Labor Awards IBM $3.7M for Enterprise License and Support Services Through Full and Open Competition

Contract Overview

Contract Amount: $3,688,940 ($3.7M)

Contractor: Four LLC

Awarding Agency: Department of Labor

Start Date: 2025-04-01

End Date: 2027-03-31

Contract Duration: 729 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IBM ENTERPRISE LICENSE AGREEMENT (ELA) AND SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $3.7 million to FOUR LLC for work described as: IBM ENTERPRISE LICENSE AGREEMENT (ELA) AND SUPPORT SERVICES Key points: 1. The contract value is $3.7 million over two years. 2. Competition was full and open after exclusion of sources. 3. Potential risks include vendor lock-in and the need for ongoing support. 4. The sector is IT services, specifically Other Computer Related Services.

Value Assessment

Rating: fair

The contract is for enterprise software licensing and support. Benchmarking against similar IBM ELA contracts is difficult without specific product details, but the price appears within a typical range for large enterprise software agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources. This method aims to ensure fair pricing and access to the best value, though the exclusion of specific sources might warrant further review.

Taxpayer Impact: Taxpayers benefit from a competitive process that should drive reasonable pricing for essential IT services.

Public Impact

Ensures continued access to critical IBM software for Department of Labor operations. Supports essential administrative and management functions within the agency. Potential for cost savings through competitive bidding on enterprise software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to exclusion of sources.
Potential for price increases in future renewals.
Reliance on a single vendor for critical software.

Positive Signals

Full and open competition utilized.
Clear contract duration and fixed pricing.
Supports essential agency functions.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending benchmarks for enterprise license agreements (ELAs) vary widely based on software type and user base, but $3.7 million for a two-year term is moderate for a federal agency.

Small Business Impact

The data indicates this contract was awarded to IBM, a large business. There is no specific information provided regarding set-asides for small businesses in this particular award.

Oversight & Accountability

The contract was awarded by the Office of the Assistant Secretary for Administration and Management, suggesting internal oversight. Further oversight would involve tracking performance against the Service Level Agreements (SLAs) and ensuring compliance with federal procurement regulations.

Related Government Programs

Other Computer Related Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for vendor lock-in with proprietary IBM software.
Reliance on a single vendor for critical IT infrastructure.
Need for ongoing maintenance and support costs.
Complexity of managing enterprise software licenses.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $3.7 million to FOUR LLC. IBM ENTERPRISE LICENSE AGREEMENT (ELA) AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is FOUR LLC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2025-04-01. End: 2027-03-31.

What specific IBM software products are covered under this ELA, and how does the pricing compare to commercial off-the-shelf (COTS) equivalents or other federal ELA benchmarks?

The provided data does not specify the exact IBM software products included in the Enterprise License Agreement (ELA). To conduct a thorough value assessment, a detailed breakdown of the software titles, versions, and user counts is necessary. Benchmarking against similar federal ELAs for comparable software suites and comparing the per-unit cost against COTS pricing would reveal if the $3.7 million represents a fair market value.

What was the rationale for excluding specific sources during the 'full and open competition after exclusion of sources' process, and did this exclusion impact the final price or vendor selection?

The rationale for excluding specific sources is not detailed in the provided data. Typically, such exclusions are based on technical requirements, existing infrastructure compatibility, or prior performance issues. Understanding the justification is crucial to assess if the exclusion limited competition unnecessarily and potentially inflated the price or restricted the agency's access to potentially better solutions from excluded vendors.

How will the Department of Labor ensure effective utilization and management of the licensed software to maximize the return on investment and mitigate risks of underutilization or over-licensing?

Effective utilization will depend on robust asset management practices, including regular software inventory, usage monitoring, and license reconciliation. The agency should establish clear internal policies for software deployment and de-provisioning. Proactive engagement with IBM for technical support and best practices, alongside periodic reviews of license needs against actual usage, will help maximize ROI and prevent over-licensing.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605TB-25-Q-00036

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2303 DULLES STATION BLVD STE 105, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,484,732

Exercised Options: $3,688,940

Current Obligation: $3,688,940

Actual Outlays: $1,822,471

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC73B

IDV Type: GWAC

Timeline