DHS awards $14.2M IT modernization task order to IBM under full and open competition

Contract Overview

Contract Amount: $14,244,180 ($14.2M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2006-09-28

End Date: 2013-01-14

Contract Duration: 2,300 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: MODERNIZATION TASK ORDER 30

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22311

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: MODERNIZATION TASK ORDER 30 Key points: 1. IBM secured a significant IT modernization contract valued at over $14 million. 2. The contract was awarded using full and open competition, indicating a competitive bidding process. 3. The task order was for IT services, falling under the broader 'Information Technology' sector. 4. The duration of the contract was substantial, spanning over 2300 days.

Value Assessment

Rating: fair

The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar IT modernization contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, suggesting multiple bidders likely participated. This method generally promotes price discovery and competitive pricing, though the Cost Plus Award Fee structure requires careful oversight.

Taxpayer Impact: Taxpayer funds were used for IT modernization, with the final cost influenced by the competitive process and the award fee structure.

Public Impact

Enhances U.S. Customs and Border Protection's IT infrastructure. Supports critical national security and border management functions. Leverages IBM's expertise in large-scale IT projects. Long contract duration suggests a complex and ongoing modernization effort.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure requires diligent oversight to control costs.
Long contract duration (2300 days) may indicate potential for scope creep or evolving requirements.
Lack of specific performance metrics makes it hard to assess award fee effectiveness.
Small business participation is not indicated.

Positive Signals

Awarded through full and open competition, promoting a competitive environment.
Task order addresses critical IT modernization needs for a key agency.
IBM is a major IT provider with a track record in complex projects.

Sector Analysis

This contract falls within the Information Technology sector, specifically IT services and modernization. Spending benchmarks for similar large-scale IT modernization projects vary widely based on scope, complexity, and agency.

Small Business Impact

The data indicates that small business participation was not a stated factor in this award (ss: false, sb: false). This suggests the contract was likely awarded to a large prime contractor without specific small business set-aside requirements.

Oversight & Accountability

The Cost Plus Award Fee (CPAF) contract type necessitates robust oversight from the Department of Homeland Security to ensure performance objectives are met and costs are controlled. Regular reviews and audits would be crucial for accountability.

Related Government Programs

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

Risk Flags

Cost Plus Award Fee structure can lead to higher costs if not managed.
Long contract duration increases risk of scope creep and requirement changes.
Lack of detailed performance metrics makes assessing award fee effectiveness difficult.
No indication of small business participation.
Specific modernization outcomes are not detailed in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. MODERNIZATION TASK ORDER 30

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 $14.2 million.

What is the period of performance?

Start: 2006-09-28. End: 2013-01-14.

What specific IT modernization goals were achieved under this task order, and how did they align with CBP's strategic objectives?

The task order aimed to modernize critical IT systems for U.S. Customs and Border Protection. While specific goals aren't detailed, such modernization typically involves upgrading legacy systems, enhancing data processing capabilities, improving cybersecurity, and streamlining border management operations to better support CBP's mission of securing borders and facilitating lawful trade and travel.

How effectively did the full and open competition process ensure competitive pricing given the Cost Plus Award Fee structure?

Full and open competition generally fosters competitive pricing by allowing multiple vendors to bid. However, the Cost Plus Award Fee (CPAF) structure introduces variability. While the base cost is managed, the award fee component incentivizes performance. Effective price discovery relies on clear performance metrics and diligent negotiation to ensure the award fee truly reflects exceptional value rather than inflated costs.

What was the overall taxpayer impact of this $14.2 million contract, considering its long duration and CPAF structure?

The taxpayer impact is twofold: the direct cost of $14.2 million for IT modernization and the indirect benefits of improved border security and trade facilitation. The CPAF structure requires careful management to ensure costs remain reasonable and the award fees are justified by performance, maximizing the value for taxpayer investment. The long duration suggests a significant, sustained investment in critical infrastructure.

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: $5,014,437,400

Exercised Options: $5,000,244,180

Current Obligation: $14,244,180

Parent Contract

Parent Award PIID: TC2001025

IDV Type: IDC

Timeline