IBM Mainframe as a Service contract awarded to Sirius Federal LLC for over $10.1 million

Contract Overview

Contract Amount: $10,187,835 ($10.2M)

Contractor: Sirius Federal LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-09-01

End Date: 2026-08-31

Contract Duration: 1,095 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IBM MAINFRAME AS A SERVICE

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64114

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $10.2 million to SIRIUS FEDERAL LLC for work described as: IBM MAINFRAME AS A SERVICE Key points: 1. Contract provides critical mainframe services, ensuring continuity for essential government functions. 2. The award was made under full and open competition, suggesting a competitive pricing environment. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract is three years, aligning with typical IT service lifecycles. 5. The specific NAICS code indicates a focus on electronic computer manufacturing, though the service is IT-related. 6. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

Benchmarking the value of this specific 'Mainframe as a Service' contract is challenging without more granular data on the scope of services and the specific IBM mainframe technology involved. However, the firm fixed-price structure is a positive indicator for value, as it caps the government's financial exposure. Comparing it to similar managed mainframe services contracts would require access to a broader dataset of government IT procurements. The total value of over $10 million over three years suggests a significant operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. This approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The fact that it was competed suggests that multiple vendors likely vied for the contract, although the exact number of bidders is not provided.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for cost savings through a robust bidding process.

Public Impact

The Department of Agriculture benefits from reliable and modern mainframe services. Essential government operations supported by the mainframe infrastructure will continue uninterrupted. The contract supports the IT infrastructure backbone for the agency. Workforce implications are likely related to IT operations and maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess service quality.
The reliance on a single vendor (IBM technology) for a critical service could pose long-term risks if not managed carefully.
The specific details of the 'as a service' offering are not fully elaborated, potentially leading to scope creep if not clearly defined.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Firm fixed-price contract type provides cost certainty.
The contract duration is reasonable for IT service delivery.
The vendor, Sirius Federal LLC, is likely experienced in providing such services.

Sector Analysis

The Information Technology sector, specifically cloud and managed IT services, is a rapidly growing area for federal spending. Mainframe modernization and 'as a service' models are becoming increasingly common as agencies seek to reduce the burden of maintaining legacy hardware while ensuring business continuity. This contract fits within the broader trend of agencies outsourcing IT infrastructure management to specialized providers, leveraging vendor expertise and potentially achieving economies of scale. Comparable spending benchmarks for managed mainframe services vary widely based on the scope and scale of the infrastructure.

Small Business Impact

There is no indication that this contract included a small business set-aside. Furthermore, the data does not specify any subcontracting requirements for small businesses. This suggests that the primary awardee, Sirius Federal LLC, will likely perform the majority of the work, with potential implications for the direct engagement of the small business ecosystem in this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring the vendor to deliver specified services within the agreed-upon cost. Transparency is generally facilitated through contract award databases like FPDS-NG, which provide public access to contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Infrastructure Services
Cloud Computing Services
Managed Services Contracts
Mainframe Modernization Programs

Risk Flags

Potential vendor lock-in
Lack of detailed performance metrics
Ambiguity in NAICS code classification

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $10.2 million to SIRIUS FEDERAL LLC. IBM MAINFRAME AS A SERVICE

Who is the contractor on this award?

The obligated recipient is SIRIUS FEDERAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2023-09-01. End: 2026-08-31.

What is the specific scope of 'Mainframe as a Service' being provided under this contract?

The provided data abbreviates the description to 'IBM MAINFRAME AS A SERVICE'. A detailed understanding of the service scope would require reviewing the contract's statement of work (SOW). This typically includes details on the specific IBM mainframe hardware and software being managed, the level of support (e.g., 24/7 monitoring, disaster recovery, patching, performance tuning), and any associated cloud or data center resources. Without the SOW, it's difficult to ascertain the full extent of services and associated risks or benefits.

How does the $10.1 million contract value compare to historical spending on similar mainframe services by the Department of Agriculture?

To compare this $10.1 million contract value to historical spending, one would need to analyze past Department of Agriculture contracts for mainframe services. This would involve searching contract databases for similar keywords (e.g., 'mainframe support,' 'legacy systems management,' 'IBM services') and filtering by the agency and relevant time periods. Without this historical data, it's impossible to determine if this award represents an increase, decrease, or stable level of investment in mainframe services. The three-year duration suggests an annual spend of approximately $3.37 million.

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

The provided data does not include information on Key Performance Indicators (KPIs) or Service Level Agreements (SLAs). These are critical components of any IT service contract, defining the expected performance standards and metrics for the vendor. For a 'Mainframe as a Service' contract, KPIs might include uptime percentages, response times for issue resolution, data backup success rates, and security compliance metrics. The absence of this information in the summary data makes it challenging to objectively assess the contractor's performance and the overall value delivered.

What is Sirius Federal LLC's track record with providing mainframe-as-a-service to the federal government?

Assessing Sirius Federal LLC's track record requires examining their past performance on similar federal contracts. This involves searching contract databases for previous awards to Sirius Federal LLC, particularly those involving mainframe management, cloud services, or IBM technologies. Information on past performance, including any reported issues, contract modifications, or positive feedback, would provide insight into their capabilities and reliability. Without specific historical contract data for Sirius Federal LLC in this domain, their suitability for this critical service remains an assumption based on the award itself.

What are the potential risks associated with relying on a single vendor for IBM mainframe services?

Relying on a single vendor, even for a specific technology like IBM mainframe services, carries inherent risks. These include vendor lock-in, where switching providers becomes difficult and costly. There's also the risk of price increases upon contract renewal, as competitive pressure may diminish. Furthermore, the vendor's financial stability or strategic shifts could impact service continuity. Mitigating these risks often involves robust contract management, clear exit strategies, and potentially exploring multi-cloud or hybrid solutions where feasible, though this is less applicable to core mainframe functions.

How does the 'Electronic Computer Manufacturing' NAICS code align with 'Mainframe as a Service'?

The NAICS code 334111, 'Electronic Computer Manufacturing,' typically relates to the production of computers and related electronic components. Awarding a 'Mainframe as a Service' contract under this code might seem unusual, as the service is operational rather than manufacturing. However, it could be that the contract's primary focus, from a classification perspective, is on the underlying hardware infrastructure that is being managed 'as a service.' Alternatively, the classification might be a legacy assignment or reflect a broader scope that includes aspects related to the hardware lifecycle. A more common NAICS code for IT services might be in the 5415 series (Computer Systems Design and Related Services).

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12314423Q0151

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2151 PRIEST BRIDGE DR, CROFTON, MD, 21114

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

Financial Breakdown

Contract Ceiling: $106,196,694

Exercised Options: $10,187,835

Current Obligation: $10,187,835

Actual Outlays: $5,745,549

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA19D002A

IDV Type: FSS

Timeline