Treasury's $28.3M TIPSS III contract for IRS computer systems design awarded to Leidos
Contract Overview
Contract Amount: $28,341,752 ($28.3M)
Contractor: Leidos, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2006-05-30
End Date: 2014-08-01
Contract Duration: 2,985 days
Daily Burn Rate: $9.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 10
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TIPSS III - ICS CONTRACT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224
Plain-Language Summary
Department of the Treasury obligated $28.3 million to LEIDOS, INC. for work described as: TIPSS III - ICS CONTRACT Key points: 1. Contract awarded to Leidos, Inc. for computer systems design services. 2. Totaling $28.3 million, the contract spanned from 2006 to 2014. 3. The contract type was Cost Plus Fixed Fee, indicating potential for cost overruns. 4. This falls under NAICS code 541512, Computer Systems Design Services. 5. The contract was a competitive delivery order, suggesting some level of price discovery.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar contracts for computer systems design services during that period would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was a competitive delivery order, implying competition existed at the time of award. However, the specific competition method and its impact on price discovery are not detailed, making it difficult to fully assess.
Taxpayer Impact: The $28.3 million spent represents taxpayer funds allocated to IT services. The efficiency of this spending depends on the value delivered and the competitive nature of the award.
Public Impact
Taxpayers funded $28.3 million for IT services supporting the IRS. The contract duration of nearly 9 years suggests a long-term need for these services. Computer systems design is critical for efficient tax administration and data security. The award to Leidos, Inc. highlights a significant IT services provider for the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration may not reflect evolving technological needs.
- Limited details on competition impact price discovery assessment.
Positive Signals
- Competitive delivery order suggests some market vetting.
- Services provided are essential for IRS operations.
- Award to established contractor Leidos, Inc.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar government IT contracts during the 2006-2014 period would provide context for the $28.3 million expenditure.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would have been crucial given the Cost Plus Fixed Fee structure to ensure costs were reasonable and deliverables met. The competitive delivery order suggests a framework for oversight was in place.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Long contract duration (nearly 9 years).
- Limited transparency on competition details.
- Potential for cost inefficiencies.
Tags
computer-systems-design-services, department-of-the-treasury, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $28.3 million to LEIDOS, INC.. TIPSS III - ICS CONTRACT
Who is the contractor on this award?
The obligated recipient is LEIDOS, 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 $28.3 million.
What is the period of performance?
Start: 2006-05-30. End: 2014-08-01.
What was the specific value delivered by Leidos, Inc. under the TIPSS III contract for the IRS?
The specific value delivered is not quantifiable from the provided data. While the contract was worth $28.3 million, this figure represents the total expenditure. Assessing the true value would require examining the IRS's operational improvements, system enhancements, and the successful completion of project milestones achieved through Leidos's computer systems design services.
What were the primary risks associated with the Cost Plus Fixed Fee contract structure for this IT service?
The primary risk of a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize less cost-consciousness compared to fixed-price contracts. For the IRS, this meant a risk of paying more than necessary if Leidos did not diligently manage its expenses.
How effective was the competitive delivery order process in ensuring a fair price for these computer systems design services?
The effectiveness of the competitive delivery order process in ensuring a fair price is difficult to ascertain without more details. While 'competitive' implies multiple bids were considered, the extent of the competition and the pricing strategies employed by bidders are unknown. A truly effective process would have resulted in prices significantly lower than non-competitive awards.
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: 10
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc. (UEI: 611641312)
Address: 1710 SAIC DR, MCLEAN, VA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $32,831,020
Exercised Options: $32,081,055
Current Obligation: $28,341,752
Parent Contract
Parent Award PIID: TIRNO06D00020
IDV Type: IDC
Timeline
Start Date: 2006-05-30
Current End Date: 2014-08-01
Potential End Date: 2014-08-01 00:00:00
Last Modified: 2014-09-09
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