VA awards $3.34M for IBM-MVS Software License and Maintenance to International Business Machines Corporation
Contract Overview
Contract Amount: $3,342,364 ($3.3M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-10-01
End Date: 2025-09-30
Contract Duration: 364 days
Daily Burn Rate: $9.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IMB-MVS SOFTWARE LICENSE AND MAINTENANCE
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78772
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $3.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IMB-MVS SOFTWARE LICENSE AND MAINTENANCE Key points: 1. Spending on IBM-MVS software is concentrated with a single vendor, International Business Machines Corporation. 2. The contract is for custom computer programming services, a sector with significant IT spending. 3. Risk is moderate due to reliance on a sole vendor for critical software. 4. The sector context suggests potential for cost savings through competitive bidding on similar software.
Value Assessment
Rating: fair
The $3.34 million award for IBM-MVS software license and maintenance appears to be a standard renewal. Without specific performance metrics or comparison data, it's difficult to definitively assess value. However, the firm fixed-price contract provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally expected to yield competitive pricing, though the specific pricing outcome requires further analysis against benchmarks.
Taxpayer Impact: Taxpayer funds are being used for essential software licensing and maintenance. The firm fixed-price structure helps control costs, but the overall value depends on the necessity and market competitiveness of this specific software.
Public Impact
Veterans may experience uninterrupted access to services reliant on this IBM-MVS software. The Department of Veterans Affairs ensures continued operational capability through this software maintenance. Taxpayers fund the licensing and support for critical government IT infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized software.
- Reliance on a single vendor for maintenance and updates.
- Need to ensure competitive pricing in future renewals.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
- Contract duration aligns with operational needs.
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming services. Benchmarks for software licensing and maintenance vary widely, but consistent competition is key to achieving favorable pricing.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. Future opportunities may exist for small businesses in related IT services or software maintenance if subcontracting is permitted or if alternative solutions are sought.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure compliance and value for money.
Related Government Programs
- Custom Computer Programming Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Sole-source vendor reliance
- Potential for price increases upon renewal
- Lack of detailed performance metrics
- Need for ongoing market analysis
Tags
custom-computer-programming-services, department-of-veterans-affairs, tx, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $3.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IMB-MVS SOFTWARE LICENSE AND MAINTENANCE
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 $3.3 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What is the total cost of ownership for this IBM-MVS software over its lifecycle, including licensing, maintenance, and potential upgrade costs?
Determining the total cost of ownership requires a comprehensive review of all associated expenses beyond the current contract. This includes past expenditures on licensing and maintenance, projected future costs for renewals and support, and any anticipated costs for system upgrades or migrations. Without this historical and forward-looking data, a precise lifecycle cost cannot be calculated, making it difficult to assess long-term value.
What is the risk of vendor lock-in and what mitigation strategies are in place if International Business Machines Corporation increases prices significantly in the future?
The risk of vendor lock-in is present due to the specialized nature of IBM-MVS software. Mitigation strategies could include actively monitoring market alternatives, exploring open-source options, or negotiating long-term agreements with price caps. The VA should also maintain internal expertise to facilitate potential transitions and regularly assess the total cost of ownership against competitive solutions.
How effectively does this software support the Department of Veterans Affairs' mission, and are there alternative solutions that could offer better performance or cost-efficiency?
The effectiveness of the IBM-MVS software in supporting the VA's mission is crucial but not detailed in the provided data. An assessment would involve evaluating its performance metrics, user feedback, and alignment with current operational requirements. Benchmarking against alternative solutions, including newer technologies or cloud-based services, is essential to identify potential improvements in performance, cost-efficiency, and scalability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM
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: 1 NEW ORCHARD RD, ARMONK, NY, 10504
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,342,364
Exercised Options: $3,342,364
Current Obligation: $3,342,364
Actual Outlays: $3,324,672
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F110DA
IDV Type: FSS
Timeline
Start Date: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-03-02
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