Treasury's $24.8M IRS IT contract with General Dynamics raises questions on value and competition
Contract Overview
Contract Amount: $24,850,167 ($24.9M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2008-01-24
End Date: 2010-04-30
Contract Duration: 827 days
Daily Burn Rate: $30.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE
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 $24.9 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: PRIME SYSTEMS INTEGRATION SERVICES CONTR Key points: 1. The contract's total value is $24.8 million. 2. General Dynamics Information Technology, Inc. is the sole awardee. 3. The contract type is Cost Plus Incentive, which can lead to cost overruns. 4. The NAICS code 541512 indicates Computer Systems Design Services. 5. The contract was awarded under Full and Open Competition.
Value Assessment
Rating: questionable
The Cost Plus Incentive contract type, while allowing for flexibility, carries inherent risks of cost escalation. Without detailed performance metrics and cost breakdowns, assessing the true value for money is difficult.
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. However, the specific details of the competition and how price discovery was achieved are not provided.
Taxpayer Impact: The $24.8 million expenditure represents taxpayer funds allocated to IT services for the IRS. The effectiveness and efficiency of this spending will determine the ultimate taxpayer impact.
Public Impact
Taxpayers fund IT modernization efforts for the IRS. The contract supports critical government functions through technology. The duration of the contract (827 days) suggests a significant, ongoing need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive contract type
- Lack of detailed performance metrics
- Potential for cost overruns
Positive Signals
- Awarded under Full and Open Competition
- Supports critical IRS functions
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Benchmarks for similar contracts would typically involve comparing per-unit costs for specific IT services or overall project costs for comparable system integrations.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
Oversight of this contract would involve monitoring performance against contract requirements and ensuring that costs remain within acceptable parameters, especially given the Cost Plus Incentive structure.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost Plus Incentive contract type can lead to higher than expected costs.
- Lack of detailed performance metrics makes value assessment difficult.
- Potential for scope creep without clear deliverables.
- Limited insight into the competitive landscape beyond 'Full and Open'.
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 $24.9 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 $24.9 million.
What is the period of performance?
Start: 2008-01-24. End: 2010-04-30.
What specific IT systems or services were provided under this contract, and how did they improve IRS operations?
The contract was for Prime Systems Integration Services. Without further details on the specific systems integrated or the improvements achieved, it's challenging to quantify the operational benefits. This information is crucial for assessing the contract's effectiveness and value beyond its monetary cost.
What were the key performance indicators (KPIs) for this contract, and how did General Dynamics perform against them?
The provided data does not include specific Key Performance Indicators (KPIs) or performance evaluation results. Understanding these metrics and the contractor's performance is essential for assessing the risk associated with cost overruns and ensuring the government received adequate value for its investment.
Were there any cost savings or efficiencies realized by the IRS as a result of this contract, particularly given the incentive structure?
The Cost Plus Incentive contract type aims to incentivize cost savings and efficient performance. However, the data does not specify whether such savings were achieved or if the incentive structure successfully controlled costs. A post-award review or detailed financial analysis would be necessary to determine the actual cost-effectiveness.
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 INCENTIVE (V)
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: $26,581,523
Exercised Options: $26,581,523
Current Obligation: $24,850,167
Parent Contract
Parent Award PIID: TIRNO99D00001
IDV Type: IDC
Timeline
Start Date: 2008-01-24
Current End Date: 2010-04-30
Potential End Date: 2010-04-30 00:00:00
Last Modified: 2015-02-16
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