NOAA Awards $125M to IBM for Computer Manufacturing Under Full and Open Competition
Contract Overview
Contract Amount: $125,325,082 ($125.3M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Commerce
Start Date: 2004-11-08
End Date: 2011-09-30
Contract Duration: 2,517 days
Daily Burn Rate: $49.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROVIDE FUNDING TO EXERCISE CLIN 0004B.
Place of Performance
Location: SUITLAND, PRINCE GEORGE'S County, MARYLAND, 20746
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $125.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: PROVIDE FUNDING TO EXERCISE CLIN 0004B. Key points: 1. Significant award to a major IT hardware manufacturer. 2. Full and open competition suggests a competitive bidding process. 3. Long contract duration (2004-2011) may indicate complex requirements. 4. Firm Fixed Price contract type aims to control costs.
Value Assessment
Rating: good
The award value of $125M over 2517 days (approx. 7 years) suggests a substantial procurement. Benchmarking against similar large-scale IT hardware contracts would be necessary for a precise assessment, but the firm fixed price and competitive award method provide some assurance of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, suggesting that the government likely received favorable pricing through a robust bidding process.
Public Impact
Supports critical government IT infrastructure needs. Impacts the electronic computer manufacturing sector. Ensures continuity of essential NOAA operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to technology obsolescence.
- Potential for cost overruns if scope changes significantly.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type.
- Awarded to a reputable, large IT vendor.
Sector Analysis
This procurement falls within the IT sector, specifically electronic computer manufacturing. Spending in this area is crucial for government operations, but requires careful management due to rapid technological advancements and market fluctuations.
Small Business Impact
The data indicates the award went to International Business Machines Corporation, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The contract was awarded by the Department of Commerce's National Oceanic and Atmospheric Administration. Oversight would focus on contract performance, adherence to terms, and delivery of specified electronic computing equipment.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Long contract duration (2004-2011) may lead to technology obsolescence.
- Potential for scope creep or change orders over an extended period.
- Reliance on a single large vendor for critical hardware.
- Lack of specific detail on the procured equipment.
Tags
electronic-computer-manufacturing, department-of-commerce, md, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $125.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. PROVIDE FUNDING TO EXERCISE CLIN 0004B.
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 $125.3 million.
What is the period of performance?
Start: 2004-11-08. End: 2011-09-30.
What specific electronic computing equipment was procured, and how did it align with NOAA's evolving technological needs over the contract's 7-year duration?
The contract details are limited to the NAICS code 334111 (Electronic Computer Manufacturing). A deeper dive would be needed to ascertain the exact equipment. Given the long duration, it's crucial to understand if the contract included provisions for upgrades or if NOAA had to procure newer technology separately, potentially impacting overall value and operational effectiveness.
How did the firm fixed price structure mitigate risks associated with potential cost increases in the rapidly changing computer hardware market during the contract period?
The firm fixed price (FFP) contract type shifts the risk of cost overruns to the contractor, IBM. This is beneficial for the government as it locks in the price. However, the effectiveness of FFP depends on the accuracy of the initial cost estimation and the stability of the market. Significant unforeseen market volatility could have either benefited IBM or led to disputes if the price became unsustainable.
What was the process for ensuring the 'full and open competition' truly fostered the best possible price discovery and technical solution for NOAA?
Full and open competition typically involves advertising the requirement broadly and allowing any responsible source to submit an offer. The government evaluates proposals based on pre-defined criteria. To ensure best price discovery, NOAA likely used a competitive bidding process with clear evaluation factors. The success of this method hinges on the clarity of the solicitation and the rigor of the evaluation process.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 08
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $228,735,469
Exercised Options: $187,827,376
Current Obligation: $125,325,082
Timeline
Start Date: 2004-11-08
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2012-05-01
More Contracts from International Business Machines Corporation
- Navy Enterprise Resource Planning (ERP) Technical Support Services (netss) — $837.8M (Department of Defense)
- This Requirement IS for the Creation, Maintenance, Enforcement, Analysis and Updates of the Standards and Governance Established by the Current DTC and Provide Technical and Operational Support to the DTC for Saas, Paas, and Emerging Technologies — $621.7M (Department of Veterans Affairs)
- Eadis Software Development — $580.5M (Department of Homeland Security)
- THE Government Intends to Establish a Single-Award Delivery Order Base Plus Four 1year Option Periods for the Renewal of IBM Software Maintenance and the Purchase of More Additional IBM Software Licenses Against the General Services Administrations Federal Supply Schedule Program. Previous Order SS00-15-30081 — $525.4M (Social Security Administration)
- Uscis Transformation Program Solutions Architect (SA) — $376.3M (Department of Homeland Security)
View all International Business Machines Corporation federal contracts →
Other Department of Commerce Contracts
- THE Purpose of This Contract IS to Develop the Ground System That Will Support Noaa S Next Generation Geostationary Satellite Series, Goes-R. This NEW Series of Spacecraft, SET to Begin Launching in 2015, IS Expected to Double the Clarity of Today S Satellite Imagery and Provide AT Least 20 Times More Atmospheric Observations From Space. the Contractor IS to Design, Develop, Test and Implement the Goes-R Ground System. the Ground System Will Capture Data From the Goes-R Satellites, and Process and Distribute the Information to Operational Users — $1.8B (L3harris Technologies, Inc.)
- Engineering Services and Development Leading to the Delivery of the Jpss Common Ground System Instrument and Support — $1.6B (Raytheon Company)
- Enterprise Solutions Framework (ESF) for Multi-Tiered Acquisition Framework for Systems Engineering and Integration - Program Tier Work Order 003 - 2020 Census Technical Integrator — $1.5B (T-Rex Solutions LLC)
- THE Goal of the Decennial Response Integration System (dris) Contract IS to Obtain a Practical Solution to Providing Respondent Assistance and Data Capture for the 2010 Census — $930.7M (Lockheed Martin Services, LLC)
- 2020 Census Questionnaire Assistance (2020 CQA) — $918.3M (Maximus Federal Services, Inc.)