Treasury's $26.9M IRS CSIRC Operations Support Contract Awarded to General Dynamics

Contract Overview

Contract Amount: $26,906,743 ($26.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2006-09-29

End Date: 2013-04-21

Contract Duration: 2,396 days

Daily Burn Rate: $11.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 12

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CSIRC OPERATIONS SUPPORT

Place of Performance

Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $26.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CSIRC OPERATIONS SUPPORT Key points: 1. The contract, valued at $26.9 million, was awarded to General Dynamics Information Technology, Inc. 2. This represents a significant investment in computer systems design services for the IRS. 3. The contract duration spans over 6 years, indicating a long-term need for these services. 4. The award method was 'Competitive Delivery Order', suggesting a competitive process was used.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts for computer systems design services is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded as a 'Competitive Delivery Order', implying competition existed, but the specific details of the competition are not fully clear from the provided data. This method aims for price discovery but can be influenced by the specific requirements and vendor pool.

Taxpayer Impact: Taxpayer funds are being used for essential IT support services for the IRS. The competitive nature of the award is intended to ensure reasonable pricing, but the cost-plus structure warrants oversight.

Public Impact

Ensures continued operational support for the IRS's Computer Security Incident Response Center (CSIRC). Supports critical cybersecurity functions for tax administration and taxpayer data protection. The long-term nature of the contract suggests a stable, ongoing requirement for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Lack of detailed cost breakdown makes true value assessment difficult.
Long contract duration increases risk of scope creep or outdated technology.

Positive Signals

Awarded via competitive delivery order, indicating some level of competition.
Supports critical cybersecurity infrastructure for a major government agency.
General Dynamics is a large, established government contractor.

Sector Analysis

This contract falls under the IT services sector, specifically computer systems design. Spending in this area is crucial for government agencies to maintain modern and secure IT infrastructure. Benchmarks for similar contracts vary widely based on scope and complexity.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). Therefore, there is no direct benefit to small businesses through this specific award, though the prime contractor may subcontract.

Oversight & Accountability

The 'Competitive Delivery Order' suggests a structured procurement process. However, the Cost Plus Fixed Fee structure necessitates robust oversight from the IRS to manage costs and ensure performance aligns with the fixed fee objectives.

Related Government Programs

Computer Systems Design Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
Lack of detailed cost breakdown.
No small business participation indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $26.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CSIRC OPERATIONS SUPPORT

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 $26.9 million.

What is the period of performance?

Start: 2006-09-29. End: 2013-04-21.

What was the specific competitive process for this delivery order, and how did it ensure optimal price discovery?

The data states 'COMPETITIVE DELIVERY ORDER', implying multiple vendors were considered. However, without details on the number of bids, the evaluation criteria, and the negotiation process, it's difficult to definitively assess the extent of price discovery. The competitive nature suggests an effort to achieve fair market value, but the specifics of the competition are key to understanding its effectiveness.

How effectively has the Cost Plus Fixed Fee structure been managed to control costs and prevent contractor overspending?

The Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation if not rigorously managed. Effective oversight by the Department of the Treasury is crucial to monitor allowable costs, ensure efficiency, and prevent the contractor from incurring unnecessary expenses. Without performance and cost audit data, assessing the effectiveness of cost control is challenging.

What is the projected impact of this long-term contract on the IRS's ability to adapt to evolving cybersecurity threats?

A contract duration of nearly 7 years (2396 days) provides stability for CSIRC operations. However, the rapidly evolving nature of cybersecurity threats means the contract's terms and the contractor's agility are critical. The IRS must ensure mechanisms are in place for contract modifications or future procurements that allow for adaptation to new technologies and threat landscapes.

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: 12

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 3211 JERMANTOWN RD, FAIRFAX, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $32,657,445

Exercised Options: $29,651,202

Current Obligation: $26,906,743

Parent Contract

Parent Award PIID: TIRNO06D00012

IDV Type: IDC

Timeline