Commerce Dept. Awards $61.7M for Digital TV Transition Coupons to IBM
Contract Overview
Contract Amount: $61,704,042 ($61.7M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Commerce
Start Date: 2008-09-15
End Date: 2008-09-15
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Other
Official Description: TO PROVIDE COUPONS AND RELATED SERVICES AS PART OF THE DIGITAL TELEVISION TRANSITION AND PUBLIC SAFETY ACT OF 2005. THIS TASK ORDER PROVIDES FUNDING FOR ADDITIONAL QUANTITIES, AN ASSOCIATED EQUITABLE ADJUSTMENT FOR THE ADDITIONAL 17,000,000 COUPONS ORDERED UNDER THE PROVISIONS OF THE REQUIREMENTS CLAUSE, AND THE BALANCE OF FUNDING FOR THE CONTRACT CONTINGENT OPTION.
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $61.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: TO PROVIDE COUPONS AND RELATED SERVICES AS PART OF THE DIGITAL TELEVISION TRANSITION AND PUBLIC SAFETY ACT OF 2005. THIS TASK ORDER PROVIDES FUNDING FOR ADDITIONAL QUANTITIES, AN ASSOCIATED EQUITABLE ADJUSTMENT FOR THE ADDITIONAL 17,000,000 COUPONS ORDERED UNDER THE PROVISIONS OF… Key points: 1. Contract awarded to IBM for digital television transition coupons. 2. Funding covers additional quantities and an equitable adjustment. 3. The contract's purpose is to support the Digital Television Transition and Public Safety Act of 2005. 4. This task order represents a significant investment in public safety and consumer transition support.
Value Assessment
Rating: fair
The contract value of $61.7 million for coupons and related services appears to be a reasonable estimate for a large-scale public initiative. Benchmarking against similar government coupon programs would provide a clearer picture of its value.
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. This method is generally expected to yield fair pricing, though specific price discovery details are not provided.
Taxpayer Impact: Taxpayer funds are being used to facilitate a mandated public transition, aiming to ensure widespread access to digital television services and enhance public safety communications.
Public Impact
Facilitates public access to digital television, a mandated transition. Supports public safety initiatives by ensuring seamless communication infrastructure. Provides essential services to consumers during a significant technological shift. The funding ensures the successful implementation of the Digital Television Transition and Public Safety Act.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost for coupons.
- Limited detail on the equitable adjustment calculation.
- Potential for cost overruns if coupon demand exceeds projections.
Positive Signals
- Supports a critical public safety and consumer transition mandate.
- Awarded under full and open competition.
- Addresses a clear need for public service delivery.
Sector Analysis
This contract falls within administrative management and general management consulting services, specifically related to public program implementation. Government spending in this area often supports large-scale public initiatives and transitions.
Small Business Impact
The data indicates the prime contractor is IBM, a large business. There is no specific information provided regarding small business participation in this contract.
Oversight & Accountability
The award was made by the Department of Commerce, National Oceanic and Atmospheric Administration. Oversight would typically involve monitoring contract performance, financial expenditures, and adherence to the terms of the task order.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Potential for cost creep due to equitable adjustment.
- Lack of transparency on per-unit coupon cost.
- Contingent option introduces future cost uncertainty.
- No clear indication of small business involvement.
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 $61.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. TO PROVIDE COUPONS AND RELATED SERVICES AS PART OF THE DIGITAL TELEVISION TRANSITION AND PUBLIC SAFETY ACT OF 2005. THIS TASK ORDER PROVIDES FUNDING FOR ADDITIONAL QUANTITIES, AN ASSOCIATED EQUITABLE ADJUSTMENT FOR THE ADDITIONAL 17,000,000 COUPONS ORDERED UNDER THE PROVISIONS OF THE REQUIREMENTS CLAUSE, AND THE BALANCE OF FUNDING FOR THE CONTRACT CONTINGENT OPTION.
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 $61.7 million.
What is the period of performance?
Start: 2008-09-15. End: 2008-09-15.
What was the original estimated cost per coupon, and how does the equitable adjustment impact this?
The provided data does not specify the original estimated cost per coupon or the exact calculation for the equitable adjustment. The adjustment is noted as being for an additional 17,000,000 coupons, implying a recalculation based on increased quantity and potentially revised cost factors. Further analysis would require access to the contract's detailed financial exhibits.
What are the specific risks associated with the 'balance of funding for the contract contingent option'?
The risk associated with a 'contingent option' typically relates to uncertainty in future needs or performance. If the option is exercised, it implies additional costs and potential scope changes. The risk lies in whether the government accurately projected the need for this option and if the associated costs are justified and controlled.
How effectively does this contract support the broader goals of the Digital Television Transition and Public Safety Act of 2005?
This contract directly supports the Act's goal of facilitating the digital television transition by providing coupons, which are a mechanism to help consumers acquire necessary equipment. By funding additional quantities and adjustments, it aims to ensure the program's reach and effectiveness in achieving widespread digital adoption and maintaining public safety communications.
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: $61,704,042
Exercised Options: $61,704,042
Current Obligation: $61,704,042
Parent Contract
Parent Award PIID: DOCDG133507CQ0054
IDV Type: IDC
Timeline
Start Date: 2008-09-15
Current End Date: 2008-09-15
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2009-12-16
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