IBM awarded $30.6M contract for OMS Sterling Platform to GSS by General Services Administration

Contract Overview

Contract Amount: $30,642,508 ($30.6M)

Contractor: International Business Machines Corporation

Awarding Agency: General Services Administration

Start Date: 2018-07-28

End Date: 2022-07-27

Contract Duration: 1,460 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDING OMS STERLING PLATFORM TO GSS

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 $30.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: PROVIDING OMS STERLING PLATFORM TO GSS Key points: 1. Contract awarded to a single, large incumbent vendor, suggesting potential for limited competition. 2. The contract's duration of 1460 days (4 years) indicates a long-term commitment to the chosen solution. 3. Fixed-price contract type may offer cost certainty but could limit flexibility for evolving requirements. 4. The primary service category is Computer Systems Design Services, a common area for federal IT spending. 5. Awarded by the General Services Administration, a key agency for centralized IT procurement. 6. The contract value of over $30 million positions it as a significant IT investment.

Value Assessment

Rating: fair

The contract value of $30.6 million over four years for computer systems design services appears within a reasonable range for large-scale IT platform support. Benchmarking against similar GSA contracts for enterprise software and system integration would provide a clearer picture of value for money. The firm fixed-price structure suggests a defined scope, but the absence of detailed performance metrics makes a definitive value assessment challenging without further context on the platform's criticality and the specific services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, only one bid was received, which is a common occurrence in specialized IT procurements where only a few companies possess the necessary expertise and technology. While competition was technically open, the low number of bids may suggest market limitations or a highly specialized requirement that IBM was uniquely positioned to meet.

Taxpayer Impact: A single bid, even from a full and open competition, can sometimes lead to less aggressive pricing than a multi-bid scenario. Taxpayers benefit from the assurance that the procurement process was fair, but the lack of competitive pressure might mean a higher price than could have been achieved with more bidders.

Public Impact

Federal agencies utilizing the GSS (General Services Administration) will benefit from the continued support and functionality of the OMS Sterling Platform. The contract ensures the ongoing operation and maintenance of critical IT systems, supporting various government functions. The primary impact is on federal IT infrastructure and the agencies that rely on these systems for their operations. Workforce implications are likely concentrated within IBM and potentially its subcontractors, supporting IT design and maintenance roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single bid received despite full and open competition raises questions about market dynamics or the specificity of requirements.
Long contract duration (4 years) could lead to vendor lock-in and potential challenges in adapting to future technological shifts.
Firm Fixed Price contract may not adequately account for unforeseen scope changes or emergent requirements, potentially leading to change orders or performance issues if not managed carefully.

Positive Signals

Awarded through full and open competition, adhering to standard procurement principles.
Firm Fixed Price contract provides budget certainty for the government.
Contract awarded to a well-established vendor (IBM) with a known track record in IT services.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending on software, systems design, and integration. Contracts like this, focused on specific platforms like OMS Sterling, represent a segment of the broader IT services sector. Comparable spending benchmarks would involve looking at other large-scale enterprise software support and development contracts within civilian agencies, particularly those managed by GSA. The market for specialized platform support is often dominated by a few large technology providers.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. IBM is a large corporation, and the contract value suggests it is not targeted towards small businesses. There is no explicit information on subcontracting plans for small businesses within the provided data. Without this information, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often have indirect subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service which awarded the contract. GSA has established procurement regulations and oversight mechanisms to ensure contract compliance. Accountability measures would be tied to the terms of the firm fixed-price contract and performance expectations. Transparency is generally maintained through contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration IT Procurement
Computer Systems Design Services
Enterprise Software Support Contracts
Federal Civilian Agency IT Modernization

Risk Flags

Single Bidder
Long-Term Contract
Potential Vendor Lock-in

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $30.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. PROVIDING OMS STERLING PLATFORM TO GSS

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 $30.6 million.

What is the period of performance?

Start: 2018-07-28. End: 2022-07-27.

What is the historical spending pattern for the OMS Sterling Platform with GSA?

The provided data indicates a single award of $30,642,507.62 to IBM for the OMS Sterling Platform, with a start date of 2018-07-28 and an end date of 2022-07-27, spanning 1460 days. This suggests that this specific contract represents the primary or sole federal expenditure for this platform during this period. Without access to historical contract databases beyond this single award, it's difficult to establish a broader spending trend. However, the duration and value indicate a significant, multi-year investment by GSA in this particular system. Future spending would depend on whether the platform is renewed, replaced, or expanded upon through subsequent contract actions.

How does the awarded amount compare to similar IT platform support contracts managed by GSA?

The $30.6 million award for the OMS Sterling Platform is a substantial amount, typical for enterprise-level IT system support and development contracts. GSA manages a wide array of IT procurements, including software licenses, cloud services, and custom development. Contracts for similar services, such as large-scale system integration or the provision of specialized software platforms to multiple agencies, can range from tens to hundreds of millions of dollars over their lifecycle. To provide a precise comparison, one would need to benchmark against contracts with similar scope, duration, and service categories (e.g., Computer Systems Design Services) awarded by GSA or other federal agencies within the same timeframe. The single bid aspect also warrants comparison with other specialized procurements where competition might be inherently limited.

What are the key performance indicators (KPIs) associated with this contract, and how is performance being measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or the specific performance measurement criteria for this contract. However, as a firm fixed-price contract for Computer Systems Design Services, performance is typically measured against the defined scope of work, delivery schedules, and quality standards outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). GSA, as the contracting agency, would be responsible for monitoring IBM's adherence to these terms. Common KPIs in such contracts might include system uptime, response times for support requests, successful implementation of updates or new features, and adherence to security protocols. Formal contract reviews and acceptance of deliverables would serve as the primary mechanisms for performance assessment.

What is IBM's track record with GSA for similar IT services?

International Business Machines Corporation (IBM) is a major federal contractor with a long history of providing a wide range of IT services to government agencies, including GSA. Their track record typically includes large-scale system integration, software development, cloud services, and IT infrastructure support. GSA, in particular, frequently procures IT solutions from IBM. While this specific contract highlights a $30.6 million award for the OMS Sterling Platform, IBM holds numerous other contracts across various agencies. Their overall performance record with GSA is generally considered extensive, though like any large vendor, specific contract performance can vary. Reviewing past performance evaluations and contract histories within FPDS would provide a more granular view of their specific successes and challenges with GSA.

What are the potential risks associated with relying on a single vendor for this critical IT platform?

Relying on a single vendor, even one as established as IBM, for a critical IT platform like the OMS Sterling Platform presents several potential risks. Firstly, there's the risk of vendor lock-in, where the government becomes heavily dependent on the vendor's proprietary technology and pricing, making it difficult and costly to switch providers in the future. Secondly, a lack of competition can reduce the incentive for the vendor to innovate or offer competitive pricing over time. Thirdly, if the vendor experiences financial difficulties, strategic shifts, or decides to discontinue the product or support, the government could face significant disruption. Finally, the absence of alternative solutions could limit the government's ability to adopt newer, potentially more efficient or cost-effective technologies.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1272782

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: $43,669,986

Exercised Options: $30,642,508

Current Obligation: $30,642,508

Actual Outlays: $10,470,254

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0034

IDV Type: GWAC

Timeline