IRS awards $30.6M Blanket Baseline DO to Northrop Grumman for IT services

Contract Overview

Contract Amount: $30,662,971 ($30.7M)

Contractor: Northrop Grumman Advanced Information Services, Inc

Awarding Agency: Department of the Treasury

Start Date: 2005-10-01

End Date: 2008-09-27

Contract Duration: 1,092 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BLANKET BASELINE DO FOR IRS

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $30.7 million to NORTHROP GRUMMAN ADVANCED INFORMATION SERVICES, INC for work described as: BLANKET BASELINE DO FOR IRS Key points: 1. The contract, valued at $30.6 million, was awarded to Northrop Grumman Advanced Information Services, Inc. 2. This award falls under the IT sector, specifically for IT services. 3. The contract was awarded using full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is 1092 days, ending in September 2008. 5. The baseline DO award amount is $30,662,971.23.

Value Assessment

Rating: fair

The contract's value of $30.6 million over approximately three years is moderate for IT services. Benchmarking against similar large-scale IT support contracts would be necessary for a precise assessment, but the fixed-price nature suggests an attempt at cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the most cost-effective solution through market forces.

Public Impact

Taxpayers benefit from competitive bidding processes that aim to reduce costs for government IT services. The IRS relies on IT services to manage tax administration and taxpayer data securely. The duration of the contract suggests a need for sustained IT support for critical IRS functions. The award to a large contractor like Northrop Grumman indicates the scale of IT needs within the IRS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is substantial, requiring ongoing monitoring.
Lack of specific performance metrics in provided data.
Potential for vendor lock-in if not managed carefully.

Positive Signals

Awarded via full and open competition.
Firm Fixed Price contract type.
Awarded to a well-established IT services provider.

Sector Analysis

This contract falls within the Information Technology sector, specifically for IT services. The IRS, like many large government agencies, has significant IT infrastructure needs to support its vast operations, including data processing, security, and taxpayer interaction. Spending benchmarks for similar IT support contracts 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 Northrop Grumman, a large prime contractor. There is no information provided on subcontracting opportunities for small businesses under this award.

Oversight & Accountability

Oversight would typically involve contract performance reviews, financial audits, and adherence to service level agreements. The IRS's internal oversight mechanisms and potentially the Treasury Inspector General for Tax Administration would be responsible for monitoring this contract's execution and ensuring accountability.

Related Government Programs

Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Contract duration is long (1092 days).
No specific performance metrics provided.
Potential for scope creep if not tightly managed.
Reliance on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $30.7 million to NORTHROP GRUMMAN ADVANCED INFORMATION SERVICES, INC. BLANKET BASELINE DO FOR IRS

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN ADVANCED INFORMATION SERVICES, 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 $30.7 million.

What is the period of performance?

Start: 2005-10-01. End: 2008-09-27.

What specific IT services were included in this blanket baseline DO, and how do they align with the IRS's core mission objectives?

The provided data does not specify the exact IT services covered by the 'BLANKET BASELINE DO'. However, such contracts typically encompass a range of IT support, potentially including system maintenance, software development, network operations, or help desk services. These services are crucial for the IRS's ability to process tax returns, manage taxpayer accounts, ensure data security, and provide public services efficiently.

Given the firm fixed-price structure, what mechanisms were in place to ensure the contractor delivered value and met performance expectations within the $30.6 million budget?

A firm fixed-price contract aims to control costs by setting a definitive price. Value and performance are typically ensured through detailed contract statements of work, performance metrics, service level agreements (SLAs), and regular progress reviews. The IRS would have likely monitored Northrop Grumman's adherence to these specifications and potentially imposed penalties or incentives based on performance outcomes.

How did the full and open competition process ensure the government received the best possible technical solution and pricing for these critical IRS IT services?

Full and open competition allows multiple qualified vendors to submit proposals, fostering a competitive environment. The IRS would have evaluated these proposals based on predefined criteria, likely including technical approach, past performance, management plan, and price. This process is designed to identify the offer that provides the best overall value, balancing technical capabilities with cost-effectiveness, thereby maximizing taxpayer benefit.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Titan II Inc. (UEI: 016435559)

Address: 8100 GATEHOUSE RD, FALLS CHURCH, VA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $32,639,930

Exercised Options: $32,639,930

Current Obligation: $30,662,971

Parent Contract

Parent Award PIID: TIRNO95D00099

IDV Type: IDC

Timeline