DOJ's $51M IBM Contract for Sentry Modernization and Cloud Migration Faces Scrutiny
Contract Overview
Contract Amount: $51,102,542 ($51.1M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Justice
Start Date: 2021-09-24
End Date: 2026-09-30
Contract Duration: 1,832 days
Daily Burn Rate: $27.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SENTRY MODERNIZATION AND CLOUD MIGRATION
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Justice obligated $51.1 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: SENTRY MODERNIZATION AND CLOUD MIGRATION Key points: 1. Significant investment in IT infrastructure modernization. 2. IBM is a major player, but competition details are limited. 3. Potential risks include vendor lock-in and cost overruns. 4. Focus on essential federal prison system IT services.
Value Assessment
Rating: fair
The contract value of $51.1M for computer systems design services appears substantial. Benchmarking against similar large-scale cloud migration and system modernization projects is necessary to assess its reasonableness, especially given the duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the competition and how price discovery was achieved are not provided, which could impact the final price.
Taxpayer Impact: Taxpayer funds are being utilized for critical IT infrastructure upgrades within the Federal Prison System. The effectiveness of the competition and the final pricing will determine the overall value for taxpayers.
Public Impact
Modernization of the Sentry system aims to improve operational efficiency for the Bureau of Prisons. Cloud migration is expected to enhance data security and accessibility. The project's success could lead to better management of correctional facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition metrics.
- Long contract duration (over 4 years).
- Potential for scope creep in modernization projects.
Positive Signals
- Awarded under full and open competition.
- Addresses critical IT infrastructure needs.
- Utilizes a firm-fixed-price contract type.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar large-scale federal IT modernization and cloud migration projects are typically in the tens to hundreds of millions of dollars, depending on scope and complexity.
Small Business Impact
The data indicates this contract was awarded to a large corporation (IBM) and does not show any specific set-asides for small businesses. Therefore, the direct impact on small businesses is likely minimal unless they are subcontractors.
Oversight & Accountability
Oversight will be crucial to ensure the project stays within scope, budget, and timeline. The Department of Justice and the Bureau of Prisons should have established mechanisms for monitoring contractor performance and financial expenditures.
Related Government Programs
- Computer Systems Design Services
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for cost overruns due to project complexity.
- Risk of vendor lock-in with IBM.
- Dependency on a single large contractor.
- Effectiveness of cloud migration security measures.
- Long-term maintainability of modernized systems.
Tags
computer-systems-design-services, department-of-justice, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $51.1 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. SENTRY MODERNIZATION AND CLOUD MIGRATION
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 (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $51.1 million.
What is the period of performance?
Start: 2021-09-24. End: 2026-09-30.
What specific performance metrics will be used to evaluate the success of the Sentry modernization and cloud migration?
Success metrics should focus on quantifiable improvements in system uptime, data processing speed, security incident response times, and user satisfaction post-migration. Key Performance Indicators (KPIs) should be clearly defined in the contract's Statement of Work, with regular reporting requirements to track progress against these benchmarks and ensure the modernization delivers tangible operational benefits.
How will the government mitigate the risk of vendor lock-in with IBM for future IT needs related to the Sentry system?
Mitigation strategies include ensuring clear exit clauses in the contract, requiring comprehensive documentation and knowledge transfer, and exploring multi-cloud or hybrid cloud strategies that reduce reliance on a single vendor's proprietary technologies. The government should also plan for future competitive procurements for ongoing support or enhancements to avoid long-term dependency.
What is the projected return on investment (ROI) for this $51M modernization effort, considering potential cost savings from cloud adoption?
The ROI calculation should factor in the initial investment, ongoing operational costs (including licensing, maintenance, and personnel), and projected savings from reduced hardware footprint, energy consumption, and potentially more efficient IT staffing. A detailed cost-benefit analysis comparing the current state with the future state post-modernization is essential to quantify the expected financial benefits and justify the expenditure.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 15BNAS21RRCA00031
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DRIVE, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $66,541,490
Exercised Options: $51,264,594
Current Obligation: $51,102,542
Actual Outlays: $38,139,407
Subaward Activity
Number of Subawards: 45
Total Subaward Amount: $19,114,229
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0014
IDV Type: GWAC
Timeline
Start Date: 2021-09-24
Current End Date: 2026-09-30
Potential End Date: 2031-09-24 00:00:00
Last Modified: 2026-04-09
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