DoD Awards IBM $160M for Automated Info System Design Services

Contract Overview

Contract Amount: $160,018,891 ($160.0M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Defense

Start Date: 2006-06-20

End Date: 2009-09-30

Contract Duration: 1,198 days

Daily Burn Rate: $133.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: 200609!SS4313!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0017805D4364 !A!N! !Y!EH01 ! !20060620!20060930!8 35130485!835130485!001368083!N!INTERNATIONAL BUSINESS MACHINE!6710 ROCKLEDGE DR !BETHESDA !MD!20817!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIR GINIA !+000000980526!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN SVCS !S1 !SERVICES !N08 !NAVY ERP !541330! E! !5!B!M! !A!D!20090331!B!E!Y!A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! !1700!N00024!0001! !

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $160.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: 200609!SS4313!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0017805D4364 !A!N! !Y!EH01 ! !20060620!20060930!8 35130485!835130485!001368083!N!INTERNATIONAL BUSINESS MACHINE!6710 ROCKLEDGE DR !BETHESDA !MD!20817!26496!600!51!FAIRFAX !FAI… Key points: 1. Contract awarded to IBM for critical IT system design services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract value is substantial, indicating significant investment in IT infrastructure. 4. Services are categorized under Engineering Services, highlighting specialized technical needs.

Value Assessment

Rating: fair

The contract value of $160M for a 3-year period appears reasonable given the scope of automated information system design services. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The use of full and open competition is expected to yield a fair price for the services, benefiting taxpayers by avoiding inflated costs.

Public Impact

Enhances critical defense information systems, impacting operational efficiency. Supports the Navy's ERP initiative, a major undertaking for financial and logistical management. Potential for technological advancements in military IT infrastructure. Long-term engagement with a major IT provider, IBM.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
Long contract duration (nearly 3 years) may not adapt quickly to evolving technological needs.
Reliance on a single large vendor for critical system design.

Positive Signals

Awarded through full and open competition, ensuring market competitiveness.
Services are essential for modernizing defense IT infrastructure.
Experienced contractor (IBM) likely brings significant expertise.

Sector Analysis

This contract falls within the IT and Engineering Services sector, specifically for automated information system design. Spending in this area is crucial for maintaining and upgrading complex defense systems, with benchmarks varying widely based on project scope and complexity.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. The award to a large corporation like IBM suggests it was not primarily targeted at small business participation.

Oversight & Accountability

The contract was awarded by the Naval Sea Systems Command, part of the Department of Defense. Oversight would typically involve contract management by the Defense Contract Management Agency to ensure performance and compliance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize overspending.
Contract duration may lead to outdated technology by completion.
Lack of specific small business participation noted.
Potential for vendor lock-in with a single large IT provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $160.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. 200609!SS4313!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0017805D4364 !A!N! !Y!EH01 ! !20060620!20060930!8 35130485!835130485!001368083!N!INTERNATIONAL BUSINESS MACHINE!6710 ROCKLEDGE DR !BETHESDA !MD!20817!26496!600!51!FAIRFAX !FAIRFAX (CITY) !VIR GINIA !+000000980526!N!N!000000000000!D307!AUTOMATED INFO SYSTEM DESIGN SVCS !S1 !SERVICES !N08 !NAVY ERP !541330! E! !5!B!M! !A!D!20090331!B!E!

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $160.0 million.

What is the period of performance?

Start: 2006-06-20. End: 2009-09-30.

What specific automated information system design services are included, and how do they align with current Navy ERP requirements?

The contract specifies 'AUTOMATED INFO SYSTEM DESIGN SVCS' under PSC 541330. While the data mentions 'NAVY ERP' as a program, the exact nature of the design services isn't detailed. A deeper dive would be needed to understand if these services are for new system development, integration, or modification of existing components to meet the evolving needs of the Navy's Enterprise Resource Planning system.

What are the key performance indicators (KPIs) for this contract, and how will IBM's performance be measured against them?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for IT system design services, KPIs would relate to adherence to design specifications, timely delivery of milestones, system functionality, and integration capabilities. The contracting officer and technical team would be responsible for monitoring these metrics throughout the contract's duration.

What is the projected return on investment (ROI) for the government in terms of improved efficiency or cost savings from these system design services?

The data does not provide information to calculate a direct ROI. The investment in automated information system design is intended to improve operational efficiency, enhance data management, and potentially reduce long-term costs through modernization. Quantifying the ROI would require post-implementation analysis of system performance and cost-benefit assessments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4364

IDV Type: IDC

Timeline