HHS awards $19.4M IBM contract for FDA CTP OS Customer Service Center, utilizing full and open competition

Contract Overview

Contract Amount: $19,414,884 ($19.4M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Health and Human Services

Start Date: 2020-08-14

End Date: 2024-08-16

Contract Duration: 1,463 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: CTP OS CUSTOMER SERVICE CENTER CONTRACT

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $19.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: CTP OS CUSTOMER SERVICE CENTER CONTRACT Key points: 1. Contract Value: $19.4 million over approximately 4 years. 2. Competition: Awarded under full and open competition, indicating a competitive bidding process. 3. Risk: Potential risk associated with a single large vendor for critical services. 4. Sector: Information Technology services, specifically custom computer programming.

Value Assessment

Rating: good

The contract value of $19.4 million for custom computer programming services appears reasonable given the duration and scope. Benchmarking against similar federal contracts for IT support and development services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The use of full and open competition aims to secure competitive pricing, thereby maximizing taxpayer value for the services rendered.

Public Impact

Ensures continued operation of the FDA's CTP OS Customer Service Center. Supports critical IT functions for the Food and Drug Administration. Potential for innovation and service improvement through a large, established vendor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Vendor lock-in potential
Reliance on a single large provider

Positive Signals

Competitive award process
Established vendor with proven capabilities

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Federal spending in this area is substantial, with benchmarks varying widely based on service complexity and duration.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the vendor is IBM. There is no specific set-aside for small businesses mentioned in this award.

Oversight & Accountability

The contract was awarded via a BPA Call, which is a mechanism for streamlining procurement. Oversight would involve monitoring performance against contract requirements and ensuring adherence to terms.

Related Government Programs

Custom Computer Programming Services
Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Potential for vendor lock-in
Reliance on a single large provider for critical services
Scope creep potential
Need for robust performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $19.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. CTP OS CUSTOMER SERVICE CENTER CONTRACT

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2020-08-14. End: 2024-08-16.

What is the specific scope of services covered by this contract and how does it align with the FDA's mission objectives?

The contract covers 'CTP OS CUSTOMER SERVICE CENTER' services, falling under NAICS code 541511 (Custom Computer Programming Services). This likely involves maintaining and supporting the operational systems for the Center for Tobacco Products (CTP) at the FDA, ensuring smooth functioning of their IT infrastructure and customer service platforms to support regulatory activities.

Are there any performance metrics or Service Level Agreements (SLAs) in place to ensure the quality and effectiveness of the services provided by IBM?

While not explicitly detailed in the provided data, federal contracts of this nature typically include performance metrics and SLAs. These are crucial for ensuring the contractor meets defined standards for uptime, response times, and issue resolution. Regular performance reviews would be conducted by the FDA contracting officer's representative.

What is the potential for cost savings or efficiencies through this contract compared to alternative service delivery models?

The contract's award through full and open competition suggests an effort to achieve cost-effectiveness. However, a detailed cost-benefit analysis comparing this contract to in-house solutions or other contracting vehicles would be needed to definitively assess potential savings. The duration and scope are key factors in this evaluation.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DR, 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: $19,414,884

Exercised Options: $19,414,884

Current Obligation: $19,414,884

Actual Outlays: $15,368,178

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $4,215,471

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75F40119A10019

IDV Type: BPA

Timeline