Treasury's IRS awards $72M for Computer Systems Design, with limited competition

Contract Overview

Contract Amount: $71,983,771 ($72.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2001-12-15

End Date: 2004-05-31

Contract Duration: 898 days

Daily Burn Rate: $80.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: IT

Official Description: CRS 101,102,103,104

Place of Performance

Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $72.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CRS 101,102,103,104 Key points: 1. Significant contract value of $72M awarded over 3 years. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on IT services highlights a key area of government spending. 4. The contract's duration and value warrant close scrutiny for efficiency.

Value Assessment

Rating: questionable

The contract's total award value of $72M over approximately 3 years suggests a substantial investment. Without comparable contracts or detailed cost breakdowns, assessing its value for money is difficult, especially given the limited competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competed contract.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price due to the absence of competitive bidding.

Public Impact

Taxpayer funds totaling $72M were allocated for IT services. The lack of competition could mean less innovation and higher costs. Oversight is crucial to ensure the IRS received necessary services effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Limited competition
Long contract duration

Positive Signals

Awarded to a known entity
Specific service requirement met

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. IT spending is a significant portion of federal budgets, and benchmarks for similar services are essential for evaluating cost-effectiveness.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract, suggesting it was not a primary focus.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure the services provided were necessary, performed effectively, and priced reasonably. Accountability for the expenditure is paramount.

Related Government Programs

Computer Systems Design Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency
No small business set-aside identified

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $72.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CRS 101,102,103,104

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $72.0 million.

What is the period of performance?

Start: 2001-12-15. End: 2004-05-31.

What was the justification for the sole-source award, and were alternative competitive strategies explored?

The justification for a sole-source award is critical. Agencies typically cite reasons such as unique capabilities, urgent needs, or lack of other responsible sources. Without this justification, it's impossible to assess if competitive alternatives were truly unavailable or if the agency opted for convenience over potential cost savings and innovation.

How does the per-unit cost of these computer systems design services compare to industry benchmarks or similar government contracts?

Benchmarking the per-unit cost is essential for evaluating value. If this contract's pricing is significantly higher than comparable services procured through competitive means or market rates, it indicates potential overpayment. This comparison helps determine if taxpayers received a fair price for the services rendered.

What were the key performance metrics and outcomes achieved under this contract to ensure effectiveness?

Understanding the key performance metrics and outcomes is vital for assessing effectiveness. Did the contractor meet all requirements, deliver on time, and within budget? Evidence of successful performance and achievement of stated objectives justifies the expenditure and demonstrates the contract's value to the IRS's mission.

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: NOT COMPETED

Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE) (2)

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: MARYLAND TECHNOLOGY CENTER, LANHAM, MD, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $71,983,771

Exercised Options: $71,983,771

Current Obligation: $71,983,771

Parent Contract

Parent Award PIID: TIRNO99D00001

IDV Type: IDC

Timeline