DHS Awards $54.6M IBM Contract for IT Services, Full and Open Competition

Contract Overview

Contract Amount: $54,650,591 ($54.7M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2004-05-20

End Date: 2006-04-30

Contract Duration: 710 days

Daily Burn Rate: $77.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO 20

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20229

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $54.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: TO 20 Key points: 1. Significant contract value of $54.6 million awarded to IBM. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration of 710 days indicates a medium-term service requirement. 4. The contract falls under the IT sector, a common area for large federal spending.

Value Assessment

Rating: good

The contract value of $54.6 million for IT services appears reasonable given the duration and the vendor. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. It allows multiple qualified vendors to bid, which typically drives down costs and ensures fair market pricing.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered, as multiple bids were considered.

Public Impact

Ensures continued IT support for U.S. Customs and Border Protection operations. Leverages established vendor capabilities for critical government functions. Potential for technology upgrades and service improvements through competitive procurement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Reliance on a single large vendor for critical IT infrastructure.

Positive Signals

Utilized full and open competition.
Awarded to a well-established IT services provider.
Clear contract duration and pricing structure (firm fixed price).

Sector Analysis

This contract falls within the Information Technology sector, which represents a substantial portion of federal spending. Benchmarks for similar IT service contracts vary widely based on scope and duration, but $54.6M over approximately two years is a significant award.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large IT contracts are often awarded to major corporations, potentially limiting direct opportunities for small businesses unless they are subcontractors.

Oversight & Accountability

The contract was awarded through full and open competition, implying a structured procurement process. Oversight would involve monitoring IBM's performance against contract requirements and ensuring adherence to the firm fixed price.

Related Government Programs

Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Potential for cost overruns if scope creep occurs.
Dependence on a single large contractor.
Risk of service disruption if vendor performance falters.
Cybersecurity vulnerabilities associated with IT service providers.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $54.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. TO 20

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 $54.7 million.

What is the period of performance?

Start: 2004-05-20. End: 2006-04-30.

What specific IT services were procured under this contract, and how do they align with CBP's mission needs?

The provided data does not detail the specific IT services. However, given the vendor (IBM) and the agency (CBP), it likely encompasses a range of services such as system maintenance, software development, network support, or cybersecurity solutions critical for border security and customs operations.

What was the competitive landscape like for this 'full and open' solicitation, and were there significant price differences between bids?

The data indicates 'full and open competition' but does not provide details on the number of bidders or the price spread. A robust competitive landscape with multiple bids would typically lead to a lower final price compared to a sole-source or limited competition scenario.

How does the $54.6 million award compare to the baseline or estimated cost for similar IT services provided to federal agencies?

Without specific service details, a direct comparison is difficult. However, $54.6 million over roughly two years for comprehensive IT services to a major agency like CBP suggests a substantial investment. Benchmarking against similar contracts awarded through full and open competition would be necessary for a precise value assessment.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $54,650,591

Exercised Options: $54,650,591

Current Obligation: $54,650,591

Parent Contract

Parent Award PIID: TC2001025

IDV Type: IDC

Timeline