DoD Awards IBM $27.5M for Custom Computer Programming Services Over 5 Years
Contract Overview
Contract Amount: $27,489,666 ($27.5M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Defense
Start Date: 2021-10-01
End Date: 2026-09-30
Contract Duration: 1,825 days
Daily Burn Rate: $15.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IBM SOFTWARE SOLUTION
Place of Performance
Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17055
Plain-Language Summary
Department of Defense obligated $27.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IBM SOFTWARE SOLUTION Key points: 1. Significant contract value of $27.5 million awarded to a major technology provider. 2. Competition was full and open, suggesting a competitive bidding process. 3. Potential risk associated with a single award for a large sum. 4. Spending falls within the IT sector, specifically custom computer programming.
Value Assessment
Rating: good
The contract's value of $27.5 million for custom computer programming services over five years appears reasonable given the scope. 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 contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for essential IT services, with competition aiming to ensure value for money.
Public Impact
Ensures continued operation and development of critical defense information systems. Supports the Department of Defense's technological infrastructure. Potential for innovation and modernization through custom software solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Large contract value concentrated with one vendor.
- Long contract duration (5 years).
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
Sector Analysis
This contract falls under the Information Technology sector, specifically custom computer programming services. Spending in this area is substantial across government, supporting a wide range of digital operations and infrastructure.
Small Business Impact
The contract was awarded to International Business Machines Corporation, a large business. There is no indication of specific set-asides or participation goals for small businesses in this award.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency (DISA), a component of the Department of Defense, suggesting established oversight mechanisms. The firm fixed price contract type also provides cost control.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Concentration of funds with a single large vendor.
- Potential for scope creep over the 5-year duration.
- Dependence on a single vendor for critical IT services.
- Lack of explicit small business participation.
Tags
custom-computer-programming-services, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IBM SOFTWARE SOLUTION
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 (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $27.5 million.
What is the period of performance?
Start: 2021-10-01. End: 2026-09-30.
What specific custom computer programming services are being procured, and how do they align with current and future defense needs?
The contract specifies custom computer programming services under NAICS code 541511. While the exact nature of the services isn't detailed, they are likely related to developing, maintaining, or enhancing software for the Defense Information Systems Agency. Alignment with future needs would depend on the strategic IT roadmap of the DoD and DISA, which is not provided in this data.
How does the awarded amount of $27.5 million compare to industry benchmarks for similar custom programming contracts of this duration and scope?
Benchmarking $27.5 million over five years for custom programming requires detailed service scope and labor mix. However, for large-scale government IT projects, this figure can be competitive if it includes significant development, integration, and ongoing support. The benchmark of $15,063 (br) might represent a specific component or a different type of service, making direct comparison difficult without more context.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to ensure the effectiveness and quality of IBM's programming services?
The provided data does not detail specific KPIs or SLAs. However, as a firm fixed price contract awarded under full and open competition by DISA, it is expected that performance standards and delivery milestones are defined. These would typically be outlined in the contract's statement of work and monitored by the contracting officer's representative to ensure service effectiveness and quality.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 NEW ORCHARD RD, ARMONK, NY, 10504
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,633,571
Exercised Options: $27,489,666
Current Obligation: $27,489,666
Actual Outlays: $7,256,714
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F110DA
IDV Type: FSS
Timeline
Start Date: 2021-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-08-05
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