Treasury's IRS awards $10.2M EITC/TET services contract to CGI Federal Inc
Contract Overview
Contract Amount: $10,217,338 ($10.2M)
Contractor: CGI Federal Inc.
Awarding Agency: Department of the Treasury
Start Date: 2007-08-28
End Date: 2012-09-30
Contract Duration: 1,860 days
Daily Burn Rate: $5.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: EARNED INCOME TAX CREDIT (EITC)/TELEPHONE EXCISE TAX (TET)SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224
Plain-Language Summary
Department of the Treasury obligated $10.2 million to CGI FEDERAL INC. for work described as: EARNED INCOME TAX CREDIT (EITC)/TELEPHONE EXCISE TAX (TET)SERVICES Key points: 1. Contract awarded for IT services related to EITC/TET programs. 2. CGI Federal Inc. is the sole awardee. 3. The contract spans over 5 years. 4. The award type is a competitive delivery order.
Value Assessment
Rating: fair
The contract's cost-plus-fixed-fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar IT service contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
While labeled as a competitive delivery order, the specific competition details are not provided. This lack of transparency makes it difficult to assess if the pricing reflects optimal market value.
Taxpayer Impact: Taxpayer funds are used for IT services supporting critical tax programs. The efficiency of these services directly impacts program administration and taxpayer experience.
Public Impact
Ensures continued operation of essential tax programs. Supports IRS efforts in processing tax credits. Potential for service disruptions if contract performance is poor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition information.
- Cost-plus-fixed-fee pricing can be less cost-effective.
- Long contract duration without clear performance metrics.
Positive Signals
- Supports critical IRS functions.
- Awarded to an established IT services provider.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government, with benchmarks varying widely based on service complexity and duration.
Small Business Impact
The contract does not indicate any specific set-asides or participation goals for small businesses, suggesting limited direct impact on this sector.
Oversight & Accountability
Oversight is crucial for cost-plus-fixed-fee contracts to ensure efficient use of funds and prevent scope creep. The IRS's internal controls and contract management practices are key to accountability.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Lack of detailed competition information.
- Cost-plus-fixed-fee pricing model.
- Long contract duration.
- No clear indication of small business participation.
Tags
computer-systems-design-services, department-of-the-treasury, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $10.2 million to CGI FEDERAL INC.. EARNED INCOME TAX CREDIT (EITC)/TELEPHONE EXCISE TAX (TET)SERVICES
Who is the contractor on this award?
The obligated recipient is CGI FEDERAL 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 $10.2 million.
What is the period of performance?
Start: 2007-08-28. End: 2012-09-30.
What was the competitive landscape for this delivery order, and how did it influence the final price?
The provided data indicates this was a 'COMPETITIVE DELIVERY ORDER,' but lacks specifics on the number of bidders or the evaluation process. Without this, it's challenging to ascertain the degree of competition and its impact on price discovery. Further details on the solicitation and award process would be needed to fully assess the competitive dynamics and their effect on achieving the best value for taxpayers.
What are the key performance indicators (KPIs) for this contract, and how are they measured to ensure effectiveness?
The data does not specify the key performance indicators (KPIs) or the methods used for measuring contract effectiveness. For a contract of this duration and importance, clear, measurable KPIs related to service uptime, processing accuracy, and response times are essential. Regular performance reviews and adherence to these metrics are critical for ensuring the IRS receives the expected value and taxpayer services are maintained.
Given the cost-plus-fixed-fee structure, what mechanisms are in place to control costs and prevent potential overruns?
Cost-plus-fixed-fee contracts inherently carry a risk of cost overruns if not rigorously managed. While the fixed fee provides some predictability, the 'cost' portion requires stringent oversight. Mechanisms such as detailed cost reporting, regular audits, and clear limitations on allowable costs are vital. The IRS must actively monitor expenditures against the estimated costs to ensure taxpayer funds are used efficiently and effectively.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: CGI Inc (UEI: 248513116)
Address: 12601 FAIR LAKES CIRCLE, FAIRFAX, VA, 22033
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,198,070
Exercised Options: $11,945,543
Current Obligation: $10,217,338
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: TIRNO06D00005
IDV Type: IDC
Timeline
Start Date: 2007-08-28
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2016-06-16
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