Treasury's IRS awards $11M for Filing & Payment Compliance Release 1.2 Milestone 4B to CGI Federal Inc

Contract Overview

Contract Amount: $10,976,276 ($11.0M)

Contractor: CGI Federal Inc.

Awarding Agency: Department of the Treasury

Start Date: 2006-07-10

End Date: 2007-09-30

Contract Duration: 447 days

Daily Burn Rate: $24.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FILING & PAYMENT COMPLIANCE (F&PC) RELEASE 1.2 MILESTONE 4B

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $11.0 million to CGI FEDERAL INC. for work described as: FILING & PAYMENT COMPLIANCE (F&PC) RELEASE 1.2 MILESTONE 4B Key points: 1. The contract value is $10.98 million, awarded as a competitive delivery order. 2. CGI Federal Inc. is the contractor, with the IRS as the agency. 3. The contract covers 'Other Computer Related Services' under NAICS code 541519. 4. The period of performance is 447 days, from July 2006 to September 2007.

Value Assessment

Rating: good

The contract was awarded as a competitive delivery order, suggesting a degree of price discovery. The firm fixed price structure provides cost certainty. Benchmarking against similar IT services contracts would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This was a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. This competitive environment generally leads to better pricing and value for the government compared to sole-source awards.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are receiving value for money, as the IRS likely secured favorable pricing through competition.

Public Impact

Ensures continued functionality and updates for critical IRS filing and payment systems. Supports tax administration and revenue collection processes. Impacts taxpayers through the reliability of online and payment processing services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is relatively short (447 days).
Small business participation is not indicated (sb: false).

Positive Signals

Awarded competitively.
Firm fixed price contract type.

Sector Analysis

This contract falls under IT services, specifically 'Other Computer Related Services'. Spending in this sector is substantial across government, supporting a wide range of digital infrastructure and software development needs. Benchmarks for similar IT services contracts vary widely based on scope and complexity.

Small Business Impact

The data indicates that small business participation was not a factor in this award (sb: false). This suggests the prime contractor, CGI Federal Inc., is a large business, and there's no explicit mention of subcontracting to small businesses.

Oversight & Accountability

As a competitive delivery order, there is an inherent level of oversight through the bidding process. Further oversight would involve monitoring contractor performance against contract requirements and milestones.

Related Government Programs

Other Computer Related Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

No small business participation indicated.
Contract duration is relatively short.
Specific performance metrics and quality assurance details are not provided.
Potential for scope creep in complex IT projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $11.0 million to CGI FEDERAL INC.. FILING & PAYMENT COMPLIANCE (F&PC) RELEASE 1.2 MILESTONE 4B

Who is the contractor on this award?

The obligated recipient is CGI FEDERAL 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 $11.0 million.

What is the period of performance?

Start: 2006-07-10. End: 2007-09-30.

What was the competitive landscape for this specific 'Other Computer Related Services' requirement, and how did it influence the final price?

The award was a 'COMPETITIVE DELIVERY ORDER', implying multiple bids were received. The specific competitive landscape and the number of bidders would directly influence price discovery. A robust competition typically drives prices down, ensuring better value. Without details on the bidding process or the number of offers, it's difficult to quantify the exact price impact, but the competitive nature is a positive indicator for value.

What are the primary risks associated with the 'FILING & PAYMENT COMPLIANCE (F&PC) RELEASE 1.2 MILESTONE 4B' project, and how are they mitigated?

Key risks likely include technical challenges in software development and integration, potential delays in meeting the September 2007 completion date, and ensuring the system's security and compliance with IRS regulations. Mitigation strategies would typically involve rigorous project management, phased development with clear milestones, robust testing protocols, and experienced personnel from CGI Federal Inc.

How effectively does this contract contribute to the IRS's overall mission of tax administration and revenue collection?

This contract directly supports the IRS's mission by ensuring the functionality and potential enhancements of critical filing and payment systems. Reliable systems are fundamental for accurate tax collection and taxpayer services. The success of Milestone 4B would indicate progress towards maintaining and improving these essential operational capabilities, thereby contributing to the IRS's effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Groupe CGI Inc (UEI: 246801237)

Address: 12601 FAIR LAKES CIRCLE, FAIRFAX, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,976,276

Exercised Options: $10,976,276

Current Obligation: $10,976,276

Parent Contract

Parent Award PIID: GS35F4797H

IDV Type: FSS

Timeline