DoD's $85.6M IBM Contract for Policy, Guidance, and Career Field Management Support Awarded Under Full and Open Competition

Contract Overview

Contract Amount: $85,630,888 ($85.6M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Defense

Start Date: 2019-07-31

End Date: 2024-08-02

Contract Duration: 1,829 days

Daily Burn Rate: $46.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: POLICY, GUIDANCE, AND CAREER FIELD MANAGEMENT (CFM) SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $85.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: POLICY, GUIDANCE, AND CAREER FIELD MANAGEMENT (CFM) SUPPORT. Key points: 1. Significant contract value of $85.6 million awarded to IBM. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration extends over 1800 days, indicating a long-term need. 4. The contract is for engineering services, specifically policy, guidance, and career field management support.

Value Assessment

Rating: good

The contract value of $85.6 million for engineering services appears reasonable given the long duration and the provider, IBM. Benchmarking against similar large-scale IT and professional services 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, which typically leads to better price discovery and potentially more competitive pricing. The use of a delivery order under a larger contract structure is noted.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple bidders to offer their best prices, maximizing value for government spending.

Public Impact

Supports critical functions within the Department of Defense, impacting policy and career development for Air Force personnel. The long-term nature of the contract suggests a sustained requirement for these specialized services. IBM's involvement indicates a reliance on established technology and service providers for complex governmental needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or evolving needs not fully captured in initial pricing.
Reliance on a single large contractor (IBM) for critical support functions.
Potential for price increases over the contract's extended term.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm Fixed Price contract type helps control costs.
Supports essential DoD functions, indicating strategic importance.

Sector Analysis

This contract falls under engineering services, specifically supporting policy, guidance, and career field management. Spending in this area within the DoD is substantial, often involving complex IT and professional services to manage large workforces and intricate operational frameworks.

Small Business Impact

The data indicates this contract was awarded to IBM, a large corporation. There is no explicit information suggesting significant subcontracting opportunities for small businesses within this specific delivery order, though the prime contract vehicle might have provisions.

Oversight & Accountability

The contract was awarded under full and open competition, which implies a structured procurement process. Further oversight would involve monitoring performance, adherence to contract terms, and ensuring continued value for money throughout the contract's lifecycle.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Significant contract value.
Long contract duration.
Sole large contractor identified (IBM).
Potential for evolving requirements over contract life.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. POLICY, GUIDANCE, AND CAREER FIELD MANAGEMENT (CFM) SUPPORT.

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $85.6 million.

What is the period of performance?

Start: 2019-07-31. End: 2024-08-02.

What specific career fields and policies are being supported by this contract, and how does this support align with current DoD strategic objectives?

This contract supports the Department of the Air Force's need for Policy, Guidance, and Career Field Management (CFM) support. The specific career fields and policies are not detailed in the provided data. However, CFM is crucial for workforce development, talent management, and ensuring personnel are equipped with the necessary skills and knowledge aligned with evolving military and technological demands. Effective support in this area directly contributes to readiness and strategic execution.

Given the $85.6 million value and long duration, what are the primary risks associated with vendor lock-in and potential cost overruns for the DoD?

The primary risks include vendor lock-in, where the DoD becomes heavily reliant on IBM's specific systems and expertise, making future transitions costly and complex. Cost overruns are a risk due to the long duration (over 5 years); unforeseen technological changes or scope creep could necessitate contract modifications, potentially increasing the total cost beyond initial projections if not managed tightly.

How effectively does the firm-fixed-price contract type mitigate risks related to cost uncertainty for this extensive engineering services engagement?

The Firm Fixed Price (FFP) contract type is designed to provide cost certainty by establishing a set price for the work. This shifts the risk of cost overruns to the contractor (IBM). However, for long-term, complex service contracts, the initial FFP might not perfectly anticipate all future requirements or market fluctuations, potentially leading to change requests or future renegotiations if the scope significantly deviates from the original agreement.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA701419RA011

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DRIVE, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $230,024,106

Exercised Options: $172,363,669

Current Obligation: $85,630,888

Actual Outlays: $39,086,328

Subaward Activity

Number of Subawards: 75

Total Subaward Amount: $61,247,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU145

IDV Type: IDC

Timeline