DOJ's $21.4M IBM contract for IT services shows long-term engagement and potential for cost efficiencies

Contract Overview

Contract Amount: $21,408,016 ($21.4M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Justice

Start Date: 2002-10-15

End Date: 2008-04-30

Contract Duration: 2,024 days

Daily Burn Rate: $10.6K/day

Number of Offers Received: 51

Pricing Type: FIXED PRICE

Sector: IT

Place of Performance

Location: DISTRICT OF COLUMBIA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $21.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: Key points: 1. Contract duration of over 5 years suggests a sustained need for IT services. 2. Fixed-price contract type can offer cost predictability for the agency. 3. The large dollar value indicates a significant IT requirement within the DOJ. 4. IBM's established presence in government contracting suggests familiarity with agency needs. 5. The contract's completion in 2008 provides historical data for future benchmarking. 6. Focus on computer and software stores points to procurement of IT hardware and related services.

Value Assessment

Rating: good

This $21.4 million contract for IT services awarded to IBM appears to be a reasonable investment given its duration and the nature of IT support. While specific performance metrics are not detailed, the fixed-price structure suggests an effort to control costs. Benchmarking against similar long-term IT support contracts for federal agencies of the Department of Justice's size would provide a clearer picture of value for money. The absence of detailed cost breakdowns makes a precise value assessment challenging, but the sustained engagement implies satisfaction with the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this contract is not specified in the provided data. Typically, IT services contracts can range from full and open competition to sole-source awards, depending on the specific requirements and market availability. If this was competed, the number of bidders would indicate the level of market interest and potential for competitive pricing. Limited competition could lead to higher prices, while robust competition generally drives down costs and encourages innovation.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Strong competition can lead to better pricing and more efficient service delivery, saving taxpayer dollars. Conversely, limited competition may result in overpayment for services.

Public Impact

The Department of Justice benefits from sustained IT support, ensuring operational continuity. Federal employees within the DOJ gain access to necessary IT infrastructure and services. The contract supports the agency's mission-critical functions through reliable technology. Geographic impact is likely concentrated in Washington D.C., where the contract was administered. The contract supports jobs within IBM and potentially its subcontractors in the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the quality of services delivered.
The long contract duration without clear re-competition raises questions about ongoing cost-effectiveness.
Limited information on competition makes it hard to determine if the best possible price was secured.
The specific IT services provided are not detailed, hindering a precise understanding of the value proposition.

Positive Signals

IBM is a well-established contractor with a proven track record in government IT.
The fixed-price contract type offers a degree of cost certainty for the agency.
The sustained engagement over several years suggests a level of satisfaction with the contractor's performance.
The contract falls under the broad category of computer and software stores, indicating a focus on essential IT resources.

Sector Analysis

This contract falls within the Information Technology sector, specifically related to computer hardware, software, and associated services. The IT services market for federal agencies is substantial, with significant spending allocated annually to maintain and upgrade complex technological infrastructures. Contracts like this, often involving large, established vendors like IBM, are common for providing ongoing support, maintenance, and potentially new technology deployments. Benchmarks for similar IT support contracts often consider factors like the scope of services, duration, and the specific technologies involved.

Small Business Impact

The provided data does not indicate whether this contract included small business set-asides or subcontracting requirements. Large IT contracts awarded to major corporations like IBM may or may not have specific provisions for small business participation. Analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem. Without this information, it's difficult to assess the contract's contribution to small business goals.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Justice's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is often facilitated through contract databases like FPDS, which provide public access to contract awards. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arose during the contract's performance.

Related Government Programs

Department of Justice IT Modernization Efforts
Federal Civilian IT Procurement
Large-Scale IT Service Contracts
IBM Government Contracts Portfolio

Risk Flags

Long contract duration without clear re-competition points.
Lack of detailed performance metrics.
Unspecified competition level.
Limited transparency on specific services rendered.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $21.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2002-10-15. End: 2008-04-30.

What was the specific nature of the IT services provided under this contract?

The data indicates the contract falls under the 'Computer and Software Stores' (NAICS 443120) category, suggesting procurement of computer hardware, software, and potentially related services such as installation, maintenance, and support. However, the exact scope of services is not detailed. This could range from providing new equipment and software licenses to ongoing technical support, system integration, or managed IT services. A more granular understanding would require reviewing the contract's statement of work (SOW) or task orders issued against it.

How does the $21.4 million total award compare to similar IT contracts awarded by the Department of Justice during that period?

Comparing this $21.4 million contract to other DOJ IT procurements between 2002 and 2008 requires access to historical contract databases. However, for a large agency like the Department of Justice, a multi-year IT services contract in the tens of millions of dollars is not uncommon, especially for enterprise-wide solutions or significant infrastructure support. The value suggests a substantial requirement. To assess its relative size, one would look at the number of similar contracts, their durations, and their total award values within the DOJ's IT spending portfolio during that era.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These are typically detailed within the contract's Statement of Work (SOW) or individual task orders. For IT services, common KPIs might include system uptime, response times for technical support, resolution times for issues, and adherence to security protocols. The absence of this information in the summary data makes it difficult to quantitatively assess the contractor's performance and the value derived from the services.

What is IBM's track record with the Department of Justice for IT services prior to and following this contract?

IBM has a long-standing and extensive history of contracting with various U.S. federal agencies, including the Department of Justice. Prior to this 2002-2008 contract, IBM likely held numerous IT-related agreements with the DOJ. Following this contract's completion, IBM has continued to be a major IT vendor for the federal government. Analyzing IBM's broader contract portfolio with the DOJ, including contract values, types of services, and performance ratings, would provide a comprehensive view of their relationship and track record beyond this specific award.

Were there any significant challenges or disputes encountered during the performance of this contract?

The provided summary data does not contain information regarding challenges, disputes, or contract modifications for this specific award. Such details are typically found in contract performance reports, modification histories, or agency-specific contract management files. Without access to these records, it's impossible to determine if the contract experienced significant issues, required extensive change orders, or faced formal disputes between the Department of Justice and IBM.

How did the fixed-price nature of this contract influence cost management and potential for cost overruns?

A fixed-price contract, like the one awarded to IBM, establishes a ceiling price for the work. This structure places the risk of cost overruns primarily on the contractor (IBM, in this case), incentivizing them to manage their costs efficiently. For the Department of Justice, it offers budget predictability. However, if the scope of work changes significantly, change orders might be negotiated, potentially increasing the total price. The effectiveness of cost management under a fixed-price contract also depends on the clarity of the initial scope and the contractor's ability to execute within that defined scope.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,408,016

Exercised Options: $21,408,016

Current Obligation: $21,408,016

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4984H

IDV Type: FSS

Timeline