GSA Awards IBM $42.2M for IT System Support, Highlighting Custom Programming Services

Contract Overview

Contract Amount: $42,235,094 ($42.2M)

Contractor: International Business Machines Corporation

Awarding Agency: General Services Administration

Start Date: 2025-03-27

End Date: 2026-09-26

Contract Duration: 548 days

Daily Burn Rate: $77.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: OCIO FAS IT SYSTEM OM HALLEYS FOLLOWON

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $42.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: OCIO FAS IT SYSTEM OM HALLEYS FOLLOWON Key points: 1. Significant contract value of $42.2 million for IT system operations. 2. IBM, a major player, secures this follow-on contract. 3. Risk is moderate due to reliance on a single large vendor for critical IT. 4. Spending falls within the custom computer programming services sector.

Value Assessment

Rating: good

The contract value of $42.2 million for 548 days of service appears reasonable given the scope of custom computer programming. Benchmarking against similar large-scale IT system support contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential IT services.

Public Impact

Ensures continued operation and support for a critical federal IT system. Supports a major technology provider, IBM, contributing to the IT sector's economy. Potential for service disruptions if IBM's performance falters, impacting agency operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Vendor lock-in potential with follow-on contracts.
Reliance on a single vendor for critical IT infrastructure.
Scope creep risk in custom programming services.

Positive Signals

Awarded through full and open competition.
Clear contract end date.
Experienced vendor in IT system support.

Sector Analysis

This contract falls under IT services, specifically custom computer programming. Spending benchmarks for similar large-scale IT system operations and maintenance contracts are typically in the millions, making this award consistent with sector norms.

Small Business Impact

This contract was awarded to IBM, a large business. There is no indication of small business participation in this specific award, which is common for large, complex IT system contracts.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract through its Federal Acquisition Service. Standard oversight mechanisms for contract performance and financial management are expected to be in place.

Related Government Programs

Custom Computer Programming Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for vendor lock-in.
Reliance on a single large vendor.
Risk of scope creep in custom programming.
Lack of explicit small business participation.
System criticality not fully detailed.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $42.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. OCIO FAS IT SYSTEM OM HALLEYS FOLLOWON

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $42.2 million.

What is the period of performance?

Start: 2025-03-27. End: 2026-09-26.

What is the specific nature of the IT system being supported and its criticality to agency operations?

The provided data does not specify the exact IT system. However, as a follow-on contract for 'OCIO FAS IT SYSTEM OM HALLEYS', it implies a system managed by the Office of the Chief Information Officer within the Federal Acquisition Service. Its criticality is suggested by the substantial funding and multi-year duration, indicating essential operational functions.

How does the per-unit cost compare to industry benchmarks for similar custom programming services?

A precise per-unit cost benchmark is not available without more granular data on the labor categories and hours involved. However, the total award of $42.2 million over 548 days suggests a significant investment. Further analysis would require breaking down the labor hours and rates against industry standards for custom development and system maintenance.

What measures are in place to ensure effective performance and prevent cost overruns during the contract period?

Standard government contract management practices, including performance monitoring, regular reporting, and defined deliverables, are expected to be in place. The GSA's Federal Acquisition Service likely has established procedures for oversight. However, the potential for scope creep in custom programming necessitates vigilant management to control costs and ensure objectives are met.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFEA25Q0009

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $52,680,069

Exercised Options: $52,680,069

Current Obligation: $42,235,094

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F110DA

IDV Type: FSS

Timeline