VA Awards $12.3M T4NG Task Order for PMO Support to IBM

Contract Overview

Contract Amount: $12,329,257 ($12.3M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-03-20

End Date: 2025-08-29

Contract Duration: 1,988 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG)TASK ORDER FOR PMO SUPPORT AT THE VA ACQUISITION ACADEMY

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21701

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG)TASK ORDER FOR PMO SUPPORT AT THE VA ACQUISITION ACADEMY Key points: 1. IBM secures a significant contract for PMO support at the VA Acquisition Academy. 2. The contract falls under the broad Computer Systems Design Services category. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The award is a delivery order under the T4NG IDIQ, indicating a phased approach to services.

Value Assessment

Rating: good

The $12.3M award for PMO support appears reasonable given the scope and duration. Benchmarking against similar IT support contracts within the VA would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, allowing all eligible vendors to bid. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, benefiting taxpayers by avoiding inflated costs.

Public Impact

Enhances project management capabilities within the VA Acquisition Academy. Supports the development and training of acquisition professionals. Contributes to the modernization of VA's acquisition processes. IBM's involvement suggests a focus on leveraging established IT service providers.

Waste & Efficiency Indicators

Waste Risk Score: 62 / 10

Warning Flags

Potential for scope creep given the multi-year duration.
Reliance on a single large vendor for critical support functions.

Positive Signals

Clear task order under a large IDIQ contract.
Competitive award process.
Supports a critical VA training function.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across federal agencies, with a focus on modernization and support services.

Small Business Impact

The contract was awarded to IBM, a large business. There is no indication of small business subcontracting in the provided data, which could be an area for future analysis.

Oversight & Accountability

The award is a delivery order under the T4NG IDIQ, which itself is subject to oversight. The VA's internal oversight mechanisms will be crucial for ensuring performance and value.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for vendor lock-in if not managed carefully.
Dependence on a single contractor for critical support.
Need for robust performance monitoring to ensure value.
Scope definition clarity is paramount for FFP contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG)TASK ORDER FOR PMO SUPPORT AT THE VA ACQUISITION ACADEMY

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2020-03-20. End: 2025-08-29.

What specific PMO functions will IBM be providing, and how do these align with the VA Acquisition Academy's strategic goals?

IBM will provide Program Management Office (PMO) support, likely encompassing tasks such as strategic planning, resource management, risk assessment, and performance monitoring for the Academy's initiatives. This support is intended to enhance the efficiency and effectiveness of the Academy's operations, ensuring alignment with the VA's broader acquisition reform and workforce development objectives.

What are the key performance indicators (KPIs) for this contract, and how will IBM's performance be measured?

Key performance indicators are not detailed in the provided data. Typically, for PMO support, KPIs would include metrics related to project timelines, budget adherence, quality of deliverables, stakeholder satisfaction, and successful implementation of strategic initiatives. The VA will likely establish specific metrics and conduct regular performance reviews to ensure IBM meets contractual obligations.

How does the pricing structure (firm-fixed-price) ensure cost-effectiveness for the VA over the contract's duration?

A firm-fixed-price (FFP) contract establishes a set price for the defined scope of work, shifting the risk of cost overruns to the contractor (IBM). This structure provides budget certainty for the VA and incentivizes IBM to manage costs efficiently to maintain profitability. For FFP contracts, effective scope definition is crucial to prevent costly change orders.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,329,257

Exercised Options: $12,329,257

Current Obligation: $12,329,257

Actual Outlays: $7,803,183

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $4,335,685

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1008

IDV Type: IDC

Timeline