DHS Awards $67.6M Task Order to IBM for Modernization Efforts

Contract Overview

Contract Amount: $67,561,734 ($67.6M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2011-04-30

End Date: 2012-10-31

Contract Duration: 550 days

Daily Burn Rate: $122.8K/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

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $67.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: MODERNIZATION TASK ORDER EDME Key points: 1. The contract value of $67.6 million for modernization efforts is a significant investment. 2. IBM, a major player, secured this task order, indicating strong capabilities. 3. The primary risk lies in the execution of modernization and potential cost overruns. 4. This falls within the IT sector, focusing on system upgrades and enhancements.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Benchmarking against similar IT modernization contracts is difficult without more specific scope details.

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. This method generally promotes price discovery and potentially better value.

Taxpayer Impact: The taxpayer impact is the $67.6 million expenditure for modernization, with the expectation of improved government IT infrastructure and services.

Public Impact

Improved efficiency and effectiveness of U.S. Customs and Border Protection systems. Potential for enhanced border security through modernized technology. Investment in critical government IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending.
Lack of specific performance metrics makes value assessment challenging.
Potential for scope creep in modernization projects.

Positive Signals

Awarded under full and open competition.
IBM is a reputable contractor with extensive IT experience.
Focus on modernization suggests a commitment to improving government services.

Sector Analysis

This IT modernization task order falls within the broader government IT services sector. Spending benchmarks for similar large-scale modernization projects vary widely based on complexity and scope.

Small Business Impact

The data indicates this task order was awarded to a large corporation (IBM) and does not show any specific set-asides or participation from small businesses.

Oversight & Accountability

Oversight would typically involve regular performance reviews, milestone tracking, and financial audits to ensure the contractor meets objectives and stays within budget.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type.
Lack of detailed scope and performance metrics.
Potential for contractor-driven cost increases.
Long duration of the contract (550 days).

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $67.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. MODERNIZATION TASK ORDER EDME

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 $67.6 million.

What is the period of performance?

Start: 2011-04-30. End: 2012-10-31.

What specific modernization goals are being achieved with this $67.6 million investment, and how will success be measured?

The specific modernization goals are not detailed in the provided data. Success measurement would typically involve predefined Key Performance Indicators (KPIs) related to system performance, user adoption, security enhancements, and operational efficiency improvements. Without these KPIs, it's difficult to assess the true value and effectiveness of the investment.

What are the key risks associated with this Cost Plus Fixed Fee contract for IT modernization, and how are they being mitigated?

Key risks include potential cost overruns if the fixed fee is insufficient for the actual work, contractor incentives to increase costs to maximize profit, and scope creep. Mitigation strategies often involve robust government oversight, detailed contract clauses defining allowable costs, regular performance reviews, and clear change control processes to manage any scope adjustments.

How does this modernization effort align with broader cybersecurity strategies and data protection mandates for U.S. Customs and Border Protection?

Modernization efforts should inherently incorporate current cybersecurity best practices and align with data protection mandates. This includes implementing secure coding standards, robust access controls, encryption, and regular vulnerability assessments. The effectiveness of this alignment depends on the specific technical requirements and oversight applied during the project's execution and implementation phases.

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, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $67,561,734

Exercised Options: $67,561,734

Current Obligation: $67,561,734

Parent Contract

Parent Award PIID: TC2001025

IDV Type: IDC

Timeline