DOJ's $16.4M Contract with IBM for Financial Support Services Raises Questions on Value and Competition

Contract Overview

Contract Amount: $16,427,935 ($16.4M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Justice

Start Date: 2009-01-14

End Date: 2015-09-30

Contract Duration: 2,450 days

Daily Burn Rate: $6.7K/day

Sector: Other

Official Description: FINANCIAL SUPPORT SERVICES FOR JMD

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 $16.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: FINANCIAL SUPPORT SERVICES FOR JMD Key points: 1. Significant expenditure on administrative management consulting services. 2. IBM, a major contractor, secured the award. 3. Lack of detailed competition information presents a risk. 4. The sector is administrative management consulting, a common area for federal spending.

Value Assessment

Rating: questionable

The $16.4 million awarded over 6 years for financial support services appears high without clear justification. Benchmarking against similar administrative management consulting contracts is difficult due to limited data, but the duration and cost warrant scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract type is a BPA Call, but the specific competition method is not detailed. This lack of transparency makes it difficult to assess if full and open competition was pursued or if pricing was effectively discovered.

Taxpayer Impact: Taxpayer funds totaling $16.4 million were allocated. Without clear competition, it's uncertain if the best value was achieved, potentially leading to overspending.

Public Impact

Citizens may question the necessity and cost-effectiveness of this long-term consulting contract. Transparency in government contracting is crucial for public trust. The Department of Justice's use of funds for administrative support is under the microscope.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition details
High total contract value
Long contract duration

Positive Signals

Services provided by a well-established contractor (IBM)

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a broad category. Federal spending in this sector can vary widely, but large, multi-year contracts like this require careful justification to ensure efficiency.

Small Business Impact

The data indicates this contract was not awarded to a small business. Analysis of opportunities for small businesses in similar consulting services is not provided.

Oversight & Accountability

The limited information on competition and award justification suggests potential gaps in oversight. Further review is needed to ensure accountability and adherence to procurement regulations.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Justice Contracting
Offices, Boards and Divisions Programs

Risk Flags

Lack of transparency in competition
High total contract value
Long contract duration
Unclear performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $16.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. FINANCIAL SUPPORT SERVICES FOR JMD

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 $16.4 million.

What is the period of performance?

Start: 2009-01-14. End: 2015-09-30.

Was the $16.4 million awarded for financial support services a reasonable price for the scope of work provided by IBM?

Without a detailed statement of work and comparison to market rates for similar administrative management consulting services, it is difficult to definitively assess reasonableness. The long duration (2009-2015) and significant total value suggest a need for robust justification and benchmarking against peer contracts to ensure taxpayer value.

What were the specific risks associated with this contract, and how were they mitigated by the Department of Justice?

Key risks likely included potential cost overruns, scope creep, and vendor lock-in given the long duration. Mitigation strategies would typically involve clear performance metrics, regular progress reviews, and defined change control processes. The lack of detailed competition data makes it hard to assess if these risks were adequately addressed.

How effective was IBM in providing financial support services to the Department of Justice under this contract?

Effectiveness cannot be determined from the provided data. Performance metrics, user satisfaction, and achievement of contract objectives are necessary to evaluate the contractor's performance. Without this information, the actual impact and success of the services remain unknown.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

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: $38,211,924

Exercised Options: $20,546,421

Current Obligation: $16,427,935

Parent Contract

Parent Award PIID: DJJ09F1786

IDV Type: BPA

Timeline