Commerce awards $80.7M for Digital TV Transition services to IBM under full and open competition
Contract Overview
Contract Amount: $80,750,927 ($80.8M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Commerce
Start Date: 2007-08-15
End Date: 2009-09-30
Contract Duration: 777 days
Daily Burn Rate: $103.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Other
Official Description: THIS TASK ORDER IS ISSUED TO OBTAIN FIXED PRICE AND FIXED PRICE REQUIREMENT SERVICES AS SET FORTH IN THE BASIC IDV CONTRACT FOR THE DIGITAL TELEVISION TRANSISTION AND PUBLIC SAFETY ACT OF 2005, AND TO MEET THE MINIMUM LEVELS ESTABLISHED FOR THE BASE PERIOD UNDER THE ASSOCIATED CONTRACT.
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $80.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: THIS TASK ORDER IS ISSUED TO OBTAIN FIXED PRICE AND FIXED PRICE REQUIREMENT SERVICES AS SET FORTH IN THE BASIC IDV CONTRACT FOR THE DIGITAL TELEVISION TRANSISTION AND PUBLIC SAFETY ACT OF 2005, AND TO MEET THE MINIMUM LEVELS ESTABLISHED FOR THE BASE PERIOD UNDER THE ASSOCIATED CO… Key points: 1. IBM secured a significant contract valued at $80.7 million for essential digital television transition services. 2. The award was made under full and open competition, indicating a competitive bidding process. 3. The contract duration is substantial, spanning 777 days, suggesting a long-term project. 4. Services fall under Administrative Management and General Management Consulting, a broad category.
Value Assessment
Rating: fair
The contract value of $80.7 million for 777 days of service appears high for general management consulting. Benchmarking against similar large-scale IT or transition projects would be necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the specific details of the bidding and evaluation are not provided, making it difficult to fully assess the price competitiveness.
Taxpayer Impact: Taxpayer funds are being utilized for a critical government mandate related to the digital television transition, aiming to modernize broadcasting infrastructure.
Public Impact
Ensures compliance with the Digital Television Transition and Public Safety Act of 2005. Supports the modernization of public safety communication infrastructure. Impacts broadcast media and consumer electronics industries through transition requirements. Potential for improved emergency alert systems and public safety communications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for consulting services.
- Long contract duration without clear performance metrics.
- Lack of detailed cost breakdown for services.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical legislative mandate.
- Supports public safety initiatives.
Sector Analysis
The contract falls under administrative and management consulting services, often supporting large-scale government initiatives. Benchmarks for similar transition projects or IT modernization efforts would provide better context for the $80.7 million award.
Small Business Impact
The data indicates the awardee is IBM, a large corporation. There is no explicit mention of small business participation or subcontracting goals within this specific task order, suggesting limited direct impact for small businesses on this particular award.
Oversight & Accountability
The award was made by the Department of Commerce, National Oceanic and Atmospheric Administration. Oversight would typically involve contract management by NOAA to ensure IBM meets the requirements of the basic IDV contract and the specific task order objectives.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- High dollar value for consulting services.
- Long contract duration.
- Lack of specific performance metrics in summary.
- Potential for scope creep.
- No clear indication of small business subcontracting.
Tags
administrative-management-and-general-ma, department-of-commerce, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $80.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. THIS TASK ORDER IS ISSUED TO OBTAIN FIXED PRICE AND FIXED PRICE REQUIREMENT SERVICES AS SET FORTH IN THE BASIC IDV CONTRACT FOR THE DIGITAL TELEVISION TRANSISTION AND PUBLIC SAFETY ACT OF 2005, AND TO MEET THE MINIMUM LEVELS ESTABLISHED FOR THE BASE PERIOD UNDER THE ASSOCIATED CONTRACT.
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $80.8 million.
What is the period of performance?
Start: 2007-08-15. End: 2009-09-30.
What specific deliverables and performance metrics are defined within this task order to ensure the $80.7 million investment yields tangible results for the digital television transition?
The provided data does not detail specific deliverables or performance metrics for this task order. It references the basic IDV contract and the Digital Television Transition and Public Safety Act of 2005. A thorough review of the task order itself would be necessary to ascertain the defined outcomes and how IBM's performance will be measured against the substantial investment.
Given the significant value and duration, what are the primary risks associated with this contract, and how are they being mitigated?
Potential risks include cost overruns if the scope expands, delays in the transition process impacting public safety, and potential for vendor lock-in. Mitigation strategies would likely involve stringent contract management, phased payments tied to milestones, and clear change control processes, though these are not explicitly detailed in the provided summary.
How effectively does this contract leverage IBM's capabilities to achieve the goals of the Digital Television Transition and Public Safety Act of 2005?
The contract's effectiveness hinges on IBM's ability to deliver the required services as outlined in the base IDV contract and the task order. Awarding to IBM, a major technology provider, suggests an expectation of capability. However, without specific performance data or defined success metrics, the actual effectiveness in achieving the Act's goals remains to be determined through contract execution and oversight.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 8
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 08
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $80,750,927
Exercised Options: $80,750,927
Current Obligation: $80,750,927
Parent Contract
Parent Award PIID: DOCDG133507CQ0054
IDV Type: IDC
Timeline
Start Date: 2007-08-15
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2012-07-26
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