Treasury's IRS Spends $19.18M on Critical Files Retrieval System Maintenance with Unisys
Contract Overview
Contract Amount: $19,176,206 ($19.2M)
Contractor: Unisys Corporation
Awarding Agency: Department of the Treasury
Start Date: 2012-03-29
End Date: 2017-03-31
Contract Duration: 1,828 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF CRITICAL OPERATION AND MAINTENANCE OF THE FILES INFORMATION RETIEVAL SYSTEM
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $19.2 million to UNISYS CORPORATION for work described as: IGF::CT::IGF CRITICAL OPERATION AND MAINTENANCE OF THE FILES INFORMATION RETIEVAL SYSTEM Key points: 1. Significant contract value for IT operations and maintenance. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Contract duration of 5 years indicates a long-term need for these services. 4. The 'Other Computer Related Services' NAICS code is broad, requiring specific understanding of the system's function.
Value Assessment
Rating: good
The contract value of $19.18M over 5 years for IT O&M appears reasonable given the critical nature of a 'Files Information Retrieval System'. Benchmarking against similar large-scale IT maintenance contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. The use of a Firm Fixed Price contract further supports price certainty for the government.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure essential IT services at a fair price, ensuring the IRS can maintain critical data retrieval capabilities.
Public Impact
Ensures IRS can access and manage critical taxpayer information. Supports the operational continuity of a vital government function. Potential for system upgrades or enhancements during the contract period. Reliability of the system is crucial for tax administration and enforcement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Broad NAICS code may obscure specific service costs.
- Reliance on a single vendor for critical system maintenance.
- Potential for scope creep if system requirements evolve significantly.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type.
- Critical operational support for IRS functions.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on operations and maintenance. IT O&M contracts can represent a substantial portion of agency IT budgets, with benchmarks varying widely based on system complexity and criticality.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Larger IT service providers likely possess the scale and expertise required for this critical system maintenance.
Oversight & Accountability
The contract was awarded as a Delivery Order under a larger contract vehicle (implied by 'aw': 'DELIVERY ORDER'). Oversight would involve monitoring performance, adherence to contract terms, and ensuring value for money throughout the contract's life.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for vendor lock-in due to critical system reliance.
- Risk of technological obsolescence over the 5-year term.
- Broad NAICS code may obscure detailed cost analysis.
- Lack of small business participation.
Tags
other-computer-related-services, department-of-the-treasury, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $19.2 million to UNISYS CORPORATION. IGF::CT::IGF CRITICAL OPERATION AND MAINTENANCE OF THE FILES INFORMATION RETIEVAL SYSTEM
Who is the contractor on this award?
The obligated recipient is UNISYS 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 $19.2 million.
What is the period of performance?
Start: 2012-03-29. End: 2017-03-31.
What specific functions does the 'Files Information Retrieval System' perform, and how critical are these to IRS operations?
The 'Files Information Retrieval System' is vital for the Internal Revenue Service's ability to access, manage, and retrieve taxpayer information and related documents. Its criticality stems from supporting core functions like tax processing, audits, investigations, and responding to taxpayer inquiries. Ensuring its reliable operation is paramount for tax administration and compliance.
What are the potential risks associated with a long-term (5-year) contract for critical IT system maintenance?
Long-term contracts for critical IT systems carry risks such as technological obsolescence if the system isn't updated, vendor lock-in making future transitions difficult, and potential cost overruns if initial pricing doesn't account for evolving needs. There's also the risk of performance degradation if vendor focus shifts or resources are mismanaged over the extended period.
How effectively does the 'full and open competition' method ensure value for money for this specific IT maintenance contract?
Full and open competition is designed to maximize the number of potential bidders, thereby fostering a competitive environment that should drive down prices and improve service quality. For this IT maintenance contract, it suggests the IRS sought the best possible solution and price by allowing all qualified vendors to participate, increasing the likelihood of achieving good value.
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: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 11720 PLAZA AMERICA DR STE 300, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,541,400
Exercised Options: $20,541,400
Current Obligation: $19,176,206
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: TIRNO11D00035
IDV Type: IDC
Timeline
Start Date: 2012-03-29
Current End Date: 2017-03-31
Potential End Date: 2017-03-31 00:00:00
Last Modified: 2025-09-26
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