DHS Awards IBM $80.4M for Enterprise Data Management and Engineering Task Order

Contract Overview

Contract Amount: $80,424,111 ($80.4M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2007-08-21

End Date: 2024-05-09

Contract Duration: 6,106 days

Daily Burn Rate: $13.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MODERNIZATION TASK ORDER EDME (ENTERPRISE DATA MANAGEMENT AND ENGINEERING)

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $80.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: MODERNIZATION TASK ORDER EDME (ENTERPRISE DATA MANAGEMENT AND ENGINEERING) Key points: 1. Significant contract value of $80.4 million over its lifecycle. 2. IBM is the sole awardee, raising questions about competition. 3. Long contract duration (over 16 years) may indicate evolving needs or potential for cost overruns. 4. Task order for Enterprise Data Management and Engineering suggests critical IT infrastructure support.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, 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 under full and open competition, suggesting a competitive bidding process. However, as a delivery order, it might be part of a larger IDIQ where the initial competition was broader.

Taxpayer Impact: The fixed fee component aims to control costs, but the Cost Plus nature requires diligent oversight to ensure taxpayer funds are used efficiently.

Public Impact

Ensures continued operation and modernization of critical data management systems for U.S. Customs and Border Protection. Supports national security by maintaining robust data engineering capabilities. Potential for long-term reliance on a single vendor for essential IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration
Cost Plus Fixed Fee pricing
Sole awardee for task order

Positive Signals

Awarded under full and open competition
Supports critical agency mission

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on data management and engineering. Spending in this area is crucial for government modernization efforts, with benchmarks varying widely based on scope and complexity.

Small Business Impact

The data indicates this task order was awarded to a large business (IBM) and does not show any specific set-asides for small businesses. This suggests limited direct opportunity for small businesses on this particular task order.

Oversight & Accountability

The long duration and Cost Plus Fixed Fee structure necessitate robust oversight from DHS to ensure performance objectives are met and costs remain controlled. Regular reviews of IBM's performance and cost reporting are essential.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to CPFF structure
Long contract duration may lead to vendor lock-in
Limited visibility into specific performance metrics and deliverables
Reliance on a single large contractor for critical IT functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $80.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. MODERNIZATION TASK ORDER EDME (ENTERPRISE DATA MANAGEMENT AND ENGINEERING)

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 $80.4 million.

What is the period of performance?

Start: 2007-08-21. End: 2024-05-09.

What specific data management and engineering services are included in this task order, and how do they align with current and future CBP needs?

The task order focuses on Enterprise Data Management and Engineering (EDME). While specific services aren't detailed, it likely encompasses data architecture, data warehousing, data analytics, and engineering support for data infrastructure. This aligns with CBP's need to manage vast amounts of border-related data for operational efficiency, threat assessment, and policy development.

Given the long contract duration and Cost Plus Fixed Fee structure, what mechanisms are in place to mitigate cost overruns and ensure value for money?

The Cost Plus Fixed Fee (CPFF) structure includes a fixed fee, providing some cost certainty. However, CPFF contracts inherently carry risk. Robust government oversight, including detailed cost audits, performance monitoring, and regular reviews of contractor expenditures against milestones, is crucial to mitigate overruns and ensure value. The contract's duration also necessitates periodic re-evaluations of scope and pricing.

How does the agency ensure that the services provided under this task order remain relevant and effective given the rapid pace of technological change in data management?

The agency likely employs several strategies. This includes incorporating flexibility into the task order to adapt to evolving technologies, requiring regular technical reviews and updates from the contractor, and potentially using contract modifications to incorporate new solutions. Furthermore, the agency may conduct market research periodically to ensure the chosen solutions remain competitive and effective against emerging technologies.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $148,982,940

Exercised Options: $80,424,111

Current Obligation: $80,424,111

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: TC2001025

IDV Type: IDC

Timeline