Treasury's $49.1M IBM Software Maintenance Contract Awarded to FOUR LLC Under Full and Open Competition

Contract Overview

Contract Amount: $49,141,679 ($49.1M)

Contractor: Four LLC

Awarding Agency: Department of the Treasury

Start Date: 2017-07-01

End Date: 2020-06-30

Contract Duration: 1,095 days

Daily Burn Rate: $44.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IBM SOFTWARE MAINTENANCE

Place of Performance

Location: PARKERSBURG, WOOD County, WEST VIRGINIA, 26106

State: West Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $49.1 million to FOUR LLC for work described as: IBM SOFTWARE MAINTENANCE Key points: 1. The contract value of $49.1M for IBM software maintenance over three years represents a significant investment in essential IT infrastructure. 2. Competition was full and open, suggesting a competitive bidding process that should have driven favorable pricing. 3. The use of a firm-fixed-price contract type helps manage cost certainty for the government. 4. The sector is IT, specifically software publishers, a critical area for government operations.

Value Assessment

Rating: good

The contract value of $49.1M for three years of IBM software maintenance appears reasonable given the nature of enterprise software support. Benchmarking against similar large-scale software maintenance contracts would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is expected to promote price discovery and ensure the government receives competitive pricing.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary software maintenance.

Public Impact

Ensures continuity of critical IT systems for the Bureau of the Fiscal Service. Supports the operational needs of a key government financial management agency. Provides access to necessary software updates, patches, and technical support for IBM products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for vendor lock-in with specialized IBM software maintenance.
Reliance on a single vendor for critical software support.

Positive Signals

Awarded under full and open competition.
Firm-fixed-price contract type provides cost certainty.
Supports essential government IT infrastructure.

Sector Analysis

This contract falls within the IT sector, specifically software publishers, which is a substantial area of government spending. Benchmarks for enterprise software maintenance contracts can vary widely based on the software's criticality and vendor.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

The contract was awarded by the Department of the Treasury, Bureau of the Fiscal Service, suggesting established oversight mechanisms. However, specific details on performance monitoring and accountability are not provided.

Related Government Programs

Software Publishers
Department of the Treasury Contracting
Bureau of the Fiscal Service Programs

Risk Flags

Lack of specific software details.
No performance metrics provided.
Potential for vendor lock-in.
Not awarded to a small business.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $49.1 million to FOUR LLC. IBM SOFTWARE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is FOUR LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $49.1 million.

What is the period of performance?

Start: 2017-07-01. End: 2020-06-30.

What is the specific IBM software being maintained, and what is its criticality to the Bureau of the Fiscal Service's operations?

The provided data does not specify the exact IBM software covered by this maintenance contract. Understanding the specific software and its role in critical financial operations is essential for assessing the true value and necessity of this expenditure. Without this detail, it's difficult to gauge the impact of potential disruptions or the benefits derived from the maintenance services.

How does the per-unit cost of this maintenance compare to industry benchmarks for similar IBM software and support levels?

A direct per-unit cost benchmark is not feasible without knowing the specific software titles and the scope of support (e.g., 24/7 support, standard business hours). However, the total contract value of $49.1M over three years for IBM software maintenance suggests a significant investment. Comparing this to publicly available pricing for comparable enterprise software maintenance agreements, adjusted for government volume and contract type, would be necessary for a thorough value assessment.

What mechanisms are in place to ensure the effectiveness of the software maintenance services and the vendor's performance?

The provided data does not detail the specific performance metrics or oversight mechanisms for this contract. Effective oversight typically involves regular performance reviews, service level agreement (SLA) tracking, and clear procedures for addressing issues. Without this information, it's challenging to definitively assess the effectiveness of the maintenance services and ensure the vendor is meeting its contractual obligations to the Bureau of the Fiscal Service.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

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, Woman Owned Business

Financial Breakdown

Contract Ceiling: $50,971,286

Exercised Options: $49,141,679

Current Obligation: $49,141,679

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0312U

IDV Type: FSS

Timeline