GSA awards $22.7M IBM contract for SAM-AOCS IGF IT support, full and open competition

Contract Overview

Contract Amount: $22,772,427 ($22.8M)

Contractor: International Business Machines Corporation

Awarding Agency: General Services Administration

Start Date: 2015-08-15

End Date: 2016-08-14

Contract Duration: 365 days

Daily Burn Rate: $62.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SYSTEM FOR AWARD MANAGEMENT ARCHITECTURE AND OPERATIONS CONTRACT SUPPORT SAM-AOCS IGF::CT::IGF

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60604

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $22.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: SYSTEM FOR AWARD MANAGEMENT ARCHITECTURE AND OPERATIONS CONTRACT SUPPORT SAM-AOCS IGF::CT::IGF Key points: 1. Contract value of $22.7M for one year of IT support. 2. IBM secured the contract through full and open competition. 3. Risk appears moderate given the fixed-price contract type. 4. IT services sector, specifically computer-related services.

Value Assessment

Rating: good

The contract value of $22.7M for a one-year period suggests a significant investment in IT support. Benchmarking against similar large-scale IT support contracts would be necessary for a precise pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing as multiple vendors can bid.

Taxpayer Impact: The use of full and open competition is favorable for taxpayers, as it promotes market competition to achieve the best value.

Public Impact

Ensures continued operation and support for the System for Award Management (SAM) architecture and operations. Supports critical federal procurement and award functions. Potential impact on government efficiency and contractor access to federal opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is only one year, requiring potential re-competition soon.
Reliance on a single large vendor for critical IT infrastructure.

Positive Signals

Awarded via full and open competition.
Firm Fixed Price contract type limits cost overrun risk.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across the federal government, supporting various agency IT needs.

Small Business Impact

The contract was awarded to IBM, a large business. There is no explicit indication of small business participation or set-aside in the provided data.

Oversight & Accountability

The General Services Administration (GSA) is responsible for this contract. Oversight would focus on contract performance, adherence to terms, and delivery of required IT support services.

Related Government Programs

Other Computer Related Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Contract duration is short (1 year).
Potential for vendor lock-in with critical IT systems.
Scope definition for complex IT operations can be challenging.
Dependence on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $22.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. SYSTEM FOR AWARD MANAGEMENT ARCHITECTURE AND OPERATIONS CONTRACT SUPPORT SAM-AOCS IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $22.8 million.

What is the period of performance?

Start: 2015-08-15. End: 2016-08-14.

What specific IT services are included under SAM-AOCS IGF and how do they align with agency mission needs?

The contract supports the System for Award Management Architecture and Operations Contract Support (SAM-AOCS IGF). This likely encompasses a range of IT services critical to the functioning of SAM, such as system maintenance, upgrades, cybersecurity, and operational support. These services are essential for managing federal contract awards and procurement information, directly aligning with the General Services Administration's mission to facilitate government operations.

What is the potential risk associated with the firm fixed-price contract type for this level of IT support?

A firm fixed-price contract provides cost certainty for the government, transferring most of the cost overrun risk to the contractor (IBM). However, if the scope of work is not clearly defined or if unforeseen technical challenges arise, IBM might face financial strain, potentially impacting service quality or leading to future disputes or requests for modification.

How effective is the full and open competition process in ensuring value for money for this IT support contract?

Full and open competition is generally effective in driving value for money by fostering a competitive environment where multiple vendors can propose solutions and pricing. This process allows the government to select the offer that best balances technical capabilities and cost. For this $22.7M contract, it suggests that the GSA received competitive bids, likely leading to a more favorable outcome than a sole-source or limited competition award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: ID05150131

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: $70,429,436

Exercised Options: $30,105,886

Current Obligation: $22,772,427

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline