NSF Awards IBM $18.2M for IT Security Support, Facing Limited Competition

Contract Overview

Contract Amount: $18,207,541 ($18.2M)

Contractor: International Business Machines Corporation

Awarding Agency: National Science Foundation

Start Date: 2005-10-01

End Date: 2011-11-15

Contract Duration: 2,236 days

Daily Burn Rate: $8.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFORMATION TECHNOLOGY SECURITY SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22230

State: Virginia Government Spending

Plain-Language Summary

National Science Foundation obligated $18.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: INFORMATION TECHNOLOGY SECURITY SUPPORT SERVICES Key points: 1. Significant contract value of $18.2 million over six years. 2. IBM is a major player, but competition appears limited. 3. Potential risk associated with sole-source or limited competition. 4. IT Security services are critical for government operations.

Value Assessment

Rating: fair

The contract is a delivery order under a larger IDIQ, making direct price comparison difficult. The Time and Materials pricing structure can lead to cost overruns if not managed closely.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This was a competitive delivery order, but the data suggests limited competition, potentially allowing the contractor to set higher prices. The specific competition method needs further review.

Taxpayer Impact: Taxpayer funds are used for IT security, which is essential but requires efficient spending to maximize value.

Public Impact

Ensures critical IT infrastructure security for the National Science Foundation. Supports ongoing operations and protects sensitive data. IBM's role highlights reliance on large contractors for specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may inflate costs.
Time and Materials pricing risk.
Long contract duration.

Positive Signals

Essential IT security services.
Experienced contractor (IBM).

Sector Analysis

The IT security sector is highly specialized and competitive, but often dominated by a few large firms. Benchmarks for similar security support services vary widely based on scope and duration.

Small Business Impact

The data indicates no specific set-aside for small businesses, suggesting that large prime contractors like IBM are likely performing the majority of the work.

Oversight & Accountability

Oversight is crucial for Time and Materials contracts to ensure costs remain reasonable and services are delivered effectively. The NSF's contracting office is responsible for monitoring performance.

Related Government Programs

Computer and Software Stores
National Science Foundation Contracting
National Science Foundation Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition may result in suboptimal pricing.
Reliance on a single large contractor for critical security functions.
Contract duration extends over multiple fiscal years, increasing long-term cost exposure.

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $18.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. INFORMATION TECHNOLOGY SECURITY SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: National Science Foundation (National Science Foundation).

What is the total obligated amount?

The obligated amount is $18.2 million.

What is the period of performance?

Start: 2005-10-01. End: 2011-11-15.

What was the specific justification for limiting competition on this delivery order?

The justification for limited competition needs to be thoroughly documented by the agency. Typically, this involves reasons such as urgent need, unique capabilities of a specific contractor, or a follow-on effort where competition was previously established. Without this documentation, it's difficult to assess if the government received the best possible value.

How does the actual cost compare to the estimated cost for this contract?

The provided data shows the award amount ($18.2M) but not the initial estimate or the final obligated amount. Tracking the actual spend against the ceiling and comparing it to similar services procured competitively would reveal cost-effectiveness. The Time and Materials structure necessitates close monitoring to prevent cost overruns.

What performance metrics are in place to ensure the effectiveness of IBM's security services?

Effective oversight requires clear performance standards and metrics for IT security support. These should include response times to incidents, vulnerability remediation rates, and compliance with security protocols. Regular performance reviews by the NSF are essential to ensure IBM is meeting its contractual obligations and providing adequate security.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,168,349

Exercised Options: $19,485,171

Current Obligation: $18,207,541

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4984H

IDV Type: FSS

Timeline