Treasury's $12.4M IT services contract awarded to BAE Systems, a competitive delivery order

Contract Overview

Contract Amount: $12,394,551 ($12.4M)

Contractor: BAE Systems Technology Solutions & Services Inc.

Awarding Agency: Department of the Treasury

Start Date: 2007-04-24

End Date: 2011-05-12

Contract Duration: 1,479 days

Daily Burn Rate: $8.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICES CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $12.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. for work described as: SERVICES CONTRACT Key points: 1. Contract value of $12.4M for IT services over approximately 4 years. 2. Awarded competitively, indicating potential for good pricing and vendor selection. 3. Fixed-price contract type suggests cost certainty for the government. 4. Services provided under NAICS code 541519 (Other Computer Related Services). 5. Contractor BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC. has a significant federal presence. 6. Performance period spans from April 2007 to May 2011. 7. The contract was a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $12.4 million for IT services over nearly four years appears reasonable for the scope. As a competitive delivery order, it suggests that pricing was vetted against other potential offers. Benchmarking against similar IT services contracts would provide a more precise value-for-money assessment, but the competitive nature is a positive indicator. The firm fixed-price structure further supports cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, implying that it was competed under a broader contract vehicle that allowed for full and open competition. The presence of multiple bidders (indicated by 'no': 3) suggests a healthy level of competition, which typically drives down prices and encourages innovation. The specific number of bidders and the details of the competition process would offer further insight into the effectiveness of the procurement.

Taxpayer Impact: The competitive award process likely resulted in a better price for taxpayers compared to a sole-source or limited competition scenario. It ensures that the government is receiving services at a fair market price.

Public Impact

The Department of the Treasury benefits from essential IT services to support its operations. The contract ensures the continuity of critical computer-related services. The geographic impact is primarily within the District of Columbia, where Treasury offices are located. The contract supports a workforce skilled in IT services, likely including engineers, technicians, and analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is not competed.
Reliance on a single contractor for critical IT functions could pose risks if performance falters.

Positive Signals

Competitive award process suggests a fair market price was achieved.
Firm fixed-price contract provides cost predictability.
Award to an established IT solutions provider like BAE Systems indicates a level of confidence in their capabilities.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on 'Other Computer Related Services'. The IT services market is vast and highly competitive, with numerous firms offering specialized solutions. Contracts like this are common across federal agencies for maintaining and upgrading essential IT infrastructure and support systems. The value of $12.4 million is moderate within the context of large federal IT procurements.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses ('sb': false). BAE Systems is a large defense and technology contractor. There is no explicit information on subcontracting plans for small businesses within this specific delivery order, though large prime contractors often utilize small business subcontractors on their projects.

Oversight & Accountability

As a competitive delivery order, oversight would typically be managed through the contracting officer's representative (COR) responsible for monitoring performance and ensuring compliance with contract terms. The firm fixed-price nature provides some inherent oversight on cost. Transparency is generally available through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.

Related Government Programs

IT Services Contracts
Departmental IT Support
Computer Related Services
BAE Systems Federal Contracts

Risk Flags

Contract completed over 10 years ago.
Limited detail on specific services rendered.
No performance metrics or modification history provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $12.4 million to BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC.. SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Departmental Offices).

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2007-04-24. End: 2011-05-12.

What was the specific nature of the 'Other Computer Related Services' provided under this contract?

The NAICS code 541519, 'Other Computer Related Services,' is broad and encompasses a wide range of IT support activities not classified elsewhere. This could include services such as IT consulting, systems integration, network management, data processing, disaster recovery, and IT support services. Without the specific statement of work (SOW) for this delivery order, the precise services rendered remain undefined. However, given the contractor and the agency, it likely involved supporting the Treasury's internal IT infrastructure and user needs.

How did BAE Systems' pricing compare to other potential bidders in this competitive delivery order?

The provided data indicates the contract was 'COMPETITIVE DELIVERY ORDER' with 'no': 3, suggesting at least three offers were considered. While the data confirms competition, it does not reveal the specific pricing submitted by each bidder or how BAE Systems' price was determined to be the best value. In a competitive scenario, the award typically goes to the offer that represents the best value to the government, considering both price and other factors like technical approach and past performance. A detailed price analysis would be required to ascertain if BAE Systems' pricing was particularly advantageous.

What is BAE Systems' overall track record with federal IT service contracts?

BAE Systems is a major global defense, aerospace, and security company with a substantial footprint in the U.S. federal contracting space. They have a long history of performing a wide array of IT services for various government agencies, including complex systems integration, cybersecurity, software development, and infrastructure support. Their track record generally includes large, high-value contracts. While this specific contract was completed in 2011, BAE Systems continues to be a significant player in the federal IT market, indicating a sustained capability and presence.

Were there any performance issues or contract modifications during the life of this contract?

The provided summary data does not include details on contract modifications, performance reviews, or any issues that may have arisen during the contract's period of performance (April 24, 2007, to May 12, 2011). Typically, such information would be found in contract administration records, performance reports, or modification logs. Without access to these detailed records, it is not possible to assess whether the contract experienced any significant challenges or changes to its original scope or terms.

How does the $12.4 million contract value compare to the Treasury's typical spending on similar IT services during that period?

The $12.4 million contract value for approximately four years of IT services is a moderate-sized award. The Department of the Treasury, like other large federal agencies, expends significant sums on IT infrastructure and services annually. Benchmarking this specific contract against the Treasury's total IT spending during the 2007-2011 period, or against other similar IT support contracts awarded by Treasury or comparable agencies (e.g., other cabinet-level departments), would be necessary for a comprehensive comparison. However, it represents a notable investment in IT support for departmental functions.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BAE Systems PLC (UEI: 217304393)

Address: 2525 NETWORK PL, HERNDON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,154,111

Exercised Options: $25,154,111

Current Obligation: $12,394,551

Parent Contract

Parent Award PIID: GS35F0045K

IDV Type: FSS

Timeline