DoD Awards IBM $55.6M for Wired Telecommunications Services Under Full and Open Competition

Contract Overview

Contract Amount: $55,576,080 ($55.6M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Defense

Start Date: 2011-03-18

End Date: 2016-09-20

Contract Duration: 2,013 days

Daily Burn Rate: $27.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PLATFORM/ENVIRONMENT

Place of Performance

Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23606

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $55.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: PLATFORM/ENVIRONMENT Key points: 1. Significant contract value of $55.6 million awarded to a major technology provider. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. Contract duration spans over five years, indicating a long-term need for these services. 4. The award falls under the Wired Telecommunications Carriers NAICS code.

Value Assessment

Rating: fair

The contract value of $55.6 million over five years for telecommunications services appears reasonable given the provider and scope. Benchmarking against similar large-scale government telecommunications contracts would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests that multiple vendors had the opportunity to bid, which typically drives better price discovery. The specific pricing outcomes are not detailed here but the method is favorable.

Taxpayer Impact: Taxpayer funds are being utilized for essential telecommunications infrastructure, with the competitive process aiming to ensure value for money.

Public Impact

Ensures continued telecommunications connectivity for Department of Defense operations. Supports critical communication infrastructure for national security. Impacts the telecommunications market through a significant government contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT and telecommunications sector, a critical area for government operations. Spending benchmarks for similar wired telecommunications services can vary widely based on scope and duration.

Small Business Impact

The contract was awarded to a large corporation (IBM), with no explicit indication of small business participation or subcontracting requirements in the provided data.

Oversight & Accountability

Oversight would typically involve contract performance monitoring by the Department of the Army to ensure service delivery meets requirements and budget adherence.

Related Government Programs

Risk Flags

Tags

wired-telecommunications-carriers, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. PLATFORM/ENVIRONMENT

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $55.6 million.

What is the period of performance?

Start: 2011-03-18. End: 2016-09-20.

What specific telecommunications services are included under this contract, and how do they align with current technological needs?

The provided data identifies the NAICS code as 'Wired Telecommunications Carriers,' suggesting services like network access, data transmission, and voice communication over wired infrastructure. However, the exact service catalog and their alignment with evolving DoD technological requirements would need further investigation to assess long-term value and prevent obsolescence.

How was the 'full and open competition' process structured, and what were the key evaluation criteria beyond price?

While 'full and open competition' indicates a broad solicitation, the specific structure and evaluation criteria are not detailed. Understanding factors like technical capabilities, past performance, and security clearances would be crucial to assess if the best value was truly achieved beyond just the lowest bid, and to gauge the effectiveness of the price discovery mechanism.

What mechanisms are in place to ensure cost-effectiveness and prevent potential cost overruns throughout the contract's five-year duration?

The contract uses a 'FIRM FIXED PRICE' type, which generally shifts cost overrun risk to the contractor. However, effective oversight, performance monitoring, and change order management are essential to ensure the fixed price remains competitive and that the government receives the intended value without unexpected escalations.

Industry Classification

NAICS: InformationWired and Wireless Telecommunications (except Satellite)Wired Telecommunications Carriers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $58,662,306

Exercised Options: $55,617,761

Current Obligation: $55,576,080

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0010

IDV Type: IDC

Timeline

Start Date: 2011-03-18

Current End Date: 2016-09-20

Potential End Date: 2016-09-20 00:00:00

Last Modified: 2017-04-11

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