Treasury's $34.3M IT contract with General Dynamics for customer account data engine operations and maintenance awarded under full and open competition
Contract Overview
Contract Amount: $34,315,186 ($34.3M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2008-01-29
End Date: 2009-12-31
Contract Duration: 702 days
Daily Burn Rate: $48.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: CUSTOMER ACCOUNT DATA ENGINE OPERATIONS AND MAINTENANCE MILESTONE 5
Place of Performance
Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $34.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CUSTOMER ACCOUNT DATA ENGINE OPERATIONS AND MAINTENANCE MILESTONE 5 Key points: 1. The contract value of $34.3M for IT operations and maintenance is significant. 2. General Dynamics Information Technology, Inc. is a major player in the IT services sector. 3. The contract's cost-plus-fixed-fee structure warrants scrutiny for potential cost overruns. 4. The sector is Computer Systems Design Services, a critical area for government operations.
Value Assessment
Rating: fair
The contract value of $34.3M for a 702-day duration appears reasonable for complex IT operations and maintenance services. Benchmarking against similar large-scale IT support contracts would provide a clearer picture of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method generally promotes competitive pricing and ensures the government receives the best value. The specific pricing discovery mechanisms within the cost-plus-fixed-fee structure are key to assessing its effectiveness.
Taxpayer Impact: Full and open competition aims to maximize taxpayer value by fostering a competitive environment for contract awards.
Public Impact
Impacts the Internal Revenue Service's ability to manage customer account data effectively. Ensures the continuity of critical IT operations for a major government agency. Supports the technological infrastructure necessary for tax administration and data processing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contract type can lead to higher costs if not managed carefully.
- Lack of specific performance metrics in the provided data makes outcome assessment difficult.
- Contract duration of 702 days is substantial, requiring ongoing oversight.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process.
- Contractor is a well-established IT services provider.
- Focus on critical IT infrastructure for a key government function.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, which is crucial for government IT infrastructure. Spending benchmarks for similar large-scale IT operations and maintenance contracts are typically in the millions of dollars annually, depending on scope and complexity.
Small Business Impact
The contract was awarded to General Dynamics Information Technology, Inc., a large business. There is no indication of small business participation in the provided data, suggesting limited opportunities for small businesses on this specific contract.
Oversight & Accountability
Oversight of this contract would primarily fall under the Department of the Treasury and the Internal Revenue Service. Robust oversight mechanisms are essential to manage the cost-plus-fixed-fee structure and ensure performance objectives are met.
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 scope creep in IT operations and maintenance.
- Lack of specific performance metrics in the data.
- Long contract duration requires sustained oversight.
Tags
computer-systems-design-services, department-of-the-treasury, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $34.3 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CUSTOMER ACCOUNT DATA ENGINE OPERATIONS AND MAINTENANCE MILESTONE 5
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 $34.3 million.
What is the period of performance?
Start: 2008-01-29. End: 2009-12-31.
What is the specific definition of 'CUSTOMER ACCOUNT DATA ENGINE OPERATIONS AND MAINTENANCE MILESTONE 5' and how does it align with IRS strategic goals?
The 'CUSTOMER ACCOUNT DATA ENGINE OPERATIONS AND MAINTENANCE MILESTONE 5' likely refers to a specific phase or component of the IRS's system for managing taxpayer account information. This includes the operational upkeep and maintenance of the underlying technology. Its alignment with strategic goals would depend on whether it supports modernization efforts, data security enhancements, or improved taxpayer services.
How effectively did the cost-plus-fixed-fee structure control costs and ensure value for money given the $34.3M expenditure?
The effectiveness of the cost-plus-fixed-fee structure in controlling costs and ensuring value is difficult to assess without detailed financial reports and performance data. While this contract type allows for flexibility, it carries inherent risks of cost overruns if not rigorously managed. The fixed fee component provides some incentive for efficiency, but the 'cost-plus' aspect requires strong government oversight to prevent unnecessary expenses.
What are the key performance indicators (KPIs) for this contract, and how was contractor performance measured against them?
Key performance indicators for this contract would likely include system uptime, data processing speed, security compliance, and response times for maintenance requests. The provided data does not specify these KPIs or the contractor's performance against them. Effective oversight would involve regular reviews of performance metrics, audits, and user feedback to ensure the contractor is meeting contractual obligations.
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 ID: R060
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: $57,173,432
Exercised Options: $36,125,590
Current Obligation: $34,315,186
Parent Contract
Parent Award PIID: TIRNO99D00001
IDV Type: IDC
Timeline
Start Date: 2008-01-29
Current End Date: 2009-12-31
Potential End Date: 2009-12-31 00:00:00
Last Modified: 2015-02-16
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