Treasury's IRS awards $31M for IT services to General Dynamics Information Technology
Contract Overview
Contract Amount: $31,037,339 ($31.0M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2010-01-01
End Date: 2011-12-31
Contract Duration: 729 days
Daily Burn Rate: $42.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: FY09&10 BSM APPROP AWARD OF O&M '10 TO
Place of Performance
Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $31.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: FY09&10 BSM APPROP AWARD OF O&M '10 TO Key points: 1. The award represents a significant investment in IT infrastructure for the IRS. 2. General Dynamics Information Technology is a major player in the government IT contracting space. 3. The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure cost control. 4. The sector is dominated by large, established IT service providers.
Value Assessment
Rating: good
The contract value of $31M over two years appears reasonable for complex IT services. Benchmarking against similar large-scale IT support contracts for federal agencies would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to sole-source or limited solicitations.
Taxpayer Impact: The competitive award process is beneficial for taxpayers, as it aims to secure services at the best possible value.
Public Impact
Ensures continued operation and modernization of IRS IT systems. Supports critical tax administration functions. Potential for improved taxpayer services through enhanced technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) can incentivize contractor to increase costs if not managed properly.
- Contract duration of 2 years may not be sufficient for long-term IT modernization goals.
- Potential for scope creep given the nature of IT services.
Positive Signals
- Awarded under full and open competition.
- Experienced contractor with a strong track record.
- Clear contract start and end dates.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a critical area for federal agencies. Spending in this sector is consistently high due to the ongoing need for IT modernization and support.
Small Business Impact
The contract was awarded to a large business (General Dynamics Information Technology) and does not indicate any specific set-asides for small businesses. This suggests limited direct opportunities for small businesses on this particular prime contract.
Oversight & Accountability
The Department of the Treasury's Internal Revenue Service is responsible for oversight. The Cost Plus Fixed Fee contract type necessitates diligent monitoring of costs and performance to ensure accountability and value.
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 services.
- Contract duration may limit long-term strategic impact.
- Lack of small business participation noted.
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 $31.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. FY09&10 BSM APPROP AWARD OF O&M '10 TO
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 $31.0 million.
What is the period of performance?
Start: 2010-01-01. End: 2011-12-31.
What specific IT systems or services are covered under this contract, and how do they align with the IRS's strategic IT modernization goals?
The contract covers 'Computer Systems Design Services' (NAICS 541512) for Operations & Maintenance (O&M) in FY10. While the specific systems are not detailed, O&M contracts typically involve maintaining existing infrastructure, software, and networks. Alignment with modernization goals would depend on whether these O&M activities support or hinder broader transformation initiatives, such as cloud migration or data analytics enhancements.
How will the IRS manage the Cost Plus Fixed Fee (CPFF) structure to mitigate risks of cost overruns and ensure efficient resource utilization?
Effective management of a CPFF contract requires robust oversight, including detailed cost tracking, regular performance reviews, and clear communication channels. The IRS should establish stringent reporting requirements for General Dynamics Information Technology, scrutinize all incurred costs against the fixed fee, and implement performance metrics tied to contract objectives. Proactive identification and mitigation of potential cost drivers are crucial.
What is the anticipated impact of this contract on the IRS's ability to improve taxpayer services and enhance cybersecurity posture?
The contract's focus on O&M for IT systems is foundational for both taxpayer services and cybersecurity. Reliable and secure IT infrastructure is essential for processing tax returns, providing online services, and protecting sensitive taxpayer data. If the O&M activities ensure system stability, performance, and security, this contract indirectly supports improved taxpayer experiences and a stronger defense against cyber threats.
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: RFP R071
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
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: $31,045,834
Exercised Options: $31,041,839
Current Obligation: $31,037,339
Parent Contract
Parent Award PIID: TIRNO99D00001
IDV Type: IDC
Timeline
Start Date: 2010-01-01
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2015-02-16
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