Treasury's IRS Awards $95.7M IT Contract to General Dynamics for CADE Release 1.3 & 2

Contract Overview

Contract Amount: $95,741,088 ($95.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2004-10-01

End Date: 2007-05-31

Contract Duration: 972 days

Daily Burn Rate: $98.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PRIME CONTRACT - CADE RELEASE 1.3 & 2

Place of Performance

Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $95.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PRIME CONTRACT - CADE RELEASE 1.3 & 2 Key points: 1. Contract value of $95.7M for IT services. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. The contract type is Cost Plus Fixed Fee. 4. Competition was full and open. 5. The contract duration is 972 days.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly. Benchmarking against similar IT system design contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for essential IT services.

Public Impact

Impacts IRS operations and taxpayer services through IT system development. General Dynamics' role in critical government IT infrastructure. Potential for improved efficiency or disruption in IRS systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract risk
Potential for scope creep in IT projects

Positive Signals

Full and open competition
Established IT contractor

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. Spending in this area is substantial across federal agencies, supporting critical infrastructure and operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is a large corporation. There is no indication of small business subcontracting in the provided data.

Oversight & Accountability

Oversight would focus on managing the Cost Plus Fixed Fee structure to ensure costs remain within reasonable bounds and that the project meets its technical objectives.

Related Government Programs

Computer Systems Design Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Lack of specific performance metrics in provided data
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $95.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. PRIME CONTRACT - CADE RELEASE 1.3 & 2

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, 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 $95.7 million.

What is the period of performance?

Start: 2004-10-01. End: 2007-05-31.

What specific IT systems or functionalities does CADE Release 1.3 & 2 encompass, and how do they align with the IRS's strategic goals?

CADE Release 1.3 & 2 likely refers to updates or new versions of the IRS's Case Assessment and Data Entry (CADE) system, crucial for processing tax returns and managing taxpayer data. These updates would align with strategic goals by improving efficiency, accuracy, and security in tax administration, potentially enabling faster processing and better fraud detection.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?

Key performance indicators would likely include system uptime, processing speed, data accuracy rates, and user satisfaction. Measurement would involve regular system monitoring, performance testing, user feedback surveys, and audits conducted by the IRS contracting officer's representative (COR) to ensure the contractor meets defined service levels and project milestones.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control costs and prevent contractor inefficiencies?

Mechanisms to control costs under a CPFF contract include detailed budget reviews, regular financial reporting, Earned Value Management (EVM) to track progress against cost and schedule, and strict change control processes. The fixed fee incentivizes the contractor to complete the work efficiently, while the government pays actual allowable costs, requiring diligent oversight to prevent unnecessary expenditures.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: MARYLAND TECHNOLOGY CENTER, LANHAM, MD, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $95,741,088

Exercised Options: $95,741,088

Current Obligation: $95,741,088

Parent Contract

Parent Award PIID: TIRNO99D00001

IDV Type: IDC

Timeline