Treasury's $13.5M Contract with CSRA for IT Services: A Deep Dive into Value and Competition

Contract Overview

Contract Amount: $13,552,925 ($13.6M)

Contractor: Csra Systems & Solutions LLC

Awarding Agency: Department of the Treasury

Start Date: 2001-09-15

End Date: 2006-05-25

Contract Duration: 1,713 days

Daily Burn Rate: $7.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $13.6 million to CSRA SYSTEMS & SOLUTIONS LLC for work described as: Key points: 1. Significant contract value of $13.5 million awarded to CSRA SYSTEMS & SOLUTIONS LLC. 2. The contract falls under NAICS code 541519 (Other Computer Related Services), indicating a focus on IT services. 3. Awarded as 'NOT COMPETED', raising questions about the procurement process and potential lack of competitive pricing. 4. The contract duration of 1713 days (approx. 4.7 years) suggests a long-term need for these services.

Value Assessment

Rating: questionable

The contract's value of $13.5 million for 'Other Computer Related Services' needs benchmarking against similar IT service contracts. Without competitive bidding, it's difficult to ascertain if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded using a sole-source procurement method ('NOT COMPETED'). This limits price discovery and potentially leads to higher costs for taxpayers as competition is bypassed.

Taxpayer Impact: The lack of competition in this $13.5 million contract may result in taxpayers paying more than necessary for the IT services received.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding on this $13.5 million IT services contract. The IRS's reliance on a sole-source provider for nearly five years could indicate a lack of strategic sourcing or vendor lock-in. Citizens expect transparency and efficiency in government spending; sole-source contracts warrant closer scrutiny to ensure accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award bypasses competition
Potential for overpayment due to lack of competitive pricing
Long contract duration without competition
Lack of transparency in procurement

Positive Signals

Contract awarded to a specific company, potentially meeting a unique need
Firm Fixed Price contract type can provide cost certainty if negotiated well

Sector Analysis

The IT services sector is highly competitive, with numerous vendors capable of providing 'Other Computer Related Services'. A $13.5 million contract of this nature typically benefits from competitive bidding to ensure optimal value for taxpayer dollars.

Small Business Impact

The award to CSRA SYSTEMS & SOLUTIONS LLC, a large business, does not appear to include specific provisions for small business participation. This contract missed an opportunity to support small businesses in the IT services sector.

Oversight & Accountability

The sole-source nature of this award warrants oversight to ensure the IRS adequately justified the lack of competition and that the pricing is reasonable. Transparency in the justification process is crucial for accountability.

Related Government Programs

Other Computer Related Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Sole-source award raises concerns about competition and price fairness.
Potential for taxpayer overpayment due to lack of competitive bidding.
Limited transparency in the procurement process.
Missed opportunity to engage small businesses.
Long contract duration without competitive re-evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $13.6 million to CSRA SYSTEMS & SOLUTIONS LLC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is CSRA SYSTEMS & SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2001-09-15. End: 2006-05-25.

What specific justification was provided for awarding this $13.5 million IT services contract on a sole-source basis, and how does it align with federal procurement regulations for competitive sourcin

Federal procurement regulations generally require full and open competition unless specific exceptions apply. For a sole-source award of this magnitude, the agency must demonstrate that only one responsible source can provide the required services. This typically involves detailed documentation of market research, unique capabilities, or urgent needs that preclude competition. The justification's adequacy is key to ensuring taxpayer funds are used responsibly and competitively.

How was the 'fair and reasonable' price determined for this sole-source contract, and what mechanisms were in place to ensure it did not exceed market rates for similar IT services?

Determining a fair and reasonable price for sole-source contracts is challenging without competitive bids. Agencies often rely on historical pricing, commercial price lists, or independent government cost estimates. However, the absence of competing offers makes it difficult to validate these assessments rigorously. Robust price analysis and negotiation are critical to mitigate the risk of overpayment when competition is not utilized.

What was the specific nature of the 'Other Computer Related Services' provided under this contract, and could these services have been procured through more competitive means, such as multiple award c

The broad category of 'Other Computer Related Services' (NAICS 541519) encompasses a wide range of IT support, consulting, and integration. Without specific details, it's hard to say definitively. However, many such services can be procured through existing government-wide acquisition contracts (GWACs) or indefinite-delivery/indefinite-quantity (IDIQ) vehicles, which are designed to facilitate competition and streamline procurement for common IT needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 15000 CONFERENCE CENTER DR, CHANTILLY, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $8,409,772

Exercised Options: $8,409,772

Current Obligation: $13,552,925

Parent Contract

Parent Award PIID: TIRNO00D00011

IDV Type: IDC

Timeline