Commerce Dept. Spends $38.5M on Digital to Analog Converters via Full Competition
Contract Overview
Contract Amount: $38,495,153 ($38.5M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Commerce
Start Date: 2009-03-09
End Date: 2010-07-28
Contract Duration: 506 days
Daily Burn Rate: $76.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)
Sector: Other
Official Description: TAS::13 0556::TAS DIGITAL TO ANALOG CONVERTER BOX COUPON PROGRAM THIS TASK ORDER IS A RESULT OF THE DTV DELAY ACT AND ASSOCIATED AMERICAN RECOVERY AND REINVESTMENT ACT (RECOVERY ACT) OF 2009 ARRA::YES::ARRA
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $38.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: TAS::13 0556::TAS DIGITAL TO ANALOG CONVERTER BOX COUPON PROGRAM THIS TASK ORDER IS A RESULT OF THE DTV DELAY ACT AND ASSOCIATED AMERICAN RECOVERY AND REINVESTMENT ACT (RECOVERY ACT) OF 2009 ARRA::YES::ARRA Key points: 1. Significant investment in digital conversion technology. 2. IBM secured the contract, indicating a competitive bidding process. 3. Potential for cost savings through bulk purchasing and technology adoption. 4. Spending aligns with ARRA stimulus goals for technology modernization.
Value Assessment
Rating: good
The total award of $38.5 million for digital to analog converter boxes appears reasonable given the scale and the inclusion of program management. Benchmarking against similar large-scale technology deployment contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors vie for the contract.
Taxpayer Impact: Taxpayer funds are being used to facilitate the transition to digital broadcasting, a public benefit, with competitive pricing likely maximizing the value.
Public Impact
Facilitates public access to digital television services. Supports economic stimulus through technology investment. Ensures compliance with federal broadcasting mandates.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if follow-on support is needed.
- Technology obsolescence risk for analog converters.
Positive Signals
- Supports ARRA economic stimulus goals.
- Utilizes full and open competition for best value.
- Addresses a clear public need for digital TV transition.
Sector Analysis
This spending falls under administrative and management consulting services, specifically related to technology implementation. The $38.5 million award is substantial for a single task order, reflecting the scope of the digital transition program.
Small Business Impact
The data indicates the primary awardee is IBM, a large corporation. There is no explicit information provided regarding small business participation in this specific task order, which warrants further investigation.
Oversight & Accountability
The award was made by the National Oceanic and Atmospheric Administration (NOAA) under the Department of Commerce. Oversight would involve tracking delivery, performance, and adherence to contract terms.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Technology obsolescence
- Potential lack of small business participation
- Dependence on a single large vendor for a critical technology
Tags
administrative-management-and-general-ma, department-of-commerce, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $38.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. TAS::13 0556::TAS DIGITAL TO ANALOG CONVERTER BOX COUPON PROGRAM THIS TASK ORDER IS A RESULT OF THE DTV DELAY ACT AND ASSOCIATED AMERICAN RECOVERY AND REINVESTMENT ACT (RECOVERY ACT) OF 2009 ARRA::YES::ARRA
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 $38.5 million.
What is the period of performance?
Start: 2009-03-09. End: 2010-07-28.
What was the specific performance period and delivery schedule for these converter boxes, and how did it align with the DTV delay act timeline?
The task order had a duration of 506 days, with a start date of March 9, 2009, and an end date of July 28, 2010. This timeline was designed to align with the federal mandate for digital television transition, ensuring that citizens had access to the necessary equipment before the analog signal cutoff.
Were there any identified risks related to the technology's lifespan or potential for obsolescence given the rapid pace of technological change?
While the immediate need was for digital conversion, the risk of technology obsolescence is inherent. The lifespan of these specific converter boxes would depend on their build quality and the evolving standards of digital broadcasting. Future upgrades or replacements might be necessary.
How effectively did the full and open competition process ensure that the chosen solution represented the best value for taxpayers?
Full and open competition generally promotes price discovery and encourages multiple vendors to offer competitive bids, theoretically leading to best value. The specific metrics used to evaluate proposals beyond price, such as technical merit and delivery capability, would determine the ultimate value realized by taxpayers.
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 (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $38,495,153
Exercised Options: $38,495,153
Current Obligation: $38,495,153
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DOCDG133507CQ0054
IDV Type: IDC
Timeline
Start Date: 2009-03-09
Current End Date: 2010-07-28
Potential End Date: 2010-07-28 00:00:00
Last Modified: 2025-04-02
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