IBM Awarded $76M for Other Computer Related Services Under Full and Open Competition

Contract Overview

Contract Amount: $75,965,148 ($76.0M)

Contractor: International Business Machines Corporation

Awarding Agency: General Services Administration

Start Date: 2016-08-15

End Date: 2019-02-14

Contract Duration: 913 days

Daily Burn Rate: $83.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF SAM AOCS EXERCISE OF CONTRACT OPTION YEAR 4

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $76.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IGF::OT::IGF SAM AOCS EXERCISE OF CONTRACT OPTION YEAR 4 Key points: 1. Contract awarded to IBM for IT services, indicating a reliance on established vendors. 2. The $76M value suggests a significant IT services requirement for the agency. 3. Full and open competition was used, implying a competitive bidding process. 4. The contract duration of 913 days (approx. 2.5 years) indicates a medium-term need. 5. The NAICS code 541519 covers a broad range of computer-related services.

Value Assessment

Rating: good

The contract value of $76M over approximately 2.5 years appears reasonable for comprehensive IT services. Benchmarking against similar large-scale IT service contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust process for soliciting bids and ensuring fair pricing. This method typically leads to competitive pricing as multiple vendors are encouraged to participate.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition contract.

Public Impact

Citizens benefit from potentially improved government IT infrastructure and services. The contract supports a major technology provider, contributing to the IT sector's economy. Transparency in the procurement process through full and open competition builds public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for vendor lock-in if follow-on contracts are not competitively bid.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type limits cost overrun risk.
Contract awarded to a well-established IT services provider.

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government, supporting various operational needs. Benchmarks vary widely based on service scope and duration.

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 aimed at supporting small business participation.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Standard GSA oversight mechanisms should be in place to ensure performance and compliance, though specific details are not provided.

Related Government Programs

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

Risk Flags

Potential for scope creep if not managed tightly.
Reliance on a single large vendor could pose future risks.
Lack of detail on performance metrics.
Contract duration may not align with rapidly evolving IT needs.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $76.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IGF::OT::IGF SAM AOCS EXERCISE OF CONTRACT OPTION YEAR 4

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 $76.0 million.

What is the period of performance?

Start: 2016-08-15. End: 2019-02-14.

What specific 'Other Computer Related Services' are included in this contract, and how do they align with the agency's mission needs?

The provided data lacks specifics on the exact services rendered under NAICS code 541519. These services can range from IT consulting and system integration to data processing and disaster recovery. Understanding the precise scope is crucial to assess if the $76M expenditure effectively supports the Federal Acquisition Service's operational requirements and strategic goals.

Given the firm fixed price, what mechanisms are in place to ensure the quality and timeliness of IBM's service delivery?

While a firm fixed price contract mitigates cost overrun risks for the government, it's essential that the contract includes clear performance standards, Service Level Agreements (SLAs), and robust inspection/acceptance clauses. The Federal Acquisition Service must actively monitor IBM's performance against these metrics to ensure the delivery of quality services within the agreed-upon timeframe and scope.

How does the $76M contract value compare to similar IT service procurements by the GSA or other agencies for comparable services and durations?

A direct comparison requires access to a broader dataset of government IT contracts. However, $76M over approximately 2.5 years for comprehensive IT services is a significant investment. Benchmarking against contracts with similar NAICS codes, contract types, and agency sizes would be necessary to definitively assess if this represents a competitive and value-driven price point.

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: ID15160019

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: $75,965,148

Exercised Options: $75,965,148

Current Obligation: $75,965,148

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $5,905,638

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline