Forest Service spent $11.8M on end-user support services from IBM, spanning over three years

Contract Overview

Contract Amount: $11,801,859 ($11.8M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Agriculture

Start Date: 2005-10-01

End Date: 2009-01-31

Contract Duration: 1,218 days

Daily Burn Rate: $9.7K/day

Pricing Type: NOT REPORTED

Sector: IT

Official Description: FY 2006 FS END USER SUPPORT CENTER(EUSC), OTHER DIRECT COSTS, SUPPORT SERVICES, REPORTING AND OPERATIONAL PCR

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Agriculture obligated $11.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: FY 2006 FS END USER SUPPORT CENTER(EUSC), OTHER DIRECT COSTS, SUPPORT SERVICES, REPORTING AND OPERATIONAL PCR Key points: 1. The contract provided essential IT support services, ensuring operational continuity for the Forest Service. 2. IBM, a large established contractor, was awarded this BPA, indicating a reliance on experienced vendors for critical functions. 3. The contract duration of over three years suggests a need for sustained support, potentially indicating a stable requirement. 4. While specific performance metrics are not detailed, the nature of end-user support implies direct impact on agency productivity. 5. This spending falls within the 'Other Computer Related Services' NAICS code, a broad category encompassing various IT support functions.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable data for similar end-user support services during FY2006. The reported cost of $11.8 million over approximately three years suggests a steady expenditure for IT support. However, without details on the scope of services, number of users supported, or specific deliverables, it's difficult to definitively assess if this represented excellent value for money. The absence of detailed performance metrics or a clear comparison to market rates for similar services at the time makes a precise value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the procurement method used for this contract, making it impossible to determine the level of competition. It is unclear whether this was a full and open competition, a limited competition, or a sole-source award. Without this information, we cannot assess the number of bidders or the implications for price discovery. The contract type is listed as a BPA (Blanket Purchase Agreement), which can be established through various competitive or non-competitive means.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Higher competition generally leads to lower prices and better terms for the government. If this BPA was not competitively awarded, taxpayers may have paid more than necessary.

Public Impact

Forest Service employees across various locations benefited from reliable IT support, enabling them to perform their duties effectively. The contract delivered crucial end-user support services, including troubleshooting, technical assistance, and potentially system maintenance. Geographic impact is likely nationwide, as the Forest Service operates across the United States, requiring support for its distributed workforce. Workforce implications include ensuring that Forest Service IT staff and end-users had access to timely technical assistance, minimizing downtime and productivity loss.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the quality and effectiveness of the support provided.
The absence of competition details raises concerns about whether the government received the best possible pricing and terms.
The broad nature of 'Other Computer Related Services' can sometimes obscure the specific value and cost drivers of the services rendered.

Positive Signals

Award to a large, established contractor like IBM suggests a level of confidence in their ability to deliver complex IT services.
The multi-year duration indicates a stable and ongoing need for these critical IT support functions within the agency.
The BPA contract vehicle itself can offer administrative efficiencies for recurring needs, potentially streamlining future procurements.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on end-user support. The market for IT support services is vast and highly competitive, with numerous providers ranging from large system integrators to specialized support firms. Spending on IT support is a significant component of federal IT budgets, essential for maintaining operational readiness and enabling agency missions. Comparable spending benchmarks would typically involve analyzing IT support contracts across various agencies for similar service levels and user bases.

Small Business Impact

The data indicates that small business participation was not a factor in this specific contract (ss: false, sb: false). As this was awarded to IBM, a large corporation, there is no direct small business set-aside. Subcontracting opportunities for small businesses are not detailed in the provided information, but large prime contractors often utilize small businesses for specialized tasks or to meet broader socioeconomic goals.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers within the Forest Service, and potentially agency-level IT governance structures. Accountability would be tied to the terms and conditions of the Blanket Purchase Agreement (BPA) and any associated task orders. Transparency is limited by the available data; while the award itself is public, the detailed performance reviews and financial breakdowns are not readily accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT End-User Support Services
Forest Service IT Modernization Efforts
Department of Agriculture IT Procurement
Blanket Purchase Agreements (BPAs)
Large Prime Contractor IT Services

Risk Flags

Lack of performance metrics
Unclear competition details
Limited value-for-money assessment possible

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $11.8 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. FY 2006 FS END USER SUPPORT CENTER(EUSC), OTHER DIRECT COSTS, SUPPORT SERVICES, REPORTING AND OPERATIONAL PCR

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2005-10-01. End: 2009-01-31.

What was the specific scope of 'End User Support Center' services provided under this contract?

The provided data abbreviates the contract description as 'FY 2006 FS END USER SUPPORT CENTER(EUSC), OTHER DIRECT COSTS, SUPPORT SERVICES, REPORTING AND OPERATIONAL PCR'. This suggests the services encompassed a range of IT support functions critical for the Forest Service's operations. Typically, end-user support includes help desk services, troubleshooting hardware and software issues, user account management, and potentially on-site technical assistance. The mention of 'Reporting and Operational PCR' might indicate services related to performance monitoring, reporting, and potentially cost management or process control related to the support operations. Without further documentation, the precise technical details and service level agreements (SLAs) remain unspecified.

How does the $11.8 million cost compare to similar IT support contracts awarded around FY 2006?

Directly comparing the $11.8 million cost is difficult without access to a comprehensive database of IT support contracts from FY 2006 with similar scopes and scales. Federal IT support costs can vary significantly based on the number of users supported, the complexity of the IT environment, geographic distribution, and the specific services included (e.g., 24/7 support, specialized software support). However, for a multi-year contract supporting a large federal agency like the Forest Service, $11.8 million over approximately three years (1218 days) suggests an average annual expenditure of roughly $3.9 million. This figure would need to be benchmarked against contracts for similar agencies or departments to ascertain if it represents a competitive or outlier cost.

What were the key performance indicators (KPIs) or metrics used to evaluate IBM's performance under this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate IBM's performance. For end-user support contracts, common KPIs often include ticket resolution times, user satisfaction ratings, system uptime, and first-call resolution rates. The absence of this information in the summary data makes it impossible to assess the contractor's performance objectively. Effective oversight would typically involve regular performance reviews against pre-defined metrics outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

What is the significance of this contract being a Blanket Purchase Agreement (BPA)?

A Blanket Purchase Agreement (BPA) is a simplified method of filling anticipated repetitive needs for supplies or services. It is not a contract in itself but rather an agreement establishing terms and conditions under which future purchases (task orders) may be made. The significance of this BPA is that it likely streamlined the procurement process for the Forest Service's ongoing end-user support needs, allowing for quicker ordering and potentially pre-negotiated pricing. BPAs can offer administrative efficiencies and cost savings compared to establishing new contracts for each individual requirement, especially for services like IT support that are consistently needed.

What was the historical spending trend for Forest Service end-user support prior to or after this contract?

The provided data snippet focuses solely on the FY 2006 contract and does not offer insights into historical spending trends for Forest Service end-user support either before or after this period. To analyze historical spending, one would need access to procurement data covering multiple fiscal years. Such an analysis could reveal patterns of increasing or decreasing IT support costs, changes in contractor relationships, or shifts in the agency's IT support strategy over time. Without this broader context, it's difficult to determine if the $11.8 million expenditure represented a typical, increased, or decreased level of investment for these services.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Parent Contract

Parent Award PIID: 45318730505

IDV Type: BPA

Timeline