Treasury's $15.5M IT contract for system integration services awarded to General Dynamics Information Technology

Contract Overview

Contract Amount: $15,521,909 ($15.5M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2005-10-27

End Date: 2007-02-28

Contract Duration: 489 days

Daily Burn Rate: $31.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

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 $15.5 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PRIME SYSTEMS INTEGRATION SERVICES CONTR Key points: 1. Contract awarded under 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 duration of 489 days indicates a medium-term project. 4. The award was made under the "Other" contract vehicle, suggesting it might not be a standard government-wide contract. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract was awarded in 2005 and completed in 2007, indicating historical spending.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and performance metrics. The Cost Plus Fixed Fee (CPFF) structure means the government pays the actual costs plus a fixed fee, which can sometimes incentivize contractors to incur higher costs. Comparing it to similar IT system integration contracts from the mid-2000s would be necessary to assess if the pricing was competitive for the services rendered. The total value of $15.5 million over approximately 1.3 years suggests a moderate investment for system integration at that time.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which should theoretically lead to better pricing and service offerings for the government. The open nature of the competition suggests that the agency sought the best value available in the market for its system integration needs.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through a wider pool of bidders vying for the contract.

Public Impact

The primary beneficiary of this contract was the Department of the Treasury, specifically the Internal Revenue Service (IRS). The services delivered were related to computer systems design and integration, likely supporting IRS operations. The geographic impact is presumed to be within the IRS's operational areas, primarily the United States. The contract supported IT professionals and potentially impacted the workforce involved in maintaining and upgrading IRS systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not rigorously monitored.
The contract was awarded in 2005 and completed in 2007, making direct performance comparisons to current standards difficult.
Lack of specific performance metrics makes it hard to assess the true value and effectiveness of the system integration.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract was successfully completed, suggesting the contractor met the basic requirements.
The IT services provided likely contributed to the modernization or maintenance of critical IRS systems.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and integration. The market for such services is vast and highly competitive, with numerous large and small businesses offering solutions. In the mid-2000s, government agencies like the IRS were heavily investing in upgrading their IT infrastructure to improve efficiency and security. Comparable spending benchmarks would involve looking at other large federal IT integration contracts awarded during that period to assess the scale and pricing.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, it likely did not directly involve small business set-aside provisions. However, the prime contractor, General Dynamics Information Technology, may have utilized small businesses as subcontractors, which is common in large IT contracts. The impact on the small business ecosystem would depend on the extent of any subcontracting opportunities provided.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, contracting specialists, and technical monitors within the IRS. Accountability measures are inherent in the CPFF structure, where costs are scrutinized, and the fixed fee is earned upon meeting defined objectives. Transparency is generally facilitated through contract databases like FPDS, where basic award information is recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian Agency IT Services
General IT System Integration Contracts
Department of the Treasury IT Spending

Risk Flags

Contract awarded using Cost Plus Fixed Fee structure.
Contract vehicle designation is 'Other', requiring further investigation into its implications.
Limited public information on specific performance outcomes and detailed cost breakdowns.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $15.5 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 $15.5 million.

What is the period of performance?

Start: 2005-10-27. End: 2007-02-28.

What was the specific nature of the system integration services provided under this contract?

The contract, identified by NAICS code 541512 (Computer Systems Design Services), was for "PRIME SYSTEMS INTEGRATION SERVICES CONTR." While the exact details are not provided in the summary data, system integration typically involves combining different computer systems and software applications physically or functionally to act as a coordinated whole. For the IRS, this could have involved integrating tax processing systems, data management platforms, or internal operational software to improve data flow, enhance security, or enable new functionalities. The goal is usually to create a more cohesive and efficient IT environment.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other IT contract types in terms of risk and value?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or when there's a high degree of uncertainty, allowing flexibility. The government agrees to pay the contractor's actual costs plus a predetermined fixed fee representing profit. This structure can be advantageous when innovation or adaptation is required. However, it carries a risk for the government: if costs escalate beyond initial estimates, the total expenditure increases, although the fee remains fixed. This contrasts with Fixed Price contracts, where the price is set upfront, shifting cost risk to the contractor. For IT services, CPFF can be valuable for complex integration projects but requires stringent oversight to manage costs effectively and ensure fair value.

What does the award date of October 27, 2005, tell us about the technology landscape and IT needs of the IRS at that time?

An award date in late 2005 places this contract firmly in the era of significant federal IT modernization efforts. Agencies like the IRS were grappling with aging infrastructure, increasing data volumes, and evolving cybersecurity threats. The need for system integration services suggests a focus on consolidating disparate systems, improving interoperability, and potentially migrating towards more modern architectures. This period also saw the rise of enterprise resource planning (ERP) systems and increased emphasis on data security and privacy, likely influencing the requirements for this contract.

Given the contract's completion in 2007, what are the challenges in assessing its long-term impact or success?

Assessing the long-term impact of a contract completed nearly two decades ago presents several challenges. Firstly, the technology landscape has evolved dramatically since 2007; systems integrated then may be obsolete or significantly upgraded. Secondly, without access to the original performance reports, key performance indicators (KPIs), or post-implementation reviews, it's difficult to objectively measure the success against the initial objectives. Thirdly, the IRS's overall IT infrastructure has undoubtedly undergone numerous changes and upgrades since 2007, making it hard to isolate the specific, lasting contribution of this particular integration effort. Therefore, any assessment relies heavily on the assumption that the integration met its immediate goals and served as a foundation for subsequent improvements.

How does the 'Other' contract vehicle (st: MD) potentially affect competition and pricing compared to more common vehicles?

The 'Other' contract vehicle designation (st: MD) is less common and suggests this contract might have been awarded through a specific, possibly agency-specific or less widely publicized, procurement mechanism rather than a standard government-wide contract vehicle like GSA Schedules or GWACs. Using less common vehicles can sometimes limit the pool of potential bidders if awareness is lower, potentially impacting the level of competition. However, if the vehicle was designed for specific needs and attracted qualified bidders, it could still yield competitive results. The impact on pricing is variable; it depends on the specific rules of the 'Other' vehicle and the competitive dynamics it fostered. Without more information on this specific vehicle, it's difficult to definitively state its impact compared to more established contract types.

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: 1

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: $15,521,909

Exercised Options: $15,521,909

Current Obligation: $15,521,909

Parent Contract

Parent Award PIID: TIRNO99D00001

IDV Type: IDC

Timeline