support contracts of this nature encompass a wide range of activities, including but not limited to, help desk support, network administration, system maintenance and upgrades, cybersecurity services, software development and maintenance, and IT infrastructure management. For the IRS, these services would be critical for maintaining the operational integrity of their tax processing systems, taxpayer databases, and internal communication networks. A more granular understanding of the Statement of Work (SOW) would be necessary to fully assess the contract's objectives and outcomes.
How does the $12.6 million award compare to other similar IT support contracts for federal agencies of the IRS's size?
The $12.6 million award for the TIPSS-2 contract, spanning approximately three years (1045 days), represents a moderate investment for IT support services. Federal agencies like the IRS, with vast and complex IT infrastructures, often engage in IT support contracts ranging from a few million to hundreds of millions of dollars annually, depending on the scope and duration. For instance, large-scale enterprise-wide IT modernization or sustainment programs can easily exceed tens or hundreds of millions. This $12.6 million figure suggests a focused scope of support, perhaps for a specific division, system, or set of services, rather than an all-encompassing IT enterprise support contract. Without knowing the precise services and deliverables, a direct comparison is challenging, but it appears to be within a reasonable range for targeted IT support.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for IT services?
The Cost Plus Fixed Fee (CPFF) contract type, used for the TIPSS-2 contract, presents specific risks. For the government, the primary risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the final cost incurred. This can lead to potential cost overruns if the government's oversight is not rigorous. Contractors, on the other hand, bear the risk of underestimating costs, as they are reimbursed for actual costs incurred but only receive a predetermined fixed fee. This can lead to reduced profit margins or even losses if costs escalate beyond projections. Effective risk mitigation for the government involves robust cost monitoring, detailed performance metrics, and clear communication channels to ensure the contractor remains focused on efficiency and value delivery.
What is Leidos, Inc.'s track record with federal IT support contracts?
Leidos, Inc. (formerly Lockheed Martin Information Systems & Global Solutions) is a major federal contractor with extensive experience in providing IT support services across various government agencies. They have a well-established track record in areas such as enterprise IT, cloud computing, cybersecurity, data analytics, and mission-critical systems support. Their portfolio includes numerous large-scale contracts with agencies like the Department of Defense, NASA, and the Department of Homeland Security, among others. Given their size and specialization, Leidos is generally considered a capable provider of complex IT solutions. However, as with any large contractor, performance can vary by contract, and specific contract performance data would be needed for a detailed assessment of their success on this particular TIPSS-2 contract.
How has federal spending on IT support services evolved over the period this contract was active (2003-2006)?
Federal spending on IT support services during the period of this contract (2003-2006) was on a significant upward trajectory, reflecting the increasing digitization of government operations and the growing reliance on technology. This era saw a push towards enterprise resource planning (ERP) systems, enhanced cybersecurity measures, and the early stages of IT infrastructure consolidation and modernization. Agencies were investing heavily in maintaining and upgrading legacy systems while also exploring new technologies. The overall federal IT budget was substantial and growing, driven by national security needs, economic stimulus initiatives, and the demand for more efficient government services. Contracts like TIPSS-2 were part of this broader trend of sustained investment in IT capabilities across the federal government.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 10260 CAMPUS POINT DR, SAN DIEGO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $226,733,878
Exercised Options: $21,182,253
Current Obligation: $12,640,294
Parent Contract
Parent Award PIID: TIRNO00D00021
IDV Type: IDC
Timeline
Start Date: 2003-11-20
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2012-06-04
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