DOJ awards $38M for September 11th Victim Claims Management System extension to IBM

Contract Overview

Contract Amount: $38,024,794 ($38.0M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Justice

Start Date: 2023-07-01

End Date: 2025-06-30

Contract Duration: 730 days

Daily Burn Rate: $52.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: SEPTEMBER 11TH VICTIMS CLAIMS MANAGEMENT SYSTEM. EXTENSION

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $38.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: SEPTEMBER 11TH VICTIMS CLAIMS MANAGEMENT SYSTEM. EXTENSION Key points: 1. Contract extension awarded to incumbent for critical victim support system. 2. Focus on maintaining operational continuity for a sensitive and vital service. 3. Performance period extends through mid-2025, ensuring ongoing support. 4. Awarded under full and open competition, indicating a competitive process. 5. Custom computer programming services are the primary focus of this award. 6. The contract value represents a significant investment in victim compensation infrastructure.

Value Assessment

Rating: good

The contract extension for the September 11th Victim Claims Management System appears to be a reasonable value, given the specialized nature of the services and the incumbent's established role. While specific pricing benchmarks for similar systems are not readily available, the extension suggests a continuation of services at terms likely negotiated based on prior performance and market conditions. The duration of the extension (730 days) and the total award amount of approximately $38 million indicate a substantial commitment to maintaining this critical system. Further analysis would require comparing the labor hours and rates to industry standards for custom computer programming services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it is an extension implies that the original award was also competed, and this subsequent award maintained that competitive posture. The number of bidders for the original solicitation would provide a clearer picture of the competitive landscape, but the 'full and open' designation generally promotes price discovery and encourages competitive pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the services required to manage the September 11th Victim Compensation Fund.

Public Impact

Benefits victims and families of the September 11th attacks by providing a platform for claims processing and management. Ensures the continued operation of a critical government function supporting a vulnerable population. Services are delivered primarily to individuals seeking compensation related to the 9/11 attacks. The system's impact is national, serving eligible claimants across the United States. Maintains the IT infrastructure necessary for the efficient administration of the Victim Compensation Fund.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if competition was limited in the original solicitation.
Ensuring continued cost-effectiveness of the system over its extended lifecycle.
Maintaining data security and integrity for sensitive victim information.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Incumbent contractor likely possesses deep institutional knowledge of the system.
Extension ensures continuity of essential services for victims and their families.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on custom computer programming services. The market for such services is vast and highly competitive, encompassing a wide range of software development, maintenance, and support. Government IT spending is a significant portion of the federal budget, with agencies constantly seeking to modernize systems and improve service delivery. Comparable spending benchmarks would typically involve analyzing IT service contracts for other large-scale case management or claims processing systems within federal agencies.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific contract extension was not provided in the data. However, given the nature of the services (custom computer programming for a complex system) and the incumbent being a large corporation, it is possible that subcontracting opportunities may exist for specialized IT support or services. A thorough review of the original solicitation and award documents would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Offices, Boards and Divisions, and potentially the Office of the Inspector General. Mechanisms for oversight likely include regular performance reviews, contract monitoring, and adherence to service level agreements. Transparency is generally maintained through contract award databases and public reporting, although specific system performance metrics may not always be publicly disclosed.

Related Government Programs

September 11th Victim Compensation Fund
Federal IT Services Contracts
Custom Software Development
Claims Management Systems

Risk Flags

Potential for increased costs if scope creeps.
Ensuring continued high performance and reliability of a critical system.
Data security and privacy of sensitive victim information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $38.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. SEPTEMBER 11TH VICTIMS CLAIMS MANAGEMENT SYSTEM. EXTENSION

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 $38.0 million.

What is the period of performance?

Start: 2023-07-01. End: 2025-06-30.

What is the track record of International Business Machines Corporation (IBM) in managing and developing similar large-scale government IT systems, particularly those involving sensitive data and crit

IBM has a long and extensive history of developing, implementing, and maintaining large-scale IT systems for various government agencies, including the Department of Justice. Their track record includes managing complex projects involving sensitive data, such as financial systems, law enforcement databases, and citizen-facing portals. For instance, IBM has been involved in significant IT modernization efforts for agencies like the Social Security Administration and the Department of Defense. Their experience in custom computer programming services is well-established, encompassing the full software development lifecycle. While specific details on past performance related to victim compensation systems might require deeper investigation, IBM's general capabilities in handling complex government IT contracts are robust, often involving significant security protocols and stringent performance requirements.

How does the awarded amount of approximately $38 million for a two-year extension compare to the initial contract value or similar IT service contracts for claims management systems?

Without the initial contract value or details on the scope of work for the original award, a direct comparison is challenging. However, an average annual cost of $19 million ($38 million / 2 years) for maintaining and potentially enhancing a complex claims management system like the September 11th Victim Claims Management System is within the expected range for federal IT contracts of this nature. Large-scale custom programming and system maintenance for critical government functions often incur substantial costs due to the need for high availability, security, specialized expertise, and ongoing updates. To provide a more precise benchmark, one would need to compare this to the average cost per year for similar systems in other federal agencies, considering factors like the number of users, transaction volume, and complexity of the underlying regulations being administered.

What are the primary risks associated with extending a contract for a critical system like the September 11th Victim Claims Management System, and how are these risks being mitigated?

Key risks include potential cost overruns if the scope of work expands unexpectedly, performance degradation if the contractor fails to meet service level agreements, and security vulnerabilities if the system is not adequately protected. Another risk is the potential for vendor lock-in, although this is mitigated by the initial 'full and open' competition. Mitigation strategies likely involve robust contract oversight by the Department of Justice, clearly defined performance metrics and service level agreements (SLAs), regular system audits, and contingency planning for service disruptions. The extension itself, awarded to an incumbent, aims to mitigate the risk of service interruption by ensuring continuity of operations and leveraging the contractor's existing knowledge of the system.

What is the expected effectiveness of this contract extension in ensuring the continued efficient operation and support for the September 11th Victim Compensation Fund?

The contract extension is expected to ensure the continued efficient operation and support for the September 11th Victim Compensation Fund by maintaining the existing IT infrastructure and services provided by IBM. This continuity is crucial for the timely and accurate processing of claims, which is vital for the beneficiaries of the fund. The extension allows for uninterrupted service delivery, preventing potential disruptions that could negatively impact victims and their families. The focus on custom computer programming services suggests that ongoing development or maintenance required to keep the system functional and responsive to user needs will be addressed. The effectiveness will ultimately be measured by the system's uptime, processing speed, data integrity, and user satisfaction.

How has historical spending on the September 11th Victim Claims Management System evolved, and does this extension represent a significant change in spending patterns?

Historical spending data for the September 11th Victim Claims Management System prior to this extension is not provided. However, the award of approximately $38 million for a two-year period suggests a sustained level of investment in this critical IT system. Without prior contract values, it's difficult to definitively state if this represents a significant change. Typically, IT systems supporting long-term government programs require consistent funding for maintenance, upgrades, and operational support. If the original contract was for a similar duration and value, this extension would indicate a stable spending pattern. Conversely, a substantial increase or decrease would warrant further investigation into the reasons behind the shift, such as changes in system requirements, user base, or contract scope.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $41,439,664

Exercised Options: $41,439,664

Current Obligation: $38,024,794

Actual Outlays: $37,224,026

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,248,729

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F110DA

IDV Type: FSS

Timeline