DoD's $253.6M BOLT Program Awarded to IBM for Language Tech, Raising Oversight Questions
Contract Overview
Contract Amount: $25,363,456 ($25.4M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Defense
Start Date: 2011-10-12
End Date: 2017-02-28
Contract Duration: 1,966 days
Daily Burn Rate: $12.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 20
Pricing Type: COST NO FEE
Sector: R&D
Official Description: BROAD OPERATIONAL LANGUAGE TRANSLATION (BOLT), A PROGRAM FOR TECHNOLOGY, SOFTWARE DEVELOPMENT, AND LANGUAGE PROCESSING ALGORITHMS.
Place of Performance
Location: YORKTOWN HEIGHTS, WESTCHESTER County, NEW YORK, 10598
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $25.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: BROAD OPERATIONAL LANGUAGE TRANSLATION (BOLT), A PROGRAM FOR TECHNOLOGY, SOFTWARE DEVELOPMENT, AND LANGUAGE PROCESSING ALGORITHMS. Key points: 1. The Department of Defense awarded IBM a $253.6 million contract for the BOLT program, focusing on language processing. 2. IBM, a major defense contractor, secured this award under full and open competition. 3. The contract duration of 1966 days (over 5 years) suggests a significant, long-term investment in R&D. 4. The R&D sector (NAICS 541712) often involves high-risk, high-reward projects with uncertain outcomes.
Value Assessment
Rating: fair
The contract type is 'COST NO FEE', which is common for R&D but offers less price certainty for the government. Benchmarking is difficult without specific deliverables and performance metrics.
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. However, the 'COST NO FEE' structure might limit direct price comparisons.
Taxpayer Impact: Taxpayer funds are allocated to advanced R&D, with potential for significant technological advancements but also the risk of project underperformance or failure.
Public Impact
Investment in advanced language processing technology could enhance national security capabilities. The long contract duration indicates a sustained commitment to developing sophisticated algorithms. IBM's involvement suggests leveraging established expertise in technology and software development. Potential for dual-use technologies that could benefit both defense and civilian sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics for 'COST NO FEE' contract.
- Long duration may lead to scope creep or outdated technology by completion.
- Limited visibility into specific R&D outcomes and return on investment.
Positive Signals
- Awarded under full and open competition.
- Leverages established contractor expertise (IBM).
- Focus on critical technology area (language processing).
Sector Analysis
This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. Spending in this area is crucial for technological advancement but carries inherent risks.
Small Business Impact
The data indicates the award went to IBM, a large corporation. There is no explicit information on small business participation or subcontracting in this award notice.
Oversight & Accountability
The 'COST NO FEE' contract type requires diligent oversight to ensure efficient use of funds and alignment with program objectives, especially given the R&D nature.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Advanced Research Projects Agency Programs
Risk Flags
- Contract type ('COST NO FEE') offers limited cost control.
- Long contract duration increases risk of obsolescence.
- R&D projects have inherent uncertainty in outcomes.
- Lack of specific small business participation noted.
- Potential for scope creep over extended period.
Tags
research-and-development-in-the-physical, department-of-defense, ny, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. BROAD OPERATIONAL LANGUAGE TRANSLATION (BOLT), A PROGRAM FOR TECHNOLOGY, SOFTWARE DEVELOPMENT, AND LANGUAGE PROCESSING ALGORITHMS.
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 Advanced Research Projects Agency).
What is the total obligated amount?
The obligated amount is $25.4 million.
What is the period of performance?
Start: 2011-10-12. End: 2017-02-28.
What are the key performance indicators (KPIs) for the BOLT program, and how will their achievement be measured under a 'COST NO FEE' contract?
Under a 'COST NO FEE' contract for R&D, KPIs are typically tied to milestones, deliverables, and technical progress rather than strict cost adherence. Measurement would involve regular technical reviews, demonstration of capabilities, and achievement of defined research objectives. The government's oversight team would monitor progress against a pre-defined statement of work and technical requirements.
Given the 5+ year duration, what mechanisms are in place to mitigate the risk of technological obsolescence or shifts in strategic priorities?
Mechanisms to mitigate obsolescence include phased development with regular reviews, incorporating flexibility into the contract for technology insertion, and maintaining open communication channels for adapting to evolving requirements. Strategic priority shifts are managed through contract modifications, potential re-scoping, or termination clauses, guided by ongoing dialogue between the agency and the contractor.
How does the government ensure the value derived from this significant R&D investment aligns with national security needs?
Value alignment is ensured through rigorous initial requirement definition, continuous technical oversight, and periodic program reviews. The agency must actively manage the program to ensure research outcomes directly address evolving national security challenges. Success is ultimately judged by the successful transition of developed technologies into operational capabilities or further development.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: BASIC RESEARCH
Offers Received: 20
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 1101 KITCHAWAN RD, YORKTOWN HEIGHTS, NY, 10598
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,321,912
Exercised Options: $25,363,456
Current Obligation: $25,363,456
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $25,339,796
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-10-12
Current End Date: 2017-02-28
Potential End Date: 2019-02-27 00:00:00
Last Modified: 2016-09-01
More Contracts from International Business Machines Corporation
- Navy Enterprise Resource Planning (ERP) Technical Support Services (netss) — $837.8M (Department of Defense)
- This Requirement IS for the Creation, Maintenance, Enforcement, Analysis and Updates of the Standards and Governance Established by the Current DTC and Provide Technical and Operational Support to the DTC for Saas, Paas, and Emerging Technologies — $621.7M (Department of Veterans Affairs)
- Eadis Software Development — $580.5M (Department of Homeland Security)
- THE Government Intends to Establish a Single-Award Delivery Order Base Plus Four 1year Option Periods for the Renewal of IBM Software Maintenance and the Purchase of More Additional IBM Software Licenses Against the General Services Administrations Federal Supply Schedule Program. Previous Order SS00-15-30081 — $525.4M (Social Security Administration)
- Uscis Transformation Program Solutions Architect (SA) — $376.3M (Department of Homeland Security)
View all International Business Machines Corporation federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)