DOJ's $26.3M IBM Contract for Web Claims System: Full & Open Competition
Contract Overview
Contract Amount: $26,310,208 ($26.3M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Justice
Start Date: 2011-09-01
End Date: 2017-12-31
Contract Duration: 2,313 days
Daily Burn Rate: $11.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: WEB BASED CLAIMS MANAGEMENT SYSTEM DESIGN
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20530
Plain-Language Summary
Department of Justice obligated $26.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: WEB BASED CLAIMS MANAGEMENT SYSTEM DESIGN Key points: 1. Contract awarded to IBM for a web-based claims management system. 2. Significant investment of $26.3 million over 6 years. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under Administrative Management and General Management Consulting Services. 5. Awarded via a BPA Call, indicating a pre-competed framework.
Value Assessment
Rating: fair
The contract value of $26.3 million over approximately 6 years is substantial. Benchmarking against similar IT system development and consulting contracts is difficult without more specific service details, but the per-year cost is around $4.4 million.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to better price discovery and value for the government. The use of a BPA Call suggests that the initial competition for the BPA itself was robust.
Taxpayer Impact: Taxpayer funds were used for this contract. The competitive nature of the award aims to ensure a reasonable price, but the overall value depends on the effectiveness of the delivered system.
Public Impact
Improved efficiency in claims processing for the Department of Justice. Potential for enhanced data management and accessibility for legal case information. Modernization of a critical government IT system. Impact on legal professionals and administrative staff within the DOJ.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics.
- Potential for scope creep in a long-term IT project.
- Dependence on a single vendor (IBM) for system development and maintenance.
Positive Signals
- Awarded through full and open competition.
- Utilized a pre-competed BPA Call.
- Long contract duration allows for system maturity.
Sector Analysis
This contract falls within the IT consulting and services sector, specifically for administrative management. Spending in this area is common across federal agencies for system modernization and operational support. Benchmarks vary widely based on system complexity and scope.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Large contracts like this are often awarded to prime contractors who may then subcontract to smaller businesses, but this is not explicitly stated.
Oversight & Accountability
Oversight would typically be managed by the Department of Justice's contracting officers and program managers. The use of a BPA Call might involve oversight at both the BPA level and the individual call level.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Lack of detailed performance metrics.
- Potential for cost overruns with labor hour pricing.
- Long duration increases risk of technology obsolescence.
- Limited insight into specific system functionalities and benefits.
Tags
administrative-management-and-general-ma, department-of-justice, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $26.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. WEB BASED CLAIMS MANAGEMENT SYSTEM DESIGN
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 $26.3 million.
What is the period of performance?
Start: 2011-09-01. End: 2017-12-31.
What was the specific scope of work for the web-based claims management system, and how did it align with the DOJ's operational needs?
The provided data lacks specifics on the system's scope. A web-based claims management system for the DOJ could encompass various functions, from tracking legal filings and evidence to managing case statuses and administrative workflows. Its alignment with needs would depend on detailed requirements gathering and system design, which are not detailed here.
What were the key performance indicators (KPIs) established for this contract, and how was IBM's performance measured against them?
The available data does not specify any Key Performance Indicators (KPIs) for this contract. Effective oversight would require clearly defined metrics related to system uptime, processing speed, user satisfaction, and error rates. Without these, assessing contractor performance and value for money is challenging.
How did the pricing structure (labor hours) compare to fixed-price or other contract types for similar IT system development projects?
A labor hour contract provides flexibility but can be less predictable in cost compared to fixed-price contracts. For IT system development, fixed-price can offer cost certainty if the scope is well-defined. Labor hour contracts are often used when requirements are evolving, but they place a greater burden on the government to monitor hours and control costs.
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
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
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: $53,992,856
Exercised Options: $26,527,318
Current Obligation: $26,310,208
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $669,780
Parent Contract
Parent Award PIID: DJJ09F1786
IDV Type: BPA
Timeline
Start Date: 2011-09-01
Current End Date: 2017-12-31
Potential End Date: 2018-01-01 00:00:00
Last Modified: 2021-12-02
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