DoD Awards IBM $23.18M for IT Services, Facing Limited Competition Concerns
Contract Overview
Contract Amount: $23,183,825 ($23.2M)
Contractor: Four LLC
Awarding Agency: Department of Defense
Start Date: 2021-07-01
End Date: 2026-06-29
Contract Duration: 1,824 days
Daily Burn Rate: $12.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IBM SOFTWARE
Place of Performance
Location: PORT HUENEME CBC BASE, VENTURA County, CALIFORNIA, 93043
Plain-Language Summary
Department of Defense obligated $23.2 million to FOUR LLC for work described as: IBM SOFTWARE Key points: 1. Significant contract value of $23.18 million awarded to IBM. 2. Competition method raises questions about price discovery and potential overpayment. 3. Risk of inflated costs due to limited competition and sole-source exclusion. 4. IT services sector is highly competitive, making this award notable.
Value Assessment
Rating: questionable
The contract's price is difficult to assess without comparable benchmarks. The 'full and open competition after exclusion of sources' suggests a non-standard procurement that may not have achieved the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while competition was sought, it was restricted. This method can limit price discovery and potentially lead to higher costs compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds may be at risk of being overspent due to the limited competitive environment, potentially impacting the value for money received.
Public Impact
Citizens may question the fairness of competition when specific vendors are excluded. The Department of Defense's spending on IT services is under scrutiny for efficiency. Transparency in government contracting is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpayment
- Lack of clear benchmarks
Positive Signals
- Contract awarded to a well-known IT provider
- Clear contract duration and delivery order structure
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services.' The IT services market is generally dynamic and competitive, making the limited competition aspect of this award noteworthy.
Small Business Impact
The contract data does not indicate any specific provisions or set-asides for small businesses. This suggests that small businesses may not have had a direct opportunity to compete for this particular award.
Oversight & Accountability
The 'full and open competition after exclusion of sources' method warrants further oversight to ensure the government obtained the best value. Accountability for the procurement decision and pricing is essential.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition raises cost concerns.
- Potential for non-competitive pricing.
- Lack of transparency in source exclusion.
- Need for strong performance oversight.
Tags
other-computer-related-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.2 million to FOUR LLC. IBM SOFTWARE
Who is the contractor on this award?
The obligated recipient is FOUR LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.2 million.
What is the period of performance?
Start: 2021-07-01. End: 2026-06-29.
What specific justification was provided for excluding other sources in the competition?
The justification for excluding other sources is critical for understanding the procurement's integrity. Without this information, it's difficult to ascertain if the government truly explored all viable options or if the exclusion was arbitrary, potentially limiting competitive pressure and inflating costs.
How does the awarded price compare to industry benchmarks for similar IT services?
Benchmarking the awarded price against similar contracts or industry standards is essential for assessing value for money. If the price is significantly higher, it suggests potential overpayment and raises concerns about the effectiveness of the competition and negotiation process.
What mechanisms are in place to ensure ongoing cost control and performance monitoring for this contract?
Effective oversight requires robust mechanisms for tracking performance and controlling costs throughout the contract's lifecycle. Regular reviews, performance metrics, and clear communication channels are vital to ensure the contractor delivers as promised and that taxpayer funds are used efficiently.
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 › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2303 DULLES STATION BLVD STE 105, HERNDON, VA, 20171
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,183,825
Exercised Options: $23,183,825
Current Obligation: $23,183,825
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC73B
IDV Type: GWAC
Timeline
Start Date: 2021-07-01
Current End Date: 2026-06-29
Potential End Date: 2026-06-29 00:00:00
Last Modified: 2025-06-10
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