IBM Awarded $6.2M Contract for Efinance Leaveweb Fmsuite and Fmdqs Elff Support

Contract Overview

Contract Amount: $6,242,980 ($6.2M)

Contractor: International Business Machines Corporation

Awarding Agency: General Services Administration

Start Date: 2025-02-01

End Date: 2026-04-30

Contract Duration: 453 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: EFINANCE LEAVEWEB FMSUITE AND FMDQS ELFF SUPPORT BRIDGE CONTRACT

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $6.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: EFINANCE LEAVEWEB FMSUITE AND FMDQS ELFF SUPPORT BRIDGE CONTRACT Key points: 1. Contract awarded to a single, large incumbent vendor, raising questions about competition. 2. The contract type is Time and Materials, which can lead to cost overruns if not managed carefully. 3. The duration of the contract (453 days) is relatively short, suggesting a bridge or interim solution. 4. The award is a Delivery Order under a larger contract, indicating it's part of an existing framework. 5. The specific services (Computer Systems Design) are critical for financial management systems. 6. No small business set-aside was utilized, and the contractor is not a small business. 7. The contract is managed by the General Services Administration, a common practice for IT services.

Value Assessment

Rating: fair

The contract value of $6.2 million over approximately 15 months appears reasonable for specialized IT support services. However, without specific benchmarks for 'EFINANCE LEAVEWEB FMSUITE and FMDQS ELFF support,' a precise value-for-money assessment is difficult. The Time and Materials pricing structure introduces risk, as actual costs depend on hours worked and labor rates, which could exceed initial estimates if not closely monitored. Comparing this to similar support contracts for large-scale financial systems would provide better context for its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that multiple bidders were theoretically allowed to compete. However, the data indicates this is a Delivery Order, which often implies it's being fulfilled by an incumbent or pre-qualified vendor under a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The number of bidders for this specific delivery order is not provided, but the award to a single, large contractor like IBM suggests that either the competition was limited in practice or IBM was the most advantageous offer.

Taxpayer Impact: A full and open competition, even if resulting in a single award, generally provides a better opportunity for price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition scenarios. However, the specifics of the competition for this delivery order are not fully detailed.

Public Impact

Federal employees using EFINANCE, LEAVEWEB, FMSUITE, and FMDQS systems will benefit from continued operational support. The services ensure the smooth functioning of critical financial and human resources management systems within the government. The geographic impact is primarily within the agency utilizing these systems, likely nationwide for federal employees. The contract supports IT professionals, potentially including those within IBM and subcontractors, involved in system maintenance and support. Improved system stability and performance can indirectly benefit all federal employees and the public interacting with these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not diligently managed.
Award to a single, large incumbent vendor may indicate limited practical competition for this specific delivery order.
Lack of specific performance metrics or KPIs in the provided data makes it difficult to assess service quality.
The contract is a bridge, suggesting potential instability or a need for a more permanent solution.

Positive Signals

Awarded under Full and Open Competition, theoretically allowing broad market participation.
Contract supports critical financial and HR systems, ensuring continuity of essential government functions.
Managed by GSA, which typically adheres to established procurement best practices.
The contract duration is defined, providing a clear timeframe for the services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market. This sector encompasses a wide range of activities, including designing, developing, and supporting complex software and hardware systems. The federal government is a major consumer of these services, particularly for maintaining and modernizing its vast array of financial, administrative, and operational systems. Comparable spending benchmarks for IT support services can vary widely based on system complexity, vendor rates, and contract scope, but multi-million dollar contracts for specialized system support are common.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false), and the awardee, IBM, is a large corporation. There is no information regarding subcontracting plans for small businesses. This suggests that the primary focus was on securing specialized support from a capable vendor, rather than specifically promoting small business participation through set-asides for this particular delivery order.

Oversight & Accountability

The General Services Administration (GSA) typically oversees contracts awarded through its Federal Acquisition Service. GSA has established procurement regulations and oversight mechanisms to ensure fair and transparent contracting. Accountability for this contract would likely involve performance monitoring by the contracting officer's representative (COR) within the agency utilizing the systems, and adherence to the terms and conditions of the base IDIQ contract. Transparency is generally maintained through public contract databases like FPDS, where award details are reported.

Related Government Programs

EFINANCE
LEAVEWEB
FMSUITE
FMDQS
IT Support Services
Computer Systems Design Services

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Limited Competition Indication (Delivery Order to single vendor)
Lack of Specific Performance Metrics Provided

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $6.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. EFINANCE LEAVEWEB FMSUITE AND FMDQS ELFF SUPPORT BRIDGE 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 $6.2 million.

What is the period of performance?

Start: 2025-02-01. End: 2026-04-30.

What is the track record of International Business Machines Corporation (IBM) in providing similar IT support services to the federal government?

IBM has a long and extensive history of providing a wide array of IT services to the federal government, including systems design, integration, maintenance, and support for complex financial and administrative systems. They are a major federal contractor with numerous awards across various agencies. Their track record generally includes large-scale projects and long-term support contracts. While specific performance data for individual contracts is not always publicly detailed, IBM's consistent presence and significant contract awards suggest a substantial capacity and experience in meeting federal IT requirements. However, like any large contractor, performance can vary across different contracts and projects, and specific oversight and performance metrics are crucial for each engagement.

How does the awarded amount of $6.2 million compare to similar federal contracts for financial system support?

The awarded amount of $6.2 million for approximately 15 months of support for specialized financial and HR systems (EFINANCE, LEAVEWEB, FMSUITE, FMDQS) is within a common range for federal IT support contracts of this nature. Large-scale financial systems often require dedicated, ongoing support to ensure operational continuity, security, and functionality. Contracts for similar services can range from hundreds of thousands to tens of millions of dollars annually, depending on the complexity of the systems, the scope of support required (e.g., help desk, maintenance, upgrades, cybersecurity), and the vendor's labor rates. Without knowing the specific functionalities and user base of these particular systems, a precise benchmark is difficult, but the value appears consistent with the demands of supporting critical government IT infrastructure.

What are the primary risks associated with this Time and Materials (T&M) contract type?

The primary risk associated with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours expended and the cost of materials used. If the scope of work is not well-defined, or if project management is weak on either the government or contractor side, the contractor may incur more hours or use more expensive materials than initially anticipated, leading to a final cost significantly higher than budgeted. This necessitates robust government oversight, including detailed tracking of hours, verification of work performed, and effective management of the contract ceiling to mitigate these risks and ensure value for taxpayer money.

What does the 'Delivery Order' designation imply about the procurement process and potential competition?

A 'Delivery Order' typically signifies that this award is being made under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. This means that the foundational contract, which likely underwent a full and open competition, established the terms, conditions, and pricing structure. The delivery order itself is then issued to one of the awardees under that IDIQ. While the initial IDIQ competition was broad, the competition for individual delivery orders can sometimes be more limited, especially if the order is placed with a specific vendor based on pre-negotiated terms or if only a subset of vendors on the IDIQ are eligible or respond. In this case, it was awarded to IBM, suggesting they were the selected vendor under the parent contract.

What is the significance of the contract being managed by the General Services Administration (GSA)?

The General Services Administration (GSA) manages a vast number of federal IT contracts, often through its Federal Acquisition Service (FAS). GSA's involvement signifies that the procurement likely utilized established GSA contract vehicles, such as GSA Schedules or other IDIQ contracts. These vehicles are designed to streamline the procurement process for government agencies by offering pre-competed services and products. GSA's role typically involves ensuring compliance with federal procurement regulations, providing acquisition expertise, and managing the overall contract framework. This can lead to efficiencies and potentially better pricing due to bulk purchasing power and standardized terms, although the specific value derived depends on the details of the underlying contract.

Are there any indications of potential performance issues or successes based on the provided data?

The provided data does not contain specific performance metrics, past performance ratings, or user feedback that would allow for an assessment of potential performance issues or successes. The data focuses on contract award details such as value, duration, contractor, agency, and contract type. To evaluate performance, one would need access to contract performance reports, quality assurance surveillance plans (QASPs), contractor performance assessment reporting (CPARS) data, or other qualitative and quantitative measures of service delivery against defined objectives.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFLA25Q0003

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $10,650,996

Exercised Options: $6,521,512

Current Obligation: $6,242,980

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,252,111

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0014

IDV Type: GWAC

Timeline