IBM awarded $27.6M for USCIS network and cloud infrastructure support through 2027

Contract Overview

Contract Amount: $27,584,514 ($27.6M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2025-08-08

End Date: 2027-03-01

Contract Duration: 570 days

Daily Burn Rate: $48.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: AWARD, ARCHITECTURE ENGINEERING SUPPORT (AES) SERVICES, USCIS ENTERPRISE INFRASTRUCTURE DIVISION. EXCLUSION 2(D). CONTRACTOR SUPPORT TO DESIGN AND MAINTAIN THE AGENCY'S NETWORKS, SUPPORTING ITS DATA CENTERS AND CLOUD SYSTEMS, AND ENSURING ALL PL

Place of Performance

Location: WILLISTON, CHITTENDEN County, VERMONT, 05495

State: Vermont Government Spending

Plain-Language Summary

Department of Homeland Security obligated $27.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: AWARD, ARCHITECTURE ENGINEERING SUPPORT (AES) SERVICES, USCIS ENTERPRISE INFRASTRUCTURE DIVISION. EXCLUSION 2(D). CONTRACTOR SUPPORT TO DESIGN AND MAINTAIN THE AGENCY'S NETWORKS, SUPPORTING ITS DATA CENTERS AND CLOUD SYSTEMS, AND ENSURING ALL PL Key points: 1. Contract provides essential IT infrastructure support for USCIS networks, data centers, and cloud systems. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contract's duration of 570 days (approx. 1.5 years) indicates a medium-term engagement. 4. IBM, a large established contractor, is tasked with maintaining critical agency IT operations. 5. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 6. This award falls under Computer Systems Design Services, a common category for IT support.

Value Assessment

Rating: fair

The award amount of $27.6 million for approximately 1.5 years of service appears within a reasonable range for complex IT infrastructure support. However, without specific details on the scope of work, personnel hours, and specific deliverables, a precise value-for-money assessment is difficult. Benchmarking against similar contracts for network and cloud support within DHS or other large federal agencies would provide a clearer picture of cost-effectiveness. The Time and Materials (T&M) contract type, while flexible, necessitates robust oversight to prevent cost overruns and ensure efficient resource utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process designed to solicit the best possible offers. The data indicates four bids were received, which is a moderate level of competition. While more bidders could potentially drive prices lower, four bids generally suggest sufficient market interest to achieve a competitive outcome.

Taxpayer Impact: Full and open competition, with four bids received, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. This process helps ensure that the government is not overpaying for essential IT services.

Public Impact

USCIS benefits from reliable and secure IT infrastructure, enabling the efficient processing of immigration services. The contract supports the maintenance and design of networks, data centers, and cloud systems, crucial for agency operations. Geographic impact is nationwide, as USCIS operates across the United States. Workforce implications include the potential for IBM to utilize its existing IT specialists, and possibly create new roles to support this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost escalation if not closely monitored.
The relatively short duration (570 days) might indicate a need for future re-competition or contract modifications, potentially leading to transition costs.
Reliance on a single large contractor for critical infrastructure support could pose risks if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
IBM is a well-established contractor with extensive experience in IT infrastructure and cloud services.
The contract supports essential USCIS functions, ensuring continuity of operations for critical immigration 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 IT consulting, systems integration, and IT infrastructure management. The total federal spending on IT services is substantial, with categories like computer systems design consistently representing a large portion. This contract's value is moderate within the broader context of large-scale federal IT procurements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, IBM, as the prime contractor, may choose to subcontract portions of the work to small businesses as part of its overall business strategy, though this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Homeland Security (DHS) and U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. They are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. The Time and Materials nature of the contract necessitates diligent oversight of labor hours and material costs. Transparency is expected through contract reporting mechanisms, and the DHS Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

USCIS IT Modernization Programs
DHS Enterprise Infrastructure Support
Federal Cloud Computing Strategy Implementation
Computer Systems Design Services Contracts
Network and Data Center Operations Support

Risk Flags

Time and Materials contract type requires vigilant oversight to manage costs.
Potential for vendor lock-in if not managed with future competition in mind.
Dependence on a single large contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $27.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. AWARD, ARCHITECTURE ENGINEERING SUPPORT (AES) SERVICES, USCIS ENTERPRISE INFRASTRUCTURE DIVISION. EXCLUSION 2(D). CONTRACTOR SUPPORT TO DESIGN AND MAINTAIN THE AGENCY'S NETWORKS, SUPPORTING ITS DATA CENTERS AND CLOUD SYSTEMS, AND ENSURING ALL PL

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $27.6 million.

What is the period of performance?

Start: 2025-08-08. End: 2027-03-01.

What is IBM's track record with similar IT infrastructure support contracts within the federal government, particularly with DHS or USCIS?

IBM has a long and extensive history of providing IT infrastructure support, cloud services, and systems integration to various federal agencies, including the Department of Homeland Security (DHS) and its components like U.S. Citizenship and Immigration Services (USCIS). Their track record includes managing complex networks, data centers, and cloud environments. While specific performance metrics for past contracts are not detailed here, IBM's continued success in winning large federal IT contracts suggests a generally positive performance history. However, a deeper dive into past performance evaluations, any contract disputes, or areas of concern on previous DHS/USCIS engagements would be necessary for a comprehensive assessment. Their experience in large-scale IT modernization and operational support is a key factor in their selection for such critical roles.

How does the $27.6 million award compare to the estimated value of similar IT infrastructure support contracts awarded by USCIS or DHS in the past two years?

Benchmarking this $27.6 million award against similar contracts requires access to a comprehensive database of federal procurements. However, for a contract spanning approximately 1.5 years (570 days) for comprehensive network, data center, and cloud support, this figure appears to be within a moderate range for a large agency like USCIS. Contracts for similar scope and duration within DHS or other large civilian agencies can range from tens of millions to hundreds of millions of dollars, depending on the complexity, specific services required, and the number of sites supported. The Time and Materials (T&M) nature of this contract means the final cost is dependent on actual hours and materials used, making direct comparisons challenging without detailed scope information. A thorough analysis would involve comparing the estimated labor rates, overhead, and material markups against market averages and historical DHS/USCIS T&M awards.

What are the primary risks associated with this Time and Materials (T&M) contract type for USCIS, and what mitigation strategies are in place?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or fixed hourly rate. Without strict oversight, contractors may not be incentivized to control costs efficiently. For USCIS, this could lead to exceeding the estimated $27.6 million award ceiling. Mitigation strategies typically include establishing clear labor categories with defined rates, setting a ceiling on the total contract value, requiring detailed timesheets and justifications for hours worked, and implementing robust project management oversight. USCIS program managers and contracting officers must actively monitor progress, validate invoices, and ensure that the work performed is necessary and efficient to keep costs within budget and achieve the desired value.

What is the expected impact of this contract on the operational effectiveness and modernization efforts of USCIS's IT infrastructure?

This contract is expected to have a significant positive impact on USCIS's operational effectiveness by ensuring the stability, security, and performance of its core IT infrastructure. By providing support for networks, data centers, and cloud systems, it directly contributes to the reliable functioning of systems that process immigration applications and manage citizen data. Furthermore, the 'design and maintain' aspect suggests that the contractor will be involved in ongoing improvements and potentially modernization efforts. This support is crucial for USCIS to maintain its current operations while also enabling future technological advancements and the implementation of new digital services, ultimately aiming to improve efficiency and user experience.

How does the $27.6 million award compare to the total federal spending on Computer Systems Design Services (NAICS 541512) in recent fiscal years?

The federal government spends billions of dollars annually on Computer Systems Design Services (NAICS 541512). In recent fiscal years, this category has consistently been one of the largest segments of federal IT spending. For example, total federal obligations for IT services often exceed $100 billion annually, with a substantial portion allocated to systems design, integration, and support. An award of $27.6 million for this specific contract, while significant for USCIS, represents a relatively small fraction of the overall federal expenditure in this domain. This suggests that while the contract is important for USCIS's mission, it is not an outlier in terms of size when compared to the vast landscape of federal IT procurements across all agencies.

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 - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR24R00000012

Offers Received: 4

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: $151,153,679

Exercised Options: $27,584,514

Current Obligation: $27,584,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0014

IDV Type: GWAC

Timeline