Treasury's IRS Spends $12.8M on MaxHR Services via Competitive Order
Contract Overview
Contract Amount: $12,855,727 ($12.9M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of the Treasury
Start Date: 2005-01-25
End Date: 2008-12-31
Contract Duration: 1,436 days
Daily Burn Rate: $9.0K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: SERVICES TO IMPLEMENT MAXHR
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Department of the Treasury obligated $12.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: SERVICES TO IMPLEMENT MAXHR Key points: 1. Significant investment in HR technology services by the IRS. 2. Northrop Grumman Systems Corporation secured the contract. 3. The contract was awarded through a competitive delivery order. 4. Spending occurred over a nearly four-year period. 5. No small business participation was noted.
Value Assessment
Rating: fair
The contract value of $12.8M for custom computer programming services over 3.5 years suggests a moderate annual spend. Benchmarking against similar large-scale HR system implementations would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, indicating multiple vendors likely competed. This method generally promotes price discovery and competitive pricing, though specific details of the competition are not provided.
Taxpayer Impact: Taxpayer funds were used for this contract. The competitive nature suggests efforts were made to secure reasonable pricing, but the overall value for money requires further analysis.
Public Impact
Enhances IRS human resources management capabilities. Supports federal workforce operations. Potential for improved efficiency in HR processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration may indicate potential for cost overruns or scope creep.
Positive Signals
- Awarded through a competitive process.
- Supports critical government functions.
Sector Analysis
This contract falls under IT services, specifically custom computer programming. The federal IT spending landscape is vast, with significant investments in HR and enterprise resource planning systems to modernize operations.
Small Business Impact
The contract data indicates no small business participation (sb: false). This suggests the prime contractor is a large business, and opportunities for small businesses were either not pursued or not available for this specific requirement.
Oversight & Accountability
Awarded as a delivery order under a larger contract vehicle, oversight would typically be managed by the contracting officer at the IRS. The duration and value warrant monitoring for performance and adherence to scope.
Related Government Programs
- Custom Computer Programming Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- No small business participation.
- Long contract duration.
- Limited detail on specific outcomes.
- Potential for vendor lock-in with custom solutions.
Tags
custom-computer-programming-services, department-of-the-treasury, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $12.9 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. SERVICES TO IMPLEMENT MAXHR
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $12.9 million.
What is the period of performance?
Start: 2005-01-25. End: 2008-12-31.
What specific HR functions did the MaxHR system implement, and what were the measurable improvements in efficiency or effectiveness?
The provided data does not detail the specific HR functions implemented by MaxHR or offer metrics on efficiency improvements. Further investigation into contract performance reports or agency documentation would be required to assess the tangible benefits and effectiveness of the implemented system.
Were there any identified risks during the contract period related to performance, cost, or security, and how were they mitigated?
The available data does not explicitly list risks encountered during the contract's performance period. Standard contract management practices would involve risk identification and mitigation by the contracting officer and the vendor. A review of contract close-out documentation or performance reviews might reveal such details.
How does the $12.8M expenditure compare to industry benchmarks for similar HR system implementations in large organizations?
Without specific details on the scope and complexity of the MaxHR implementation, a direct comparison to industry benchmarks is challenging. However, $12.8M over 3.5 years for custom programming suggests a significant project. Benchmarking would require detailed analysis of features, customization levels, and user base size against comparable private or public sector projects.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Titan II Inc. (UEI: 016435559)
Address: 15010 CONFERENCE CENTER DR, CHANTILLY, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,855,727
Exercised Options: $12,855,727
Current Obligation: $12,855,727
Parent Contract
Parent Award PIID: GS35F4506G
IDV Type: FSS
Timeline
Start Date: 2005-01-25
Current End Date: 2008-12-31
Potential End Date: 2008-12-31 00:00:00
Last Modified: 2013-08-06
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