General Dynamics IT's $15.17M contract for computer systems design services by the IRS shows fair value with a competitive history

Contract Overview

Contract Amount: $15,167,269 ($15.2M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2006-08-14

End Date: 2009-08-14

Contract Duration: 1,096 days

Daily Burn Rate: $13.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COMBINATION (TWO OR MORE)

Sector: IT

Official Description: TIPSS 3

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $15.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TIPSS 3 Key points: 1. The contract demonstrates a competitive procurement history, suggesting potential for price discovery. 2. Performance context is limited by the available data, but the contract duration indicates a sustained need. 3. Sector positioning within IT services, specifically computer systems design, is a core government function. 4. Risk indicators are not explicitly detailed but can be inferred from contract type and duration. 5. Value for money is assessed through benchmarking against similar contracts and market rates. 6. Competition dynamics appear favorable due to the competitive delivery order type.

Value Assessment

Rating: fair

Benchmarking this contract's value requires more granular data on specific services rendered and market rates at the time of award. However, the total award amount of $15.17 million over approximately three years suggests a moderate annual spend. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging. Compared to other large-scale IT service contracts, the pricing appears within a reasonable range, but a deeper dive into the specific tasks and deliverables would be necessary for a more precise evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract. The 'full-and-open' competition suggests that all responsible sources were permitted to submit offers. The presence of competition is generally positive for price discovery, as multiple bidders vie for the contract, potentially driving down costs and improving the quality of services offered. The specific number of bidders is not provided, which limits a full assessment of the competition's intensity.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering a more efficient marketplace, leading to better pricing and service quality. This approach helps ensure that government funds are used judiciously by leveraging market forces.

Public Impact

The primary beneficiaries of this contract are the Internal Revenue Service (IRS) and its operational needs. The services delivered include computer systems design, crucial for maintaining and improving the IRS's technological infrastructure. The geographic impact is primarily within Virginia, where the contractor is located, and potentially nationwide through the IRS's operations. Workforce implications include employment opportunities for IT professionals within General Dynamics Information Technology and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited transparency on specific performance metrics and deliverables.
Potential for cost overruns if scope creep occurs without adequate oversight.
Dependence on a single large contractor for critical IT systems.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Contract duration suggests a stable and ongoing need for these IT services.
Contractor has a track record in providing IT services to government agencies.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. This is a critical area for government operations, as agencies increasingly rely on robust and modern IT infrastructure to deliver services. The market for IT services is large and competitive, with numerous firms offering specialized expertise. Comparable spending benchmarks in this area would involve analyzing other large IT service contracts awarded to system integrators and design firms by various federal agencies.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, as a large prime contractor, General Dynamics Information Technology may engage small businesses as subcontractors for specialized services, contributing to the broader small business ecosystem. The extent of such subcontracting is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the IRS. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is generally facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian IT Services
Computer Systems Design Contracts
General Dynamics IT Contracts

Risk Flags

Potential for technological obsolescence over the contract duration.
Risk of scope creep impacting budget and schedule.
Dependence on contractor for critical system design and integration.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $15.2 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TIPSS 3

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 $15.2 million.

What is the period of performance?

Start: 2006-08-14. End: 2009-08-14.

What was the specific nature of the computer systems design services provided under this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 541512, which corresponds to Computer Systems Design Services. This broad category typically includes designing, developing, and integrating hardware and software systems. For the IRS, these services could encompass a wide range of activities such as system architecture development, network design, software integration, database management system design, and IT infrastructure planning. Without more specific details from the contract's statement of work, it is difficult to pinpoint the exact deliverables. However, given the agency (IRS) and the nature of IT services, it is likely related to enhancing or maintaining the tax processing and taxpayer service systems.

How does the total contract value of $15.17 million compare to similar IT services contracts awarded by the IRS or other agencies?

The total contract value of $15.17 million over its 1096-day (approximately 3-year) duration equates to an average annual spend of roughly $5.06 million. This figure is moderate for large-scale IT services contracts within the federal government. For instance, major IT modernization efforts or enterprise-wide system implementations can easily run into tens or hundreds of millions of dollars annually. However, for specific system design or integration tasks, this amount can be substantial. Benchmarking against similar 'Computer Systems Design Services' contracts (NAICS 541512) awarded by agencies like the Department of Defense or other civilian agencies would provide a more precise comparison. Generally, this contract size suggests a significant but not necessarily transformative project.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate the success of this contract. Typically, for computer systems design services, KPIs might include adherence to project timelines, budget compliance, system performance benchmarks (e.g., uptime, response time), successful integration of new components, user satisfaction, and achievement of specified technical requirements. The contracting officer and the IRS program office would be responsible for monitoring these aspects throughout the contract's lifecycle. The absence of this information in the summary data limits a thorough assessment of contractor performance and value.

What is General Dynamics Information Technology's track record with federal IT contracts, particularly with the IRS?

General Dynamics Information Technology (GDIT) is a major federal contractor with a significant history of providing IT services across various government agencies, including the IRS. They have been involved in numerous large-scale contracts related to IT modernization, cybersecurity, cloud computing, and data center operations. Their track record generally indicates experience in managing complex IT projects and delivering solutions to government clients. While specific performance details for this particular $15.17 million contract are not detailed, GDIT's overall presence suggests they possess the capacity and experience to handle such requirements. A deeper review of their past performance ratings and any past performance issues on similar contracts would provide more insight.

What are the potential risks associated with a contract of this duration and scope for computer systems design?

Contracts for computer systems design services, especially those spanning multiple years like this 3-year award, carry several potential risks. Technological obsolescence is a significant concern; IT landscapes evolve rapidly, and systems designed today might be outdated by the end of the contract. Scope creep is another risk, where the project's requirements expand beyond the original agreement, potentially leading to cost overruns and schedule delays. Vendor lock-in can occur if the designed systems are highly proprietary or difficult to transition away from. Furthermore, security vulnerabilities in newly designed systems could pose risks to sensitive IRS data. Effective project management, clear requirements, and robust change control processes are crucial to mitigate these risks.

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: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 15000 CONFERENCE CENTER DRIVE, CHANTILLY, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,252,269

Exercised Options: $15,252,269

Current Obligation: $15,167,269

Parent Contract

Parent Award PIID: TIRNO06D00025

IDV Type: IDC

Timeline