Treasury's IRS awards $15.3M contract to Northrop Grumman for infrastructure support
Contract Overview
Contract Amount: $15,303,068 ($15.3M)
Contractor: Northrop Grumman Advanced Information Services, Inc
Awarding Agency: Department of the Treasury
Start Date: 2009-09-28
End Date: 2010-09-27
Contract Duration: 364 days
Daily Burn Rate: $42.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: INFRASTRUCTURE
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $15.3 million to NORTHROP GRUMMAN ADVANCED INFORMATION SERVICES, INC for work described as: INFRASTRUCTURE Key points: 1. Contract awarded to a large, established defense contractor. 2. Full and open competition was utilized. 3. Potential for cost overruns exists with Cost Plus Award Fee contracts. 4. Spending falls within the broad 'Infrastructure' sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar infrastructure support contracts is difficult without more specific service details.
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 may still allow for costs to exceed initial estimates.
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 and maintenance of critical IRS infrastructure. Supports government's ability to collect taxes and administer programs. Potential for taxpayer money to be spent inefficiently due to contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition utilized
- Awarded to a reputable contractor
Sector Analysis
This contract falls under the broad 'Infrastructure' category, which can encompass a wide range of services. Benchmarking requires understanding the specific IT or physical infrastructure components supported.
Small Business Impact
The data indicates the awardee is Northrop Grumman, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
Oversight would focus on the IRS's management of the Cost Plus Award Fee structure to ensure performance targets are met and costs are controlled. The award notice itself is a form of transparency.
Related Government Programs
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost overruns due to contract type
- Lack of detailed service description
- Limited visibility into performance metrics
- Contract duration is relatively short, potentially leading to follow-on contract needs
Tags
department-of-the-treasury, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $15.3 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 $15.3 million.
What is the period of performance?
Start: 2009-09-28. End: 2010-09-27.
What specific infrastructure services are being provided under this contract?
The provided data lacks specificity regarding the exact nature of the 'infrastructure' services. It could range from IT systems maintenance and upgrades to physical facility management. Understanding the scope is crucial for assessing value and risk.
How effectively was the Cost Plus Award Fee structure managed to control costs?
Effective management of a Cost Plus Award Fee contract requires clear performance metrics and rigorous oversight to ensure the contractor is incentivized to control costs while achieving objectives. Without detailed performance reports, it's difficult to assess this aspect.
What is the long-term strategic value of this infrastructure support to the IRS?
The long-term value depends on the criticality of the supported infrastructure to the IRS's mission. If it underpins essential tax collection and processing functions, the value is high, provided the services are delivered efficiently and reliably.
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: $15,303,068
Exercised Options: $15,303,068
Current Obligation: $15,303,068
Parent Contract
Parent Award PIID: TIRNO95D00099
IDV Type: IDC
Timeline
Start Date: 2009-09-28
Current End Date: 2010-09-27
Potential End Date: 2010-09-27 00:00:00
Last Modified: 2010-09-16
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