DHS Awards $89M Task Order to IBM for Modernization Efforts

Contract Overview

Contract Amount: $89,140,068 ($89.1M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2006-06-16

End Date: 2008-12-31

Contract Duration: 929 days

Daily Burn Rate: $96.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: MODERNIZATION TASK ORDER 24

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20229

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $89.1 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: MODERNIZATION TASK ORDER 24 Key points: 1. IBM secured a significant $89.14 million task order for modernization. 2. The contract was awarded under full and open competition. 3. The contract duration was 929 days. 4. This award represents a substantial investment in IT modernization by CBP.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar IT modernization contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust price discovery process. However, the Cost Plus Award Fee structure requires diligent oversight to ensure cost-effectiveness.

Taxpayer Impact: Taxpayers are funding a significant IT modernization effort, with the ultimate value dependent on the successful implementation and long-term benefits of the modernization.

Public Impact

Enhances critical U.S. Customs and Border Protection systems. Supports national security and trade facilitation through technology upgrades. Potential for improved efficiency in border operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure can inflate costs.
Lack of detailed cost breakdown for benchmarking.
Potential for scope creep in modernization projects.

Positive Signals

Awarded under full and open competition.
Significant investment in critical infrastructure.
Long-term modernization benefits.

Sector Analysis

This task order falls within the Information Technology sector, specifically focusing on system modernization. IT modernization spending by federal agencies is substantial, aimed at improving efficiency, security, and capability.

Small Business Impact

The awardee is IBM, a large corporation, indicating that small businesses were likely not the primary focus for this specific task order, though they may have participated as subcontractors.

Oversight & Accountability

The Cost Plus Award Fee contract type necessitates strong oversight from DHS to ensure performance targets are met and costs are controlled effectively. Award fees should be tied to measurable outcomes.

Related Government Programs

Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Cost Plus Award Fee contract type.
Lack of detailed performance metrics in award data.
Potential for cost overruns.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $89.1 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. MODERNIZATION TASK ORDER 24

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $89.1 million.

What is the period of performance?

Start: 2006-06-16. End: 2008-12-31.

What specific modernization goals were achieved with this $89 million investment, and what is the measurable impact on CBP's operational efficiency?

The provided data does not detail the specific modernization goals or their measurable impact. Further analysis would require access to project reports, performance metrics, and post-award evaluations to determine if the $89.14 million investment yielded the intended improvements in operational efficiency for U.S. Customs and Border Protection.

How did the Cost Plus Award Fee structure influence the final cost compared to a fixed-price contract for this modernization task order?

The Cost Plus Award Fee (CPAF) structure allows for costs to be reimbursed plus a fee that is adjusted based on performance. Without knowing the target cost, the final cost, and the performance evaluation, it's impossible to definitively say if it was higher or lower than a hypothetical fixed-price contract. CPAF can incentivize performance but also carries a risk of cost overruns if not managed tightly.

What were the key performance indicators (KPIs) used to determine the award fee for IBM on this modernization task order?

The data does not specify the key performance indicators (KPIs) used for the award fee determination. Typically, for IT modernization, KPIs might include system uptime, performance improvements (e.g., processing speed), successful integration of new components, user satisfaction, and adherence to security protocols. The actual KPIs would be defined in the contract's performance work statement.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $95,642,763

Exercised Options: $89,140,068

Current Obligation: $89,140,068

Parent Contract

Parent Award PIID: TC2001025

IDV Type: IDC

Timeline