VA awards IBM $23.5M for Enterprise Telecommunications Expense Management Solution
Contract Overview
Contract Amount: $23,522,978 ($23.5M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Veterans Affairs
Start Date: 2019-09-27
End Date: 2026-05-23
Contract Duration: 2,430 days
Daily Burn Rate: $9.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 14
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE TELECOMMUNICATIONS EXPENSE MANAGEMENT SOLUTION
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $23.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: ENTERPRISE TELECOMMUNICATIONS EXPENSE MANAGEMENT SOLUTION Key points: 1. Significant contract value for telecommunications expense management. 2. IBM is a major player in IT services. 3. Potential risk in long-term vendor lock-in. 4. IT sector spending is substantial and growing.
Value Assessment
Rating: good
The contract value of $23.5M over its period of performance appears reasonable for an enterprise-wide solution. Benchmarking against similar large-scale telecommunications management contracts would provide further context.
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 a competitive process. This method generally promotes price discovery and value for the government.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for essential telecommunications expense management.
Public Impact
Ensures efficient management of VA's telecommunications spending. Supports VA's mission by optimizing communication infrastructure costs. Potential for cost savings through better expense tracking and negotiation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (2430 days) could lead to price inflexibility.
- Reliance on a single vendor for critical expense management.
Positive Signals
- Full and open competition suggests a competitive pricing environment.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on telecommunications expense management. Spending in this area is crucial for large organizations like the VA to control operational costs.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability and performance.
Related Government Programs
- All Other Telecommunications
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for vendor lock-in due to the nature of the service.
- Long contract duration may not keep pace with technological advancements.
- Dependence on IBM's expertise for critical expense management.
- Lack of specific small business participation noted.
Tags
all-other-telecommunications, department-of-veterans-affairs, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $23.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. ENTERPRISE TELECOMMUNICATIONS EXPENSE MANAGEMENT SOLUTION
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $23.5 million.
What is the period of performance?
Start: 2019-09-27. End: 2026-05-23.
What is the expected return on investment for this telecommunications expense management solution?
The expected ROI would depend on the VA's current telecommunications spending inefficiencies. A well-implemented solution should identify areas for cost reduction through optimized plans, reduced waste, and better vendor negotiations, potentially yielding significant savings over the contract's life.
What are the risks associated with a long-term contract for this type of service?
Long-term contracts can pose risks such as technological obsolescence, vendor lock-in, and reduced flexibility to adapt to changing needs or market prices. Regular performance reviews and contract modification clauses are essential to mitigate these risks.
How effectively does this solution integrate with existing VA IT infrastructure?
The effectiveness of integration is critical for the solution's success. Detailed technical specifications and integration testing during the implementation phase would be key indicators. The VA's project management team would need to ensure seamless data flow and system compatibility.
Industry Classification
NAICS: Information › Other Telecommunications › All Other Telecommunications
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 36C10B19R0009
Offers Received: 14
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, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $71,371,305
Exercised Options: $23,522,978
Current Obligation: $23,522,978
Actual Outlays: $11,373,356
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $46,985,329
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-27
Current End Date: 2026-05-23
Potential End Date: 2034-09-26 00:00:00
Last Modified: 2026-02-26
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