Treasury's IRS awards $16.45M BPA for IT maintenance, facing limited competition
Contract Overview
Contract Amount: $16,450,092 ($16.5M)
Contractor: Presidio Networked Solutions, LLC
Awarding Agency: Department of the Treasury
Start Date: 2008-01-31
End Date: 2013-03-19
Contract Duration: 1,874 days
Daily Burn Rate: $8.8K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INFOCONNECT MAINT OFF BPA TIRNO99Z00003
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $16.5 million to PRESIDIO NETWORKED SOLUTIONS, LLC for work described as: INFOCONNECT MAINT OFF BPA TIRNO99Z00003 Key points: 1. Spending of $16.45M over 5 years on IT maintenance. 2. Presidio Networked Solutions, LLC is the sole awardee. 3. Limited competition may impact price discovery and value. 4. IT sector spending benchmarks suggest moderate cost for this contract type.
Value Assessment
Rating: fair
The contract value of $16.45M over 5 years averages $3.29M annually. Benchmarking against similar IT maintenance contracts is difficult without specific service details, but the duration and sole awardee suggest potential for above-market pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was awarded as a competitive delivery order under a BPA, but the data indicates only one awardee, suggesting limited competition. This lack of robust competition could lead to less favorable pricing for the government.
Taxpayer Impact: Potential for increased taxpayer cost due to limited competition impacting price negotiation.
Public Impact
IRS relies on this contract for critical IT infrastructure maintenance. Taxpayer funds are utilized for IT support services. The duration of the contract impacts long-term IT strategy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for price inflation
Positive Signals
- Firm Fixed Price contract type
- Long-term IT support
Sector Analysis
The IT sector is characterized by rapid technological advancements and diverse service needs. Annual spending on IT maintenance can vary significantly based on agency size and infrastructure complexity. This contract's value appears moderate within the broader federal IT spending landscape.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The awardee, Presidio Networked Solutions, LLC, is a large business, suggesting limited direct benefit to small businesses through this specific contract.
Oversight & Accountability
Oversight is crucial to ensure the IRS receives value for money, especially given the limited competition. Regular performance reviews and cost analysis would be essential to mitigate risks.
Related Government Programs
- Computer and Software Stores
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition may lead to higher costs.
- Potential for vendor lock-in.
- Risk of service quality degradation if oversight is insufficient.
- Technology obsolescence risk over the contract duration.
Tags
computer-and-software-stores, department-of-the-treasury, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $16.5 million to PRESIDIO NETWORKED SOLUTIONS, LLC. INFOCONNECT MAINT OFF BPA TIRNO99Z00003
Who is the contractor on this award?
The obligated recipient is PRESIDIO NETWORKED SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $16.5 million.
What is the period of performance?
Start: 2008-01-31. End: 2013-03-19.
What specific IT maintenance services are covered under this BPA, and how do they align with IRS operational needs?
The BPA likely covers a range of IT maintenance services essential for the IRS's complex infrastructure, including hardware, software, and network support. Understanding the specific scope is crucial to assess if the $16.45M expenditure is justified and if the services adequately meet the agency's evolving technological requirements and operational demands.
Were alternative contract vehicles or competitive strategies explored to ensure maximum price competition for this IT maintenance requirement?
Given the limited competition indicated, it's important to understand the rationale behind the procurement strategy. Exploring options like broader BPA solicitations, task order competitions, or leveraging existing government-wide contracts could have potentially yielded better pricing and wider vendor participation, thereby enhancing value for taxpayers.
How does the performance of Presidio Networked Solutions, LLC under this contract compare to industry benchmarks for IT maintenance service delivery and cost-effectiveness?
Assessing the contractor's performance against industry standards is vital for ensuring the IRS receives quality service at a reasonable cost. Metrics such as uptime, response times, issue resolution rates, and adherence to budget should be continuously monitored and benchmarked to identify areas for improvement or potential contract renegotiation.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
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: Presidio, Inc. (UEI: 799064451)
Address: 5100 PHILADELPHIA WAY J, LANHAM, MD, 20706
Business Categories: Category Business, Small Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $38,774,663
Exercised Options: $16,450,092
Current Obligation: $16,450,092
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4554G
IDV Type: FSS
Timeline
Start Date: 2008-01-31
Current End Date: 2013-03-19
Potential End Date: 2013-03-19 00:00:00
Last Modified: 2021-11-25
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