Treasury's IRS Adds $29.6M for EFDS Task Order to Booz Allen Hamilton

Contract Overview

Contract Amount: $29,552,697 ($29.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Treasury

Start Date: 2012-03-15

End Date: 2015-03-14

Contract Duration: 1,094 days

Daily Burn Rate: $27.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF THIS IS A NEW TASK ORDER TO A CRITICAL AND HIGH IMPACT PROJECT FOR THE ELECTRONIC FRAUD DETECTION SYSTEM (EFDS). THE FUNDING IS BEING ADDED TO FULLY FUND THE FIXED PRICE PORTION OF THE TASK ORDER.

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $29.6 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CT::IGF THIS IS A NEW TASK ORDER TO A CRITICAL AND HIGH IMPACT PROJECT FOR THE ELECTRONIC FRAUD DETECTION SYSTEM (EFDS). THE FUNDING IS BEING ADDED TO FULLY FUND THE FIXED PRICE PORTION OF THE TASK ORDER. Key points: 1. Significant funding increase for a critical fraud detection system. 2. Solely awarded to Booz Allen Hamilton, raising questions about competition. 3. Fixed-price contract aims to control costs for this high-impact project. 4. Focus on IT services for electronic fraud detection.

Value Assessment

Rating: fair

The $29.6 million fixed-price task order is substantial. Without comparable contract data for similar fraud detection systems, assessing its pricing fairness is difficult. The fixed-price nature suggests an attempt to cap costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the specific details of the competition and how the fixed price was determined are not provided, making it hard to fully assess the impact on price.

Taxpayer Impact: Taxpayer funds are being used for a system aimed at improving fraud detection, which could lead to cost savings if effective. The large sum warrants scrutiny to ensure value for money.

Public Impact

Enhances the IRS's ability to combat electronic fraud, potentially saving taxpayer money. Supports a critical IT infrastructure for a major government agency. The large contract value highlights significant investment in cybersecurity and financial integrity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed pricing justification for the fixed-price amount.
Limited insight into the specific services rendered for the added funding.
Potential for cost overruns if the scope expands beyond the fixed price.

Positive Signals

Awarded under full and open competition.
Fixed-price contract structure to control costs.
Focus on a critical function: fraud detection.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending benchmarks for similar large-scale fraud detection systems are not readily available, but the amount suggests a significant investment in a specialized IT solution.

Small Business Impact

The contract was not awarded to small businesses, as indicated by the prime contractor. There is no information provided on subcontracting opportunities for small businesses within this task order.

Oversight & Accountability

The fixed-price nature of the task order provides some level of cost control. However, ongoing oversight is crucial to ensure the funds are used effectively and that the EFDS project meets its objectives without scope creep.

Related Government Programs

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

Risk Flags

Lack of detailed scope of work for the additional funding.
Potential for cost growth if not managed tightly.
Limited transparency on the competitive process details.
No clear performance metrics provided for this funding increment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $29.6 million to BOOZ ALLEN HAMILTON INC. IGF::CT::IGF THIS IS A NEW TASK ORDER TO A CRITICAL AND HIGH IMPACT PROJECT FOR THE ELECTRONIC FRAUD DETECTION SYSTEM (EFDS). THE FUNDING IS BEING ADDED TO FULLY FUND THE FIXED PRICE PORTION OF THE TASK ORDER.

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 $29.6 million.

What is the period of performance?

Start: 2012-03-15. End: 2015-03-14.

What specific enhancements or capabilities does this additional funding enable for the Electronic Fraud Detection System?

The provided data does not specify the exact enhancements. It only states the funding is to fully fund the fixed-price portion of the task order for a critical project. Further details would be needed to understand the technical or operational improvements this investment is intended to achieve for the EFDS.

How was the fixed price of $29.6 million determined to be fair and reasonable given the 'Other Computer Related Services' category?

The data indicates the contract was awarded under 'full and open competition', suggesting a competitive bidding process. However, without access to the cost proposals, independent government cost estimates, or benchmark data for similar systems, it is difficult to definitively assess the fairness and reasonableness of the fixed price.

What is the expected return on investment or measurable impact of this funding on the IRS's fraud detection capabilities?

The data does not provide specific metrics for ROI or impact. The project is described as 'critical and high impact', implying significant expected benefits in fraud reduction. However, concrete performance indicators and anticipated outcomes related to this specific funding increment are not detailed.

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

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,429,563

Exercised Options: $30,092,338

Current Obligation: $29,552,697

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO11D00011

IDV Type: IDC

Timeline