Treasury's IRS awards $21.3M for Computer Systems Design Services to General Dynamics IT

Contract Overview

Contract Amount: $21,292,094 ($21.3M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2002-12-15

End Date: 2007-09-28

Contract Duration: 1,748 days

Daily Burn Rate: $12.2K/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 $21.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: Key points: 1. Contract awarded to a single large business, raising questions about small business participation. 2. Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly. 3. The duration of nearly 5 years suggests a significant, ongoing need for these services. 4. The specific NAICS code (541512) indicates a focus on core IT infrastructure and design.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure value. Without detailed cost breakdowns, it's difficult to assess if the $21.3M represents a competitive price for the services rendered over its duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award to a single entity implies that General Dynamics Information Technology was the most advantageous offer.

Taxpayer Impact: Taxpayer funds are being used for essential IT services. The value for money depends on the effective delivery and management of the contract to prevent cost overruns.

Public Impact

Ensures continued operation and modernization of IRS IT systems. Supports tax processing and taxpayer services through reliable infrastructure. Potential for job creation within the IT sector through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Cost Plus Fixed Fee contract type can incentivize overspending.
Long contract duration may not reflect evolving technological needs.

Positive Signals

Awarded through full and open competition.
Addresses critical IT infrastructure needs for a major government agency.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is crucial for government modernization, but benchmarks vary widely based on service complexity and duration.

Small Business Impact

The contract indicates no small business participation (SB=false). This suggests that the prime contractor did not subcontract with small businesses, potentially missing opportunities to leverage specialized small business capabilities.

Oversight & Accountability

The contract's duration and cost necessitate robust oversight from the Department of the Treasury to ensure performance standards are met and costs remain controlled. Regular performance reviews are 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 structure.
Lack of small business involvement.
Long contract duration may lead to outdated solutions.
Limited transparency on specific deliverables and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $21.3 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 $21.3 million.

What is the period of performance?

Start: 2002-12-15. End: 2007-09-28.

What specific IT systems or services are being designed or managed under this contract, and how do they align with the IRS's strategic IT goals?

The contract is for Computer Systems Design Services (NAICS 541512). This typically involves designing, developing, and integrating computer systems. For the IRS, this likely includes infrastructure, software development, and system modernization efforts critical for tax administration, data security, and taxpayer services. Alignment with strategic goals would require examining IRS IT modernization plans.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to prevent cost overruns and ensure the government receives fair value?

Cost Plus Fixed Fee contracts require stringent oversight. Mechanisms include detailed cost reporting, regular audits, performance metrics tied to fee, and clear scope definition. The contracting officer must actively manage the contract, ensuring all costs are reasonable, allocable, and allowable, and that the fixed fee is earned through satisfactory performance.

How will the effectiveness of the computer systems designed under this contract be measured, particularly concerning improvements in IRS operational efficiency or taxpayer experience?

Effectiveness measurement should involve key performance indicators (KPIs) established in the contract. These could include system uptime, processing speed improvements, reduction in error rates, enhanced data security, and positive feedback on user interfaces for both IRS employees and taxpayers. Regular performance reviews should assess progress against these KPIs.

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