Treasury's $27.8M IT contract to General Dynamics for systems integration services awarded in 2005

Contract Overview

Contract Amount: $27,882,808 ($27.9M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2005-02-17

End Date: 2006-09-30

Contract Duration: 590 days

Daily Burn Rate: $47.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PRIME SYSTEMS INTEGRATION SERVICES CONTR

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $27.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PRIME SYSTEMS INTEGRATION SERVICES CONTR Key points: 1. Contract awarded under a full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The award was made to General Dynamics Information Technology, Inc., a large established federal contractor. 4. The contract duration was 590 days, indicating a medium-term project. 5. The contract falls under the Computer Systems Design Services NAICS code, a common category for IT services. 6. The base award amount was $4.7M, with the total obligated amount reaching $27.8M, a significant increase.

Value Assessment

Rating: fair

The total obligated amount of $27.8M significantly exceeds the initial base award of $4.7M, indicating substantial scope growth or cost increases over the contract's life. Without detailed breakdowns of the cost increases, it's difficult to definitively assess value for money. Benchmarking against similar IT systems integration contracts from the same period would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, implying that multiple bidders had the opportunity to submit proposals. The fact that it was competed openly is a positive sign for price discovery. However, the number of bids received is not specified, which would provide further insight into the actual level of competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from a wider pool of contractors.

Public Impact

The primary beneficiary is the Department of the Treasury, specifically the Internal Revenue Service (IRS), which received IT systems integration services. These services likely supported critical IRS operations and infrastructure, enhancing their ability to manage taxpayer data and services. The geographic impact is primarily within the United States, supporting federal government functions. The contract supported the IT workforce, likely involving skilled professionals in systems design, integration, and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant increase from base award to total obligated amount suggests potential for cost overruns or scope creep.
Cost Plus Fixed Fee contract type carries inherent risks of cost escalation if not rigorously managed.
Lack of specific details on task orders and modifications makes it hard to track the evolution of costs and services.

Positive Signals

Awarded through full and open competition, indicating a potentially robust bidding process.
Contract awarded to a well-established IT services provider with federal contracting experience.
The contract aimed to provide essential IT systems integration, supporting critical government functions.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and integration. The federal government is a major consumer of these services, with significant spending allocated annually to maintain and upgrade its complex IT infrastructure. This contract represents a portion of that spending, aimed at enhancing the operational capabilities of a key agency.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem through this specific contract is likely minimal unless subcontracting occurred without explicit set-aside provisions.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's contracting officers and program managers. The Inspector General for the Treasury may also have jurisdiction for audits and investigations. Transparency is generally facilitated through contract databases like FPDS, though detailed performance metrics and modification justifications are not always publicly available.

Related Government Programs

IT Services Contracts
Systems Integration Services
Department of the Treasury Contracts
Internal Revenue Service IT Modernization
Cost Plus Fixed Fee Contracts

Risk Flags

Significant increase in obligated amount from base award.
Cost Plus Fixed Fee contract type carries inherent cost escalation risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $27.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. PRIME SYSTEMS INTEGRATION SERVICES CONTR

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 $27.9 million.

What is the period of performance?

Start: 2005-02-17. End: 2006-09-30.

What specific systems or IT infrastructure did this contract aim to integrate or improve for the IRS?

The provided data does not specify the exact systems or IT infrastructure that this contract was intended to integrate or improve for the Internal Revenue Service. The NAICS code '541512 - Computer Systems Design Services' indicates a broad scope of work related to designing and integrating computer systems. To understand the specific impact, one would need to review the contract's Statement of Work (SOW), task orders, and any modifications. These documents would detail the objectives, deliverables, and technical requirements, shedding light on whether the contract supported core tax processing systems, data management platforms, cybersecurity enhancements, or other critical IRS IT functions.

How did the final obligated amount of $27.8M compare to the initial estimated value or ceiling of the contract?

The provided data indicates a base award amount of $4,725,900 and a total obligated amount of $27,882,807.76. This represents a significant increase, approximately 5.9 times the base award. Without knowing the initial contract ceiling or estimated value, it's difficult to definitively state how the final obligated amount compares. However, the substantial difference suggests either significant scope expansion through modifications, unforeseen cost increases, or a contract structure where the base award was a small portion of the potential total value. Further analysis of contract modifications and justifications would be needed to understand the reasons for this substantial increase.

What was the performance history of General Dynamics Information Technology, Inc. on similar federal IT integration contracts around the 2005-2006 period?

General Dynamics Information Technology, Inc. (GDIT) has a long history as a major federal contractor, including in the IT services and systems integration space. During the 2005-2006 period, GDIT was actively involved in numerous large-scale IT projects across various government agencies. Assessing their specific performance on similar contracts would require examining past performance evaluations, contract award histories, and any documented issues or successes. Generally, large contractors like GDIT are expected to have established processes for managing complex IT projects, but performance can vary significantly based on project complexity, agency requirements, and internal management. A review of contract databases and agency performance reports from that era would provide more granular insights.

Were there any performance issues or contract disputes associated with this specific contract during its period of performance?

The provided data does not contain information regarding performance issues or contract disputes associated with this specific contract. Contract databases typically record award amounts, dates, contractor information, and basic contract types, but detailed performance metrics, disputes, or termination details are often not publicly accessible or are summarized in broader agency reports. To determine if there were performance issues, one would need to consult agency-specific contract management records, Inspector General reports, or litigation databases if any disputes escalated to that level.

How does the per-contract spending of $27.8M for IT systems integration by the IRS compare to other agencies of similar size and mission during that period?

Comparing the $27.8M spent by the IRS on this specific IT systems integration contract to other agencies of similar size and mission during the 2005-2006 period requires broader spending data. The IRS is a large agency with complex IT needs related to tax administration. A comprehensive analysis would involve benchmarking this contract's value against IT spending across other large federal agencies (e.g., Social Security Administration, Department of Defense components, other Treasury bureaus) for similar services. Factors like agency size, complexity of operations, existing IT infrastructure, and modernization priorities would influence spending levels. Without access to aggregated IT spending reports for that period across multiple agencies, a direct comparison is challenging.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $39,368,548

Exercised Options: $39,368,528

Current Obligation: $27,882,808

Parent Contract

Parent Award PIID: TIRNO99D00001

IDV Type: IDC

Timeline