IBM awarded $15.9M for DEA's Unified Financial Management System implementation

Contract Overview

Contract Amount: $15,899,213 ($15.9M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Justice

Start Date: 2007-07-23

End Date: 2012-12-13

Contract Duration: 1,970 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Sector: IT

Official Description: THIS TASK ORDER IS TO COMPLETE THE UNIFIED FINANCIAL MANAGEMENT SYSTEM IMPLEMENTATION IN THE DRUG ENFORCEMENT ADMINISTRATION.

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 $15.9 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: THIS TASK ORDER IS TO COMPLETE THE UNIFIED FINANCIAL MANAGEMENT SYSTEM IMPLEMENTATION IN THE DRUG ENFORCEMENT ADMINISTRATION. Key points: 1. Contract awarded via full and open competition after exclusion of sources. 2. Task order issued under a broader BPA Call. 3. Project duration spans over 5 years. 4. Focus on financial management system implementation. 5. Contractor is a major technology provider. 6. Geographic location is Washington D.C.

Value Assessment

Rating: fair

The contract value of $15.9 million for a financial management system implementation over approximately 5 years appears to be within a reasonable range for a project of this scope, especially considering the involvement of a large contractor like IBM. However, without specific details on the system's functionalities, complexity, and the number of users, a precise value-for-money assessment is challenging. Benchmarking against similar federal financial system implementations would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the initial solicitation was broad, specific sources may have been excluded based on pre-defined criteria. This suggests a competitive process, but the extent of competition is not fully clear without knowing the number of bidders that responded. The exclusion of sources could potentially limit price discovery compared to a truly unrestricted full and open competition.

Taxpayer Impact: The use of full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to bid, which can drive down costs. However, the specific exclusion criteria warrant scrutiny to ensure they were justified and did not unduly restrict competition.

Public Impact

The Drug Enforcement Administration (DEA) benefits from an improved financial management system. Services delivered include the implementation of the Unified Financial Management System. The geographic impact is primarily within the District of Columbia, where the DEA is headquartered. Workforce implications include training and adoption of the new system by DEA personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a multi-year system implementation.
Dependency on a single large contractor for a critical system.
Risk of integration challenges with existing DEA IT infrastructure.

Positive Signals

Awarded to a reputable contractor with extensive IT experience.
Clear objective of enhancing financial management capabilities.
Long-term contract duration allows for phased implementation and support.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software implementation and financial management systems. The market for such systems within federal agencies is substantial, with numerous vendors offering solutions. IBM is a major player in this space, competing with other large IT service providers and specialized software companies. Benchmarking against similar federal financial system procurements would be necessary for a detailed sector comparison.

Small Business Impact

The provided data indicates that small business participation (sb: false) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or impacts on the small business ecosystem stemming from a small business set-aside. The primary contractor, IBM, is a large business.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Justice and the DEA. Accountability measures would be tied to contract milestones and performance metrics. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Financial Management Systems
DEA IT Modernization Efforts
Department of Justice IT Contracts
Large-scale Software Implementations

Risk Flags

Potential for cost overruns
Risk of schedule delays
Integration complexity
Vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $15.9 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. THIS TASK ORDER IS TO COMPLETE THE UNIFIED FINANCIAL MANAGEMENT SYSTEM IMPLEMENTATION IN THE DRUG ENFORCEMENT ADMINISTRATION.

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 $15.9 million.

What is the period of performance?

Start: 2007-07-23. End: 2012-12-13.

What specific functionalities does the Unified Financial Management System aim to provide for the DEA?

The Unified Financial Management System (UFMS) is intended to modernize and streamline the Drug Enforcement Administration's (DEA) financial operations. While the provided data does not detail specific functionalities, such systems typically encompass modules for accounting, budgeting, procurement, grants management, payroll, and financial reporting. The goal is usually to improve data accuracy, enhance decision-making through better reporting, ensure compliance with federal financial regulations, and increase operational efficiency. The implementation by IBM suggests a comprehensive overhaul or significant upgrade to the DEA's existing financial infrastructure, likely aiming to integrate disparate systems and provide a single source of truth for financial data across the agency.

How does the $15.9 million cost compare to similar federal financial system implementations?

Benchmarking the $15.9 million cost for the DEA's UFMS implementation requires comparison with similar federal financial system projects. Factors influencing cost include the system's complexity, the number of users, the extent of customization required, and the duration of the implementation and support phases. Large-scale financial system modernizations for federal agencies can range from tens of millions to hundreds of millions of dollars. Given that this is a task order under a BPA Call and spans over five years, the $15.9 million figure might represent a portion of a larger overall investment or a specific phase. Without detailed scope and comparable project data, it's difficult to definitively state if this is high or low, but it appears to be a moderate investment for a system implementation of this nature.

What are the key risks associated with implementing a financial management system for a federal agency like the DEA?

Key risks in implementing a federal financial management system like the DEA's UFMS include: 1. **Technical Risks:** Integration challenges with legacy systems, data migration errors, cybersecurity vulnerabilities, and system performance issues. 2. **Project Management Risks:** Scope creep, schedule delays, budget overruns, and inadequate resource allocation. 3. **Organizational Risks:** Resistance to change from end-users, insufficient training, lack of executive sponsorship, and disruption to ongoing financial operations. 4. **Contractual Risks:** Vendor performance issues, unclear requirements, and disputes over deliverables. For the DEA, specific risks might also involve handling sensitive financial data related to law enforcement operations and ensuring compliance with stringent federal regulations.

What is the track record of International Business Machines Corporation (IBM) in delivering federal IT implementation projects?

International Business Machines Corporation (IBM) has a long and extensive track record of delivering complex IT implementation projects for the federal government across various agencies and sectors. They are a major provider of cloud services, software, hardware, and consulting, including large-scale system integrations and modernizations. IBM has been involved in numerous federal contracts for financial systems, enterprise resource planning (ERP) implementations, cybersecurity solutions, and data analytics platforms. While specific performance on every contract varies, IBM's general reputation is that of a capable, albeit sometimes costly, large-scale IT solutions provider. Federal agencies often select IBM for its breadth of capabilities, global reach, and ability to handle large, complex, and mission-critical projects, though oversight is crucial to ensure successful outcomes and value for money.

How does the contract type 'BPA CALL' influence the procurement and execution of this task order?

A BPA CALL (Blanket Purchase Agreement Call) indicates that this task order was issued under a pre-existing Blanket Purchase Agreement (BPA). BPAs are established with vendors to streamline the procurement of commonly purchased supplies or services. A 'call' or 'order' against a BPA is a specific purchase document issued under the terms and conditions previously negotiated in the BPA. This method generally simplifies and accelerates the procurement process for individual task orders, as many terms (like pricing structures, delivery schedules, and basic terms and conditions) are already agreed upon. For this DEA UFMS implementation, using a BPA CALL likely means the foundational agreement with IBM was already in place, allowing for a quicker issuance of this specific task order compared to a standalone, full solicitation process. However, the competition level for the BPA itself and the specific terms of the call are critical for assessing value.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: DJJ06F1338

IDV Type: BPA

Timeline