IBM contract for engineering support valued at $25.6M, awarded by GSA

Contract Overview

Contract Amount: $25,562,354 ($25.6M)

Contractor: International Business Machines Corporation

Awarding Agency: General Services Administration

Start Date: 2017-09-18

End Date: 2020-01-17

Contract Duration: 851 days

Daily Burn Rate: $30.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF DIRECTORATE OF CIVIL ENGINEERS STRATEGIC POLICY GUIDANCE AND CAREER FIELD MANAGEMENT EXECUTION SUPPORT

Place of Performance

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

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $25.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IGF::OT::IGF DIRECTORATE OF CIVIL ENGINEERS STRATEGIC POLICY GUIDANCE AND CAREER FIELD MANAGEMENT EXECUTION SUPPORT Key points: 1. Value for money appears fair given the contract duration and scope. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context is for strategic policy guidance and career field management execution support. 5. Sector positioning is within engineering services, a critical support function for federal agencies.

Value Assessment

Rating: fair

The contract's total value of $25.6 million over approximately 2.8 years suggests a moderate annual spend. Benchmarking against similar engineering support contracts is challenging without more specific service details. However, the firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the scope is well-defined. The number of bids received (2) is on the lower side for a full and open competition, which might warrant further investigation into pricing competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, only two bids were received. While full and open competition is generally preferred for maximizing price discovery, a low number of bidders can sometimes suggest market limitations or high barriers to entry for potential competitors. This could potentially lead to less aggressive pricing than if there were a larger pool of interested parties.

Taxpayer Impact: The use of full and open competition is a positive signal for taxpayers, as it aims to ensure the government receives the best possible value. However, the limited number of bidders may have constrained the full benefits of competition, potentially impacting the final price paid.

Public Impact

The primary beneficiaries are federal agencies requiring engineering policy and career management support. Services delivered include strategic policy guidance and execution support for engineering career fields. The geographic impact is primarily within the District of Columbia, where the contract is managed. Workforce implications include support for the engineering career field within the federal government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) in a full and open competition could indicate potential issues with market reach or contractor interest.
The specific nature of 'strategic policy guidance' can be subjective and may require robust performance monitoring to ensure value.
Contract duration of over two years necessitates ongoing oversight to ensure continued alignment with agency needs.

Positive Signals

Firm-fixed-price contract type shifts cost risk to the contractor, promoting cost control.
Awarded by the General Services Administration (GSA), a reputable agency for managing federal contracts.
Full and open competition, despite the low bid count, adheres to best practices for procurement.

Sector Analysis

This contract falls within the Engineering Services sector, a broad category encompassing professional services related to the application of engineering principles. The federal government is a significant consumer of such services for infrastructure, defense, research, and operational support. The market size for federal engineering services is substantial, with spending often driven by large-scale projects and ongoing operational needs. This particular contract appears to focus on the policy and human capital aspects of engineering within the federal workforce, rather than direct project engineering.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of the services and the prime contractor (IBM), it is unlikely that significant subcontracting opportunities for small businesses were mandated within this specific award. Further analysis would be needed to determine if IBM has a broader small business subcontracting plan in place for its federal contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the General Services Administration (GSA). The firm-fixed-price nature of the contract provides a degree of accountability by fixing the total cost. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Engineering Services
Professional Services Contracts
GSA Schedules
IT and Engineering Support Services

Risk Flags

Low number of bidders in full and open competition.
Potential for subjective performance evaluation in policy guidance services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $25.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IGF::OT::IGF DIRECTORATE OF CIVIL ENGINEERS STRATEGIC POLICY GUIDANCE AND CAREER FIELD MANAGEMENT EXECUTION SUPPORT

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 $25.6 million.

What is the period of performance?

Start: 2017-09-18. End: 2020-01-17.

What is the specific nature of the 'strategic policy guidance and career field management execution support' provided under this contract?

The contract data indicates the service is related to 'ENGINEERING SERVICES' and specifically 'IGF::OT::IGF DIRECTORATE OF CIVIL ENGINEERS STRATEGIC POLICY GUIDANCE AND CAREER FIELD MANAGEMENT EXECUTION SUPPORT'. This suggests the work involves developing and implementing policies related to the federal government's engineering workforce, including career path development, training standards, and strategic planning for engineering roles. It is less about direct engineering design or construction and more about the human capital and organizational strategy aspects of the federal engineering corps. The exact deliverables would be detailed in the contract's Statement of Work (SOW), which is not provided in the summary data.

How does the pricing of this IBM contract compare to similar engineering support services procured by the government?

Direct price comparison is difficult without knowing the specific tasks and deliverables. However, the total contract value of $25.6 million over approximately 851 days (about 2.3 years) averages to roughly $11.1 million per year. Given that IBM is a large, established contractor, and the services involve strategic policy and management, this annual figure might be within a reasonable range for complex federal support services. Benchmarking would ideally involve comparing hourly rates or project costs for similar, well-defined engineering policy and management support contracts awarded to large system integrators or consulting firms.

What are the key risks associated with this contract, and how are they mitigated?

Key risks include potential scope creep if the 'strategic policy guidance' is not tightly defined, and the risk of receiving less competitive pricing due to only two bidders. The primary mitigation is the firm-fixed-price contract type, which places the financial risk of cost overruns on IBM. Additionally, the General Services Administration (GSA) as the awarding agency typically has robust contract management processes. Effective oversight by the contracting officer and program managers is crucial to manage scope and ensure performance aligns with the SOW.

What is the historical spending pattern for this type of engineering support service by the General Services Administration?

Historical spending on engineering services by GSA can vary significantly year to year, influenced by federal infrastructure initiatives, agency needs, and budget allocations. GSA often procures engineering services through various contract vehicles, including GSA Schedules and task orders against larger indefinite-delivery/indefinite-quantity (IDIQ) contracts. Analyzing past GSA spending on similar NAICS codes (like 541330 - Engineering Services) would reveal trends. This specific contract represents a portion of that spending, focused on internal policy and management support rather than large-scale design or construction projects.

What is the track record of International Business Machines Corporation (IBM) in delivering similar federal engineering support contracts?

IBM has a long and extensive history of contracting with the U.S. federal government across a wide range of services, including IT, consulting, and professional services. They are a major federal contractor with significant experience in managing large, complex programs. While this specific contract focuses on engineering policy and management, IBM's general track record suggests they possess the organizational capacity and expertise to handle such requirements. Performance on individual contracts can vary, but their overall presence indicates a capacity to deliver.

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: ID11170013

Offers Received: 2

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: $25,666,365

Exercised Options: $25,562,354

Current Obligation: $25,562,354

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $2,545,172

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU145

IDV Type: IDC

Timeline