DoD's $38.4M IBM Contract for OCONUS Checkout Lane Services Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $38,419,679 ($38.4M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Defense
Start Date: 2021-08-06
End Date: 2022-06-30
Contract Duration: 328 days
Daily Burn Rate: $117.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CHECKOUT LANE OCONUS
Place of Performance
Location: FORT LEE, PRINCE GEORGE County, VIRGINIA, 23801
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $38.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: CHECKOUT LANE OCONUS Key points: 1. Significant contract value of $38.4 million. 2. IBM is a major player in the IT services sector. 3. Potential risks associated with long-term IT service contracts. 4. Spending falls within the broad 'Other Computer Related Services' category.
Value Assessment
Rating: fair
The contract value of $38.4 million for IT services is substantial. Benchmarking against similar large-scale IT support contracts is difficult without more specific service details, but the price appears within a reasonable range for complex, long-term engagements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing by allowing all eligible vendors to bid.
Taxpayer Impact: Full and open competition aims to ensure taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs.
Public Impact
Ensures critical IT infrastructure support for Department of Defense operations, potentially impacting personnel and mission readiness. IBM's involvement highlights the reliance on large technology providers for government services. The 'Other Computer Related Services' NAICS code is broad, making specific public impact difficult to ascertain without further detail.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific service details within 'Other Computer Related Services'.
- Potential for vendor lock-in with large IT service providers.
- Contract duration and potential for scope creep.
Positive Signals
- Awarded through full and open competition.
- Clear contract end date.
- Firm fixed price contract type.
Sector Analysis
This contract falls under IT services, specifically 'Other Computer Related Services'. Spending in this sector is consistently high across government agencies, with benchmarks varying widely based on the complexity and duration of services provided.
Small Business Impact
The contract was awarded to IBM, a large business. There is no indication of small business participation in this specific award, which is common for large, complex IT service contracts.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency (DISA), a key component of the DoD for IT. Oversight would likely involve regular performance reviews and adherence to contract terms.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of detailed service description.
- Potential for vendor lock-in.
- Cybersecurity risks in OCONUS IT operations.
- Reliance on a single large vendor.
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 $38.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. CHECKOUT LANE OCONUS
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 $38.4 million.
What is the period of performance?
Start: 2021-08-06. End: 2022-06-30.
What specific 'Other Computer Related Services' are included in this $38.4 million contract to ensure value for money?
The specific services are not detailed in the provided data. 'Other Computer Related Services' is a broad NAICS code that can encompass a wide range of activities, from IT consulting and system integration to data processing and disaster recovery. Understanding the precise deliverables is crucial for assessing the contract's value and ensuring it aligns with DoD's operational needs and budget.
What are the primary risks associated with this long-term IT service contract with IBM for OCONUS operations?
Key risks include potential cost overruns if the scope expands beyond initial projections, vendor lock-in making it difficult to switch providers, and cybersecurity vulnerabilities inherent in managing IT infrastructure, especially in OCONUS locations. Ensuring robust performance metrics and clear exit strategies are vital to mitigate these risks.
How effective is the full and open competition process in ensuring competitive pricing for complex IT services like these?
Full and open competition is generally effective in driving competitive pricing by allowing multiple vendors to bid. However, for highly specialized or complex IT services, the effectiveness can be limited if only a few companies possess the required expertise. The government must ensure solicitation requirements accurately reflect needs without unduly restricting competition.
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 › IT AND TELECOM - APLLICATIONS
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: $38,419,679
Exercised Options: $38,419,679
Current Obligation: $38,419,679
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $3,298,424
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102816D0007
IDV Type: IDC
Timeline
Start Date: 2021-08-06
Current End Date: 2022-06-30
Potential End Date: 2022-06-30 00:00:00
Last Modified: 2023-11-21
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