Department of Education's $56M PIVOT-H Hosting Contract Awarded to IBM Under Full and Open Competition
Contract Overview
Contract Amount: $56,266,773 ($56.3M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Education
Start Date: 2018-03-01
End Date: 2025-02-15
Contract Duration: 2,543 days
Daily Burn Rate: $22.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PORTFOLIO OF INTEGRATED VALUE ORIENTED TECHNOLOGIES - HOSTING (PIVOT-H) - THE PIVOT-H CONTRACTOR IS RESPONSIBLE FOR PROVIDING A HOSTING ENVIRONMENT FOR DEPARTMENT DATA AND SYSTEMS.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202
Plain-Language Summary
Department of Education obligated $56.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: PORTFOLIO OF INTEGRATED VALUE ORIENTED TECHNOLOGIES - HOSTING (PIVOT-H) - THE PIVOT-H CONTRACTOR IS RESPONSIBLE FOR PROVIDING A HOSTING ENVIRONMENT FOR DEPARTMENT DATA AND SYSTEMS. Key points: 1. IBM secured a significant contract for hosting Department of Education data and systems. 2. The contract utilizes a Firm Fixed Price model, providing cost certainty. 3. Competition was full and open, suggesting a potentially competitive pricing environment. 4. The contract duration is substantial, spanning over 2500 days. 5. No small business participation is indicated.
Value Assessment
Rating: good
The contract's Firm Fixed Price structure provides a clear cost baseline. Benchmarking against similar hosting services would be necessary for a definitive value assessment, but the competitive award suggests reasonable pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, allowing multiple vendors to bid. This method typically fosters competitive pricing and encourages vendors to offer their best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving fair market value for the hosting services provided.
Public Impact
Ensures critical Department of Education data and systems are securely hosted. Supports the operational continuity of educational technology services. IBM's role as contractor highlights the reliance on large technology providers for government infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could lead to vendor lock-in.
- Potential for cost overruns if scope significantly expands beyond initial estimates.
Positive Signals
- Full and open competition ensures market-driven pricing.
- Firm Fixed Price contract provides budget predictability.
- Experienced contractor (IBM) likely brings robust technical capabilities.
Sector Analysis
This contract falls under Computer Systems Design Services, a critical sector for government IT infrastructure. Spending in this area is substantial across federal agencies, with hosting services being a core component of digital operations.
Small Business Impact
The contract data indicates no small business participation. This suggests that the prime contractor, IBM, is handling the entire scope of work, potentially missing opportunities to leverage small business expertise.
Oversight & Accountability
The Department of Education is responsible for oversight. The long duration and fixed-price nature necessitate diligent monitoring to ensure performance standards are met and costs remain controlled.
Related Government Programs
- Computer Systems Design Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for vendor lock-in due to long contract duration.
- Absence of small business participation.
- Reliance on a single large contractor for critical infrastructure.
- Scope creep risk if not managed tightly.
Tags
computer-systems-design-services, department-of-education, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $56.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. PORTFOLIO OF INTEGRATED VALUE ORIENTED TECHNOLOGIES - HOSTING (PIVOT-H) - THE PIVOT-H CONTRACTOR IS RESPONSIBLE FOR PROVIDING A HOSTING ENVIRONMENT FOR DEPARTMENT DATA AND SYSTEMS.
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $56.3 million.
What is the period of performance?
Start: 2018-03-01. End: 2025-02-15.
What is the specific service level agreement (SLA) for system uptime and data accessibility, and how is performance measured against these metrics?
The provided data does not detail the specific Service Level Agreements (SLAs) for system uptime or data accessibility. A thorough review of the contract's performance work statement (PWS) and any associated appendices would be required to ascertain these metrics and the methods for performance measurement and potential penalties for non-compliance.
How does the $56M contract value compare to industry benchmarks for similar hosting services, considering the scope and duration?
Without detailed scope information (e.g., data volume, processing needs, security requirements), a precise benchmark is difficult. However, for a multi-year hosting contract of this magnitude, the average annual cost appears within a reasonable range, especially given the competitive award. Further analysis would require comparing specific service components against industry pricing models.
What contingency plans are in place should IBM's hosting services experience a major outage or security breach?
The contract likely includes provisions for disaster recovery and business continuity, common in IT hosting agreements. However, specific contingency plans, including response protocols, communication strategies, and potential alternative solutions in case of a major outage or breach, would need to be detailed within the contract's technical exhibits or associated documentation.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: ED-CIO-17-Q-0016
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $64,002,685
Exercised Options: $62,323,354
Current Obligation: $56,266,773
Actual Outlays: $45,693,949
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $2,266,226
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200030W
IDV Type: GWAC
Timeline
Start Date: 2018-03-01
Current End Date: 2025-02-15
Potential End Date: 2025-02-15 00:00:00
Last Modified: 2025-06-11
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