GSA Awards $62.7M IBM Contract for SAM.gov Operations, Maintenance, and Migration

Contract Overview

Contract Amount: $62,761,536 ($62.8M)

Contractor: International Business Machines Corporation

Awarding Agency: General Services Administration

Start Date: 2019-02-15

End Date: 2021-11-13

Contract Duration: 1,002 days

Daily Burn Rate: $62.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF CONTRACT AWARD FOR SAM&FPDS OPERATIONS, MAINTENANCE, AND MIGRATION CONTRACT.

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 $62.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IGF::OT::IGF CONTRACT AWARD FOR SAM&FPDS OPERATIONS, MAINTENANCE, AND MIGRATION CONTRACT. Key points: 1. Significant investment in critical federal IT infrastructure. 2. Sole-source award to IBM raises questions about competition and potential cost savings. 3. Contract duration of over two years suggests a substantial operational need. 4. Focus on SAM.gov operations highlights the importance of this platform for federal procurement.

Value Assessment

Rating: questionable

The contract value of $62.7M for IT services is substantial. Without comparable contract data or a competitive bidding process, it is difficult to assess if this pricing is optimal or represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This method bypasses the typical price discovery mechanisms of competitive bidding, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have benefited from the cost efficiencies that a competitive process could have yielded.

Public Impact

Ensures continued operation and modernization of SAM.gov, a vital platform for federal contracting. Potential for improved efficiency and user experience through maintenance and migration. Lack of competition could limit innovation and lead to higher long-term costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Critical IT infrastructure support
Focus on essential government platform

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Federal spending in this area is consistently high, driven by the need for robust digital infrastructure and modernization efforts.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the government received the best possible value and that the justification for not competing the contract was sound.

Related Government Programs

Other Computer Related Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Sole-source award lacks transparency and competitive pressure.
Potential for inflated costs due to absence of competition.
Limited opportunities for small business participation.
Dependency on a single vendor for critical IT operations.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $62.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IGF::OT::IGF CONTRACT AWARD FOR SAM&FPDS OPERATIONS, MAINTENANCE, AND MIGRATION CONTRACT.

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 (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $62.8 million.

What is the period of performance?

Start: 2019-02-15. End: 2021-11-13.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions explored?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available competition. Without further documentation, it's unclear if IBM's specific expertise was indispensable or if other vendors could have met the requirements, potentially at a lower cost through a competitive process.

How does the per-unit cost or overall pricing compare to similar IT operations and maintenance contracts within the federal government?

Benchmarking this contract's pricing is challenging due to its sole-source nature and the specific scope of SAM.gov operations and migration. A detailed analysis would require access to internal GSA cost estimates and comparisons with other agencies' contracts for similar, competitively procured IT services.

What are the long-term implications of this sole-source award on the government's ability to leverage competitive pricing for future IT services related to SAM.gov?

A sole-source award can set a precedent and potentially reduce the perceived viability of competition for future related contracts. This may limit the government's leverage in negotiating prices and obtaining innovative solutions from a broader range of vendors in the future.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: ID15190002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $62,761,536

Exercised Options: $62,761,536

Current Obligation: $62,761,536

Actual Outlays: $138,388

Subaward Activity

Number of Subawards: 99

Total Subaward Amount: $9,671,858

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline