IBM contract for TO 29 Program Application Maintenance awarded $32M by DHS CBP

Contract Overview

Contract Amount: $32,079,757 ($32.1M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2007-05-19

End Date: 2009-11-30

Contract Duration: 926 days

Daily Burn Rate: $34.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO 29 PROGRAM APPLICATION MAINTENANCE

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 $32.1 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: TO 29 PROGRAM APPLICATION MAINTENANCE Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 926 days indicates a medium-term engagement for application maintenance. 3. A single award was made, typical for specialized IT maintenance services. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. The contract was awarded in 2007, providing a historical data point for IT maintenance spending. 6. The value of the contract is substantial, reflecting the importance of the TO 29 program.

Value Assessment

Rating: fair

The contract value of approximately $32 million over 926 days (about 2.5 years) averages to roughly $34,643 per day. Without specific details on the scope of 'TO 29 Program Application Maintenance,' it's challenging to benchmark against similar contracts. However, for a large federal agency like DHS, this daily rate for maintaining a significant program application appears within a reasonable range, though a detailed cost breakdown would be needed for a precise assessment of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The fact that there was a single award suggests that while competition was open, IBM was ultimately selected as the most advantageous offer. The level of competition is not explicitly detailed (e.g., number of bids received), but the designation implies a robust process was intended.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing, potentially leading to cost savings compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) and the Department of Homeland Security (DHS), who receive continued maintenance and support for the TO 29 program application. The services delivered include application maintenance, ensuring the operational stability and functionality of a critical government system. The geographic impact is primarily within the District of Columbia, where the contract was awarded and likely where the services are managed. Workforce implications include the employment of IT professionals by IBM to perform the maintenance tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders and the evaluation criteria makes it difficult to fully assess the competitiveness of the 'full and open' competition.
The contract value is significant, and without detailed performance metrics, it's hard to gauge the efficiency and effectiveness of the maintenance provided by IBM.
The specific nature and criticality of the 'TO 29 Program Application' are not detailed, making it difficult to assess the potential impact of any service disruptions or performance issues.

Positive Signals

Awarded under 'full and open competition,' which theoretically promotes competitive pricing and vendor selection.
The firm-fixed-price contract type aligns incentives by placing cost control responsibility on the contractor.
The contract was awarded to a well-established technology provider (IBM), suggesting a level of confidence in their capability to perform the maintenance.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software maintenance and support for a government application. The IT services market is vast, with significant federal spending allocated to maintaining legacy systems and developing new ones. Benchmarking this contract's value requires comparison to other federal IT maintenance contracts, particularly those for similar-sized applications within large agencies like DHS. The trend in federal IT spending often involves substantial investments in maintaining operational systems, making contracts like this a common component of agency budgets.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss=false, sb=false). As a large contract awarded to a major corporation, it is unlikely to have directly benefited small businesses through a set-aside. However, IBM may have utilized small business subcontractors, though this information is not provided in the data. The absence of set-asides means the primary focus was on full and open competition, potentially overlooking opportunities to foster small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. As a firm-fixed-price contract, performance monitoring would be crucial to ensure the maintenance services meet the agreed-upon standards. Transparency is generally facilitated through contract award databases like FPDS, which provide basic details. Specific Inspector General (IG) jurisdiction would depend on the nature of any performance issues or potential fraud, waste, or abuse related to the contract.

Related Government Programs

DHS IT Modernization Programs
Federal Civilian IT Maintenance Contracts
Customs and Border Protection Application Support
Legacy System Maintenance Contracts
Government Software Development and Maintenance

Risk Flags

Lack of detailed performance metrics
Limited information on competition specifics
Unclear criticality of the application maintained

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.1 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. TO 29 PROGRAM APPLICATION MAINTENANCE

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 $32.1 million.

What is the period of performance?

Start: 2007-05-19. End: 2009-11-30.

What was the specific function and criticality of the TO 29 Program Application?

The provided data does not specify the exact function or criticality of the 'TO 29 Program Application.' However, given its maintenance by U.S. Customs and Border Protection (CBP) under a significant contract, it can be inferred that the application plays a vital role in CBP's operations. This could range from data processing, border management, import/export tracking, or other mission-critical functions. The substantial award value suggests it is a complex and important system. Without further details, its precise impact on national security, trade facilitation, or law enforcement cannot be definitively assessed, but its continuous maintenance implies ongoing operational necessity.

How many bids were received for this 'full and open competition' contract?

The provided data indicates the contract was awarded under 'full and open competition' (ct=FULL AND OPEN COMPETITION) and resulted in a single award (no=1). However, the specific number of bids received is not detailed in the data. While 'full and open competition' implies that all responsible sources were encouraged to bid, the outcome of a single award could mean that only one bid was deemed acceptable, or that competition, despite being open, did not yield multiple competitive offers. To understand the true level of competition, one would need access to the solicitation details or award justification documents that might list the number of proposals received.

What is the historical spending trend for IT application maintenance at CBP or DHS?

This specific contract awarded in 2007 for $32 million provides a single data point for IT application maintenance at CBP/DHS. To establish a trend, a broader analysis of historical spending data is required, examining contracts over multiple fiscal years and across various IT maintenance categories. Federal IT spending, particularly within large agencies like DHS, has generally increased over the years, driven by modernization efforts, cybersecurity needs, and the sustainment of complex systems. Comparing this $32M contract value to other maintenance contracts awarded before and after 2009 would reveal whether this represented a typical investment for such services during that period or if spending has significantly changed.

What is IBM's track record with DHS/CBP for similar IT maintenance contracts?

The provided data only details this single contract awarded to IBM for TO 29 Program Application Maintenance. It does not offer information on IBM's broader track record with DHS or CBP for similar IT maintenance services. To assess their track record, one would need to analyze other contracts awarded to IBM by these agencies, looking at contract values, durations, performance history, and any documented issues or successes. IBM is a major federal IT contractor, and it is probable they have held numerous other contracts, but this dataset is insufficient to evaluate their specific performance history with DHS/CBP beyond this one instance.

How does the $32 million contract value compare to the overall IT budget of CBP during the contract period (2007-2009)?

The provided data states the contract value is $32,079,756.78. To compare this to CBP's overall IT budget during the 2007-2009 period, we would need access to CBP's historical IT budget allocations for those fiscal years. Without that information, it's impossible to determine the proportion this single contract represented. However, $32 million is a significant sum, suggesting the TO 29 program application was likely a substantial component of CBP's IT infrastructure, requiring considerable resources for its upkeep. A comprehensive analysis would involve comparing this contract value against the total IT spending reported by CBP in its annual budget justifications or financial reports for FY2007, FY2008, and FY2009.

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: $32,079,757

Exercised Options: $32,079,757

Current Obligation: $32,079,757

Parent Contract

Parent Award PIID: TC2001025

IDV Type: IDC

Timeline