IBM's $34M contract for Fire Program Analysis System (FPA) shows long-term IT support needs

Contract Overview

Contract Amount: $34,130,308 ($34.1M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Agriculture

Start Date: 2004-06-02

End Date: 2011-09-30

Contract Duration: 2,676 days

Daily Burn Rate: $12.8K/day

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FIRE PROGRAM ANALYSIS SYSTEM (FPA)

Place of Performance

Location: GOLDEN, JEFFERSON County, COLORADO, 80401

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $34.1 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: FIRE PROGRAM ANALYSIS SYSTEM (FPA) Key points: 1. Contract duration of over 7 years suggests sustained IT infrastructure requirements. 2. The use of Time and Materials pricing may lead to cost overruns if not managed carefully. 3. A single award for a critical system indicates potential vendor lock-in or specialized expertise. 4. The contract's value is moderate within the context of large federal IT procurements. 5. Focus on a specific system (FPA) highlights the need for specialized software solutions in government operations.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without more specific service details. However, a 7-year duration for a $34 million IT system suggests an average annual spend of approximately $4.8 million. This is within the typical range for maintaining and developing specialized federal software systems. The Time and Materials (T&M) pricing model, while flexible, can be a risk for cost control compared to fixed-price contracts, especially over a long period. Without comparable T&M contracts for similar FPA systems, a precise value-for-money assessment is difficult, but the duration implies a recognized need for IBM's services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source, indicated by the 'ST: CO' (Contracting Officer) and the absence of multiple bidders in the provided data. Sole-source awards typically occur when a specific vendor possesses unique capabilities, proprietary technology, or when it's deemed the most efficient approach for follow-on work to an existing system. The lack of competition means that pricing and service levels are not tested against market alternatives, potentially leading to higher costs than a competed contract.

Taxpayer Impact: For taxpayers, a sole-source award means the government did not leverage competitive pressures to potentially lower costs or drive innovation. This can result in paying a premium for the services rendered.

Public Impact

Federal agencies, specifically the Forest Service, benefit from the Fire Program Analysis System (FPA) for managing critical fire data and operations. The system likely supports decision-making processes related to wildfire prevention, response, and resource allocation. Geographic impact is nationwide, as the Forest Service operates across the United States. Workforce implications include IT professionals and potentially analysts who utilize the FPA system for their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially innovation.
Time and Materials pricing model carries a risk of cost escalation over the contract's long duration.
Lack of transparency on specific performance metrics and outcomes.
Contract duration of over 7 years may indicate a lack of proactive modernization or transition planning.

Positive Signals

Sustained support for a critical system (FPA) indicates reliability and ongoing need.
Long-term relationship with a single vendor can foster deep system knowledge and efficiency.
The contract was awarded to a large, established IT provider (IBM), suggesting a degree of stability.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software development and maintenance for a specialized government system. The federal IT market is vast, with agencies spending billions annually on software, hardware, and services. Contracts like this, supporting niche but critical functions like fire management, are common. Comparable spending benchmarks would involve looking at other long-term, sole-source IT support contracts for specialized systems within agencies like the Department of Agriculture or other land management bodies.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses (SS: false, SB: false). IBM is a large corporation, and the nature of this sole-source award for a specialized system likely did not lend itself to small business participation as a prime contractor. There is no information on subcontracting plans, so the impact on the small business ecosystem is unknown but presumed to be minimal for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Forest Service contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, likely including performance standards and reporting requirements. Transparency is limited due to the sole-source nature and the lack of readily available public performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Services
Software Development and Maintenance
Department of Agriculture IT Spending
Forest Management Systems
Wildfire Management Technology

Risk Flags

Sole-source award
Time and Materials pricing
Long contract duration without clear competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $34.1 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. FIRE PROGRAM ANALYSIS SYSTEM (FPA)

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 $34.1 million.

What is the period of performance?

Start: 2004-06-02. End: 2011-09-30.

What specific functionalities does the Fire Program Analysis System (FPA) provide, and how critical are these to the Forest Service's mission?

The Fire Program Analysis System (FPA) is a crucial component of the Forest Service's operational infrastructure, designed to manage and analyze data related to wildland fires. Its functionalities likely include tracking fire incidents, resource allocation, cost management, post-fire analysis, and potentially predictive modeling for fire behavior and risk assessment. These capabilities are vital for effective wildfire suppression, prevention strategies, and informed decision-making regarding land management and public safety. The system's criticality stems from its role in supporting the agency's core mission of protecting national forests and grasslands, which involves significant resources and public trust.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT systems, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change frequently. Unlike fixed-price contracts, T&M pays the contractor for the actual labor hours and material costs incurred, plus a fixed fee or hourly rate. This offers flexibility but carries significant risk for the government, as costs can escalate unpredictably if work is inefficiently performed or if the scope expands without adequate oversight. For IT systems, fixed-price or cost-plus-fixed-fee contracts are often preferred for better cost control, especially for long-term maintenance and development where requirements can be better estimated over time. The primary risk with T&M here is the potential for overspending if IBM's efforts are not closely monitored and managed.

Given this was a sole-source award, what justification was likely provided by the Forest Service to procure services from IBM?

Sole-source awards are typically justified under specific circumstances outlined in federal acquisition regulations (FAR). For this IBM contract, likely justifications include: 1) Unique capabilities: IBM may possess proprietary software, unique technical expertise, or intellectual property essential for the FPA system that no other vendor can provide. 2) Continued evolution of an existing system: If IBM developed or significantly modified the FPA system previously, awarding follow-on work to them ensures continuity, leverages existing knowledge, and avoids costly knowledge transfer to a new vendor. 3) Urgency or minimal cost: In rare cases, it might be deemed more efficient or cost-effective to award to the incumbent if the cost and time of a full competition outweigh the potential benefits, though this is less common for multi-year contracts. The specific justification would be documented in the contract file.

What is the historical spending pattern for the Fire Program Analysis System (FPA) contract with IBM?

The provided data shows a single award for the FPA system to IBM with a total value of $34,130,307.82, spanning from June 2, 2004, to September 30, 2011. This represents a contract duration of approximately 7 years and 3 months. The total value indicates an average annual expenditure of roughly $4.6 million over the life of the contract. Without access to historical contract databases or specific award modifications, it's difficult to detail spending patterns within this period (e.g., year-over-year spending, specific task orders). However, the consistent award to a single entity over a long period suggests a stable, ongoing requirement for the FPA system's support and maintenance.

Are there any known performance issues or successes associated with IBM's support of the FPA system during this contract period?

The provided data does not contain specific details regarding performance issues or successes related to IBM's support of the FPA system. Federal contract data often lacks granular performance metrics in publicly accessible databases. Typically, performance information is captured through contract performance reports (CPARs), internal agency evaluations, and potentially Inspector General reports if significant issues arise. Without access to these internal or more detailed records, assessing the success or failure of this specific contract is not possible based solely on the provided summary data. The renewal and long duration might imply satisfactory performance, but this is an assumption.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

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

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,130,308

Exercised Options: $34,130,308

Current Obligation: $34,130,308

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4984H

IDV Type: FSS

Timeline