Treasury's $29.2M IBM Software Contract Awarded to FOUR LLC Amidst Full and Open Competition
Contract Overview
Contract Amount: $29,226,637 ($29.2M)
Contractor: Four LLC
Awarding Agency: Department of the Treasury
Start Date: 2024-06-30
End Date: 2026-06-30
Contract Duration: 730 days
Daily Burn Rate: $40.0K/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 SOFTWARE SUBSCRIPTIONS AND SUPPORT
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $29.2 million to FOUR LLC for work described as: IBM ENTERPRISE SOFTWARE SUBSCRIPTIONS AND SUPPORT Key points: 1. The contract is for IBM enterprise software subscriptions and support, totaling $29.2 million. 2. Awarded to FOUR LLC under full and open competition after exclusion of sources. 3. The contract duration is 730 days, ending June 30, 2026. 4. This spending falls under 'Other Computer Related Services' (NAICS 541519). 5. The contract type is Firm Fixed Price, indicating predictable costs.
Value Assessment
Rating: good
The $29.2 million price for IBM enterprise software subscriptions and support appears reasonable given the duration and nature of the services. Benchmarking against similar enterprise software agreements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition after exclusion of sources, suggesting a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential enterprise software, with competition aiming to secure the best value.
Public Impact
Ensures continued access to critical IBM software for the Bureau of the Fiscal Service. Supports government operations through reliable technology infrastructure. Potential for cost savings through competitive bidding on enterprise software.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential vendor lock-in with enterprise software.
- Reliance on a single vendor's support and updates.
Positive Signals
- Competitive award process.
- Firm Fixed Price contract type.
Sector Analysis
This contract falls within the IT sector, specifically for software subscriptions and support. Government spending on enterprise software is substantial, with benchmarks varying widely based on software type and scale of deployment.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. The primary awardee is FOUR LLC.
Oversight & Accountability
The award was made by the Bureau of the Fiscal Service, Department of the Treasury, indicating established procurement processes. Oversight would involve contract performance monitoring and financial accountability.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Potential for cost overruns if support needs exceed initial estimates.
- Risk of vendor lock-in and future price increases.
- Dependence on IBM for critical software updates and security patches.
- Ensuring effective utilization of the software to maximize value.
Tags
other-computer-related-services, department-of-the-treasury, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $29.2 million to FOUR LLC. IBM ENTERPRISE SOFTWARE SUBSCRIPTIONS AND SUPPORT
Who is the contractor on this award?
The obligated recipient is FOUR LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $29.2 million.
What is the period of performance?
Start: 2024-06-30. End: 2026-06-30.
What specific IBM software products and services are covered under this subscription?
The provided data specifies 'IBM ENTERPRISE SOFTWARE SUBSCRIPTIONS AND SUPPORT' but does not detail the exact software products or the scope of support services. Further clarification would be needed to understand the full extent of the acquisition and its alignment with agency needs.
What was the competitive landscape like for this 'full and open competition after exclusion of sources' award?
While the award states 'full and open competition after exclusion of sources,' the specifics of the competitive landscape are not detailed. This phrasing suggests that while the competition was open, certain sources may have been excluded prior to the main bidding process, potentially limiting the pool of competitors.
How does the per-unit cost of this IBM software compare to industry benchmarks for similar government contracts?
A direct per-unit cost benchmark is not available without knowing the specific IBM software products and the number of licenses or users. The total contract value of $29.2 million over two years suggests a significant investment in enterprise software, and a detailed cost analysis against comparable government or commercial agreements would be necessary for a thorough assessment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: 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: 2033H624Q00026
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: $44,849,894
Exercised Options: $29,226,637
Current Obligation: $29,226,637
Actual Outlays: $29,148,207
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC73B
IDV Type: GWAC
Timeline
Start Date: 2024-06-30
Current End Date: 2026-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2025-06-27
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