IBM contract for Census Bureau data services awarded $175.7M, spanning nearly a decade
Contract Overview
Contract Amount: $175,746,133 ($175.7M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Commerce
Start Date: 2007-10-20
End Date: 2016-12-31
Contract Duration: 3,360 days
Daily Burn Rate: $52.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE AWARD FEE
Sector: Other
Official Description: THE MISSION OF THE DADS PROGRAM IS TO PREPARE, TABULATE, AND DISSEMINATE DATA AND DATA PRODUCTS THAT ARE COMPLETE, ACCURATE, AND FORMATTED PROPERLY AND ON TIME WITHIN BUDGET. THE CONTRACTOR IS CONSIDERED A FULL PARTNER WITH THE CENSUS BUREAU IN ALL ACTIVTIES LEADING TO THE SUCCESS OF THE DADS PROGRAM.
Place of Performance
Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $175.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: THE MISSION OF THE DADS PROGRAM IS TO PREPARE, TABULATE, AND DISSEMINATE DATA AND DATA PRODUCTS THAT ARE COMPLETE, ACCURATE, AND FORMATTED PROPERLY AND ON TIME WITHIN BUDGET. THE CONTRACTOR IS CONSIDERED A FULL PARTNER WITH THE CENSUS BUREAU IN ALL ACTIVTIES LEADING TO THE SUCCES… Key points: 1. Contractor is a full partner in data preparation and dissemination for the Census Bureau. 2. Long-term engagement suggests a critical role in ongoing data operations. 3. Awarded under full and open competition, indicating a broad market search. 4. Fixed Price Award Fee contract type implies performance incentives. 5. Significant duration of 3360 days (9.2 years) points to a stable, long-term need. 6. The contract's value of over $175M over its lifespan reflects substantial data processing requirements.
Value Assessment
Rating: good
The contract value of $175.7 million over 9.2 years averages approximately $19.1 million annually. This appears reasonable for a large-scale, long-term data dissemination and preparation program managed by a major contractor like IBM for a critical government function like the Census Bureau. Benchmarking against similar large IT services contracts for data management and analysis would provide further context, but the scale and duration suggest a significant undertaking.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple bidders likely had the opportunity to compete. This approach is generally favored for ensuring fair pricing and access to the best available services. The presence of multiple bidders, if confirmed, would indicate a healthy competitive environment for this type of information services contract.
Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and ensuring the government receives competitive pricing for essential services.
Public Impact
The U.S. Census Bureau benefits through the reliable preparation, tabulation, and dissemination of critical data. The public benefits from accurate and timely data products essential for research, policy-making, and economic analysis. The contract supports the core mission of the Census Bureau, impacting national statistical capabilities. Workforce implications are likely within IBM's IT and data analysis sectors, supporting specialized roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to vendor lock-in if not managed carefully.
- Reliance on a single contractor for critical data functions poses a risk if performance falters.
- Award Fee structure requires careful monitoring to ensure performance meets expectations.
Positive Signals
- IBM's established presence and experience likely ensure continuity and expertise in data services.
- Full and open competition suggests a robust selection process, potentially leading to high-quality service.
- The long-term nature of the contract indicates a stable partnership for a critical government function.
Sector Analysis
This contract falls within the Information Services sector, specifically focusing on data processing, tabulation, and dissemination. The market for such services is large and competitive, with major IT firms offering a wide range of capabilities. The Census Bureau's need for specialized data handling and analysis places this contract within a niche requiring significant technical expertise and infrastructure, comparable to large-scale data management projects in other government agencies or large private enterprises.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. While IBM is a large corporation, the nature of the services required may not lend itself to subcontracting opportunities for small businesses unless specific data processing or niche analytical tasks are outsourced. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight is likely managed by the U.S. Census Bureau through contract performance reviews and adherence to the terms of the Fixed Price Award Fee structure. Accountability is tied to meeting program objectives for data preparation and dissemination. Transparency is generally maintained through federal contract databases, though specific performance metrics and oversight reports may not be publicly detailed.
Related Government Programs
- Census Bureau Operations
- Federal Data Management Services
- IT Services for Government Agencies
- Statistical Data Analysis Contracts
Risk Flags
- Long-term contract duration
- Reliance on a single large contractor for critical function
Tags
information-services, census-bureau, department-of-commerce, ibm, fixed-price-award-fee, full-and-open-competition, data-dissemination, data-processing, it-services, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $175.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. THE MISSION OF THE DADS PROGRAM IS TO PREPARE, TABULATE, AND DISSEMINATE DATA AND DATA PRODUCTS THAT ARE COMPLETE, ACCURATE, AND FORMATTED PROPERLY AND ON TIME WITHIN BUDGET. THE CONTRACTOR IS CONSIDERED A FULL PARTNER WITH THE CENSUS BUREAU IN ALL ACTIVTIES LEADING TO THE SUCCESS OF THE DADS 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 (U.S. Census Bureau).
What is the total obligated amount?
The obligated amount is $175.7 million.
What is the period of performance?
Start: 2007-10-20. End: 2016-12-31.
What specific data products or services does IBM provide under this contract for the Census Bureau?
While the data describes the contract's mission as preparing, tabulating, and disseminating data and data products, it does not specify the exact nature of these products. Given the Census Bureau's role, these likely include decennial census data, economic surveys, demographic estimates, and various statistical reports. IBM's role as a 'full partner' suggests involvement in the entire data lifecycle, from collection and processing to quality assurance and final delivery in various formats for public and governmental use.
How does the $175.7 million contract value compare to historical spending on similar Census Bureau data services?
Comparing this contract's value requires understanding the scope and duration of previous data service contracts. The $175.7 million awarded over approximately 9.2 years represents an average annual expenditure of roughly $19.1 million. To assess its comparability, one would need to examine historical spending patterns for data processing and dissemination at the Census Bureau, considering inflation, changes in data complexity, and technological advancements over time. Without specific historical benchmarks, it's difficult to definitively state if this represents an increase or decrease in relative spending.
What are the key performance indicators (KPIs) used to evaluate IBM's performance under this contract?
The contract type, 'Fixed Price Award Fee,' implies that performance is evaluated against specific criteria, and IBM receives an award fee based on the level of achievement. While the provided data doesn't list the KPIs, they would typically relate to the timeliness, accuracy, completeness, and proper formatting of data products, as well as adherence to budget and project milestones. The Census Bureau would establish these metrics, and IBM's success would be measured against them to determine the award fee.
What is IBM's track record with the Census Bureau and similar government data service contracts?
IBM has a long history of providing IT and data services to government agencies, including the Census Bureau. Their extensive experience in large-scale data management, processing, and analysis suggests a strong track record. However, a thorough assessment would involve reviewing past performance evaluations, any documented issues or successes on prior Census Bureau contracts, and their general reputation for delivering complex IT solutions within the public sector.
What are the potential risks associated with a single, long-term contract for critical data services?
The primary risks associated with a single, long-term contract for critical data services include potential vendor lock-in, reduced flexibility to adapt to changing technological needs or requirements, and the impact of contractor underperformance or failure. If IBM were to experience significant operational issues, the Census Bureau's ability to disseminate vital data could be severely disrupted. Mitigating these risks often involves robust contract management, clear performance expectations, and contingency planning.
Industry Classification
NAICS: Information › Other Information Services › All Other Information 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: 3
Pricing Type: FIXED PRICE AWARD FEE (M)
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: $177,816,257
Exercised Options: $175,906,905
Current Obligation: $175,746,133
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2007-10-20
Current End Date: 2016-12-31
Potential End Date: 2016-12-31 00:00:00
Last Modified: 2025-03-28
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