DoD's $26.2M Commissary Site Prep Contract Awarded to IBM Amidst Concerns
Contract Overview
Contract Amount: $26,224,797 ($26.2M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Defense
Start Date: 2019-07-01
End Date: 2021-01-31
Contract Duration: 580 days
Daily Burn Rate: $45.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: COMMISSARY DECA SITE PREP LABOR CONUS
Place of Performance
Location: FORT LEE, PRINCE GEORGE County, VIRGINIA, 23801
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $26.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: COMMISSARY DECA SITE PREP LABOR CONUS Key points: 1. IBM secured a significant $26.2M contract for commissary site preparation. 2. The contract was awarded under full and open competition. 3. Potential risks include the broad scope of 'Other Computer Related Services' and the firm-fixed-price structure. 4. The Defense Information Systems Agency (DISA) is the primary agency involved.
Value Assessment
Rating: fair
The contract's value of $26.2M for site prep services appears substantial. Benchmarking against similar IT-related infrastructure projects is difficult due to the broad service category and lack of specific deliverables in the provided data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the broad nature of the service code (541519) could limit direct comparability and potentially obscure cost efficiencies.
Taxpayer Impact: Taxpayer funds are being utilized for essential site preparation, the value of which is subject to competitive bidding. The firm-fixed-price nature aims to control costs, but the broad service category warrants scrutiny.
Public Impact
Ensures necessary infrastructure development for commissary operations. Supports military personnel and their families by facilitating access to goods and services. The use of a large corporation like IBM may have implications for local economic impact and small business participation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Broad service category (541519) lacks specificity.
- Firm-fixed-price contract with a large value.
- Potential for cost overruns if scope is not tightly managed.
Positive Signals
- Awarded via full and open competition.
- Supports essential military family services.
- Contract duration aligns with project needs.
Sector Analysis
This contract falls under IT and related services, specifically site preparation. Benchmarks for IT infrastructure projects vary widely, but a $26.2M outlay for site prep suggests a significant undertaking, potentially involving extensive groundwork and integration.
Small Business Impact
The contract was awarded to IBM, a large corporation. There is no explicit indication of small business subcontracting in the provided data, which could represent a missed opportunity for small business participation in this significant federal contract.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency (DISA), a key component of the DoD's IT infrastructure. Oversight would typically involve DISA's contracting and program management offices to ensure performance and adherence to terms.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Broad service category lacks specificity.
- Potential for cost overruns due to fixed-price nature.
- Limited visibility into small business participation.
- Contract awarded to a single large entity.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. COMMISSARY DECA SITE PREP LABOR CONUS
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $26.2 million.
What is the period of performance?
Start: 2019-07-01. End: 2021-01-31.
What specific site preparation activities are covered under the 'Other Computer Related Services' code for this contract?
The 'Other Computer Related Services' code (541519) is very broad and can encompass a wide range of IT-related activities beyond traditional construction. For this contract, it likely includes tasks such as network cabling installation, server room preparation, power and cooling infrastructure setup, and potentially integration of specialized IT equipment, all crucial for the commissary's operational readiness.
What are the primary risks associated with a firm-fixed-price contract of this magnitude for site preparation?
The primary risks with a firm-fixed-price contract of this size ($26.2M) for site preparation include potential cost overruns if the scope is not precisely defined and managed, contractor underperformance leading to delays, and the possibility that the fixed price may not accurately reflect unforeseen site conditions or market fluctuations. The government bears the risk of scope creep or unforeseen issues.
How effectively does the 'full and open competition' method ensure value for money given the broad service category?
Full and open competition is designed to maximize value by encouraging multiple bidders to offer competitive pricing. However, the effectiveness is somewhat diminished when the service category is broad (541519). While competition occurred, the lack of specificity in the service code might have made it harder for bidders to precisely define their offerings and for the agency to conduct granular cost comparisons, potentially impacting the optimal value realization.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HC102815R0025
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DRIVE, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,224,797
Exercised Options: $26,224,797
Current Obligation: $26,224,797
Subaward Activity
Number of Subawards: 182
Total Subaward Amount: $22,672,324
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102816D0007
IDV Type: IDC
Timeline
Start Date: 2019-07-01
Current End Date: 2021-01-31
Potential End Date: 2021-01-31 00:00:00
Last Modified: 2023-09-29
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