DHS awards $26M IBM contract for IT modernization task order in 2010

Contract Overview

Contract Amount: $25,956,315 ($26.0M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2010-01-30

End Date: 2012-04-19

Contract Duration: 810 days

Daily Burn Rate: $32.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: MODERNIZATION TASK ORDER PROD (FY 2010).

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22153

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: MODERNIZATION TASK ORDER PROD (FY 2010). Key points: 1. Contract awarded to IBM for IT modernization. 2. Significant value of $25.96 million. 3. Full and open competition was utilized. 4. Contract duration of 810 days.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar IT modernization contracts from 2010 is difficult due to data limitations, but the price appears within a reasonable range for the scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific details of the bidding and award are not provided, making it hard to assess the full impact on price.

Taxpayer Impact: The $25.96 million expenditure represents taxpayer funds allocated for essential IT infrastructure upgrades for U.S. Customs and Border Protection.

Public Impact

Enhances critical IT infrastructure for border security. Supports operational efficiency for U.S. Customs and Border Protection. Potential for improved data processing and system reliability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Contract awarded in 2010, may not reflect current market prices or needs.
Limited information on performance metrics and outcomes.

Positive Signals

Full and open competition utilized.
Addresses a critical government function (border security).
Long-term contract duration suggests significant project scope.

Sector Analysis

This contract falls within the Information Technology sector, specifically IT services and modernization. Spending benchmarks for IT modernization in 2010 varied widely based on project scope, but a $26 million contract for a federal agency like DHS indicates a substantial undertaking.

Small Business Impact

The data indicates the contract was awarded to International Business Machines Corporation, a large business. There is no indication of small business participation in this specific task order.

Oversight & Accountability

Oversight would typically be managed by the U.S. Customs and Border Protection contracting officers and program managers. The effectiveness of oversight depends on the agency's internal controls and monitoring processes, which are not detailed here.

Related Government Programs

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

Risk Flags

Contract awarded over a decade ago, relevance may be limited.
Cost Plus Fixed Fee contract type can lead to cost overruns.
Lack of detailed performance metrics.
No information on small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. MODERNIZATION TASK ORDER PROD (FY 2010).

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 $26.0 million.

What is the period of performance?

Start: 2010-01-30. End: 2012-04-19.

What was the specific scope of the IT modernization and how did it align with agency needs at the time?

The specific scope of the IT modernization task order is not detailed in the provided data. However, given it was for U.S. Customs and Border Protection, it likely involved upgrading legacy systems, enhancing data processing capabilities, improving network infrastructure, or implementing new software solutions to support border security and trade facilitation operations.

How effectively did the full and open competition process ensure competitive pricing for this $26 million contract?

While full and open competition is designed to foster competitive pricing, the effectiveness in this specific instance is difficult to ascertain without access to the bidding process details, the number of bids received, and the final negotiated price against initial proposals. The Cost Plus Fixed Fee structure also introduces complexities in evaluating true cost-effectiveness.

What were the measurable outcomes and return on investment for this IT modernization contract awarded in 2010?

The provided data does not include information on the measurable outcomes or return on investment for this contract. Assessing the effectiveness would require post-award performance reports, system performance metrics, and an analysis of whether the modernization achieved its intended goals in terms of efficiency, cost savings, or enhanced capabilities for CBP.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,956,515

Exercised Options: $25,956,315

Current Obligation: $25,956,315

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: TC2001025

IDV Type: IDC

Timeline