Treasury's IRS Spends $29.3M on Northrop Grumman Maintenance Contract
Contract Overview
Contract Amount: $29,270,052 ($29.3M)
Contractor: Northrop Grumman Advanced Information Services, Inc
Awarding Agency: Department of the Treasury
Start Date: 2007-09-28
End Date: 2010-09-27
Contract Duration: 1,095 days
Daily Burn Rate: $26.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MAINTENANCE
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $29.3 million to NORTHROP GRUMMAN ADVANCED INFORMATION SERVICES, INC for work described as: MAINTENANCE Key points: 1. Contract awarded to Northrop Grumman for maintenance services. 2. Significant spending of $29.3 million over three years. 3. Full and open competition was utilized. 4. Contract type is Firm Fixed Price, indicating price certainty.
Value Assessment
Rating: fair
The contract value of $29.3 million over three years suggests a substantial investment in maintenance. Benchmarking against similar large-scale IT maintenance contracts would be necessary to fully assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The fixed-price nature of the contract further aids in price discovery and limits cost overruns.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Taxpayers benefit from competitive bidding potentially leading to lower costs for essential IRS maintenance. The IRS ensures operational continuity through this maintenance agreement. Transparency in government spending is upheld through public contract data.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific details on the nature of 'maintenance' provided.
- No clear indication of performance metrics or service level agreements.
- Potential for vendor lock-in if specialized knowledge is required.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Long-term contract duration suggests a stable need.
Sector Analysis
This contract falls within the IT services sector, specifically maintenance. Spending benchmarks for IT maintenance vary widely based on system complexity and criticality, but $29.3 million over three years for a major agency like the IRS is not unusual.
Small Business Impact
The data indicates the prime contractor is Northrop Grumman, a large business. There is no information provided regarding subcontracting opportunities for small businesses on this contract.
Oversight & Accountability
The contract was awarded by the Department of the Treasury's Internal Revenue Service. Standard government oversight processes would apply to ensure contract performance and financial accountability.
Related Government Programs
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Lack of detailed service description.
- No performance metrics or SLAs specified.
- Potential for cost creep if scope is not tightly managed.
- Limited visibility into small business participation.
Tags
department-of-the-treasury, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $29.3 million to NORTHROP GRUMMAN ADVANCED INFORMATION SERVICES, INC. MAINTENANCE
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 $29.3 million.
What is the period of performance?
Start: 2007-09-28. End: 2010-09-27.
What specific maintenance services are covered under this contract, and how do they align with the IRS's operational needs?
The provided data lacks specifics on the maintenance services. A thorough review would require access to the contract's statement of work to understand if it covers hardware, software, network infrastructure, or a combination. Understanding the IRS's critical systems and their maintenance requirements is key to assessing the value and necessity of this expenditure.
How does the $29.3 million contract value compare to industry benchmarks for similar IT maintenance services for a federal agency of the IRS's size?
Without detailed service scope, a precise benchmark is difficult. However, for a large federal agency like the IRS, maintaining complex IT systems can be costly. The $29.3 million over three years averages roughly $9.7 million annually. This figure needs comparison against contracts for comparable agencies and service levels to determine if it represents good value or potential overspending.
What mechanisms are in place to ensure the effectiveness and efficiency of the maintenance services provided by Northrop Grumman?
Effectiveness and efficiency are typically managed through contract performance metrics, service level agreements (SLAs), and regular performance reviews. The data provided does not detail these oversight mechanisms. The IRS would need to actively monitor Northrop Grumman's performance against defined standards to ensure the maintenance services are delivered effectively and taxpayer funds are utilized efficiently.
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: $29,270,052
Exercised Options: $29,270,052
Current Obligation: $29,270,052
Parent Contract
Parent Award PIID: TIRNO95D00099
IDV Type: IDC
Timeline
Start Date: 2007-09-28
Current End Date: 2010-09-27
Potential End Date: 2010-09-27 00:00:00
Last Modified: 2010-04-13
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