DOJ's UFMS program management contract awarded to IBM for over $44.9M over 10 years

Contract Overview

Contract Amount: $44,942,688 ($44.9M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Justice

Start Date: 2005-12-15

End Date: 2015-12-14

Contract Duration: 3,651 days

Daily Burn Rate: $12.3K/day

Competition Type: FULL AND OPEN COMPETITION

Sector: IT

Official Description: FAMILIARIZATION AND PROGRAM MANAGEMENT SERVICES TO SUPPORT THE DEPARTMENT OF JUSTICE'S UNIFIED FINANCIAL MANAGEMENT SYSTEM (UFMS).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $44.9 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: FAMILIARIZATION AND PROGRAM MANAGEMENT SERVICES TO SUPPORT THE DEPARTMENT OF JUSTICE'S UNIFIED FINANCIAL MANAGEMENT SYSTEM (UFMS). Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Long contract duration of 10 years may indicate a need for sustained support. 3. The contract's focus on financial management systems points to critical IT infrastructure for the DOJ. 4. IBM's role suggests a significant technology provider supporting a major federal agency. 5. The value of the contract, while substantial, needs to be benchmarked against similar IT services for federal agencies. 6. The absence of small business set-aside flags indicates a focus on large prime contractors.

Value Assessment

Rating: fair

The contract value of approximately $44.9 million over 10 years averages to about $4.5 million annually. Benchmarking this against similar IT services contracts for federal financial management systems is crucial. Without specific comparable data, it's difficult to definitively assess value for money. However, the long duration and the nature of the services (program management for a unified system) suggest a potentially reasonable cost for sustained, specialized support.

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 a bid. This typically suggests a robust bidding process with the potential for multiple offers. The number of bidders is not specified, but the competition level implies that the Department of Justice sought the best possible solution and pricing through an open market approach.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering price discovery and potentially leading to more competitive pricing compared to sole-source or limited competition awards.

Public Impact

The Department of Justice benefits from this contract through the continued support and management of its Unified Financial Management System (UFMS). This contract ensures the operational integrity and potential modernization of a critical financial IT system. The primary beneficiaries are the internal DOJ staff who rely on the UFMS for financial operations. The geographic impact is primarily within the District of Columbia, where the DOJ is headquartered, but the system likely supports operations nationwide. Workforce implications include the potential for continued employment for IT and program management professionals within IBM and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) could lead to vendor lock-in and reduced flexibility for future technological advancements.
Reliance on a single large contractor (IBM) might limit opportunities for smaller, innovative firms.
The specific performance metrics and service level agreements are not detailed, making it hard to assess ongoing performance risks.
Potential for cost overruns if program management is not effectively controlled over the decade-long period.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a strong offer.
IBM is a well-established technology provider with extensive experience in large-scale IT projects.
The contract supports a critical function (financial management) for a major federal agency, indicating strategic importance.
The long-term nature of the contract provides stability for both the agency and the contractor, potentially ensuring consistent service delivery.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on software and program management for financial systems. The federal IT services market is vast, with agencies consistently investing in maintaining and upgrading their core systems. Contracts like this are common as agencies seek to consolidate and modernize their financial operations. Comparable spending benchmarks would involve looking at other large federal contracts for Enterprise Resource Planning (ERP) or financial management system support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a large business, International Business Machines Corporation. While there's no direct indication of subcontracting plans for small businesses within the provided data, large prime contracts often include provisions for small business participation. The absence of a specific set-aside means that opportunities for small businesses would likely be through subcontracting channels, if pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Justice. Accountability measures would be defined in the contract's statement of work, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

Department of Justice Financial Management Systems
Federal Financial Management IT Modernization
Enterprise Resource Planning (ERP) Systems Support
Government IT Services Contracts
Large-Scale IT Program Management

Risk Flags

Long contract duration
Potential for vendor lock-in
Lack of specific performance metrics in summary data
Reliance on a single large contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $44.9 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. FAMILIARIZATION AND PROGRAM MANAGEMENT SERVICES TO SUPPORT THE DEPARTMENT OF JUSTICE'S UNIFIED FINANCIAL MANAGEMENT SYSTEM (UFMS).

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $44.9 million.

What is the period of performance?

Start: 2005-12-15. End: 2015-12-14.

What is IBM's track record with the Department of Justice on similar IT contracts?

IBM has a long history of providing IT services to various federal agencies, including the Department of Justice. While specific details on past UFMS-related contracts with IBM are not provided in this data snippet, IBM's general experience includes large-scale IT modernization, system integration, and program management for complex government systems. Their track record often involves managing significant budgets and long-term projects. A deeper dive into IBM's contract history with DOJ, particularly concerning financial systems or similar mission-critical IT infrastructure, would be necessary to fully assess their specific performance and reliability in this context. Past performance reviews and any documented issues or successes would be key indicators.

How does the annual cost of this contract compare to similar federal financial management system contracts?

This contract averages approximately $4.5 million per year ($44.9M / 10 years). Benchmarking this figure requires comparing it to contracts for similar services, such as program management, maintenance, and support for large federal financial management systems (like ERP systems) across different agencies. Factors influencing cost include the scope of services, system complexity, number of users, and specific technological requirements. Without access to a database of comparable contract values and service scopes, a precise comparison is difficult. However, for a 10-year program management contract supporting a critical system for a major agency like the DOJ, this annual average appears within a plausible range, though potentially on the higher side depending on the specific deliverables.

What are the primary risks associated with a 10-year contract for IT program management?

A significant risk with a 10-year IT program management contract is technological obsolescence. The technology landscape can change dramatically over a decade, potentially making the current system or management approach outdated. Another key risk is vendor lock-in, where the agency becomes heavily reliant on the incumbent contractor, making it difficult and costly to switch providers or adopt new technologies. Performance degradation over time is also a concern, as is the potential for scope creep and cost overruns if not managed diligently. Finally, changes in agency priorities or budget constraints could impact the contract's effectiveness or require renegotiation.

How effective is the UFMS system likely to be under this contract?

The effectiveness of the UFMS system under this contract hinges on several factors not fully detailed in the provided data. The contract's objective is 'familiarization and program management,' suggesting it focuses on ensuring the system runs smoothly and is managed efficiently rather than core development or overhaul. IBM's role as a program manager implies oversight, coordination, and potentially strategic guidance. The system's effectiveness will depend on the clarity of the statement of work, the performance of IBM in managing the program, the DOJ's own engagement, and the underlying architecture and capabilities of the UFMS itself. Continued investment and adaptation by the DOJ, facilitated by IBM's management, would be crucial for sustained effectiveness.

What has been the historical spending trend for UFMS program management at the DOJ?

The provided data covers a single contract award from December 2005 to December 2015 for $44.9 million. This represents spending over a 10-year period. To understand historical spending trends, one would need to examine prior contracts for UFMS program management before 2005, and potentially subsequent contracts after 2015 if the system continued to operate. Analyzing the total obligated amounts, annual spending patterns, and contract durations over a longer timeframe would reveal trends in investment and support for the UFMS. This single data point provides a snapshot but not a trend.

What specific IT services does 'familiarization and program management' entail in this context?

'Familiarization and program management' in the context of the DOJ's UFMS likely involves a broad range of activities aimed at ensuring the system's operational continuity and strategic alignment. This could include understanding the system's architecture, functionalities, and user base; developing and executing program plans; managing budgets and resources allocated to the system; coordinating with various stakeholders (users, IT support, developers); overseeing system updates and maintenance schedules; ensuring compliance with relevant regulations; and potentially identifying areas for improvement or future enhancements. It implies a role focused on oversight, coordination, and strategic guidance rather than hands-on development or direct end-user support.

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: NEGOTIATED PROPOSAL/QUOTE

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: $87,992,970

Exercised Options: $44,942,688

Current Obligation: $44,942,688

Parent Contract

Parent Award PIID: DJJ06F1338

IDV Type: BPA

Timeline