TSA Renews IBM Maintenance for $1.4M, Covering Enterprise-Wide Software and Support

Contract Overview

Contract Amount: $39,650,000 ($39.6M)

Contractor: Merlin International, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2018-03-31

End Date: 2020-06-30

Contract Duration: 822 days

Daily Burn Rate: $48.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SPEND PLAN: OIT / SW HW / SW HW MGMT / IBM / 184 THE FOLLOWING PR 21-18-208CIO853 PROVIDES $1,411,641.29 IN FUNDING FOR THE IBM ANNUAL MAINTENANCE AND SUPPORT RENEWAL FOR OIT. THE RENEWAL COVERS ALL PRODUCTS, SOFTWARE AND COMPONENTS OWNED AND OPERATED BY TSA AT HEADQUARTERS, FIELD OFFICES, OPERATION CENTERS, MISSION SUPPORT CENTERS AND OTHER AUXILIARY FACILITIES COMPRISING THE TOTALITY OF THE TSA ENTERPRISE. CONTRACT #: TBD (OIT CONSOLIDATED PR: 21-18-208CIO853) POP: 04/01/2018 TO 03/31/2019 COR: RAMON CABAN CO: GRACE KELLY CS: MICHELE REEVES PM: KAY ZACHMANN

Place of Performance

Location: ARLINGTON, LOUDOUN County, VIRGINIA, 20598

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.6 million to MERLIN INTERNATIONAL, INC. for work described as: SPEND PLAN: OIT / SW HW / SW HW MGMT / IBM / 184 THE FOLLOWING PR 21-18-208CIO853 PROVIDES $1,411,641.29 IN FUNDING FOR THE IBM ANNUAL MAINTENANCE AND SUPPORT RENEWAL FOR OIT. THE RENEWAL COVERS ALL PRODUCTS, SOFTWARE AND COMPONENTS OWNED AND OPERATED BY TSA AT HEADQUARTERS, FIE… Key points: 1. The TSA is renewing its annual maintenance and support contract for IBM products, covering all TSA facilities. 2. This renewal is a significant expenditure for essential enterprise-wide software and components. 3. The contract's value is $1,411,641.29, with a period of performance from April 1, 2018, to March 31, 2019. 4. The procurement method is 'Full and Open Competition After Exclusion of Sources', indicating a specific justification for limited competition.

Value Assessment

Rating: fair

The provided data does not include specific pricing benchmarks for similar IBM maintenance contracts, making a direct comparison difficult. However, the stated amount of $1.41M for annual maintenance suggests a substantial investment in critical software.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This suggests that while competition was considered, specific reasons led to excluding certain sources, potentially impacting price discovery and overall value.

Taxpayer Impact: Taxpayer funds are being used for this renewal, and the justification for limited competition warrants scrutiny to ensure the best possible price was obtained.

Public Impact

Ensures continued operation of TSA's critical IT infrastructure. Supports TSA's mission by maintaining essential software and components across all facilities. Potential for cost savings if competitive bidding processes were fully optimized. Impacts TSA's IT budget and resource allocation for the fiscal year.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition justification needs further review.
Lack of detailed pricing benchmarks for comparison.
Potential for vendor lock-in with proprietary software maintenance.

Positive Signals

Ensures continuity of essential IT services.
Covers a wide range of TSA's enterprise IT assets.
Standardized maintenance and support across the organization.

Sector Analysis

This spending falls within the Information Technology sector, specifically software maintenance and support. Benchmarks for similar enterprise-level software maintenance contracts can vary widely based on the vendor, software complexity, and scope of support required.

Small Business Impact

The data does not indicate any specific participation or set-aside for small businesses in this particular contract. The focus appears to be on a large, established vendor for enterprise-wide IT maintenance.

Oversight & Accountability

Oversight of this contract should focus on the justification for limited competition and ensuring the renewal provides value for money. Regular performance reviews and cost-benefit analyses are crucial for accountability.

Related Government Programs

Other Computer Related Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Potential for overpayment due to limited competition.
Risk of vendor lock-in and escalating future costs.
Dependency on a single vendor for critical enterprise software.
Lack of transparency in the competitive exclusion process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.6 million to MERLIN INTERNATIONAL, INC.. SPEND PLAN: OIT / SW HW / SW HW MGMT / IBM / 184 THE FOLLOWING PR 21-18-208CIO853 PROVIDES $1,411,641.29 IN FUNDING FOR THE IBM ANNUAL MAINTENANCE AND SUPPORT RENEWAL FOR OIT. THE RENEWAL COVERS ALL PRODUCTS, SOFTWARE AND COMPONENTS OWNED AND OPERATED BY TSA AT HEADQUARTERS, FIELD OFFICES, OPERATION CENTERS, MISSION SUPPORT CENTERS AND OTHER AUXILIARY FACILITIES COMPRISING THE TOTALITY OF THE TSA ENTERPRISE. CONTRACT #: TBD (OIT CONSOLIDATED PR: 21-18-208CIO853) POP: 04/01/2018 TO 03/31/2019 C

Who is the contractor on this award?

The obligated recipient is MERLIN INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $39.6 million.

What is the period of performance?

Start: 2018-03-31. End: 2020-06-30.

What were the specific reasons for excluding other sources in the 'Full and Open Competition After Exclusion of Sources' award?

The justification for excluding other sources typically involves factors such as proprietary software requiring specific vendor expertise, existing infrastructure compatibility, or unique technical requirements that only a particular vendor can meet. A detailed review of the contract's Justification for Other than Full and Open Competition (JOFOC) would be necessary to understand the specific rationale and ensure it was valid.

How does the $1.41M annual maintenance cost compare to industry standards for similar enterprise-level IBM software support?

Without specific details on the IBM products and the level of support included, a precise comparison is challenging. However, enterprise software maintenance typically ranges from 15-25% of the initial software license cost annually. Benchmarking would require knowing the original software investment and the specific support tiers to determine if this renewal is within a reasonable range.

What is the long-term strategy for managing IBM software licenses and maintenance to potentially reduce costs or explore alternatives?

A long-term strategy should involve regular market research, exploring open-source alternatives where feasible, negotiating multi-year contracts with favorable terms, and potentially consolidating software assets. Proactive planning can mitigate risks associated with vendor lock-in and ensure cost-effectiveness over time.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70T030-18-R-2BCIO853

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4 B INVERNESS CT E STE 100, ENGLEWOOD, CO, 80112

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $39,650,000

Exercised Options: $39,650,000

Current Obligation: $39,650,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC13D00021

IDV Type: IDC

Timeline