GSA's $96.4M IT Infrastructure Consolidation contract awarded to IBM for Computer Systems Design Services

Contract Overview

Contract Amount: $96,398,525 ($96.4M)

Contractor: International Business Machines Corporation

Awarding Agency: General Services Administration

Start Date: 2017-05-15

End Date: 2027-05-14

Contract Duration: 3,651 days

Daily Burn Rate: $26.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF GINNIE MAE IT INFRASTRUCTURE CONSOLIDATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $96.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IGF::OT::IGF GINNIE MAE IT INFRASTRUCTURE CONSOLIDATION Key points: 1. The contract aims to consolidate IT infrastructure, potentially leading to cost savings and improved efficiency. 2. IBM, a major IT services provider, brings significant experience to this large-scale consolidation effort. 3. The contract's duration of over 10 years suggests a long-term strategic investment in IT modernization. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The scope of services includes computer systems design, indicating a focus on foundational IT architecture. 6. This contract represents a substantial commitment to modernizing federal IT systems.

Value Assessment

Rating: good

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. However, the fixed-price nature provides a degree of cost control. The duration suggests a significant investment, and the success will depend on the effective execution of the IT infrastructure consolidation plan. Comparing it to similar large-scale IT modernization efforts would require access to more granular data on scope and deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield better pricing and value for the government. The number of bidders is not specified, but the full and open nature suggests a robust competition.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging innovation among bidders.

Public Impact

Federal agencies utilizing the consolidated IT infrastructure will benefit from potentially more reliable and efficient systems. The contract supports the delivery of modernized IT infrastructure services, crucial for government operations. The primary geographic impact is within the District of Columbia, where GSA is headquartered. The contract likely has implications for the IT workforce, both within GSA and potentially for contractors supporting the effort.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Potential for scope creep over the multi-year period, increasing costs beyond initial projections.
Dependence on a single large contractor for critical IT infrastructure could pose risks.
Ensuring ongoing technological relevance and avoiding obsolescence over a decade-long contract.
Measuring the true cost savings and efficiency gains from infrastructure consolidation can be complex.

Positive Signals

Award to a major IT provider like IBM suggests a high likelihood of technical capability.
Fixed-price contract provides cost certainty and incentivizes efficient delivery.
Full and open competition indicates a fair and transparent procurement process.
Consolidation of IT infrastructure can lead to significant long-term operational efficiencies.
The contract's focus on infrastructure modernization aligns with government-wide IT modernization goals.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on IT infrastructure design and services. The market for IT infrastructure services is vast and highly competitive, with numerous large and small businesses offering solutions. This contract represents a significant investment in consolidating and modernizing federal IT systems, a common trend across government agencies seeking to improve efficiency and reduce costs. Comparable spending benchmarks would involve looking at other large-scale IT modernization or consolidation contracts awarded by federal agencies.

Small Business Impact

The data indicates that small business participation (sb) is false, meaning this contract was not set aside for small businesses. There is no explicit information on subcontracting plans. This suggests that the primary awardee, IBM, will likely handle the majority of the work, potentially limiting opportunities for small businesses to participate directly on this specific contract. Further investigation into subcontracting clauses would be needed to assess the full impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. Mechanisms for oversight would include contract performance reviews, regular reporting requirements from the contractor, and potentially audits. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are recorded. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

GSA IT Schedule Programs
Cloud Computing Services
Data Center Consolidation Initiatives
Enterprise IT Modernization Programs

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for vendor lock-in over the 10-year term.
Complexity of measuring true cost savings from consolidation.
Dependence on a single large contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $96.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IGF::OT::IGF GINNIE MAE IT INFRASTRUCTURE CONSOLIDATION

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $96.4 million.

What is the period of performance?

Start: 2017-05-15. End: 2027-05-14.

What is the track record of International Business Machines Corporation (IBM) in managing large-scale federal IT infrastructure consolidation projects?

IBM has a long and extensive history of managing complex IT projects for the federal government, including infrastructure modernization and consolidation efforts. They are a major systems integrator with significant resources and expertise in areas such as cloud computing, data center management, and network infrastructure. Their track record includes numerous large contracts with various federal agencies, often involving significant technological transformations. However, like any large contractor, specific project outcomes can vary, and a detailed review of past performance on similar consolidation projects, including client satisfaction and adherence to budget and schedule, would provide a more precise assessment. Their ability to deliver on this GSA contract will depend on effective project management, resource allocation, and alignment with GSA's specific consolidation goals.

How does the awarded amount of $96.4 million compare to similar IT infrastructure consolidation contracts awarded by GSA or other federal agencies?

The awarded amount of $96.4 million for a multi-year IT infrastructure consolidation contract is substantial, reflecting the scale and complexity typically involved in such projects. To benchmark this value, one would need to compare it against other large IT modernization or consolidation contracts awarded by agencies like the Department of Defense, Department of Homeland Security, or other civilian agencies. Factors such as the duration of the contract (over 10 years in this case), the scope of services (e.g., data center consolidation, network upgrades, cloud migration), and the specific technologies involved are crucial for a meaningful comparison. Without access to a comprehensive database of comparable contracts with detailed scope and pricing, a precise benchmark is difficult. However, this figure is within the range of significant federal IT investments aimed at improving infrastructure.

What are the primary risks associated with a 10-year contract for IT infrastructure consolidation, and how are they mitigated?

The primary risks associated with a 10-year IT infrastructure consolidation contract include technological obsolescence, vendor lock-in, potential for scope creep, and the challenge of maintaining consistent performance and value over such an extended period. Technological advancements can outpace the contract's provisions, making the implemented solutions outdated before the contract ends. Vendor lock-in can occur if the chosen infrastructure and services are proprietary, making it difficult and costly to switch providers. Scope creep is a risk in any long-term project, where additional requirements may be added, increasing costs and complexity. Mitigation strategies typically involve robust contract management, including regular performance reviews, clear change control processes, incorporating flexibility for technology upgrades, and potentially including exit strategies or transition plans. The fixed-price nature of this contract also provides some mitigation against cost overruns due to scope creep, provided the scope is well-defined.

What are the expected program effectiveness metrics for this IT infrastructure consolidation contract?

Expected program effectiveness metrics for this IT infrastructure consolidation contract would likely focus on quantifiable improvements in IT operations and cost efficiency. Key metrics could include reduction in the number of data centers or servers, decreased energy consumption, improved system uptime and availability, enhanced cybersecurity posture, faster deployment of new IT services, and overall reduction in IT operational costs. The contract's success would be measured by its ability to achieve these consolidation goals while maintaining or improving the performance and security of the underlying IT infrastructure. Specific targets for these metrics would typically be defined in the contract's performance work statement (PWS) and monitored through regular reporting and performance evaluations.

How has GSA's spending on IT infrastructure design and services evolved over the past five years, and where does this contract fit in?

GSA's spending on IT infrastructure design and services has likely seen fluctuations over the past five years, influenced by evolving government-wide IT modernization priorities, budget allocations, and the adoption of new technologies like cloud computing. GSA, as a major provider of IT services and infrastructure to other federal agencies, typically manages a significant portfolio of such contracts. This $96.4 million contract, awarded in 2017 with an end date in 2027, represents a substantial, long-term investment within this category. Its size and duration suggest it is a strategic initiative aimed at achieving significant consolidation and modernization, rather than a series of smaller, tactical procurements. Analyzing GSA's historical spending data in the 'Computer Systems Design Services' NAICS code (541512) would reveal trends and the relative significance of this particular award within GSA's overall IT infrastructure budget.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID11160048

Offers Received: 3

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: $99,111,034

Exercised Options: $98,924,435

Current Obligation: $96,398,525

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $10,665,419

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