Treasury's $44.3M IRS Contract Awarded to General Dynamics for Computer Systems Design Services
Contract Overview
Contract Amount: $44,364,099 ($44.4M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2002-11-15
End Date: 2004-06-25
Contract Duration: 588 days
Daily Burn Rate: $75.4K/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 $44.4 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: Key points: 1. Contract value of $44.3 million for computer systems design. 2. Awarded to General Dynamics Information Technology, Inc. 3. Full and open competition was utilized. 4. Contract duration spans from 2002 to 2004.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure suggests potential for cost overruns if not closely managed. Benchmarking against similar IT services contracts from the early 2000s would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. However, the specific pricing mechanisms within the cost-plus-fixed-fee structure require scrutiny to ensure competitive rates were achieved.
Taxpayer Impact: Taxpayer funds were used for IT services. The effectiveness of the competition and contract management will determine the ultimate value for taxpayers.
Public Impact
IRS taxpayers benefit from improved IT infrastructure and services. Government reliance on contractors for essential IT functions. Potential for long-term IT modernization through such contracts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize higher spending.
- Contract awarded in 2002, potentially outdated technology.
- No indication of small business participation.
Positive Signals
- Full and open competition promotes market efficiency.
- Clear contract end date provides a defined project scope.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is crucial for government operations, but benchmarks vary widely based on the complexity and duration of services.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (sb: false). There is no specific information provided regarding subcontracting opportunities for small businesses.
Oversight & Accountability
Oversight would involve monitoring the contractor's performance against the fixed fee and ensuring costs remain within the defined parameters. Accountability rests with the Department of the Treasury to manage the contract effectively.
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 structure.
- Lack of small business participation.
- Contract awarded over 20 years ago, technology may be obsolete.
- Limited insight into specific performance metrics and outcomes.
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 $44.4 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 $44.4 million.
What is the period of performance?
Start: 2002-11-15. End: 2004-06-25.
What was the specific scope of 'Computer Systems Design Services' for the IRS under this contract?
The scope likely encompassed a range of activities such as system analysis, design, development, integration, and potentially maintenance of IT systems for the Internal Revenue Service. This could include software development, network infrastructure design, or database management, aimed at improving IRS operational efficiency and taxpayer services.
How did the cost-plus-fixed-fee structure impact the final cost compared to a fixed-price contract?
A cost-plus-fixed-fee contract allows the contractor to recover all allowable costs plus a predetermined fixed fee. While it encourages contractors to take on complex projects, it carries a risk of cost overruns if not meticulously managed and audited. A fixed-price contract would have placed more cost risk on the contractor but might have deterred bids for highly uncertain projects.
What were the key performance indicators (KPIs) used to measure the effectiveness of General Dynamics' services?
Effectiveness would likely be measured against predefined KPIs related to system uptime, performance metrics, successful deployment of new features, adherence to security protocols, and user satisfaction. The contract's fixed fee component suggests that meeting these performance standards was crucial for the contractor to achieve their profit objectives.
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: 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
Financial Breakdown
Contract Ceiling: $367,328
Exercised Options: $367,328
Current Obligation: $44,364,099
Parent Contract
Parent Award PIID: TIRNO99D00001
IDV Type: IDC
Timeline
Start Date: 2002-11-15
Current End Date: 2004-06-25
Potential End Date: 2004-06-25 00:00:00
Last Modified: 2015-02-16
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