Treasury's IRS awards $108.5M contract for critical function data support to IBM
Contract Overview
Contract Amount: $108,512,933 ($108.5M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of the Treasury
Start Date: 2016-04-27
End Date: 2021-06-26
Contract Duration: 1,886 days
Daily Burn Rate: $57.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF FOR CRITICAL FUNCTIONS - RETURN REVIEW PROGRAM DATA SUPPORT SERVICES
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $108.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS - RETURN REVIEW PROGRAM DATA SUPPORT SERVICES Key points: 1. IBM secured a significant contract valued at over $108 million for essential data support services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is substantial, spanning nearly five years. 4. The services provided fall under 'Other Computer Related Services', a broad IT category.
Value Assessment
Rating: fair
The contract's value of $108.5 million over nearly five years suggests a substantial investment. Benchmarking against similar large-scale IT support contracts is necessary to fully assess pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method typically fosters competitive pricing. The existence of multiple bids (no: 3) further supports the likelihood of a fair price discovery process.
Taxpayer Impact: Taxpayers are impacted through the funding of essential government IT services, aiming for efficient operations within the IRS.
Public Impact
Ensures continuity of critical data support functions for the IRS. Supports the operational efficiency of tax administration and revenue collection. Leverages a major IT provider (IBM) for specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or outcomes in provided data.
- Potential for vendor lock-in with a large, long-term contract.
- Need for ongoing monitoring of service delivery and cost-effectiveness.
Positive Signals
- Awarded through full and open competition.
- Utilizes a firm-fixed-price contract type, providing cost certainty.
- Supports critical government functions.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending benchmarks for similar large-scale IT support contracts with federal agencies can vary widely based on scope and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large corporation (IBM). There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract's duration and value necessitate robust oversight to ensure performance, adherence to terms, and value for taxpayer money. The IRS should have established mechanisms for monitoring IBM's service delivery.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost overruns if scope creep occurs.
- Dependency on a single large vendor for critical functions.
- Need for detailed performance metrics to ensure value.
- Risk of outdated technology if not managed proactively.
Tags
other-computer-related-services, department-of-the-treasury, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $108.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IGF::CT::IGF FOR CRITICAL FUNCTIONS - RETURN REVIEW PROGRAM DATA SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $108.5 million.
What is the period of performance?
Start: 2016-04-27. End: 2021-06-26.
What specific critical functions does this data support, and what is the measurable impact of these services on IRS operations?
The provided data does not specify the exact critical functions supported. However, such services typically underpin core IRS operations like taxpayer account management, tax processing, and data security. The measurable impact would ideally be reflected in improved efficiency, reduced errors, and enhanced data integrity within these critical areas.
Given the firm-fixed-price structure, how was the initial price determined to be fair and reasonable, and are there mechanisms for price adjustments if scope changes?
A firm-fixed-price contract implies the price was determined to be fair and reasonable based on initial estimates and market research during the full and open competition. Price adjustments would typically be handled through contract modifications if the scope of work significantly changes, requiring re-evaluation and negotiation.
What are the key performance indicators (KPIs) for this contract, and how is IBM's performance being measured against them to ensure effectiveness?
The provided data does not detail the specific KPIs for this contract. Effective oversight would require the IRS to establish and track metrics related to service availability, response times, data accuracy, and security compliance. Regular performance reviews would then assess IBM's adherence to these KPIs.
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: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $432,657,086
Exercised Options: $210,832,663
Current Obligation: $108,512,933
Actual Outlays: $29,108,223
Subaward Activity
Number of Subawards: 129
Total Subaward Amount: $18,697,308
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: TIRNO11D00022
IDV Type: IDC
Timeline
Start Date: 2016-04-27
Current End Date: 2021-06-26
Potential End Date: 2021-10-26 10:40:38
Last Modified: 2023-06-21
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