Treasury's $19.5M contract for data entry services awarded to Laducer and Associates, Inc

Contract Overview

Contract Amount: $19,546,492 ($19.5M)

Contractor: Laducer and Associates, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2010-05-27

End Date: 2015-08-16

Contract Duration: 1,907 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DATA ENTRY CONTRACT FOR CTR DOCUMENTS

Place of Performance

Location: MANDAN, MORTON County, NORTH DAKOTA, 58554

State: North Dakota Government Spending

Plain-Language Summary

Department of the Treasury obligated $19.5 million to LADUCER AND ASSOCIATES, INC. for work described as: DATA ENTRY CONTRACT FOR CTR DOCUMENTS Key points: 1. Value for money assessed through benchmarking against similar data entry and document management contracts. 2. Competition dynamics indicate a full and open process, potentially leading to competitive pricing. 3. Risk indicators include contract duration and the nature of data entry services. 4. Performance context relies on the successful delivery of CTR document processing. 5. Sector positioning within IT services, specifically data processing and management.

Value Assessment

Rating: fair

The contract value of $19.5 million over approximately five years suggests a moderate annual spend. Benchmarking against similar government contracts for data entry and document management services is crucial to determine if the pricing is competitive. Without specific per-unit cost data or comparison to market rates for similar services, a definitive value assessment is challenging. However, the firm fixed-price structure provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two bidders suggests a degree of competition, though the specific details of the bidding process and the number of proposals received would provide a clearer picture of the competitive landscape. A competitive process generally aims to secure the best value for the government.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings for the government.

Public Impact

Benefits the Department of the Treasury by ensuring efficient processing of CTR (Currency Transaction Report) documents. Delivers essential data entry and document management services critical for financial regulatory compliance. Geographic impact is primarily within the IRS's operational scope, with potential national implications for financial crime monitoring. Workforce implications may involve specialized data entry personnel, though the primary contractor is Laducer and Associates, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for data entry errors impacting accuracy of financial reporting.
Dependence on a single contractor for critical document processing.
Security risks associated with handling sensitive financial data.

Positive Signals

Firm fixed-price contract provides cost predictability.
Awarded through full and open competition, suggesting market validation.
Contract duration allows for stable service delivery.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on data processing and document management. The market for these services is substantial, with government agencies frequently outsourcing such functions to manage large volumes of information efficiently. Comparable spending benchmarks would involve analyzing other federal contracts for similar data entry, digitization, and records management services across various agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor, Laducer and Associates, Inc., is not explicitly identified as a small business in this context. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The focus is on the prime contractor's capabilities for this specific service requirement.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Department of the Treasury's Internal Revenue Service. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IRS Document Management Services
Financial Data Processing Contracts
Federal Records Management
Anti-Money Laundering Compliance Support

Risk Flags

Data Accuracy Risk
Contractor Performance Risk
Data Security Risk
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $19.5 million to LADUCER AND ASSOCIATES, INC.. DATA ENTRY CONTRACT FOR CTR DOCUMENTS

Who is the contractor on this award?

The obligated recipient is LADUCER AND ASSOCIATES, 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 $19.5 million.

What is the period of performance?

Start: 2010-05-27. End: 2015-08-16.

What is the track record of Laducer and Associates, Inc. in performing similar federal data entry and document management contracts?

Assessing the track record of Laducer and Associates, Inc. requires a review of their past performance on federal contracts, particularly those involving data entry, document processing, and IT services. Information from sources like the Federal Procurement Data System (FPDS) or contractor performance assessment reports (CPARS) would be invaluable. Key aspects to examine include their history of meeting deadlines, quality of deliverables, adherence to security protocols, and any past performance issues or commendations. A strong track record in similar engagements would increase confidence in their ability to successfully execute this $19.5 million Treasury contract.

How does the per-unit cost of data entry under this contract compare to industry benchmarks or similar government contracts?

Determining the per-unit cost benchmark for data entry under this contract is challenging without specific details on the volume and type of data processed (e.g., per page, per record, per hour). However, a comparison to industry benchmarks for data entry services, which can range significantly based on complexity and location, would be informative. Government-wide contract vehicles or publicly available data from similar IRS or Treasury contracts for data processing could serve as comparison points. If the contract is firm fixed-price, the government has a defined cost, but its competitiveness relies on the negotiation and the initial pricing structure relative to market rates.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this data entry contract include potential inaccuracies in data input, delays in processing critical documents (like CTRs), and data security breaches. Mitigation strategies would involve robust quality assurance processes by the contractor, clear performance standards and Service Level Agreements (SLAs) defined in the contract, and stringent data security protocols mandated by the IRS. Regular audits, performance monitoring by the agency, and defined penalties for non-compliance are also crucial. The firm fixed-price nature of the contract incentivizes the contractor to manage these risks effectively to maintain profitability.

How effective has the IRS been in managing similar large-scale data processing contracts in the past?

The IRS has a long history of managing large-scale IT and data processing contracts, given its mission-critical functions. Their effectiveness can be gauged by examining the outcomes of previous contracts, including on-time delivery, budget adherence, and the successful integration of processed data into their systems. Reviews by the Government Accountability Office (GAO) or the Treasury Inspector General for Tax Administration (TIGTA) often highlight successes and challenges in IRS contract management. Analyzing these reports can provide insights into the agency's capabilities and potential areas for improvement in overseeing contracts like this one for CTR document processing.

What is the historical spending trend for data entry and document management services within the Department of the Treasury?

Analyzing historical spending trends for data entry and document management within the Department of the Treasury provides context for the $19.5 million awarded to Laducer and Associates, Inc. This involves examining aggregate spending data over several fiscal years, identifying key agencies and programs that procure these services, and noting any significant increases or decreases in expenditure. Understanding these trends can reveal whether this contract represents a typical investment, an expansion of services, or a shift in procurement strategy for the department. It also helps in identifying potential budget fluctuations or sustained demand for such services.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 201 MISSOURI DR, MANDAN, ND, 58554

Business Categories: American Indian Owned Business, Category Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,896,682

Exercised Options: $19,546,494

Current Obligation: $19,546,492

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0111T

IDV Type: FSS

Timeline