Interior Dept. Spends $17.2M on Computer Stores via Competitive Delivery Order
Contract Overview
Contract Amount: $17,256,802 ($17.3M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of the Interior
Start Date: 2005-12-23
End Date: 2008-12-22
Contract Duration: 1,095 days
Daily Burn Rate: $15.8K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 61294 - ADVANCED BROADBAND SOLUTIONS, INC.
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of the Interior obligated $17.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: 61294 - ADVANCED BROADBAND SOLUTIONS, INC. Key points: 1. The Department of the Interior awarded a $17.2 million contract for computer and software stores. 2. IBM Corporation was the competitor, indicating a potentially competitive market. 3. The contract was a firm-fixed-price delivery order, providing cost certainty. 4. The spending falls under the 'Computer and Software Stores' NAICS code.
Value Assessment
Rating: fair
The contract value of $17.2 million for computer and software stores appears reasonable given the duration and the presence of a major competitor like IBM. However, without specific details on the hardware/software procured, a precise benchmark is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This was a competitive delivery order, suggesting multiple bids were solicited and evaluated. The competitive nature likely contributed to price discovery and a more favorable outcome for the government.
Taxpayer Impact: The competitive bidding process for this $17.2 million contract likely resulted in taxpayer savings compared to a sole-source award.
Public Impact
Government agencies rely on accessible computer and software stores for essential IT infrastructure. The duration of the contract (nearly 3 years) suggests ongoing needs for these supplies. The involvement of a large competitor like IBM highlights the importance of competitive sourcing for IT procurements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific product details makes value assessment challenging.
- Contract duration could lead to price escalation if not managed.
Positive Signals
- Competitive award process.
- Firm fixed price contract type.
Sector Analysis
Spending on computer and software stores is a common and necessary expenditure for federal agencies to maintain IT operations. Benchmarks vary widely based on the specific hardware, software, and services procured.
Small Business Impact
The data does not indicate if small businesses were involved in this procurement. Given the competitor was IBM, it's possible larger businesses dominated, but subcontracts could have involved SMBs.
Oversight & Accountability
The contract was awarded as a competitive delivery order, implying a structured procurement process. Further oversight would involve reviewing the specific solicitation, evaluation criteria, and performance monitoring.
Related Government Programs
- Computer and Software Stores
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Lack of detailed product information.
- Potential for price changes over contract duration.
- Unknown level of small business participation.
- Limited insight into the full competitive set.
Tags
computer-and-software-stores, department-of-the-interior, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $17.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. 61294 - ADVANCED BROADBAND SOLUTIONS, INC.
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Departmental Offices).
What is the total obligated amount?
The obligated amount is $17.3 million.
What is the period of performance?
Start: 2005-12-23. End: 2008-12-22.
What specific computer hardware and software were procured under this contract, and how do their prices compare to market rates at the time of award?
The provided data lacks specifics on the exact computer hardware and software. To assess value, a detailed review of the contract line items, quantities, and vendor pricing against contemporaneous market data would be necessary. This would reveal if the $17.2 million expenditure represented a fair market price for the goods received.
What was the competitive landscape beyond IBM, and did the competition effectively drive down costs for the government?
While IBM is listed as a competitor, the extent of other participants and their bids are unknown. A truly effective competitive process would involve multiple qualified bidders vying for the contract. Understanding the number of bids received and the price spread among them would clarify the degree to which competition influenced cost savings for the Department of the Interior.
How effectively did the firm-fixed-price contract type protect the government from cost overruns given the nearly three-year duration?
A firm-fixed-price contract generally offers strong protection against cost overruns, as the contractor assumes the risk. However, for a nearly three-year duration, the initial price might not have accounted for significant market fluctuations or unforeseen technological changes. Effective management and potential price adjustments (if contractually allowed) would be key to ensuring continued value.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DRIVE, BETHESDA, MD, 20817
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,256,802
Exercised Options: $17,256,802
Current Obligation: $17,256,802
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4984H
IDV Type: FSS
Timeline
Start Date: 2005-12-23
Current End Date: 2008-12-22
Potential End Date: 2008-12-22 00:00:00
Last Modified: 2021-12-02
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