IBM FILENET SOFTWARE contract awarded to IMMIX TECHNOLOGY INC for over $40.6 million by the Department of Defense

Contract Overview

Contract Amount: $40,637,734 ($40.6M)

Contractor: Immixtechnology Inc

Awarding Agency: Department of Defense

Start Date: 2011-09-26

End Date: 2016-09-24

Contract Duration: 1,825 days

Daily Burn Rate: $22.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IBM FILESNET SOFTWARE

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22331, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $40.6 million to IMMIXTECHNOLOGY INC for work described as: IBM FILESNET SOFTWARE Key points: 1. Value for money is difficult to assess without a competitive benchmark. 2. The contract was not competed, raising questions about potential price overruns. 3. Risk indicators include the lack of competition and a long performance period. 4. Performance context is limited due to the sole-source nature of the award. 5. This contract falls within the IT sector, specifically software procurement. 6. The award represents a significant investment in enterprise content management solutions.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to determine if the $40.6 million price reflects fair market value. The lack of transparency in pricing negotiations for non-competed contracts often leads to higher costs for the government compared to competitively awarded ones. Further analysis would require access to internal cost breakdowns or comparable sole-source awards for similar software solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, IMMIX TECHNOLOGY INC, was solicited. The justification for this approach is not provided in the available data. Sole-source awards typically occur when a specific product or service is required and only one vendor can provide it, or in cases of urgent need. The absence of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution. Without competing bids, there's a risk that the price paid was higher than it would have been in a competitive environment.

Public Impact

The Department of the Army benefits from access to IBM FILENET SOFTWARE. This contract supports enterprise content management capabilities within the DoD. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications are likely related to IT support and software maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs.
Long contract duration (1825 days) may lead to vendor lock-in and reduced flexibility.
Lack of competition raises concerns about the government's ability to secure favorable terms.
Absence of data on performance metrics makes it difficult to assess effectiveness.
The specific software functionality and its criticality to operations are not detailed.

Positive Signals

Procurement of established software (IBM FILENET) suggests a known quantity and potential for integration.
Firm Fixed Price contract type provides cost certainty for the government.
The award was made to a single entity, potentially simplifying contract management.
The contract is associated with the Department of the Army, indicating a specific user need.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on software procurement and enterprise content management. The market for such solutions is competitive, with numerous vendors offering document management, workflow automation, and digital asset management capabilities. However, specific legacy software like IBM FILENET may have a more limited vendor ecosystem for support and upgrades. Comparable spending benchmarks for enterprise software licenses and maintenance can vary widely based on the scope of deployment and user base.

Small Business Impact

There is no indication that this contract involved small business set-asides. The data shows the award was made to IMMIX TECHNOLOGY INC, and there is no information regarding subcontracting plans or participation by small businesses. This suggests that the primary focus was on fulfilling the requirement directly, potentially overlooking opportunities to engage the small business sector.

Oversight & Accountability

Oversight mechanisms for this contract are not detailed in the provided data. As a sole-source award, it may have undergone specific justification and approval processes within the Department of Defense. Transparency regarding the contract's performance, expenditures, and any associated audits or reviews would be crucial for assessing accountability. The Inspector General's office within the DoD would typically have jurisdiction over such contracts.

Related Government Programs

Enterprise Content Management Systems
Software Licensing and Maintenance
Department of Defense IT Procurement
Sole-Source IT Contracts

Risk Flags

Sole-source award
Lack of competition
Long contract duration
No performance metrics specified

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.6 million to IMMIXTECHNOLOGY INC. IBM FILESNET SOFTWARE

Who is the contractor on this award?

The obligated recipient is IMMIXTECHNOLOGY INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $40.6 million.

What is the period of performance?

Start: 2011-09-26. End: 2016-09-24.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award of the IBM FILENET SOFTWARE contract to IMMIX TECHNOLOGY INC. Sole-source procurements are typically justified under specific circumstances, such as when only one responsible source can provide the required supplies or services, or when a public exigency requires immediate delivery. Without the official justification document, it is impossible to ascertain the precise reasons. This lack of transparency is a common concern with sole-source awards, as it can obscure potential competition or cost-saving opportunities that might have been realized through a competitive bidding process.

How does the $40.6 million contract value compare to similar IBM FILENET software procurements by the government?

Direct comparison of the $40.6 million contract value for IBM FILENET SOFTWARE to similar government procurements is challenging without more specific data points. The total value is influenced by factors such as the duration of the contract (1825 days, or 5 years), the scope of licenses, maintenance agreements, and any associated support services. While IBM FILENET is a known enterprise software, its pricing can vary significantly. To benchmark effectively, one would need to identify other sole-source or competitively awarded contracts for comparable IBM FILENET deployments, considering the quantity of users, modules acquired, and the level of support. The absence of such comparative data makes it difficult to definitively assess whether this award represents a fair market price.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. For a software procurement of this magnitude and duration, one would typically expect defined metrics related to software uptime, system performance, response times for technical support, and patch/update delivery schedules. The absence of this information makes it difficult to objectively measure the contractor's performance and ensure the government is receiving the expected level of service and value. Effective oversight would require clear, measurable, and auditable KPIs and SLAs to hold IMMIX TECHNOLOGY INC accountable.

What is IMMIX TECHNOLOGY INC's track record with government contracts, particularly sole-source awards?

Information regarding IMMIX TECHNOLOGY INC's specific track record with government contracts, especially concerning sole-source awards, is not detailed in the provided data. A comprehensive assessment would involve reviewing their past performance on similar contracts, including client satisfaction, adherence to schedules and budgets, and any history of contract disputes or modifications. Understanding their experience with sole-source procurements would shed light on their ability to manage such awards effectively and provide value without competitive pressure. Further research into contract databases and performance reports would be necessary to build a complete picture of their government contracting history.

What is the potential risk of vendor lock-in given the sole-source nature and long duration of this contract?

The sole-source nature and the 5-year duration (1825 days) of this contract present a significant risk of vendor lock-in for the Department of the Army. When a single vendor is the only option for a prolonged period, it can become technically and financially difficult for the government to switch to alternative solutions or vendors. This is because the agency may become heavily reliant on the specific technology, proprietary knowledge, and support infrastructure provided by IMMIX TECHNOLOGY INC. Over time, this dependence can reduce the government's negotiating leverage, potentially leading to increased costs for renewals, upgrades, or future services, as competitive alternatives become less viable.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arrow Electronics, Inc. (UEI: 049159957)

Address: 8444 WESTPARK DR STE 200, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $40,637,734

Exercised Options: $40,637,734

Current Obligation: $40,637,734

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $434,660,892

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DABL0103A1006

IDV Type: IDC

Timeline