DHS awards $18.6M ACE/ITDS modernization task order to IBM under full and open competition

Contract Overview

Contract Amount: $18,603,286 ($18.6M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2007-01-01

End Date: 2008-08-31

Contract Duration: 608 days

Daily Burn Rate: $30.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MODERNIZATION TASK ORDER 31: ACE/ITDS

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 $18.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: MODERNIZATION TASK ORDER 31: ACE/ITDS Key points: 1. The contract focuses on IT modernization for Customs and Border Protection's ACE/ITDS. 2. IBM, a major IT provider, secured this task order. 3. The contract was awarded using full and open competition, suggesting a competitive bidding process. 4. The spending is within the IT sector, a common area for federal contracts.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount of $18.6M for a 608-day duration needs further context to assess value against similar IT modernization projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value.

Taxpayer Impact: The competitive nature of the award suggests the government aimed for a fair price, but the cost-plus-fixed-fee structure warrants monitoring to ensure taxpayer funds are used efficiently.

Public Impact

Enhances critical trade processing systems for U.S. Customs and Border Protection. Supports modernization efforts within the Department of Homeland Security. Impacts international trade facilitation and border security operations. IBM's involvement suggests a focus on established IT solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can increase risk of cost overruns.
Task order duration is relatively long (608 days).

Positive Signals

Awarded under full and open competition.
Involves a major IT contractor (IBM).

Sector Analysis

This contract falls within the Information Technology sector, specifically for system modernization. Federal IT spending is substantial, and projects like ACE/ITDS are crucial for agency operations and national security.

Small Business Impact

The data does not indicate any specific involvement or set-aside for small businesses in this particular task order. The prime contractor is IBM, a large corporation.

Oversight & Accountability

Oversight would be managed by the U.S. Customs and Border Protection, a component of DHS. The effectiveness of oversight will depend on the agency's program management capabilities and adherence to contract terms.

Related Government Programs

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

Risk Flags

Cost-plus-fixed-fee contract type.
Potential for cost overruns.
Lack of specific performance metrics in provided data.
Long duration task order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. MODERNIZATION TASK ORDER 31: ACE/ITDS

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 $18.6 million.

What is the period of performance?

Start: 2007-01-01. End: 2008-08-31.

What specific modernization goals were achieved by this task order, and did they align with the initial objectives?

This task order aimed to modernize the Automated Commercial Environment (ACE) and International Trade Data System (ITDS). Success would be measured by improved system efficiency, enhanced data accuracy, and better integration of trade processes. Without post-award reports, it's difficult to definitively state if all objectives were met within budget and schedule.

How did the final cost compare to the initial estimates, given the cost-plus-fixed-fee structure?

Cost-plus-fixed-fee contracts carry inherent risks of cost escalation. A thorough analysis would require comparing the final obligated amount against the initial estimated cost and the fixed fee. If the final cost significantly exceeded initial projections without clear justification, it would indicate potential inefficiencies or inadequate oversight.

What was the competitive landscape for this task order, and did full and open competition yield the best value?

Full and open competition theoretically ensures the government receives the best value by allowing all qualified vendors to compete. The presence of IBM as the awardee suggests they offered a compelling technical solution and price. Further analysis would involve reviewing the number of bids received and the evaluation criteria used to confirm optimal value was achieved.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $18,603,286

Exercised Options: $18,603,286

Current Obligation: $18,603,286

Parent Contract

Parent Award PIID: TC2001025

IDV Type: IDC

Timeline