Department of Education awards IBM $31.7M for Computer Systems Design Services over 3 years
Contract Overview
Contract Amount: $31,762,743 ($31.8M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Education
Start Date: 2023-01-01
End Date: 2025-12-31
Contract Duration: 1,095 days
Daily Burn Rate: $29.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: HOSTING
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202
Plain-Language Summary
Department of Education obligated $31.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: HOSTING Key points: 1. Significant contract value for IT services. 2. IBM is a major player in the IT sector. 3. Potential risk associated with long-term IT contracts. 4. Spending aligns with government IT modernization efforts.
Value Assessment
Rating: good
The contract value of $31.7M over three years for computer systems design services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT service 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 nature of the award is positive for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
Ensures continued IT support for the Department of Education. Leverages established IT infrastructure and expertise from IBM. Supports critical government functions through technology services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term IT dependency
- Vendor lock-in potential
Positive Signals
- Competitive award process
- Experienced vendor
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Government spending in this area is substantial, driven by the need for modernizing IT infrastructure and supporting digital services.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large IT contracts are often awarded to major corporations, potentially limiting small business participation.
Oversight & Accountability
Oversight will be crucial to ensure IBM meets performance requirements and delivers value throughout the contract term. Regular performance reviews and adherence to contract terms are key accountability measures.
Related Government Programs
- Computer Systems Design Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Long-term IT service dependency
- Potential for vendor lock-in
- Need for strong contract oversight
- Complexity of IT systems integration
Tags
computer-systems-design-services, department-of-education, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $31.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. HOSTING
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $31.8 million.
What is the period of performance?
Start: 2023-01-01. End: 2025-12-31.
What specific computer systems design services are included in this contract?
The contract specifies 'Computer Systems Design Services' (NAICS 541512). This broad category typically encompasses designing, developing, and implementing IT infrastructure, software, and network solutions. Specific deliverables would be detailed in the contract's statement of work, likely including system architecture, integration, and potentially custom software development or modification.
What is the risk of cost overruns or scope creep in this contract?
The risk of cost overruns or scope creep exists in any long-term IT services contract. However, the firm fixed-price structure and full and open competition award method can mitigate these risks. Robust contract management, clear performance metrics, and change control processes will be essential to prevent uncontrolled cost increases or deviations from the original scope.
How effectively will this contract support the Department of Education's mission objectives?
The effectiveness hinges on the alignment of IBM's services with the Department's strategic IT goals and operational needs. Assuming the services are well-defined and executed, this contract should enhance the Department's technological capabilities, supporting its mission delivery. Regular performance monitoring and feedback loops are necessary to ensure ongoing alignment and effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 91990023R0005
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: $48,587,763
Exercised Options: $32,043,617
Current Obligation: $31,762,743
Actual Outlays: $31,762,743
Subaward Activity
Number of Subawards: 13
Total Subaward Amount: $6,037,290
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSN316201200030W
IDV Type: GWAC
Timeline
Start Date: 2023-01-01
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 00:00:00
Last Modified: 2025-07-17
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