NOAA's $15.1M IBM Contract for Digital TV Transition Services Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $15,100,061 ($15.1M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Commerce
Start Date: 2008-07-28
End Date: 2008-08-01
Contract Duration: 4 days
Daily Burn Rate: $3.8M/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COMBINATION (TWO OR MORE)
Sector: Other
Official Description: TO PROVIDE COUPONS AND RELATED SERVICES AS PART OF THE DIGITAL TELEVISION TRANSITION AND PUBLIC SAFETY ACT OF 2005. THIS TASK ORDER PROVIDES FUNDING FOR THE CONTINGENT OPTION PERIOD OF THIS COMPETITIVELY AWARDED FIXED PRICE REQUIREMENTS CONTRACT.
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Commerce obligated $15.1 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: TO PROVIDE COUPONS AND RELATED SERVICES AS PART OF THE DIGITAL TELEVISION TRANSITION AND PUBLIC SAFETY ACT OF 2005. THIS TASK ORDER PROVIDES FUNDING FOR THE CONTINGENT OPTION PERIOD OF THIS COMPETITIVELY AWARDED FIXED PRICE REQUIREMENTS CONTRACT. Key points: 1. Contract awarded to IBM for digital television transition services. 2. Utilizes a fixed-price requirements contract structure. 3. Contingent option period funding provided. 4. Competition method was full and open, suggesting potential for competitive pricing. 5. Services fall under Administrative Management and General Management Consulting.
Value Assessment
Rating: good
The contract is fixed-price, which generally provides good value by shifting cost risk to the contractor. The specific pricing assessment requires comparison to similar services, but the competitive award is a positive indicator.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing any qualified vendor to bid. This method typically fosters competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are likely being used efficiently for these essential digital transition services.
Public Impact
Ensures continuity of services related to the digital television transition. Supports public safety initiatives through improved broadcasting infrastructure. Leverages expertise from a major technology provider (IBM). Potential for improved broadcast quality and accessibility for the public.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is short (4 months), potentially limiting long-term strategic benefits.
- Fixed-price contracts can sometimes lead to scope creep if not managed carefully.
Positive Signals
- Awarded under full and open competition.
- Fixed-price contract structure.
- Supports a critical public service (digital TV transition).
Sector Analysis
This contract falls within the Administrative Management and General Management Consulting Services sector. Spending in this sector can vary widely based on agency needs, but consulting services are often used for specialized projects like technological transitions.
Small Business Impact
The data indicates this contract was not awarded to small businesses. Further analysis would be needed to determine if small businesses had an opportunity to participate in the subcontracting process.
Oversight & Accountability
The contract was awarded by the Department of Commerce, National Oceanic and Atmospheric Administration. Oversight would involve monitoring IBM's performance against the contract requirements and ensuring adherence to the fixed-price terms.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Potential for scope creep in fixed-price contracts.
- Lack of small business participation indicated.
- Short contract duration may limit long-term impact.
- Reliance on a single large contractor (IBM).
Tags
administrative-management-and-general-ma, department-of-commerce, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $15.1 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. TO PROVIDE COUPONS AND RELATED SERVICES AS PART OF THE DIGITAL TELEVISION TRANSITION AND PUBLIC SAFETY ACT OF 2005. THIS TASK ORDER PROVIDES FUNDING FOR THE CONTINGENT OPTION PERIOD OF THIS COMPETITIVELY AWARDED FIXED PRICE REQUIREMENTS CONTRACT.
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $15.1 million.
What is the period of performance?
Start: 2008-07-28. End: 2008-08-01.
What was the specific scope of 'coupons and related services' provided under this contract?
The term 'coupons and related services' in the context of the Digital Television Transition and Public Safety Act of 2005 likely refers to the distribution or management of coupons that consumers could use to purchase digital-converter boxes. This was a key component of the government's initiative to shift from analog to digital broadcasting, ensuring accessibility for all households.
What were the primary risks associated with this fixed-price contract for digital TV transition services?
A primary risk for a fixed-price contract is that the contractor (IBM) might cut corners on quality or service delivery to maximize profit if the scope is not precisely defined or if unforeseen technical challenges arise. Additionally, if the government's needs evolve significantly during the contract period, adapting the scope under a fixed-price agreement can be difficult and costly.
How effectively did this contract contribute to the overall goals of the Digital Television Transition and Public Safety Act of 2005?
The effectiveness of this specific contract hinges on the successful delivery of the 'coupons and related services' as intended. If these services facilitated widespread adoption of digital converter boxes, it would have directly contributed to the Act's goals of freeing up spectrum and improving broadcast quality. The competitive award suggests a good faith effort to achieve these goals efficiently.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 8
Pricing Type: COMBINATION (TWO OR MORE) (2)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 08
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $15,100,061
Exercised Options: $15,100,061
Current Obligation: $15,100,061
Parent Contract
Parent Award PIID: DOCDG133507CQ0054
IDV Type: IDC
Timeline
Start Date: 2008-07-28
Current End Date: 2008-08-01
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2009-03-03
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