DOJ awards IBM $10.8M for Web Design Services over 10 years
Contract Overview
Contract Amount: $10,829,804 ($10.8M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Justice
Start Date: 2011-10-17
End Date: 2021-09-30
Contract Duration: 3,636 days
Daily Burn Rate: $3.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: WEB DESIGN SERVICES FOR JMD/EGSS
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Justice obligated $10.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: WEB DESIGN SERVICES FOR JMD/EGSS Key points: 1. IBM secured a significant contract for web design services. 2. The contract spans a decade, indicating long-term reliance. 3. The primary risk lies in potential cost overruns for time and materials. 4. This falls under IT services, specifically computer systems design.
Value Assessment
Rating: fair
The contract value of $10.8M over 10 years averages to about $1.08M annually. Without specific benchmarks for similar large-scale web design projects for federal agencies, it's difficult to definitively assess pricing, but the duration suggests a substantial, ongoing need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the 'time and materials' pricing model can sometimes lead to less predictable costs compared to fixed-price contracts, potentially impacting price discovery.
Taxpayer Impact: Taxpayers are funding a decade-long web design service contract. While competition was present, the time and materials nature warrants scrutiny to ensure value for money.
Public Impact
Citizens will experience the results of these web design services through the Department of Justice's online presence. The long duration of the contract implies a significant and sustained investment in digital infrastructure. Potential for improved user experience and accessibility on DOJ websites.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing model
- Long contract duration (10 years)
Positive Signals
- Full and open competition
- Established vendor (IBM)
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Federal spending in this area is substantial, driven by the need for modern, secure, and user-friendly digital platforms across all agencies.
Small Business Impact
The data indicates the contract was awarded to IBM, a large corporation. There is no explicit information suggesting set-asides or participation opportunities for small businesses in this particular award.
Oversight & Accountability
The contract's long duration and time-and-materials pricing model necessitate robust oversight from the Department of Justice to ensure performance standards are met and costs remain controlled. Regular reviews and performance metrics are crucial.
Related Government Programs
- Computer Systems Design Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing
- Long contract duration may not adapt to rapidly changing technology
- Lack of specific performance metrics in provided data
- Limited insight into vendor's small business subcontracting plan
Tags
computer-systems-design-services, department-of-justice, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $10.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. WEB DESIGN SERVICES FOR JMD/EGSS
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 $10.8 million.
What is the period of performance?
Start: 2011-10-17. End: 2021-09-30.
What specific web design services are included, and how do they align with the DOJ's strategic goals?
The contract specifies 'Web Design Services for JMD/EGSS'. While the exact scope isn't detailed, it likely encompasses the design, development, and maintenance of websites and web applications for the Justice Management Division and Executive Office for General Support Services. The alignment with strategic goals would depend on the DOJ's current digital transformation initiatives, focusing on improving public access to information, enhancing internal operational efficiency, and modernizing their online presence.
What are the potential risks associated with a 10-year Time and Materials contract for web design?
A 10-year Time and Materials (T&M) contract for web design presents risks of escalating costs due to undefined future requirements and potential inefficiencies. Without fixed deliverables or price caps, the government may overpay if project scope creeps or if the vendor's labor rates increase significantly over the decade. It also reduces the incentive for the vendor to optimize processes or deliver efficiently, as they are paid for time spent.
How effectively does 'full and open competition' mitigate cost and ensure quality for long-term IT service contracts?
Full and open competition is designed to foster a competitive environment, theoretically driving down prices and improving service quality by allowing all qualified vendors to bid. For long-term IT contracts, its effectiveness can be moderated by factors like contract type (e.g., T&M vs. fixed-price) and the complexity of requirements. While it ensures a broad initial pool of bidders, ongoing oversight is critical to maintain cost control and quality throughout the contract's lifecycle.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
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: 11
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $56,842,134
Exercised Options: $13,022,363
Current Obligation: $10,829,804
Actual Outlays: $2,758,397
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $1,823,376
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DJJ11C2158
IDV Type: IDC
Timeline
Start Date: 2011-10-17
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2026-02-04
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