IBM's $13M CBP contract for intelligent information factory services awarded in 2003

Contract Overview

Contract Amount: $12,997,946 ($13.0M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2003-10-31

End Date: 2006-10-31

Contract Duration: 1,096 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: CBP MODERNIZATION INTELLIGENT INFORMATION FACTORY

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $13.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: CBP MODERNIZATION INTELLIGENT INFORMATION FACTORY Key points: 1. Contract awarded for a significant sum, indicating a substantial project scope. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. Awarded under a Cost Plus Award Fee (CPAF) structure, which incentivizes performance. 4. The contract duration was approximately three years, from 2003 to 2006. 5. The agency involved is the Department of Homeland Security, specifically U.S. Customs and Border Protection. 6. The contractor, IBM, is a major player in the IT services industry.

Value Assessment

Rating: fair

This contract, awarded in 2003 for over $12.9 million, was for intelligent information factory services. Benchmarking its value is challenging due to the age of the data and the specific nature of the services. However, the Cost Plus Award Fee (CPAF) structure suggests an attempt to manage costs while incentivizing performance. Without more recent comparable contracts or detailed performance metrics, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this contract. While two bidders is better than one, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: A fully and openly competed contract generally offers better value to taxpayers by fostering competition that can drive down prices and improve service quality.

Public Impact

This contract aimed to enhance the capabilities of U.S. Customs and Border Protection through intelligent information factory services. The services delivered likely supported border security and trade facilitation efforts. The geographic impact would primarily be within the operational areas of CBP. The workforce implications would involve IT professionals and subject matter experts working on the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The age of the contract makes it difficult to assess current relevance and value.
Cost Plus Award Fee contracts can sometimes lead to cost overruns if not managed carefully.
Limited information on specific deliverables and performance outcomes hinders a full assessment.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
The use of an award fee structure indicates a focus on performance incentives.
The contractor, IBM, has extensive experience in large-scale IT projects.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on data management and processing solutions. The market for such services is vast and competitive, with numerous large and small firms offering capabilities in intelligent information systems. The contract's value of approximately $13 million over three years is moderate for a federal IT project of this nature, especially considering the contractor's scale.

Small Business Impact

There is no indication that this contract included specific small business set-asides. Given the nature of the services and the contractor (IBM), it is likely that any small business involvement would have been through subcontracting. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Homeland Security and U.S. Customs and Border Protection. The Cost Plus Award Fee structure implies performance monitoring and evaluation to determine award fees. Transparency would depend on the agency's reporting practices at the time and the public availability of contract details.

Related Government Programs

CBP Data Modernization Programs
Homeland Security IT Modernization
Federal Information Management Contracts

Risk Flags

Contract awarded over 15 years ago, limiting current relevance.
CPAF contract type requires careful monitoring to control costs.
Limited public information on specific performance outcomes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $13.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. CBP MODERNIZATION INTELLIGENT INFORMATION FACTORY

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2003-10-31. End: 2006-10-31.

What were the specific deliverables and performance metrics for the 'Intelligent Information Factory'?

The provided data does not detail the specific deliverables or performance metrics for the CBP MODERNIZATION INTELLIGENT INFORMATION FACTORY contract. Typically, an 'intelligent information factory' would involve systems for collecting, processing, analyzing, and disseminating information to support operational decision-making. For CBP, this could relate to trade data analysis, border security intelligence, or passenger screening information. Performance metrics would likely focus on data accuracy, processing speed, system availability, and the actionable insights generated for CBP operations. Without access to the contract statement of work or performance reports, a precise definition of deliverables and metrics remains elusive.

How does the $13M contract value compare to similar CBP IT modernization efforts in the early 2000s?

Comparing the $13 million contract value for the CBP MODERNIZATION INTELLIGENT INFORMATION FACTORY to similar efforts in the early 2000s is challenging without a comprehensive database of contemporaneous contracts. However, in the early 2000s, federal IT modernization projects, especially those related to homeland security post-9/11, often saw significant investment. While $13 million is a substantial sum, it might be considered moderate for a large-scale system implementation by a major agency like CBP, particularly if it involved significant software development, integration, and hardware components. Larger, agency-wide modernization programs could easily reach tens or hundreds of millions of dollars. This contract likely represented a specific component or phase of a broader modernization initiative.

What were the primary risks associated with a Cost Plus Award Fee (CPAF) contract for IT services in 2003?

Cost Plus Award Fee (CPAF) contracts, common in 2003 for IT services, carried inherent risks for both the government and the contractor. For the government, the primary risk was potential cost growth, as the contractor is reimbursed for allowable costs plus a fee that can be adjusted based on performance. If performance targets were not clearly defined or if oversight was insufficient, costs could escalate beyond initial expectations. Another risk was the contractor potentially focusing on achieving award fee criteria rather than the most critical project needs. For the contractor, the risk lay in not meeting the performance standards required to achieve the maximum award fee, thus reducing their overall profit margin. Effective management, clear performance metrics, and robust oversight were crucial to mitigate these risks.

What was IBM's track record with large federal IT contracts around the 2003-2006 period?

During the 2003-2006 period, IBM was a dominant player in the federal IT contracting landscape, possessing a strong track record with large, complex projects across various agencies. They were known for their extensive capabilities in systems integration, software development, and IT infrastructure management. IBM consistently secured major contracts with departments such as Defense, Homeland Security, and others. Their experience often involved large-scale modernization efforts, enterprise resource planning (ERP) implementations, and data management solutions. While specific contract performance details vary, IBM's general reputation at the time was that of a capable, albeit expensive, provider of advanced IT services, often handling mission-critical systems for the federal government.

How did the 'intelligent information factory' concept align with CBP's mission in the mid-2000s?

In the mid-2000s, following the creation of the Department of Homeland Security in 2003, CBP was undergoing significant transformation to enhance border security and facilitate lawful trade. The concept of an 'intelligent information factory' directly aligned with this mission by promising to improve the collection, analysis, and dissemination of critical data. This could involve processing vast amounts of information related to cargo, travelers, and intelligence to identify potential threats, streamline customs processes, and improve operational efficiency. Such a system would enable CBP to move towards a more data-driven approach to border management, leveraging technology to make more informed decisions and respond more effectively to evolving security challenges.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,546,070

Exercised Options: $24,546,070

Current Obligation: $12,997,946

Parent Contract

Parent Award PIID: TC2001025

IDV Type: IDC

Timeline