Treasury's IRS awards $210M contract to Northrop Grumman for infrastructure support

Contract Overview

Contract Amount: $21,043,001 ($21.0M)

Contractor: Northrop Grumman Advanced Information Services, Inc

Awarding Agency: Department of the Treasury

Start Date: 2007-09-28

End Date: 2008-09-27

Contract Duration: 365 days

Daily Burn Rate: $57.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: INFRASTRUCTURE

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $21.0 million to NORTHROP GRUMMAN ADVANCED INFORMATION SERVICES, INC for work described as: INFRASTRUCTURE Key points: 1. Contract value of $210.4M for infrastructure services. 2. Northrop Grumman secured the award. 3. Full and open competition was utilized. 4. The contract duration is 365 days.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. The award amount of $210.4M is significant, and its value needs to be assessed against the specific deliverables and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the Cost Plus Award Fee structure requires diligent oversight to ensure costs remain reasonable and performance is optimized.

Taxpayer Impact: Taxpayer funds are being used for infrastructure support services. The effectiveness of the competition and contract management will determine the ultimate value for taxpayers.

Public Impact

Ensures continued operation of critical IRS infrastructure. Supports government's ability to collect revenue. Potential for cost overruns due to contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure can incentivize higher spending.
Contract duration is relatively short, potentially leading to follow-on contract needs.
No indication of small business participation.

Positive Signals

Awarded through full and open competition.
Supports essential government functions.

Sector Analysis

Infrastructure spending in government IT and support services is crucial for operational continuity. Benchmarks for similar contracts would typically focus on cost per service unit or project management efficiency.

Small Business Impact

The data indicates that small businesses were not a direct awardee on this contract, as the 'sb' field is false. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded under full and open competition, which implies a degree of oversight in the solicitation process. However, the Cost Plus Award Fee structure necessitates ongoing monitoring of performance and costs to ensure accountability.

Related Government Programs

Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Cost Plus Award Fee structure may lead to higher than anticipated costs.
Lack of small business prime awardee.
Short contract duration could indicate a need for future, potentially more expensive, contract actions.
Performance metrics and award fee justification require rigorous oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $21.0 million to NORTHROP GRUMMAN ADVANCED INFORMATION SERVICES, INC. INFRASTRUCTURE

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 $21.0 million.

What is the period of performance?

Start: 2007-09-28. End: 2008-09-27.

What specific infrastructure services are covered by this contract, and how do they align with the IRS's strategic goals?

The contract likely covers a range of IT infrastructure services essential for the IRS's operations, such as network maintenance, server management, data center support, and potentially cloud services. These services are critical for the agency's ability to process tax returns, manage taxpayer data securely, and maintain its revenue collection functions, directly supporting its core mission.

What are the key performance indicators (KPIs) for this Cost Plus Award Fee contract, and how will performance be measured to justify award fees?

Key performance indicators would typically include metrics related to system uptime, response times for critical incidents, successful completion of maintenance tasks, and adherence to security protocols. The award fee structure incentivizes the contractor to exceed baseline performance targets, with the government evaluating performance against these KPIs to determine the fee amount.

How does the $210.4M award compare to historical spending on similar infrastructure support contracts at the IRS or other large federal agencies?

Without specific historical data for comparable IRS infrastructure contracts, a direct comparison is difficult. However, $210.4M represents a substantial investment. Benchmarking against similar full and open competition contracts for IT infrastructure services at agencies of comparable size and complexity would be necessary to assess if this award is within a reasonable cost range.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

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: $21,043,001

Exercised Options: $21,043,001

Current Obligation: $21,043,001

Parent Contract

Parent Award PIID: TIRNO95D00099

IDV Type: IDC

Timeline