DoD Awards IBM $55.6M for Wired Telecommunications Services Under Full and Open Competition
Contract Overview
Contract Amount: $55,576,080 ($55.6M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Defense
Start Date: 2011-03-18
End Date: 2016-09-20
Contract Duration: 2,013 days
Daily Burn Rate: $27.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PLATFORM/ENVIRONMENT
Place of Performance
Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23606
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $55.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: PLATFORM/ENVIRONMENT Key points: 1. Significant contract value of $55.6 million awarded to a major technology provider. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. Contract duration spans over five years, indicating a long-term need for these services. 4. The award falls under the Wired Telecommunications Carriers NAICS code.
Value Assessment
Rating: fair
The contract value of $55.6 million over five years for telecommunications services appears reasonable given the provider and scope. Benchmarking against similar large-scale government telecommunications contracts would be necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests that multiple vendors had the opportunity to bid, which typically drives better price discovery. The specific pricing outcomes are not detailed here but the method is favorable.
Taxpayer Impact: Taxpayer funds are being utilized for essential telecommunications infrastructure, with the competitive process aiming to ensure value for money.
Public Impact
Ensures continued telecommunications connectivity for Department of Defense operations. Supports critical communication infrastructure for national security. Impacts the telecommunications market through a significant government contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or outcomes.
- Potential for vendor lock-in over the contract duration.
- Reliance on a single large vendor for critical infrastructure.
Positive Signals
- Utilized full and open competition.
- Awarded to a well-established technology provider.
- Long-term contract provides stability for service provision.
Sector Analysis
This contract falls within the IT and telecommunications sector, a critical area for government operations. Spending benchmarks for similar wired telecommunications services can vary widely based on scope and duration.
Small Business Impact
The contract was awarded to a large corporation (IBM), with no explicit indication of small business participation or subcontracting requirements in the provided data.
Oversight & Accountability
Oversight would typically involve contract performance monitoring by the Department of the Army to ensure service delivery meets requirements and budget adherence.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for vendor lock-in
- Reliance on legacy telecommunications infrastructure
- Lack of detailed performance metrics
- Limited visibility into specific service components
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. PLATFORM/ENVIRONMENT
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $55.6 million.
What is the period of performance?
Start: 2011-03-18. End: 2016-09-20.
What specific telecommunications services are included under this contract, and how do they align with current technological needs?
The provided data identifies the NAICS code as 'Wired Telecommunications Carriers,' suggesting services like network access, data transmission, and voice communication over wired infrastructure. However, the exact service catalog and their alignment with evolving DoD technological requirements would need further investigation to assess long-term value and prevent obsolescence.
How was the 'full and open competition' process structured, and what were the key evaluation criteria beyond price?
While 'full and open competition' indicates a broad solicitation, the specific structure and evaluation criteria are not detailed. Understanding factors like technical capabilities, past performance, and security clearances would be crucial to assess if the best value was truly achieved beyond just the lowest bid, and to gauge the effectiveness of the price discovery mechanism.
What mechanisms are in place to ensure cost-effectiveness and prevent potential cost overruns throughout the contract's five-year duration?
The contract uses a 'FIRM FIXED PRICE' type, which generally shifts cost overrun risk to the contractor. However, effective oversight, performance monitoring, and change order management are essential to ensure the fixed price remains competitive and that the government receives the intended value without unexpected escalations.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $58,662,306
Exercised Options: $55,617,761
Current Obligation: $55,576,080
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ06D0010
IDV Type: IDC
Timeline
Start Date: 2011-03-18
Current End Date: 2016-09-20
Potential End Date: 2016-09-20 00:00:00
Last Modified: 2017-04-11
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