Education Department Spends $84.4M on Integrated Management System from IBM
Contract Overview
Contract Amount: $84,364,994 ($84.4M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Education
Start Date: 2006-09-09
End Date: 2008-10-31
Contract Duration: 783 days
Daily Burn Rate: $107.7K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: FIXED PRICE INCENTIVE
Sector: IT
Official Description: THIS REQUIREMENT IS FOR AN INTEGRATED MANAGEMENT SYSTEM THAT SUPPORTS FIVE OF ED'S SYSTEMS.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202
Plain-Language Summary
Department of Education obligated $84.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: THIS REQUIREMENT IS FOR AN INTEGRATED MANAGEMENT SYSTEM THAT SUPPORTS FIVE OF ED'S SYSTEMS. Key points: 1. The Department of Education awarded a $84.4 million contract for an integrated management system. 2. IBM secured this contract, indicating significant market presence in government IT solutions. 3. The contract type is Fixed Price Incentive, which aims to balance cost and performance. 4. This spending falls under the Computer and Software Stores sector.
Value Assessment
Rating: good
The total award amount of $84.4 million for an integrated management system appears reasonable given the scope of supporting five ED systems. Benchmarking against similar large-scale IT system implementations would provide a more precise valuation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded as a competitive delivery order. The specific competition method and how price discovery was achieved are not detailed, but competition generally drives better pricing.
Taxpayer Impact: Taxpayer funds are being used for a critical IT infrastructure upgrade. The effectiveness of the system and its long-term cost savings will determine the ultimate taxpayer impact.
Public Impact
Enhances operational efficiency by integrating five key Department of Education systems. Supports critical administrative functions within the federal education sector. Potential for improved data management and reporting capabilities. IBM's involvement suggests a reliance on established technology providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detail on competition method.
- Fixed Price Incentive contracts can lead to cost overruns if not managed carefully.
Positive Signals
- Supports critical government function.
- Awarded through a competitive process.
- Utilizes a major IT provider.
Sector Analysis
This contract falls within the IT sector, specifically focusing on software and system integration. Spending benchmarks for similar integrated management systems in government IT projects vary widely based on complexity and scope.
Small Business Impact
The contract was awarded to IBM, a large corporation, and there is no indication of small business participation in this specific award. Future contracts related to this system might offer opportunities for small businesses.
Oversight & Accountability
The Department of Education is responsible for overseeing this contract. Accountability will be measured by the successful implementation and performance of the integrated management system against defined requirements.
Related Government Programs
- Computer and Software Stores
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Potential for cost overruns with Fixed Price Incentive.
- Lack of transparency on specific competition details.
- Reliance on a single large vendor.
- System integration complexity can lead to delays.
Tags
computer-and-software-stores, department-of-education, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $84.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. THIS REQUIREMENT IS FOR AN INTEGRATED MANAGEMENT SYSTEM THAT SUPPORTS FIVE OF ED'S SYSTEMS.
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $84.4 million.
What is the period of performance?
Start: 2006-09-09. End: 2008-10-31.
What specific functionalities will the integrated management system provide to the five ED systems, and how will these functionalities improve overall operational effectiveness?
The integrated management system is designed to streamline and consolidate various administrative and operational functions across five distinct Department of Education systems. This integration aims to reduce data redundancy, improve information sharing, and enhance decision-making processes. Specific functionalities likely include unified user management, centralized data repositories, standardized reporting tools, and improved workflow automation, ultimately leading to greater efficiency and effectiveness in managing educational programs and resources.
What are the key performance indicators (KPIs) for this Fixed Price Incentive contract, and how will they be monitored to ensure value for money?
Key performance indicators for this Fixed Price Incentive contract would typically focus on system performance, reliability, user satisfaction, and timely delivery of functionalities. The government would monitor these KPIs against pre-defined targets. For an incentive contract, exceeding targets might trigger bonus payments for the contractor, while failing to meet them could result in penalties or reduced profit margins, ensuring the contractor is motivated to achieve optimal outcomes and deliver value.
How does the $84.4 million expenditure compare to industry benchmarks for similar integrated IT system implementations in large organizations?
Benchmarking this $84.4 million expenditure requires detailed comparison with similar large-scale IT system integrations, considering factors like the number of systems integrated, complexity of functionalities, and duration of the project. While specific comparable data is not provided, large government IT projects often incur significant costs due to stringent security, interoperability, and compliance requirements. This figure may be within the expected range for a comprehensive system supporting five major government systems.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 3
Pricing Type: FIXED PRICE INCENTIVE (L)
Contractor Details
Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $84,364,994
Exercised Options: $84,364,994
Current Obligation: $84,364,994
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4984H
IDV Type: FSS
Timeline
Start Date: 2006-09-09
Current End Date: 2008-10-31
Potential End Date: 2008-10-31 00:00:00
Last Modified: 2021-12-06
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