IBM awarded $92.6M contract for USCIS IT DevSecOps services, supporting critical verification systems

Contract Overview

Contract Amount: $92,648,677 ($92.6M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2024-05-20

End Date: 2026-09-10

Contract Duration: 843 days

Daily Burn Rate: $109.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DEVELOPMENT, SECURITY, AND OPERATIONS (DEVSECOPS) SERVICES TO SUPPORT UNITED STATES CITIZENSHIP AND IMMIGRATION SERVICES(USCIS) INFORMATION TECHNOLOGY (IT) SYSTEM DELIVERY PRIMARILY VIS (VERIFICATION INFORMATION SYSTEM). FALCON

Place of Performance

Location: CAMP SPRINGS, HOWARD County, MARYLAND, 20588

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $92.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: DEVELOPMENT, SECURITY, AND OPERATIONS (DEVSECOPS) SERVICES TO SUPPORT UNITED STATES CITIZENSHIP AND IMMIGRATION SERVICES(USCIS) INFORMATION TECHNOLOGY (IT) SYSTEM DELIVERY PRIMARILY VIS (VERIFICATION INFORMATION SYSTEM). FALCON Key points: 1. Contract focuses on critical IT system delivery for USCIS, enhancing verification processes. 2. Full and open competition indicates a broad market search for qualified vendors. 3. The contract's Time and Materials (T&M) structure may pose cost control challenges. 4. IBM, a large incumbent, is positioned to leverage existing knowledge and infrastructure. 5. The duration of over two years suggests a need for sustained technical support. 6. Performance is tied to USCIS's IT system delivery, impacting citizen services. 7. The contract is a delivery order under a larger IDIQ, suggesting potential for future task orders.

Value Assessment

Rating: fair

The contract value of $92.6 million over approximately 2.7 years needs careful benchmarking against similar DevSecOps contracts for government IT systems. As a Time and Materials (T&M) contract, the final cost is dependent on actual hours worked and material costs, which can lead to cost overruns if not managed tightly. While IBM is a capable provider, the T&M nature warrants scrutiny to ensure value for money is achieved and that pricing aligns with market rates for comparable services. Benchmarking specific labor categories and material markups would be essential for a comprehensive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 7 bidders indicates a competitive environment, which is generally favorable for price discovery and innovation. However, the specific details of the evaluation criteria and the number of proposals received are not provided, making it difficult to fully assess the intensity of the competition. A robust competition typically drives down prices and encourages higher quality solutions.

Taxpayer Impact: The full and open competition is beneficial for taxpayers as it increases the likelihood of securing competitive pricing and high-quality services, preventing potential overpayment that could occur with less competitive solicitations.

Public Impact

USCIS benefits from enhanced IT system delivery, improving the efficiency and reliability of its verification processes. Citizens applying for immigration benefits will experience more stable and potentially faster processing due to improved IT infrastructure. The contract supports the critical function of verifying information for immigration and citizenship applications. The primary geographic impact is within the United States, supporting federal IT operations. The contract likely supports a workforce of IT professionals, including developers, security analysts, and operations specialists, primarily within IBM and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost uncertainty and potential overruns if not closely monitored.
Reliance on a single large incumbent (IBM) may limit opportunities for smaller, innovative firms in future procurements.
The specific performance metrics and Service Level Agreements (SLAs) are not detailed, making it hard to assess performance risks.
The contract is a delivery order under a larger IDIQ, which might mean the initial competition was for the IDIQ, not this specific task order.

Positive Signals

Awarded under full and open competition, indicating a broad search for the best value.
IBM has a significant track record in providing IT services to government agencies, suggesting technical capability.
The contract supports critical national security and immigration functions for USCIS.
The duration of the contract allows for sustained support and development of vital IT systems.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on Development, Security, and Operations (DevSecOps). This area is crucial for modernizing government IT systems, integrating security practices throughout the software development lifecycle. The market for DevSecOps services is growing rapidly as agencies prioritize secure and agile IT delivery. Comparable spending benchmarks would involve looking at other large federal contracts for custom computer programming services (NAICS 541511) and IT support, particularly those focused on system modernization and security.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). While the prime contractor is IBM, a large business, there is no explicit indication of small business subcontracting goals or requirements within the provided data. This means that opportunities for small businesses to participate in this contract may be limited unless IBM proactively includes them in its subcontracting plan. Further analysis would be needed to determine if subcontracting opportunities exist and if they are being actively pursued.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers within the Department of Homeland Security. As a Time and Materials contract, rigorous oversight of labor hours, material costs, and performance against requirements will be critical to ensure accountability and prevent cost overruns. Transparency is facilitated through contract award databases, but detailed performance reporting and potential Inspector General reviews would provide further accountability.

Related Government Programs

USCIS IT Modernization Efforts
Department of Homeland Security Cybersecurity Initiatives
Federal DevSecOps Services
Custom Computer Programming Services
IT System Delivery Contracts

Risk Flags

Cost Overrun Risk (T&M Contract)
Performance Monitoring Challenges
Vendor Lock-in Potential
Security Vulnerability Management
System Integration Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $92.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. DEVELOPMENT, SECURITY, AND OPERATIONS (DEVSECOPS) SERVICES TO SUPPORT UNITED STATES CITIZENSHIP AND IMMIGRATION SERVICES(USCIS) INFORMATION TECHNOLOGY (IT) SYSTEM DELIVERY PRIMARILY VIS (VERIFICATION INFORMATION SYSTEM). FALCON

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $92.6 million.

What is the period of performance?

Start: 2024-05-20. End: 2026-09-10.

What is IBM's track record with USCIS and similar federal agencies for DevSecOps and IT system delivery?

IBM has a substantial history of providing IT services to various U.S. federal agencies, including the Department of Homeland Security (DHS) and its components like USCIS. Their experience spans large-scale system development, integration, and modernization projects. For DevSecOps specifically, IBM offers a suite of solutions and has been involved in transforming development and security practices for government clients. While this contract focuses on specific USCIS systems like VIS, IBM's broader experience suggests a capacity to handle the technical demands. However, a detailed review of past performance on similar contracts, including any past performance issues or successes, would be necessary for a complete assessment. This includes examining their performance on previous USCIS IT contracts to understand their reliability and effectiveness in delivering complex IT solutions within the agency's environment.

How does the $92.6 million contract value compare to similar DevSecOps contracts awarded by federal agencies?

Benchmarking the $92.6 million contract value requires comparing it against similar DevSecOps and custom computer programming services contracts awarded by federal agencies, particularly within DHS or for agencies with comparable IT system complexity. The contract's duration of approximately 2.7 years (from May 2024 to September 2026) suggests an average annual value of roughly $34 million. This figure needs to be assessed against market rates for large-scale IT development and security operations support. Factors such as the specific services included (e.g., software development, cybersecurity, cloud integration, operational support), the level of security clearance required, and the specific government systems being supported will influence comparability. Without access to a detailed breakdown of labor categories, hours, and material costs, a precise comparison is challenging, but the overall value suggests a significant investment in critical IT infrastructure.

What are the primary risks associated with this Time and Materials (T&M) contract structure for USCIS?

The primary risk associated with this Time and Materials (T&M) contract structure is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M contracts obligate the government to pay for all hours worked and materials consumed, regardless of the total cost. This can lead to uncertainty in final project costs, making budgeting more difficult for USCIS. Effective risk mitigation requires stringent oversight, detailed tracking of labor hours and material usage, and clear performance metrics. Without robust monitoring and management, there's a risk that costs could escalate beyond initial expectations, potentially diminishing the overall value for money. Additionally, T&M contracts can sometimes incentivize longer project durations or higher labor rates if not managed carefully.

How effective is the 'full and open competition' strategy likely to be in ensuring value for money for this specific contract?

The 'full and open competition' strategy is generally considered the most effective method for ensuring value for money in federal contracting, as it allows the widest possible pool of vendors to compete. With 7 bidders participating, it suggests a reasonably competitive environment, which should theoretically drive down prices and encourage innovation. However, the ultimate effectiveness depends on several factors not detailed here: the clarity and realism of the solicitation requirements, the evaluation criteria used, and the government's ability to accurately assess proposals. If the evaluation process strongly favors technical capability and past performance over price, or if the requirements are overly prescriptive, the cost savings from competition might be less pronounced. Continuous monitoring of performance and costs throughout the contract lifecycle is also crucial to ensure sustained value.

What are the potential implications of this contract on the broader DevSecOps market within the federal IT sector?

This contract, awarded to IBM for a significant sum, reinforces the trend of large, established IT providers dominating major federal DevSecOps contracts. It highlights the demand for comprehensive DevSecOps capabilities, integrating development, security, and operations, which is becoming a standard requirement for modernizing government IT. The award may signal to the market that agencies like USCIS are prioritizing mature, end-to-end solutions from experienced vendors. While this benefits the awarded contractor, it could also increase barriers to entry for smaller, specialized DevSecOps firms seeking to compete on similar large-scale procurements. The success of this contract could also influence future solicitations, potentially shaping requirements and evaluation criteria across the federal IT landscape.

How does the contract's focus on Verification Information System (VIS) support USCIS's overall mission?

The Verification Information System (VIS) is a critical component of USCIS's operations, used to process and verify information related to immigration and citizenship applications. By awarding this contract for DevSecOps services to support VIS, USCIS aims to enhance the security, reliability, and efficiency of this vital system. Improved IT delivery through DevSecOps practices can lead to faster processing times, reduced system vulnerabilities, and better data integrity. This directly supports USCIS's mission to administer immigration and nationality laws, ensuring that applications are processed accurately and securely. The stability and performance of VIS are paramount for maintaining public trust and facilitating lawful immigration processes.

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: 70SBUR24Q00000004

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

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: $277,940,474

Exercised Options: $92,648,677

Current Obligation: $92,648,677

Actual Outlays: $28,368,989

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F110DA

IDV Type: FSS

Timeline