NOAA awards $26.17M for High Performance Computing Managed Services to IBM
Contract Overview
Contract Amount: $26,169,475 ($26.2M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Commerce
Start Date: 2019-09-20
End Date: 2022-08-14
Contract Duration: 1,059 days
Daily Burn Rate: $24.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HIGH PERFORMANCE COMPUTING - MANAGED SERVICE
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $26.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: HIGH PERFORMANCE COMPUTING - MANAGED SERVICE Key points: 1. IBM secured a significant contract for HPC managed services. 2. The contract value is substantial, indicating a critical need for these services. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is IT services, specifically computer systems design.
Value Assessment
Rating: good
The contract value of $26.17M over approximately 3 years appears reasonable for high-performance computing managed services, especially considering the provider is IBM. Benchmarking against similar large-scale IT managed service contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery and value for the government. The use of a delivery order under a larger contract structure is common for specialized IT services.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure and services supporting NOAA's mission, with competition aiming to ensure efficient use of these funds.
Public Impact
Ensures critical high-performance computing capabilities for NOAA's scientific research and weather forecasting. Supports advanced data processing and analysis for climate modeling and environmental monitoring. Leverages IBM's expertise in managing complex computing infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is relatively long (over 3 years).
- No specific small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type can control costs.
- Managed services ensure operational continuity.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending on high-performance computing and managed IT services is crucial for government agencies like NOAA to maintain advanced research and operational capabilities.
Small Business Impact
The provided data does not indicate any specific set-aside for small businesses for this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract was awarded under full and open competition, suggesting a transparent process. Oversight would typically involve performance monitoring by NOAA to ensure IBM meets service level agreements and delivery requirements.
Related Government Programs
- Computer Systems Design Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Long contract duration.
- No explicit small business participation.
- Potential for vendor lock-in.
- Reliance on a single large corporation.
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 $26.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. HIGH PERFORMANCE COMPUTING - MANAGED SERVICE
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 $26.2 million.
What is the period of performance?
Start: 2019-09-20. End: 2022-08-14.
What specific performance metrics are in place to ensure the effectiveness of the managed services provided by IBM?
The contract likely includes Service Level Agreements (SLAs) that define key performance indicators (KPIs) for uptime, response times, processing speeds, and issue resolution. NOAA's contracting officers would monitor adherence to these SLAs. Regular performance reviews and reporting mechanisms are standard for such managed service contracts to ensure the agency receives the expected value and operational effectiveness.
How does the $26.17M contract value compare to industry benchmarks for similar high-performance computing managed services?
Benchmarking requires detailed comparison of service scope, infrastructure size, and provider expertise. However, for a 3-year managed service contract involving high-performance computing for a federal agency, $26.17M is within a plausible range, especially given IBM's established capabilities. A more precise benchmark would necessitate access to detailed pricing data from comparable government or commercial contracts.
What is the potential risk associated with relying on a single vendor, IBM, for critical HPC managed services over an extended period?
The primary risk is vendor lock-in and potential price increases upon contract renewal. Dependence on IBM could also pose challenges if their technology or support strategy shifts. Mitigating this involves robust contract terms, clear exit strategies, and continuous market scanning for alternative solutions or competitive pricing during the contract period.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: $27,442,772
Exercised Options: $27,442,772
Current Obligation: $26,169,475
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $4,388,479
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: 2019-09-20
Current End Date: 2022-08-14
Potential End Date: 2022-08-14 00:00:00
Last Modified: 2022-07-28
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