USDA Renews IBM Maximo Software License for $735K, Extending Through 2027

Contract Overview

Contract Amount: $73,558 ($73.6K)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Agriculture

Start Date: 2026-02-13

End Date: 2027-02-15

Contract Duration: 367 days

Daily Burn Rate: $200/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MAXIMO APPLICATION SUITE (MAS) AS A SERVICE SOFTWARE LICENSING RENEWAL IN ACCORDANCE WITH ATTACHED STATEMENT OF WORK (SOW).

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Agriculture obligated $73,557.79 to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: MAXIMO APPLICATION SUITE (MAS) AS A SERVICE SOFTWARE LICENSING RENEWAL IN ACCORDANCE WITH ATTACHED STATEMENT OF WORK (SOW). Key points: 1. Spending focuses on essential software licensing for asset management. 2. IBM is a major player in enterprise software, indicating potential competition challenges. 3. Risk is moderate, tied to software functionality and vendor lock-in. 4. IT sector spending, specifically on software publishers.

Value Assessment

Rating: good

The contract value of $735,577.79 for a 367-day period appears reasonable for enterprise-level asset management software. Benchmarking against similar large-scale software renewals would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, suggesting some level of competition, but the specific details of the competition method are not fully clear. Limited competition can sometimes lead to less favorable pricing.

Taxpayer Impact: Taxpayers are funding essential operational software for the Agricultural Research Service, ensuring continued asset management capabilities.

Public Impact

Ensures continued operation of critical asset management systems for agricultural research. Supports the Agricultural Research Service's mission by providing necessary software tools. Potential for cost savings through competitive bidding, though details are limited.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition details
Potential for vendor lock-in with specialized software

Positive Signals

Supports critical research infrastructure
Firm fixed price contract provides cost certainty

Sector Analysis

This contract falls within the IT sector, specifically software licensing. Spending on enterprise asset management software is common across government agencies to maintain and track physical assets efficiently.

Small Business Impact

The contract was awarded to IBM, a large corporation, and there is no indication of small business participation in this specific renewal.

Oversight & Accountability

The contract was awarded via Purchase Order, and the details of oversight are not provided. Standard procurement regulations would apply.

Related Government Programs

Software Publishers
Department of Agriculture Contracting
Agricultural Research Service Programs

Risk Flags

Limited competition details
Potential for vendor lock-in
Lack of historical cost data for comparison
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $73,557.79 to INTERNATIONAL BUSINESS MACHINES CORPORATION. MAXIMO APPLICATION SUITE (MAS) AS A SERVICE SOFTWARE LICENSING RENEWAL IN ACCORDANCE WITH ATTACHED STATEMENT OF WORK (SOW).

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $73,557.79.

What is the period of performance?

Start: 2026-02-13. End: 2027-02-15.

What was the specific competitive process under SAP, and did it include opportunities for alternative solutions?

The data indicates the contract was 'COMPETED UNDER SAP,' which is a standard procurement system. However, the specifics of the competition, such as the number of bids received or if alternative solutions were considered, are not detailed. Further inquiry into the solicitation documents would be needed to understand the full scope of the competitive process and its potential impact on pricing.

What is the long-term strategy for this software, and are there plans to explore more competitive or open-source alternatives?

The current data reflects a renewal for IBM's Maximo Application Suite. A long-term strategy review would be beneficial to assess if continued reliance on this specific vendor is the most cost-effective and efficient approach. Exploring open-source or other competitive asset management solutions could present opportunities for future cost savings and reduced vendor dependency.

How does the per-unit cost of this renewal compare to previous years or similar agency contracts for the same software?

The provided data does not include historical cost information or benchmarks for similar contracts. To assess the value effectively, a comparison of the per-unit cost against previous renewals or against contracts for the same software at other federal agencies would be necessary. This would help determine if the current pricing is competitive.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1232SA26Q0045

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 NEW ORCHARD RD, ARMONK, NY, 10504

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $423,012

Exercised Options: $73,558

Current Obligation: $73,558

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline