IBM awarded $32.3M for Climate Data Modernization Program, a 5-year contract

Contract Overview

Contract Amount: $32,339,762 ($32.3M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Commerce

Start Date: 2006-03-01

End Date: 2011-11-18

Contract Duration: 2,088 days

Daily Burn Rate: $15.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA CONVERSION FOR THE CLIMATE DATA MODERNIZATION PROGRAM

Place of Performance

Location: KEYSER, MINERAL County, WEST VIRGINIA, 26726

State: West Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $32.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: DATA CONVERSION FOR THE CLIMATE DATA MODERNIZATION PROGRAM Key points: 1. Contract value appears reasonable given the duration and scope of IT modernization. 2. Competition was limited, suggesting potential for higher pricing than a fully open market. 3. Performance risks are moderate, typical for large-scale IT system integration projects. 4. This contract supports critical climate data infrastructure for NOAA. 5. IBM's extensive experience in government IT projects positions them well for this work.

Value Assessment

Rating: good

The contract value of approximately $32.3 million over five years for IT modernization services appears to be within a reasonable range for a project of this scale. Benchmarking against similar large-scale IT infrastructure and data management contracts awarded by federal agencies suggests that the overall price point is competitive, especially considering the specialized nature of climate data. Without specific per-unit cost data, a precise value-for-money assessment is challenging, but the total award seems aligned with industry standards for such complex undertakings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had an opportunity to bid. However, the specific details of the competition, such as the number of bidders and the evaluation criteria, are not fully detailed in the provided data. A limited competition can sometimes lead to less aggressive pricing compared to a full and open competition, but it can also ensure that specialized capabilities are sourced effectively.

Taxpayer Impact: A limited competition may mean taxpayers did not benefit from the lowest possible price achievable through maximum market participation. However, it could also indicate that the chosen vendor offered the best technical solution for the specific needs of the Climate Data Modernization Program.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) and the broader scientific community relying on accurate climate data. The contract delivers modernized IT infrastructure and systems for managing and accessing crucial climate information. The geographic impact is national, as the modernized data systems will serve users across the United States. Workforce implications include the need for skilled IT professionals to implement and maintain the new systems, potentially creating or sustaining jobs in the tech sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in large-scale IT modernization projects.
Risk of vendor lock-in due to the complexity of integrated systems.
Dependency on a single contractor for critical climate data infrastructure.

Positive Signals

IBM has a strong track record with large federal IT contracts.
The firm-fixed-price structure provides cost certainty for the government.
The contract duration allows for phased implementation and risk mitigation.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on data management and modernization for a scientific application. The market for government IT services is substantial, with agencies continually investing in upgrading their technological capabilities. Comparable spending benchmarks for large federal IT modernization projects often run into tens or hundreds of millions of dollars, depending on the scope and duration. This contract represents a significant investment in critical scientific infrastructure.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, as a large prime contract, IBM may engage small businesses as subcontractors to fulfill specific project requirements, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. Accountability measures would be embedded within the contract's performance standards and delivery schedules. Transparency is generally facilitated through federal procurement databases and agency reporting, though specific details of ongoing oversight are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Climate Data Services
NOAA IT Modernization Initiatives
Federal Cloud Computing Strategy
National Environmental Satellite, Data, and Information Service (NESDIS) Programs

Risk Flags

Potential for cost overruns in large IT projects.
Risk of schedule delays impacting critical data availability.
Cybersecurity vulnerabilities in modernized systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $32.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. DATA CONVERSION FOR THE CLIMATE DATA MODERNIZATION PROGRAM

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 $32.3 million.

What is the period of performance?

Start: 2006-03-01. End: 2011-11-18.

What is IBM's track record with similar large-scale federal IT modernization contracts?

IBM has a long and extensive history of performing large-scale IT modernization and system integration contracts for various U.S. federal agencies. They have been a significant player in government IT for decades, handling complex projects involving infrastructure upgrades, software development, cloud migration, and data management. Examples include contracts with the Department of Defense, NASA, and other civilian agencies. Their experience often involves managing multi-year, multi-million dollar efforts, demonstrating a capacity to handle the scope and complexity typical of projects like the Climate Data Modernization Program. This extensive background suggests a familiarity with federal procurement regulations, security requirements, and the challenges inherent in large government IT initiatives.

How does the $32.3 million award compare to other federal IT modernization contracts of similar scope?

The $32.3 million award for a five-year IT modernization program is within the expected range for federal contracts of this nature. Large-scale IT modernization efforts, especially those involving data infrastructure, system integration, and cloud migration, frequently cost tens to hundreds of millions of dollars over their lifecycle. For instance, contracts for upgrading agency-wide IT systems, implementing new data analytics platforms, or migrating legacy systems to modern architectures often exceed this amount. The specific value is influenced by factors such as the number of users, the volume of data, the complexity of existing systems, and the required security protocols. Given the critical nature of climate data and the duration of the contract, $32.3 million appears to be a moderate investment for the modernization of NOAA's climate data infrastructure.

What are the primary risks associated with this Climate Data Modernization Program contract?

The primary risks associated with this contract are typical of large, complex IT modernization projects. These include technical risks, such as integration challenges between new and legacy systems, potential performance issues with the modernized infrastructure, and cybersecurity vulnerabilities. Schedule risks are also present, as delays in development or deployment can impact the overall timeline and increase costs. Furthermore, there's a risk of scope creep, where project requirements expand beyond the initial agreement, leading to budget overruns. Contractor performance risk, while mitigated by IBM's experience, always exists in long-term projects. Finally, there's the risk of obsolescence, where the technology implemented may become outdated before the end of its intended lifecycle, requiring further investment.

How effective is IBM likely to be in delivering the Climate Data Modernization Program?

IBM's extensive experience in managing and executing large federal IT contracts suggests a high likelihood of effective delivery for the Climate Data Modernization Program. Their track record includes numerous successful system modernizations and data management projects for government agencies. The company possesses the technical expertise, project management capabilities, and resources necessary to handle the complexities of climate data systems. Furthermore, the firm-fixed-price contract type incentivizes IBM to manage costs efficiently and deliver within the agreed-upon budget. While challenges are inherent in such projects, IBM's established presence and capabilities in the federal IT sector position them favorably for successful execution.

What has been the historical spending pattern for climate data modernization at NOAA?

Historical spending patterns for climate data modernization at NOAA are not explicitly detailed in the provided data snippet. However, it is understood that agencies like NOAA consistently invest in their data infrastructure due to the critical nature of environmental monitoring and climate research. Such investments are often multi-year endeavors, involving significant capital outlays for hardware, software, and specialized services. Agencies typically allocate funds through annual appropriations and specific program initiatives. Without access to NOAA's historical budget documents or procurement records related to climate data systems, a precise analysis of past spending trends is not possible from this data alone. However, the $32.3 million award suggests a substantial, focused effort on modernization.

Industry Classification

NAICS: Information › Internet Service Providers and Web Search Portals › Internet Service Providers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 08

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $32,339,762

Exercised Options: $32,339,762

Current Obligation: $32,339,762

Parent Contract

Parent Award PIID: GS25F0032L

IDV Type: FSS

Timeline