Treasury's $21.9M IRS LMSB Compliance Initiative II contract awarded to Booz Allen Hamilton

Contract Overview

Contract Amount: $21,914,307 ($21.9M)

Contractor: Booz Allen Hamilton Inc.

Awarding Agency: Department of the Treasury

Start Date: 2007-09-03

End Date: 2014-08-01

Contract Duration: 2,524 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: NEW LMSB COMPLIANCE INITIATIVE II CONTRA

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $21.9 million to BOOZ ALLEN HAMILTON INC. for work described as: NEW LMSB COMPLIANCE INITIATIVE II CONTRA Key points: 1. Contract awarded for Computer Systems Design Services. 2. Booz Allen Hamilton is a large, established government contractor. 3. The contract was awarded competitively, suggesting potential for good pricing. 4. The sector is IT services, a common area for federal spending.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. However, the award amount of $21.9M over 7 years suggests a reasonable average annual spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded as a competitive delivery order, indicating multiple bids were likely considered. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received fair value for the services rendered.

Public Impact

Supports IRS tax compliance efforts. Leverages IT services for government operations. Long-term contract duration indicates ongoing need. Awarded to a single vendor, Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Long contract duration may not reflect current market prices.
No small business participation noted.

Positive Signals

Competitive award process.
Awarded to a reputable contractor.
Supports critical IRS functions.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Federal spending in this area is substantial, with benchmarks varying widely based on service complexity and duration.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). There is no specific information provided on 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 ensuring deliverables meet requirements and costs remain within budget.

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.
No small business set-aside.
Specific scope of work not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $21.9 million to BOOZ ALLEN HAMILTON INC.. NEW LMSB COMPLIANCE INITIATIVE II CONTRA

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON 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 $21.9 million.

What is the period of performance?

Start: 2007-09-03. End: 2014-08-01.

What was the specific scope of work for the LMSB Compliance Initiative II, and how did it contribute to the IRS's mission?

The contract was for Computer Systems Design Services, likely supporting the Large and Mid-Size Business (LMB) division's compliance initiatives. This would involve developing or enhancing systems to improve tax enforcement, data analysis, and taxpayer services for these business segments, ultimately aiming to increase voluntary compliance and revenue collection.

Given the Cost Plus Fixed Fee structure, what mechanisms were in place to control costs and ensure value for money?

Cost Plus Fixed Fee contracts require robust oversight. The IRS would have needed to establish clear performance metrics, conduct regular audits of contractor costs, and implement change control processes to manage scope creep. Fixed fee components provide some incentive for efficiency, but vigilance is key to prevent cost overruns.

How does the $21.9M award over 7 years compare to similar IT system design contracts for tax agencies?

Benchmarking requires detailed comparison of scope, complexity, and duration. However, an average annual spend of approximately $3.1M for specialized IT system design services for a major agency like the IRS is within a plausible range, especially considering the critical nature of tax compliance systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

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: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 1953 GALLOWS RD STE 600, VIENNA, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,145,488

Exercised Options: $22,145,488

Current Obligation: $21,914,307

Parent Contract

Parent Award PIID: TIRNO06D00026

IDV Type: IDC

Timeline