IBM Awarded $25.6M for Order Management Services by GSA
Contract Overview
Contract Amount: $25,658,500 ($25.7M)
Contractor: International Business Machines Corporation
Awarding Agency: General Services Administration
Start Date: 2013-05-28
End Date: 2017-04-05
Contract Duration: 1,408 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ORDER MANAGEMENT SERVICES 3. "OTHER FUNCTION" - IGF::OT::IGF
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $25.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: ORDER MANAGEMENT SERVICES 3. "OTHER FUNCTION" - IGF::OT::IGF Key points: 1. Contract awarded to a single large business, IBM. 2. Spending falls under Computer Systems Design Services (NAICS 541512). 3. Contract duration of 1408 days suggests a significant service commitment. 4. The firm fixed price contract type aims to control costs.
Value Assessment
Rating: fair
The contract value of $25.6M over approximately 3.8 years averages around $6.7M annually. Benchmarking this against similar IT services contracts requires detailed analysis of scope and specific services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it allows for a wide range of potential bidders to compete, driving down prices.
Public Impact
Ensures continued operation of essential order management systems. Supports federal agency efficiency through reliable IT services. Potential for technology modernization within the contract scope.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics provided.
- Potential for vendor lock-in despite initial competition.
Positive Signals
- Firm fixed price contract.
- Awarded under full and open competition.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending benchmarks for similar contracts vary widely based on complexity, duration, and specific service requirements.
Small Business Impact
The contract was awarded to IBM, a large business. There is no indication that small businesses were subcontracted or involved in the primary award, which could be an area for improvement.
Oversight & Accountability
The General Services Administration (GSA) is responsible for overseeing this contract. Standard GSA oversight procedures should apply, but specific details on performance monitoring are not provided.
Related Government Programs
- Computer Systems Design Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Lack of detailed performance metrics.
- Potential for limited small business participation.
- Contract duration may exceed current needs if not managed.
- Dependency on a single large vendor.
Tags
computer-systems-design-services, general-services-administration, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $25.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. ORDER MANAGEMENT SERVICES 3. "OTHER FUNCTION" - IGF::OT::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 $25.7 million.
What is the period of performance?
Start: 2013-05-28. End: 2017-04-05.
What specific order management functions are covered under this contract, and how do they align with current agency needs?
The provided data identifies the contract as 'ORDER MANAGEMENT SERVICES' under 'OTHER FUNCTION' and classified under NAICS 541512 (Computer Systems Design Services). Without further details on the Statement of Work (SOW), it's difficult to ascertain the precise functions. However, it likely encompasses software, hardware, and potentially process management related to handling orders within federal agencies, aiming to ensure efficiency and accuracy in procurement and fulfillment.
What are the key performance indicators (KPIs) used to measure the success and value of this contract for the government?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for IT services and order management, KPIs might include order processing time, accuracy rates, system uptime, user satisfaction, and cost savings. The absence of explicit KPIs in the summary makes it challenging to objectively assess the contractor's performance and the overall value delivered beyond the contractual terms.
How does the pricing structure compare to industry benchmarks for similar order management services, considering the contract's duration and scope?
The contract is a Firm Fixed Price (FFP) award valued at $25.6 million over approximately 3.8 years. While FFP is generally favorable for cost control, a direct comparison to industry benchmarks is difficult without a detailed scope of work. Factors like the specific technologies used, the complexity of the order management processes, and the level of customization required significantly influence pricing in the IT services market.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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
Solicitation ID: ID04120203
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $30,607,883
Exercised Options: $25,658,500
Current Obligation: $25,658,500
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0034
IDV Type: GWAC
Timeline
Start Date: 2013-05-28
Current End Date: 2017-04-05
Potential End Date: 2017-04-05 00:00:00
Last Modified: 2018-12-21
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