NOAA awards $26.17M for High Performance Computing Managed Services to IBM

Contract Overview

Contract Amount: $26,169,475 ($26.2M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Commerce

Start Date: 2019-09-20

End Date: 2022-08-14

Contract Duration: 1,059 days

Daily Burn Rate: $24.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HIGH PERFORMANCE COMPUTING - MANAGED SERVICE

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $26.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: HIGH PERFORMANCE COMPUTING - MANAGED SERVICE Key points: 1. IBM secured a significant contract for HPC managed services. 2. The contract value is substantial, indicating a critical need for these services. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is IT services, specifically computer systems design.

Value Assessment

Rating: good

The contract value of $26.17M over approximately 3 years appears reasonable for high-performance computing managed services, especially considering the provider is IBM. Benchmarking against similar large-scale IT managed service contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically leads to better price discovery and value for the government. The use of a delivery order under a larger contract structure is common for specialized IT services.

Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure and services supporting NOAA's mission, with competition aiming to ensure efficient use of these funds.

Public Impact

Ensures critical high-performance computing capabilities for NOAA's scientific research and weather forecasting. Supports advanced data processing and analysis for climate modeling and environmental monitoring. Leverages IBM's expertise in managing complex computing infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending on high-performance computing and managed IT services is crucial for government agencies like NOAA to maintain advanced research and operational capabilities.

Small Business Impact

The provided data does not indicate any specific set-aside for small businesses for this contract. Further investigation would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a transparent process. Oversight would typically involve performance monitoring by NOAA to ensure IBM meets service level agreements and delivery requirements.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-commerce, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $26.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. HIGH PERFORMANCE COMPUTING - MANAGED SERVICE

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $26.2 million.

What is the period of performance?

Start: 2019-09-20. End: 2022-08-14.

What specific performance metrics are in place to ensure the effectiveness of the managed services provided by IBM?

The contract likely includes Service Level Agreements (SLAs) that define key performance indicators (KPIs) for uptime, response times, processing speeds, and issue resolution. NOAA's contracting officers would monitor adherence to these SLAs. Regular performance reviews and reporting mechanisms are standard for such managed service contracts to ensure the agency receives the expected value and operational effectiveness.

How does the $26.17M contract value compare to industry benchmarks for similar high-performance computing managed services?

Benchmarking requires detailed comparison of service scope, infrastructure size, and provider expertise. However, for a 3-year managed service contract involving high-performance computing for a federal agency, $26.17M is within a plausible range, especially given IBM's established capabilities. A more precise benchmark would necessitate access to detailed pricing data from comparable government or commercial contracts.

What is the potential risk associated with relying on a single vendor, IBM, for critical HPC managed services over an extended period?

The primary risk is vendor lock-in and potential price increases upon contract renewal. Dependence on IBM could also pose challenges if their technology or support strategy shifts. Mitigating this involves robust contract terms, clear exit strategies, and continuous market scanning for alternative solutions or competitive pricing during the contract period.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL 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: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $27,442,772

Exercised Options: $27,442,772

Current Obligation: $26,169,475

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $4,388,479

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DOCDG133012CQ0004

IDV Type: IDC

Timeline

Start Date: 2019-09-20

Current End Date: 2022-08-14

Potential End Date: 2022-08-14 00:00:00

Last Modified: 2022-07-28

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