USGS awards $46.8M contract for computer services to IBM
Contract Overview
Contract Amount: $46,759,698 ($46.8M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of the Interior
Start Date: 2009-02-02
End Date: 2011-09-30
Contract Duration: 970 days
Daily Burn Rate: $48.2K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INTIATE DEPLOYEMENT 5 ACTIVITIES FOR THE USGS
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of the Interior obligated $46.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: INTIATE DEPLOYEMENT 5 ACTIVITIES FOR THE USGS Key points: 1. IBM secured a significant contract for computer-related services. 2. The contract value is substantial at $46.8 million. 3. This award falls under the 'Other Computer Related Services' NAICS code. 4. The contract was awarded as a competitive delivery order.
Value Assessment
Rating: good
The contract value of $46.8 million for a duration of 970 days suggests a reasonable price point for the services rendered, especially given the competitive nature of the award. Benchmarking against similar large-scale IT service contracts would provide further clarity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded as a competitive delivery order, this indicates that multiple vendors likely had the opportunity to bid, fostering price discovery and potentially leading to a more favorable outcome for the government. The specific competition details are not provided.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for the required computer services.
Public Impact
Supports critical USGS operations through IT services. IBM's involvement highlights major IT service provider engagement. Contract duration of nearly three years ensures service continuity. Firm Fixed Price contract provides cost certainty for the government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics.
- Potential for vendor lock-in if not managed well.
Positive Signals
- Competitive award process.
- Firm Fixed Price contract.
- Experienced vendor (IBM).
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this sector is consistently high as government agencies rely on technology for operations. Benchmarks for similar contracts would depend on the specific services and duration.
Small Business Impact
The data indicates this contract was awarded to IBM, a large corporation. There is no explicit indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The contract was awarded by the Department of the Interior's Departmental Offices. Oversight would typically involve contract management officials ensuring deliverables are met and payments are accurate according to the firm fixed price agreement.
Related Government Programs
- Other Computer Related Services
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Lack of detailed service description.
- Limited information on competition specifics.
- No explicit mention of small business utilization.
- Potential for cost overruns if scope creeps beyond 'firm fixed price'.
Tags
other-computer-related-services, department-of-the-interior, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $46.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. INTIATE DEPLOYEMENT 5 ACTIVITIES FOR THE USGS
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 $46.8 million.
What is the period of performance?
Start: 2009-02-02. End: 2011-09-30.
What specific computer-related services were provided under this contract?
The contract falls under NAICS code 541519 (Other Computer Related Services). While the exact services are not detailed, this typically encompasses a broad range of IT support, including IT management consulting, computer facilities management, network management, and potentially custom software development or integration services.
What was the competitive landscape for this delivery order?
The contract was awarded as a 'COMPETITIVE DELIVERY ORDER'. This suggests that multiple vendors were invited to bid, and the award was made based on factors including price and technical merit. However, the specific number of bidders or the details of the competitive evaluation are not provided in this data.
How does the contract value compare to similar IT service contracts for federal agencies?
A contract value of $46.8 million over 970 days (approximately 2.65 years) is substantial. Without knowing the precise services, it's difficult to benchmark precisely. However, for large-scale IT support and services, this value is within a typical range for major federal contracts awarded to large system integrators like IBM.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: 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: $46,759,698
Exercised Options: $46,759,698
Current Obligation: $46,759,698
Parent Contract
Parent Award PIID: INN06PC10435
IDV Type: IDC
Timeline
Start Date: 2009-02-02
Current End Date: 2011-09-30
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2013-04-17
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