DHS Awards $75M IBM ELA to FOUR LLC for Customs and Border Protection
Contract Overview
Contract Amount: $74,921,535 ($74.9M)
Contractor: Four LLC
Awarding Agency: Department of Homeland Security
Start Date: 2023-03-31
End Date: 2025-03-30
Contract Duration: 730 days
Daily Burn Rate: $102.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IBM SOFTWARE AND HARDWARE MAINTENANCE ENTERPRISE LICENSE AGREEMENT (ELA) FOR US CUSTOMS AND BORDER PROTECTION.
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $74.9 million to FOUR LLC for work described as: IBM SOFTWARE AND HARDWARE MAINTENANCE ENTERPRISE LICENSE AGREEMENT (ELA) FOR US CUSTOMS AND BORDER PROTECTION. Key points: 1. Significant enterprise license agreement for IBM software and hardware maintenance. 2. Contract awarded to FOUR LLC, indicating a specific vendor relationship. 3. Potential risk associated with vendor lock-in and long-term maintenance costs. 4. Spending falls under 'Other Computer Related Services' sector.
Value Assessment
Rating: fair
The contract value of $74.9M over two years for IBM maintenance is substantial. Benchmarking against similar enterprise agreements for major software vendors is difficult without more specific service details, but the price appears within a typical range for large-scale ELA renewals.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method may impact price discovery, potentially leading to higher costs than a fully open competition.
Taxpayer Impact: Taxpayers are funding a significant enterprise license agreement for critical IT infrastructure maintenance, with potential for cost savings if the ELA provides favorable terms compared to individual licensing.
Public Impact
Ensures continued operation of essential IT systems for U.S. Customs and Border Protection. Supports border security and trade facilitation through reliable technology. Potential for cost savings through enterprise-wide licensing compared to ad-hoc purchases.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Vendor lock-in with IBM for critical software and hardware.
- Reliance on a single vendor for maintenance could pose risks.
Positive Signals
- Supports critical national security functions.
- Enterprise-wide agreement can streamline IT management.
- Firm fixed price provides cost predictability.
Sector Analysis
This contract falls under 'Other Computer Related Services,' a broad category encompassing IT support and maintenance. The spending benchmark for such services varies widely, but $75M for a two-year enterprise agreement with a major vendor like IBM is substantial and typical for large federal agencies.
Small Business Impact
The contract was awarded to FOUR LLC, and the data indicates that small business participation (sb) is false. This suggests that the prime contractor is not a small business, and there is no explicit indication of small business subcontracting goals within this award.
Oversight & Accountability
The Department of Homeland Security, specifically U.S. Customs and Border Protection, is the contracting agency. Oversight would involve monitoring contract performance, adherence to terms, and ensuring value for money throughout the ELA's duration.
Related Government Programs
- Other Computer Related Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- Potential for cost overruns if maintenance needs exceed expectations.
- Risk of vendor lock-in limiting future flexibility.
- Dependence on a single vendor for critical IT infrastructure.
- Lack of small business participation in the prime contract.
Tags
other-computer-related-services, department-of-homeland-security, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $74.9 million to FOUR LLC. IBM SOFTWARE AND HARDWARE MAINTENANCE ENTERPRISE LICENSE AGREEMENT (ELA) FOR US CUSTOMS AND BORDER PROTECTION.
Who is the contractor on this award?
The obligated recipient is FOUR LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $74.9 million.
What is the period of performance?
Start: 2023-03-31. End: 2025-03-30.
What specific IBM products and services are covered under this ELA, and how do they align with CBP's current and future IT needs?
The ELA covers IBM software and hardware maintenance. A detailed breakdown of specific products (e.g., operating systems, databases, middleware, hardware models) and the scope of maintenance services (e.g., 24/7 support, patching, upgrades) is crucial. Understanding this alignment ensures the investment directly supports CBP's mission-critical operations and avoids redundant or outdated technology.
What was the justification for excluding other sources, and what competitive pricing strategies were employed to ensure fair market value?
The contract states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' implying a prior justification for limiting the pool. Understanding this justification (e.g., proprietary technology, existing infrastructure integration) is key. Furthermore, details on how the agency ensured fair market value, such as independent government cost estimates or benchmarking against similar ELA deals, are necessary to assess the pricing's reasonableness.
What are the key performance indicators (KPIs) for this maintenance contract, and how will their achievement be measured to ensure effectiveness and taxpayer value?
Effective oversight requires clearly defined KPIs for IBM's maintenance services. These could include response times for critical issues, resolution rates, availability of support personnel, and successful application of patches/updates. Measuring these KPIs regularly will ensure that CBP receives the contracted level of service, maintains system uptime, and ultimately derives value for the $75M investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2303 DULLES STATION BLVD STE 105, HERNDON, VA, 20171
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $74,921,535
Exercised Options: $74,921,535
Current Obligation: $74,921,535
Actual Outlays: $74,921,535
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC73B
IDV Type: GWAC
Timeline
Start Date: 2023-03-31
Current End Date: 2025-03-30
Potential End Date: 2025-03-30 00:00:00
Last Modified: 2025-01-23
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