GSA Awards IBM $50.2M for IT Operations and Maintenance Support Services

Contract Overview

Contract Amount: $50,219,992 ($50.2M)

Contractor: International Business Machines Corporation

Awarding Agency: General Services Administration

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $45.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE INCENTIVE

Sector: IT

Official Description: THIS ORDER IS FOR GSA IT OPERATIONS AND MAINTENANCE DEVELOPMENT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $50.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: THIS ORDER IS FOR GSA IT OPERATIONS AND MAINTENANCE DEVELOPMENT SUPPORT SERVICES Key points: 1. Significant contract value of $50.2 million over three years. 2. IBM is a major player in the IT services market. 3. Potential risk associated with reliance on a single large vendor. 4. Spending falls within the IT sector, specifically Computer Systems Design Services.

Value Assessment

Rating: good

The contract value of $50.2 million for three years of IT operations and maintenance support appears reasonable given the scope and duration. Benchmarking against similar large-scale IT support contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to sole-source or limited solicitations.

Taxpayer Impact: Full and open competition aims to ensure taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

Ensures continued IT operational support for GSA. Supports critical government functions through reliable technology infrastructure. Potential for innovation and service improvement from a leading IT provider.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Vendor Lock-in Potential
Scope Creep Risk
Performance Dependency

Positive Signals

Established Vendor Relationship
Clear Contract Duration
Competitive Award Process

Sector Analysis

This contract falls under the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across government, supporting essential digital infrastructure and operations.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract (sb: false). Further analysis would be needed to determine if IBM is subcontracting to small businesses.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Standard oversight mechanisms for IT service contracts should be in place to ensure performance and accountability.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Office of Administrative Services Programs

Risk Flags

Reliance on a single large vendor.
Potential for cost overruns if scope expands.
Dependency on vendor's cybersecurity posture.
Risk of service degradation if performance is not actively managed.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $50.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. THIS ORDER IS FOR GSA IT OPERATIONS AND MAINTENANCE DEVELOPMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Office of Administrative Services).

What is the total obligated amount?

The obligated amount is $50.2 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-12-31.

What is the specific scope of 'IT Operations and Maintenance Development Support Services' covered by this contract?

The contract likely encompasses a broad range of services including system monitoring, troubleshooting, software updates, patch management, cybersecurity maintenance, and potentially minor development or enhancement work related to GSA's IT infrastructure. Specific deliverables and service level agreements would detail the exact scope.

How will GSA ensure IBM's performance meets or exceeds the required service levels throughout the contract duration?

GSA will likely utilize performance metrics and key performance indicators (KPIs) outlined in the contract. Regular performance reviews, service level agreement (SLA) tracking, and potential financial incentives or penalties tied to performance will be employed to ensure IBM meets its obligations.

What is the potential impact on GSA's IT services if IBM experiences significant operational disruptions?

Given IBM's role in critical IT operations, significant disruptions could lead to service outages, data access issues, and delays in government functions reliant on GSA's IT infrastructure. Mitigation strategies and contingency plans within the contract are crucial to minimize such impacts.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47HAA023Q0126

Offers Received: 4

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DRIVE, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $244,232,204

Exercised Options: $50,219,992

Current Obligation: $50,219,992

Actual Outlays: $7,782,814

Subaward Activity

Number of Subawards: 178

Total Subaward Amount: $31,024,248

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0014

IDV Type: GWAC

Timeline