Interior's $16.1M IBM Contract for Other Computer Services: Non-Competitive Delivery Order

Contract Overview

Contract Amount: $16,099,820 ($16.1M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of the Interior

Start Date: 2006-04-05

End Date: 2007-01-23

Contract Duration: 293 days

Daily Burn Rate: $54.9K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDE SUPPLEMENTAL DETAIL REGARDING THE SCOPE AND QUALITY ASSURANCE SURVEILLANCE PLAN (QASP)

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $16.1 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: PROVIDE SUPPLEMENTAL DETAIL REGARDING THE SCOPE AND QUALITY ASSURANCE SURVEILLANCE PLAN (QASP) Key points: 1. High contract value ($16.1M) awarded non-competitively. 2. IBM is a major player, but lack of competition raises concerns. 3. Risk of overpayment due to sole-source award. 4. IT services sector is broad; specific quality assurance details are missing.

Value Assessment

Rating: questionable

The contract value of $16.1 million for 'Other Computer Related Services' is significant. Without a competitive bidding process, it's difficult to assess if this price represents fair market value compared to similar services from other providers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a non-competitive delivery order, indicating a sole-source award. This method limits price discovery and potentially leads to higher costs for taxpayers as competition is bypassed.

Taxpayer Impact: The lack of competition in this $16.1M award means taxpayers may not have received the best possible price for these IT services.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. Lack of transparency in the procurement process. Potential for reduced service quality if vendor faces no competitive pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award
Missing QASP details
High contract value

Positive Signals

Award to established vendor (IBM)

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Benchmarks for this category can vary widely, but a $16.1M sole-source award warrants scrutiny.

Small Business Impact

The contract was awarded to IBM, a large corporation, and there is no indication that small businesses were involved or benefited from this specific award.

Oversight & Accountability

The provided data lacks specific details on oversight mechanisms and the Quality Assurance Surveillance Plan (QASP), which are crucial for ensuring contract performance and value.

Related Government Programs

Other Computer Related Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Non-competitive award
Missing QASP details
High contract value
Lack of justification for sole-source

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $16.1 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. PROVIDE SUPPLEMENTAL DETAIL REGARDING THE SCOPE AND QUALITY ASSURANCE SURVEILLANCE PLAN (QASP)

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 $16.1 million.

What is the period of performance?

Start: 2006-04-05. End: 2007-01-23.

What specific services were provided under this $16.1M contract, and how was the necessity for a sole-source award justified?

The data indicates 'Other Computer Related Services' under NAICS code 541519. However, the specific scope of work and the justification for awarding this significant contract non-competitively to IBM are not detailed. This lack of transparency raises questions about the procurement process and whether alternative, competitive solutions were adequately explored.

What risks are associated with the non-competitive nature of this award, particularly concerning potential cost overruns or quality issues?

The primary risk of a sole-source award is the potential for inflated pricing, as the vendor faces no competitive pressure to offer the best value. Additionally, without a robust Quality Assurance Surveillance Plan (QASP), there's a risk that the quality of services may not meet expectations, and oversight is critical to mitigate these issues.

How does the lack of a detailed Quality Assurance Surveillance Plan (QASP) impact the government's ability to ensure effective service delivery and accountability?

A detailed QASP is essential for defining performance standards, monitoring contractor performance, and ensuring the government receives the services it paid for. The absence of this information suggests a potential weakness in oversight, making it harder to hold IBM accountable for service quality and potentially impacting the overall effectiveness of the contract.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $16,099,820

Exercised Options: $16,099,820

Current Obligation: $16,099,820

Parent Contract

Parent Award PIID: INN06PC10435

IDV Type: IDC

Timeline