Treasury's $18M IBM Sterling renewal with Advanced Computer Concepts, Inc. awarded under full and open competition

Contract Overview

Contract Amount: $18,054 ($18.1K)

Contractor: Advanced Computer Concepts, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2026-05-01

End Date: 2027-04-30

Contract Duration: 364 days

Daily Burn Rate: $50/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IBM STERLING RENEWAL

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $18,053.7 to ADVANCED COMPUTER CONCEPTS, INC. for work described as: IBM STERLING RENEWAL Key points: 1. The contract value of $18.05 million for a 12-month period suggests a significant investment in critical IT infrastructure. 2. Awarded to Advanced Computer Concepts, Inc., the contract's renewal indicates a reliance on the incumbent's expertise for IBM Sterling services. 3. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation implies a competitive process, though the specific reasons for exclusion of other sources warrant review. 4. The firm-fixed-price contract type provides cost certainty for the government, shifting performance risk to the contractor. 5. The duration of 364 days aligns with typical IT service renewal cycles, allowing for ongoing support and potential future adjustments. 6. The North American Industry Classification System (NAICS) code 541519 for 'Other Computer Related Services' broadly categorizes the IT support provided.

Value Assessment

Rating: good

Benchmarking the per-unit cost for IBM Sterling services is challenging without specific service level agreements and detailed task breakdowns. However, the total contract value of approximately $18 million for a year of support for a critical system like IBM Sterling appears reasonable given the complexity and essential nature of such IT infrastructure. Comparing this to other large-scale IT service renewals for similar enterprise software would provide a more robust value assessment. The firm-fixed-price nature of the award helps control costs for the government.

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,' indicating that multiple bidders were considered, but specific sources may have been excluded for defined reasons. With 9 bidders participating, this suggests a healthy level of competition for the contract. The presence of multiple bidders generally supports price discovery and encourages competitive pricing, potentially leading to better value for the government.

Taxpayer Impact: The robust competition with 9 bidders is beneficial for taxpayers, as it likely drove down the final price and ensured the government received competitive offers for essential IT services.

Public Impact

Federal agencies utilizing IBM Sterling for data management and workflow automation will benefit from continued uninterrupted service. The contract ensures the ongoing operation and maintenance of critical IT systems managed by the Bureau of the Fiscal Service. The services delivered are essential for maintaining the integrity and efficiency of financial operations within the Department of the Treasury. The primary workforce impacted is the IT support staff responsible for managing and maintaining the IBM Sterling environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific criteria for 'exclusion of sources' in a full and open competition needs further clarification to ensure no potentially competitive vendors were unduly restricted.
While competition was present, the renewal aspect might suggest a limited pool of highly specialized vendors for this particular IBM Sterling expertise.

Positive Signals

The award to Advanced Computer Concepts, Inc. signifies a successful renewal, indicating satisfaction with past performance and service delivery.
The firm-fixed-price contract type provides predictable costs for the Bureau of the Fiscal Service, mitigating budget uncertainty.
The participation of 9 bidders demonstrates a competitive marketplace for these specialized IT services.

Sector Analysis

The IT services sector, particularly for enterprise software management and support, is highly competitive and specialized. This contract falls within the broader category of IT consulting and integration services, with a specific focus on IBM Sterling, a widely used platform for business process management and data integration. The market for such services is characterized by a mix of large system integrators and niche providers. The annual spending on IT services by federal agencies is in the billions, with significant portions allocated to software maintenance, support, and modernization efforts.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Advanced Computer Concepts, Inc. chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to assess the direct impact on the small business ecosystem for this particular contract. However, the overall federal IT market does offer opportunities for small businesses, often through set-aside contracts or as subcontractors to larger prime contractors.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms, including review by the agency's contracting officers and potentially the Government Accountability Office (GAO) if protests arise. The Bureau of the Fiscal Service, as part of the Department of the Treasury, has internal oversight processes for contract management. Transparency is generally maintained through contract databases like FPDS-NG. The specific jurisdiction of an Inspector General would depend on the nature of any potential issues or investigations related to contract performance or compliance.

Related Government Programs

IT Infrastructure Modernization Programs
Enterprise Resource Planning (ERP) Systems Support
Software Licensing and Maintenance Contracts
Cloud Migration Services
Cybersecurity Support Services

Risk Flags

Potential for vendor lock-in due to specialized nature of IBM Sterling support.
Need for clarity on 'exclusion of sources' rationale in competitive process.
Reliance on incumbent performance without explicit details on SLAs/KPIs.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $18,053.7 to ADVANCED COMPUTER CONCEPTS, INC.. IBM STERLING RENEWAL

Who is the contractor on this award?

The obligated recipient is ADVANCED COMPUTER CONCEPTS, INC..

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 $18,053.7.

What is the period of performance?

Start: 2026-05-01. End: 2027-04-30.

What is the historical spending trend for IBM Sterling services by the Bureau of the Fiscal Service?

Analyzing historical spending on IBM Sterling services by the Bureau of the Fiscal Service is crucial for understanding the long-term investment and identifying any significant fluctuations or increases in costs. Without access to specific historical contract data for this service, it's difficult to provide precise figures. However, federal agencies often renew contracts for critical IT systems like IBM Sterling, suggesting a consistent need. If this is a renewal, examining previous contract values, durations, and any modifications would reveal trends. A steady or increasing spending pattern might indicate growing reliance or rising service costs, while a decreasing trend could suggest efficiency gains or a shift towards alternative solutions. Further investigation into prior contract awards and modifications for IBM Sterling support would be necessary to establish a definitive spending trend.

How does the per-unit cost of this IBM Sterling renewal compare to similar government contracts for enterprise software support?

Directly comparing the per-unit cost of this IBM Sterling renewal is challenging without detailed breakdowns of the services provided and the specific metrics used for pricing (e.g., per user, per module, per server). However, the total contract value of $18.05 million for a 12-month period for enterprise software support is substantial. To benchmark effectively, one would need to identify comparable government contracts for similar IBM enterprise solutions (like WebSphere, Cognos, or other middleware/workflow platforms) awarded around the same time. Factors such as the scope of support (24/7 vs. business hours), service level agreements (SLAs), and the number of users or instances supported would heavily influence pricing. Generally, firm-fixed-price contracts for specialized IT support can range significantly, but a value in the tens of millions for a large agency's critical system is not uncommon.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this IBM Sterling renewal. These are critical components of any IT service contract, defining the expected performance standards and the remedies for non-compliance. Typically, for enterprise software support, KPIs and SLAs would cover aspects such as system uptime, response times for issue resolution, patch deployment timelines, and the availability of technical support personnel. The firm-fixed-price nature of the contract implies that Advanced Computer Concepts, Inc. is responsible for meeting these defined performance metrics. Without the specific details of these SLAs, it is difficult to fully assess the performance expectations and the potential risks associated with service delivery.

What is the track record of Advanced Computer Concepts, Inc. in delivering IBM Sterling support services to the federal government?

Advanced Computer Concepts, Inc. has been awarded this contract, indicating they are the incumbent or a chosen provider for IBM Sterling services. To assess their track record, one would need to review their past performance on this and potentially other federal contracts. This includes examining past performance evaluations, any documented instances of contract deficiencies or successes, and their history with similar IT support services. The renewal of the contract suggests a level of satisfaction with their previous performance, but a deeper dive into their specific experience with IBM Sterling, their technical expertise, and their ability to meet stringent government requirements would provide a more comprehensive understanding of their capabilities and reliability.

What is the potential impact of this contract on the broader IT services market, particularly for competitors offering similar IBM solutions?

This contract renewal with Advanced Computer Concepts, Inc. for IBM Sterling services signifies a continued reliance on established solutions and potentially incumbent providers within the federal IT landscape. For competitors offering similar IBM solutions or alternative enterprise management platforms, this award highlights the importance of demonstrating superior value, innovation, and cost-effectiveness. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while competition existed, the specific requirements or existing infrastructure may have favored the incumbent or a limited set of bidders. This underscores the challenge for new entrants or smaller competitors to penetrate established government IT ecosystems, emphasizing the need for strong past performance, strategic partnerships, and clear differentiation in their offerings.

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: 20341526Q00010

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7927 JONES BRANCH DR STE 600N, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $18,054

Exercised Options: $18,054

Current Obligation: $18,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD60B

IDV Type: GWAC

Timeline