Treasury's $11.6M EXFIRS contract with Unisys for IT services awarded via competitive delivery order
Contract Overview
Contract Amount: $11,606,636 ($11.6M)
Contractor: Unisys Corporation
Awarding Agency: Department of the Treasury
Start Date: 2007-05-01
End Date: 2017-08-31
Contract Duration: 3,775 days
Daily Burn Rate: $3.1K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: TIPSS III - EXFIRS DEVELOPMENT CONTRACT
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $11.6 million to UNISYS CORPORATION for work described as: TIPSS III - EXFIRS DEVELOPMENT CONTRACT Key points: 1. The contract value of $11.6 million over 10 years suggests a moderate investment in IT systems. 2. Competition was present, indicated by the 'COMPETITIVE DELIVERY ORDER' award type. 3. The risk appears moderate, given the long duration and cost-plus incentive fee structure. 4. The sector is Information Technology, specifically Computer Systems Design Services.
Value Assessment
Rating: fair
The contract's cost-plus incentive fee structure can lead to cost overruns if not managed carefully. Benchmarking against similar IT system development contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, suggesting multiple vendors likely competed. The pricing was likely determined through a competitive bidding process, aiming for best value.
Taxpayer Impact: Taxpayer funds were used for IT system development. The competitive nature should have driven reasonable pricing, but the cost-plus structure introduces potential for higher costs than fixed-price contracts.
Public Impact
Enhances IRS capabilities for tax processing and data management. Supports critical government functions related to tax administration. Long-term contract indicates a sustained need for these IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contracts can incentivize spending.
- Long contract duration may not reflect current technological needs.
- Lack of specific performance metrics makes oversight challenging.
Positive Signals
- Competitive award suggests potential for good value.
- Incentive fee structure aims to align contractor and government goals.
- Supports essential IRS operations.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design. Spending benchmarks for similar government IT development projects vary widely based on complexity and scope, but $11.6 million over a decade is a substantial investment.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses.
Oversight & Accountability
The contract was awarded by the Department of the Treasury's Internal Revenue Service. Oversight would typically involve program managers monitoring performance and costs, especially given the cost-plus incentive fee structure.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost-plus contracts can lead to cost overruns.
- Long contract duration may result in outdated technology.
- Lack of specific performance metrics.
- No small business participation noted.
Tags
computer-systems-design-services, department-of-the-treasury, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $11.6 million to UNISYS CORPORATION. TIPSS III - EXFIRS DEVELOPMENT CONTRACT
Who is the contractor on this award?
The obligated recipient is UNISYS 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 $11.6 million.
What is the period of performance?
Start: 2007-05-01. End: 2017-08-31.
Was the incentive fee structure effectively utilized to control costs and ensure performance?
The effectiveness of the incentive fee structure is difficult to ascertain without detailed performance data and cost analysis. Cost-plus contracts inherently carry a risk of cost escalation. The 'fair' value rating suggests that while competition was present, the final cost may not have been optimal due to the contract type and potential for scope creep over the decade-long period.
What was the specific impact of the 'COMPETITIVE DELIVERY ORDER' on the final price and quality of services?
A competitive delivery order implies that multiple vendors were considered, which generally leads to better pricing and quality than a sole-source award. However, the 'cost plus incentive fee' structure means the final price is not fixed and depends on incurred costs plus an incentive fee. The competitive aspect likely ensured a reasonable starting point, but ongoing management was crucial to realize true value.
How did the long duration (2007-2017) of this contract affect its overall effectiveness and value for money?
A 10-year contract duration for IT systems can be a double-edged sword. It provides stability and allows for deep integration, but it also risks obsolescence if technology evolves rapidly. The value for money depends heavily on whether the system remained relevant and efficient throughout its lifecycle. Without specific performance metrics and post-contract reviews, assessing its long-term effectiveness is challenging.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Address: 11720 PLAZA AMERICA DR, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $11,606,636
Exercised Options: $11,606,636
Current Obligation: $11,606,636
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: TIRNO06D00010
IDV Type: IDC
Timeline
Start Date: 2007-05-01
Current End Date: 2017-08-31
Potential End Date: 2017-08-31 00:00:00
Last Modified: 2025-09-26
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