GovWin Federal Agency Planner Update – Department of the Treasury

BACKGROUND:

Account Planners are published on 100 select GovWin Federal Agency Profiles. The Planners serve as an overview of an agency’s complete profile, providing a high-level summary of the organization’s structure, budget and spending information, employment data, and strategic goals and objectives (when made available). The Planners are updated annually or if there is a significant change to an agency’s structure or strategic mission. The following blog highlights notable differences observed when the Department of the Treasury Planner was recently updated. To access any links below, a subscription that includes access to Deltek’s GovWin Federal Agency Profiles is necessary.

Treasury:

Changes in Total Discretionary Budget – Deltek’s Agency Profiles use the President’s Budget Authorization, as opposed to budget appropriations, to measure discretionary budget requests. The budget authorization specifies the total amount an agency is authorized to spend, while the budget appropriations signify the amount Congress will make available for any agency’s program during the budget authorization process. Because Congressional budget negotiations have resulted in continuing budget resolutions (funding agencies at the same appropriation level as the previous year) for well over 20 years, the Budget Authorization provides the best indication of the budget request changes from one year to the next.

In early August, the President signed the Bipartisan Budget Act of 2019, which among other things, increased FY 2020 and 2021 budget authorization limits, a key demand of the Senate before it would begin working on FY 2020 appropriation bills. FY 2020 will begin under a Continuing Resolution. The Continuing Appropriations Act, 2020, and Health Extenders Act of 2019, signed in to law on September 27, 2019, funds agencies through November 21 at FY 2019 spending levels.

While time is running short with roughly a month and a half left in the current fiscal year (FY 2020 begins October 1, 2019), FY 2020 has a slim chance to be the first fiscal year in a long time not to require a continuing resolution.       

Deltek measures changes in discretionary budget growth from the last full fiscal year, in this case, FY 2018, through the budget request year, FY 2020. During this period, Treasury’s budget request grew 1.6%, increasing from $12.9 billion in 2018 to $13 billion in 2020. The growth in Treasury’s discretionary request is concentrated in a few of its budget accounts. Leading the growth is the Business Systems Modernization budget account, which grew nearly 71%, increasing from $187 million in 2018 to $320 million in 2020. The requested budgets of both Office of Terrorism and Financial Intelligence and Department-wide Systems and Capital Investments Programs each grew 50% over the same period.

Based on dollar value, the Enforcement budget account holds the largest request at $4.9 billion in FY 2020, an increase of $269 million. The Operations Support account request totaled $4.5 billion, an increase of $278 million. Together, the Operations Support and Enforcement budget accounts accounted for $9.4 billion or 70% of Treasury’s total budget request.

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Source: Deltek, OMB - President’s FY 2020 Budget Authorization

Changes in Contract Spending – In terms of growth, Architecture Engineering and Construction (AEC) led all spending segments at 302% follow distantly by Other Products & Materials at just 40% growth. At a total of $205 million and $493 million respectively, these two segments combine to account for just 15% of total spending in FY 2018.   

Treasury’s AEC spending was driven largely by the USACE AEC Bureau of Engraving and Printing Western Currency Facility Expansion contract. Held by Hensel Phelps Construction Co., the $157 million in prime spending accounts for 76% of Treasures FY 2018 AEC prime contract spend. Treasury’s SEISMIC Upgrade (USM-SF) Phase 5 Building Structure was the next largest AEC contract award with $6 million in reported spending. The contract, awarded to Patriot Construction accounted for just 3% of total FY 2018 reported spend.

Total prime spending from FY 2017 and FY 2018 at Treasury decreased 9.2%. Spending on Information Technology accounted for approximately 49% of the agency’s spending in 2018, totaling $2.3 billion, a 15% increase from the previous year’s total of $2.0 billion. At $785 million, Environment & Conservation Services was the second-largest spending category and accounted for 16% of total Treasury spending in 2018. However, total reported spending decreased by approximately 56% from the previous year’s total of $1.7 billion in 2017. 

Source: Deltek, FPDS

Changes in Employment – Between 2017 and 2018, Treasury’s civilian employee population increases just over 1%. The agency reported having 88,605 civilian employees midway through the middle of fiscal year 2018. The Administrative category contained 34,659 employees, approximately 39% of the Treasury’s total employee population. Information Technology, with 7,228 employees, was the largest subcategory and made up approximately 21% of the Administrative category.    

Administrative and Professional categories, when combined, accounted for all 1,858 agency losses between 2017 and 2018. The Administrative occupation accounted for 2,736 of these losses alone. The leading sub-occupations within the Administrative occupation to lose employees were the Internal Revenue Officer, which lost 307 employees, followed by Financial Administration and Program, which lost 211 employees during the same period. General Inspection, Investigation, Enforcement, and Compliance Series led occupation additions with 27 employees.

Changes in IT Budget Request – Treasury’s 2019 estimated IT spending increased slightly to $4.8 billion in the FY 2020 budget request up from $4.6 billion in the FY 2019 IT budget request. The department’s total IT request in FY 2020 was $ 5.0 billion a 4% increase over the FY 2019 estimated spend presented in the FY 2020 budget request.

Treasury’s largest investment based on total investment is the IRS Main Frames and Servers Services and Support (MSSS). With a request of $630 million in 2020, the program is defined as: development and deployment of server, middleware and large systems and enterprise storage infrastructures, including systems software products, databases, and operating systems for these platforms. MSSS is an existing program. Over the past three fiscal years, 2018 – 2020, total funding as consistently remained in the $600 million range with the majority, $624 million in FY 2020, being slated for O&M spending.

IRS Customer Account Data Engine 2 (CADE 2) is Treasury’s top DME funded IT program in FY 2020 at $90 million up from $85 million in FY 2019. The program is defined as: IRS's modernized core tax processing system that leverages modern-day database technology, programming languages, and principles to determine refunds, penalty & interest, monitor compliance, and track historical information about individual taxpayer accounts. CADE 2 is an existing program. Total program funding has grown from $104 million to $111 million between FY 2019 and FY 2020.

Much of the CADE 2 program work was initially competed through GSA Schedule 70 and now many of the services are provided through the Total Information Processing Support Services 4 (TIPPS-4).   

The President’s Information Technology Budget Request (Exhibit 53) is divided into two pools of monies. Development, Modernization, and Enhancement (DME) is money requested for new programs, while Operation and Maintenance (O&M) is money requested for existing programs. At $4.2 billion, the FY 2020 O&M request is 82% of Treasury’s total IT budget request. As a result, recompete contracts can be expected to consume the largest portion of the agency’s IT budget.

In FY 2020, Treasury’s top programs based on requested DME belong to the Internal Revenue Service and are as follows.

• IRS Customer Account Data Engine 2 (CADE 2) - DME: $90 Million  Total: $111 Million
• IRS Cyber Operations, Risk Management & Implementation – DME: $87 Million  Total $271 Million
• IRS Telecommunications Systems and Support (TSS) - DME: $73 Million  Total $480 Million
• IRS IT Management Investment – DME: $68 Million  Total: $456 Million

Changes in the Leading Contractors – From FY 2017 to FY2018, Treasury’s top contractors remained mostly the same. The position of the contractors shifted slightly with two new companies entering the top ten in 2018.  Spectrum Group International, Inc., and Coins ‘N Things, Inc., are the top contractors again with Spectrum reporting the most obligations in FY 2018. Deloitte LLP moved up to the third position because Sunshine Minting, INC (which occupied the spot in 2017) reported drastically reduced Treasury obligations in FY 2018. Two of the top ten contractors in 2018 were not in the top ten in 2017: Hensel Phelps Construction Company had no Treasury reported obligations in 2017, but $156 million in reported spending was enough to place the company in 8th place on the list in 2018. Booz Allen Hamilton’s 2017 Treasury reported obligations were less than the amount needed to make the list of top contractors. Booz Allen’s $138 million in 2018 obligations earned it the 9th spot for top Treasury contractors. 

Together, the reported prime obligations of the top 10 vendors totaled $4.8 billion in 2018, which accounted for approximately 38% of Treasury’s 2018 total, which was a slight decrease from the 42% of the total the top contractors were responsible for in 2017.

Source: Deltek, FPDS

To explore more in-depth federal spending and budget data as well as opportunities, contracts, and task orders specific to this agency please visit the Department of the Treasury or download the entire Department of the Treasury Agency Planner.  

* This report uses fiscal years 2017 and 2018 as the last complete fiscal years. OMB rules allow DOD agencies a 90-day grace reporting period following each fiscal quarter thus complete spending data for the fiscal year 2019 will not be available until early in the new calendar year.