OPM Spends $44.7M on IBM Training Services Under Full and Open Competition

Contract Overview

Contract Amount: $44,699,552 ($44.7M)

Contractor: International Business Machines Corporation

Awarding Agency: Office of Personnel Management

Start Date: 2014-09-22

End Date: 2018-03-21

Contract Duration: 1,276 days

Daily Burn Rate: $35.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $44.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IGF::CL::IGF Key points: 1. Significant investment in professional development training by OPM. 2. IBM secured the contract, indicating strong capabilities in the IT services sector. 3. The contract duration of over three years suggests a sustained need for these services. 4. Fixed-price contract type may offer cost predictability for the agency.

Value Assessment

Rating: fair

The total award amount of $44.7 million over approximately 3.5 years for professional and management development training is substantial. Benchmarking against similar large-scale training contracts is difficult without more specific service details, but the price appears to be within a reasonable range for comprehensive services from a major provider like IBM.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust process to solicit bids from multiple qualified vendors. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayers funded this contract through agency appropriations for personnel development, aiming to enhance workforce skills and agency efficiency.

Public Impact

Federal employees received professional and management development training, potentially improving government operations. The use of a large, established IT services provider like IBM highlights reliance on major contractors for specialized services. The contract's duration and value indicate a significant commitment to employee training initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcomes for the training.
Potential for vendor lock-in given the long duration and specific provider.
Limited transparency on the exact nature and cost-effectiveness of the training modules.

Positive Signals

Awarded through full and open competition.
Firm fixed-price contract type provides cost certainty.
Focus on professional development can enhance government workforce capabilities.

Sector Analysis

The IT services sector, particularly professional and management development training, is a significant area of federal spending. This contract falls within the broader IT services category, where large companies like IBM often compete for substantial government contracts.

Small Business Impact

The contract was awarded to IBM, a large business. There is no indication in the provided data whether small businesses were involved as subcontractors, which is a common practice but not explicitly detailed here.

Oversight & Accountability

The contract was awarded by the Office of Personnel Management (OPM), which is responsible for managing the federal workforce. Oversight would typically involve monitoring contract performance, ensuring adherence to terms, and verifying that the training meets agency needs.

Related Government Programs

Professional and Management Development Training
Office of Personnel Management Contracting
Office of Personnel Management Programs

Risk Flags

Lack of detailed performance metrics.
Limited insight into specific training content.
Potential for high cost per trainee without detailed breakdown.
No explicit mention of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $44.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $44.7 million.

What is the period of performance?

Start: 2014-09-22. End: 2018-03-21.

What specific training modules were provided, and how did they align with OPM's strategic goals for workforce development?

The provided data does not specify the exact training modules. However, professional and management development training typically covers areas such as leadership, communication, project management, and strategic planning. OPM likely procured these services to enhance the skills of its personnel, improve operational efficiency, and foster a more effective federal workforce aligned with its mission.

What was the process for evaluating the effectiveness and return on investment of the training provided by IBM?

The data does not detail the evaluation process. Typically, agencies assess training effectiveness through participant feedback, pre- and post-training assessments, and sometimes by tracking performance improvements or skill application in the workplace. A formal ROI analysis would compare the cost of training against measurable benefits, which is not specified here.

Were there any performance issues or contract modifications during the contract period that impacted cost or delivery?

The provided data does not indicate any performance issues or contract modifications. The contract ran from September 2014 to March 2018, and the award amount remained $44,699,552.41. Assuming no modifications are listed implies the contract was executed as planned without significant deviations.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 N FREDERICK AVE, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,699,552

Exercised Options: $44,699,552

Current Obligation: $44,699,552

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: OPM1912C0027

IDV Type: IDC

Timeline