DoD Awards IBM $5.5M for OCONUS ESL New Installation Services
Contract Overview
Contract Amount: $5,547,807 ($5.5M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Defense
Start Date: 2025-11-03
End Date: 2026-10-26
Contract Duration: 357 days
Daily Burn Rate: $15.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ESL NEW INSTALLATION OCONUS
Place of Performance
Location: FORT LEE, PRINCE GEORGE County, VIRGINIA, 23801
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $5.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: ESL NEW INSTALLATION OCONUS Key points: 1. Contract awarded to a single, large vendor (IBM). 2. Full and open competition was utilized. 3. Potential for cost savings through competitive bidding. 4. IT services sector, specifically computer-related services.
Value Assessment
Rating: fair
The contract value of $5.5M for a 357-day duration appears reasonable for specialized IT services. Benchmarking against similar OCONUS IT installation contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple vendors to bid, theoretically driving down costs and ensuring fair market pricing.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it aims to secure the best possible price for the required services.
Public Impact
Ensures critical IT infrastructure is established in overseas locations. Supports Department of Defense operations and readiness. Leverages established vendor capabilities for complex installations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single large vendor.
- Potential for scope creep in complex installations.
- Geopolitical risks associated with OCONUS operations.
Positive Signals
- Utilizes full and open competition.
- Firm fixed price contract type limits cost overruns.
- Clear end date for service delivery.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across the federal government, supporting a wide range of technological needs.
Small Business Impact
The contract was not awarded to a small business. There is no indication of small business subcontracting goals within the provided data.
Oversight & Accountability
The Department of Defense, through the Defense Information Systems Agency, is responsible for oversight. The firm fixed price contract type provides some cost control, but performance monitoring is crucial.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Vendor Lock-in Potential
- Geopolitical Instability
- Technical Obsolescence Risk
- Performance Monitoring Challenges
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. ESL NEW INSTALLATION 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 $5.5 million.
What is the period of performance?
Start: 2025-11-03. End: 2026-10-26.
What is the specific nature of the 'ESL NEW INSTALLATION' and its criticality to DoD operations?
The 'ESL NEW INSTALLATION OCONUS' likely refers to establishing or upgrading Electronic Security Systems or similar critical infrastructure in an overseas location. Its criticality stems from ensuring secure and reliable communication and operational capabilities for military personnel and assets abroad, directly impacting mission effectiveness and personnel safety.
How does the $5.5M award compare to industry benchmarks for similar OCONUS IT installation projects?
Without specific details on the scope, complexity, and location of the installation, a direct benchmark is challenging. However, OCONUS projects often incur higher costs due to logistics, security, and specialized labor requirements. A comparative analysis with similar DoD or government contracts for IT infrastructure deployment in comparable regions would be necessary for a definitive assessment.
What mechanisms are in place to ensure the successful and timely completion of this installation, given its OCONUS nature?
The firm fixed price contract provides a financial incentive for timely completion. Oversight by the Defense Information Systems Agency, including regular progress reports, site inspections, and performance metrics, will be critical. Given the OCONUS location, robust project management, clear communication channels, and contingency planning for logistical or security challenges are essential for success.
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: HC108425R0005
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $5,547,807
Exercised Options: $5,547,807
Current Obligation: $5,547,807
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC108426D0003
IDV Type: IDC
Timeline
Start Date: 2025-11-03
Current End Date: 2026-10-26
Potential End Date: 2026-10-26 00:00:00
Last Modified: 2025-12-31
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