USAID IT Operations & Maintenance Contract Awarded to IBM for $86.7M
Contract Overview
Contract Amount: $86,664,941 ($86.7M)
Contractor: International Business Machines Corporation
Awarding Agency: Agency for International Development
Start Date: 2016-01-01
End Date: 2019-05-31
Contract Duration: 1,246 days
Daily Burn Rate: $69.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF - OPERATIONS AND MAINTENANCE SUPPORT FOR USAID IT SERVICES. THIS IS A FOLLOW ON FOR OPTION YEARS 3 AND 4 OF TASK ORDER #AID-CIO-M-13-00001.
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Agency for International Development obligated $86.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IGF::CT::IGF - OPERATIONS AND MAINTENANCE SUPPORT FOR USAID IT SERVICES. THIS IS A FOLLOW ON FOR OPTION YEARS 3 AND 4 OF TASK ORDER #AID-CIO-M-13-00001. Key points: 1. Contract value of $86.7 million over 4 years. 2. IBM is the incumbent contractor. 3. Full and open competition was used. 4. IT services sector spending benchmark is relevant.
Value Assessment
Rating: good
The contract value of $86.7 million for 4 years of IT operations and maintenance support appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for federal agencies would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, potentially driving down costs and ensuring fair market pricing.
Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently for essential IT services.
Public Impact
Ensures continued IT support for USAID operations. Potential for service disruptions if support is not maintained. IBM's continued role may offer stability but limits new vendor opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Incumbent contractor may have an advantage.
- Potential for scope creep over the contract duration.
Positive Signals
- Full and open competition utilized.
- Fixed price contract type can control costs.
Sector Analysis
This contract falls within the IT services sector, specifically for operations and maintenance. Federal spending in this area is substantial, with agencies relying heavily on external support for complex IT infrastructures.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as IBM is a large corporation. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract is a delivery order under a larger task order, suggesting it has undergone some level of review. However, ongoing oversight of performance and costs is crucial for ensuring value.
Related Government Programs
- Computer and Software Stores
- Agency for International Development Contracting
- Agency for International Development Programs
Risk Flags
- Reliance on a single large incumbent.
- Potential for cost overruns if not managed tightly.
- Scope definition and management are critical.
- Ensuring continued innovation in IT services.
Tags
computer-and-software-stores, agency-for-international-development, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Agency for International Development awarded $86.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IGF::CT::IGF - OPERATIONS AND MAINTENANCE SUPPORT FOR USAID IT SERVICES. THIS IS A FOLLOW ON FOR OPTION YEARS 3 AND 4 OF TASK ORDER #AID-CIO-M-13-00001.
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Agency for International Development (Agency for International Development).
What is the total obligated amount?
The obligated amount is $86.7 million.
What is the period of performance?
Start: 2016-01-01. End: 2019-05-31.
What is the historical performance of IBM on this specific contract and similar USAID IT support contracts?
Assessing IBM's past performance on this task order, including adherence to schedules, quality of service, and cost management, is critical. Reviewing performance metrics and any past issues or commendations will provide insight into their reliability and effectiveness in delivering IT operations and maintenance support for USAID.
How does the per-unit cost of services compare to industry benchmarks for similar IT support contracts?
While a specific per-unit cost is not provided, a detailed cost breakdown should be benchmarked against industry standards for IT operations and maintenance. This includes comparing rates for personnel, software licensing, and hardware support to ensure the $86.7 million is competitive and represents good value for the services rendered.
What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effectiveness?
Effective oversight requires clearly defined KPIs related to system uptime, response times for issue resolution, security compliance, and user satisfaction. The agency must have robust mechanisms in place to track these metrics and hold IBM accountable for meeting or exceeding performance expectations throughout the contract period.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DRIVE, BETHESDA, MD, 20817
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $94,734,733
Exercised Options: $94,734,733
Current Obligation: $86,664,941
Actual Outlays: $55,912
Subaward Activity
Number of Subawards: 57
Total Subaward Amount: $7,417,385
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4984H
IDV Type: FSS
Timeline
Start Date: 2016-01-01
Current End Date: 2019-05-31
Potential End Date: 2019-05-31 00:00:00
Last Modified: 2022-03-17
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