NOAA Awards $70.7M for WCOSS Task Order to IBM for Computer Systems Design Services
Contract Overview
Contract Amount: $70,684,910 ($70.7M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Commerce
Start Date: 2012-02-15
End Date: 2017-02-14
Contract Duration: 1,826 days
Daily Burn Rate: $38.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TASK ORDER 0002 FOR WCOSS FIVE YEAR BASE PERIOD OF PERFORMANCE
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $70.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: TASK ORDER 0002 FOR WCOSS FIVE YEAR BASE PERIOD OF PERFORMANCE Key points: 1. IBM secured a significant contract for computer systems design, highlighting their role in government IT infrastructure. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The firm fixed price contract type aims to control costs for the five-year period. 4. This spending falls within the IT sector, specifically computer systems design services.
Value Assessment
Rating: good
The contract value of $70.7 million over five years for computer systems design services appears reasonable given the scope. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment, but the duration and complexity suggest a fair price point.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive environment generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the best possible value, ensuring funds are used efficiently for essential government functions.
Public Impact
Ensures continued operation and modernization of critical weather and climate operational support systems. Supports the National Oceanic and Atmospheric Administration's mission in weather forecasting and climate monitoring. Provides essential IT infrastructure and services for a key federal agency. IBM's role in this contract impacts the availability and reliability of weather-related data and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs despite fixed-price contract.
- Reliance on a single vendor (IBM) for a critical five-year period.
- Need for ongoing performance monitoring to ensure service delivery meets NOAA's requirements.
Positive Signals
- Awarded through full and open competition, maximizing potential for value.
- Firm fixed price contract helps control costs.
- Supports a vital government function (weather and climate services).
Sector Analysis
This contract falls under the Information Technology sector, specifically computer systems design services. Government spending in this area is substantial, supporting a wide range of agency operations. Benchmarks for similar large-scale IT service contracts can vary widely based on complexity and duration.
Small Business Impact
The contract was awarded to IBM, a large corporation, and there is no indication of specific set-asides or subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on small businesses appears limited for this specific task order.
Oversight & Accountability
The Department of Commerce, through NOAA, is responsible for overseeing this contract. Standard government oversight mechanisms, including performance reviews and financial audits, would be in place to ensure accountability and proper execution of the task order.
Related Government Programs
- Computer Systems Design Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Potential for vendor lock-in due to long-term contract.
- Complexity of systems may lead to unforeseen technical challenges.
- Dependence on IBM's performance for critical weather operations.
- Need for robust change management to control scope.
Tags
computer-systems-design-services, department-of-commerce, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $70.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. TASK ORDER 0002 FOR WCOSS FIVE YEAR BASE PERIOD OF PERFORMANCE
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $70.7 million.
What is the period of performance?
Start: 2012-02-15. End: 2017-02-14.
What specific computer systems design services are included in this task order, and how do they align with NOAA's current and future operational needs?
The task order focuses on computer systems design services for the WCOSS (Weather and Climate Operational Support Systems). This likely encompasses design, development, integration, and maintenance of complex IT systems crucial for NOAA's weather and climate modeling, data processing, and dissemination. The services are intended to ensure the reliability and efficiency of these critical operational systems over the five-year base period.
Given the five-year duration and firm fixed price, what are the primary risks associated with cost management and potential scope creep?
The primary risk with a five-year firm fixed price contract is scope creep, where additional requirements may be added, potentially increasing costs beyond the initial agreement if not managed strictly. While the fixed price aims to cap costs, unforeseen technical challenges or evolving operational needs could strain the budget or lead to disputes if not clearly defined and controlled through change order processes.
How effectively does this contract contribute to NOAA's overall mission of environmental prediction and stewardship, and what are the key performance indicators for success?
This contract is crucial for maintaining and potentially enhancing the IT infrastructure that underpins NOAA's weather and climate prediction capabilities. Success is likely measured by system uptime, data processing efficiency, accuracy of forecasts supported by these systems, and the timely delivery of critical environmental information to the public and other government entities.
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 Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $70,804,351
Exercised Options: $70,684,910
Current Obligation: $70,684,910
Subaward Activity
Number of Subawards: 62
Total Subaward Amount: $88,161,190
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DOCDG133012CQ0004
IDV Type: IDC
Timeline
Start Date: 2012-02-15
Current End Date: 2017-02-14
Potential End Date: 2017-02-14 00:00:00
Last Modified: 2023-09-23
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