Treasury's IRS Spends $12.5M on IT Support Services with Leidos, Inc
Contract Overview
Contract Amount: $12,530,133 ($12.5M)
Contractor: Leidos, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2007-11-21
End Date: 2011-10-26
Contract Duration: 1,435 days
Daily Burn Rate: $8.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TOTAL INFORMATION PROCESSING SUPPORT SER
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $12.5 million to LEIDOS, INC. for work described as: TOTAL INFORMATION PROCESSING SUPPORT SER Key points: 1. Significant contract value of $12.5M for IT support. 2. Leidos, Inc. secured this competitive delivery order. 3. Potential risk associated with a Cost Plus Fixed Fee contract type. 4. Spending falls within the IT sector for computer systems design.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure can incentivize cost overruns. Benchmarking against similar IT support contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was a competitive delivery order, suggesting a degree of price discovery. However, the specific competition details and number of bidders are not provided.
Taxpayer Impact: Taxpayer funds were used for this IT support service. The value for money depends on the efficiency and effectiveness of the services provided.
Public Impact
Ensures critical IT infrastructure support for the IRS. Supports government operations through technology services. Potential for cost efficiencies or overruns based on contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of detailed competition metrics
- Long contract duration (1435 days)
Positive Signals
- Competitive award method
- Essential IT support for a major agency
Sector Analysis
This contract falls under the IT sector, specifically Computer Systems Design Services. Spending benchmarks for similar IT support contracts would provide further context on cost-effectiveness.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought or achieved.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are managed effectively and services meet requirements. Agency-specific oversight mechanisms are assumed.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost Plus Fixed Fee contract type may lead to cost overruns.
- Limited transparency on competition details (number of bidders, evaluation criteria).
- Potential for scope creep without stringent oversight.
- Long contract duration could indicate a lack of flexibility or market responsiveness.
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 $12.5 million to LEIDOS, INC.. TOTAL INFORMATION PROCESSING SUPPORT SER
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 $12.5 million.
What is the period of performance?
Start: 2007-11-21. End: 2011-10-26.
What was the specific scope of work for these IT support services?
The scope of work encompassed 'TOTAL INFORMATION PROCESSING SUPPORT SER', indicating a broad range of services related to managing and maintaining the IRS's information processing systems. This likely included hardware, software, network, and potentially data management support to ensure the operational continuity and efficiency of the agency's IT infrastructure.
How did the final cost compare to the initial estimates given the Cost Plus Fixed Fee structure?
With a Cost Plus Fixed Fee contract, the final cost is the actual allowable cost plus a predetermined fixed fee. To assess value, a comparison of the final cost against the initial estimated cost and the fixed fee is necessary. Without this breakdown, it's difficult to determine if costs were well-managed or if there were significant deviations.
What performance metrics were used to evaluate Leidos, Inc.'s service delivery?
Performance metrics are essential for evaluating service delivery, especially under a Cost Plus Fixed Fee contract. While not detailed in the provided data, typical metrics for IT support could include system uptime, response times to issues, resolution rates, and user satisfaction. The effectiveness of the contract hinges on meeting or exceeding these performance standards.
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: 1
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, 22102
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,790,133
Exercised Options: $12,790,133
Current Obligation: $12,530,133
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: TIRNO06D00020
IDV Type: IDC
Timeline
Start Date: 2007-11-21
Current End Date: 2011-10-26
Potential End Date: 2011-10-26 00:00:00
Last Modified: 2016-06-16
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