Treasury's IRS awards $15.5M for Computer Systems Design Services to General Dynamics IT
Contract Overview
Contract Amount: $15,534,604 ($15.5M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2001-11-15
End Date: 2009-08-31
Contract Duration: 2,846 days
Daily Burn Rate: $5.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Place of Performance
Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $15.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: Key points: 1. The contract value is $15.5 million over its duration. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. The contract was awarded under full and open competition. 4. The period of performance spans from 2001 to 2009.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award value of $15.5 million for a nearly 8-year period needs further context to assess value against market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure services at a reasonable cost.
Public Impact
Taxpayer data systems are likely impacted by these computer design services. The long performance period suggests a need for sustained IT support. The use of a Cost Plus Fixed Fee contract warrants scrutiny for cost control.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long performance period (2001-2009)
Positive Signals
- Full and open competition
- Awarded to a known IT services provider
Sector Analysis
The IT services sector is highly competitive. Benchmarking this contract's value against similar Computer Systems Design Services contracts awarded during the 2001-2009 period would provide better insight into its cost-effectiveness.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the awardee is General Dynamics Information Technology, Inc., a large corporation. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract's long duration and Cost Plus Fixed Fee structure necessitate robust oversight to ensure cost efficiency and prevent scope creep. Regular performance reviews and financial audits would be critical.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Lack of specific details on services rendered.
- Long contract duration without clear performance metrics.
- No indication of small business participation.
Tags
computer-systems-design-services, department-of-the-treasury, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $15.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. See the official description on USAspending.
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 $15.5 million.
What is the period of performance?
Start: 2001-11-15. End: 2009-08-31.
What specific computer systems design services were procured under this contract, and how did they align with the IRS's evolving technological needs during the 2001-2009 period?
The contract falls under NAICS code 541512 for Computer Systems Design Services. While the specific services are not detailed, this typically includes designing and integrating hardware and software systems. Given the timeframe, it likely involved modernization of tax processing systems, data management, and potentially early cybersecurity enhancements to support the IRS's mission.
How effectively did the Cost Plus Fixed Fee structure manage costs and prevent potential overruns for the IRS, considering the nearly 8-year performance period?
Cost Plus Fixed Fee contracts can be challenging to manage for cost control over extended periods. Without detailed financial data and performance reports, it's difficult to definitively assess effectiveness. However, the fixed fee component provides some incentive for the contractor to control costs, while the government bears the risk of cost overruns beyond the agreed-upon estimate.
What was the competitive landscape for similar IT design services during the contract's award period, and did the full and open competition yield a demonstrably advantageous price for the government?
Full and open competition is designed to foster a competitive environment, theoretically leading to better pricing. However, the actual advantage depends on the number and capability of bidders. For IT design services in the early 2000s, the market was robust, but specific benchmarks are needed to confirm if General Dynamics' pricing was indeed advantageous compared to other qualified large IT firms.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
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
Parent Contract
Parent Award PIID: TIRNO99D00001
IDV Type: IDC
Timeline
Start Date: 2001-11-15
Current End Date: 2009-08-31
Potential End Date: 2009-08-31 00:00:00
Last Modified: 2015-02-16
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