DHS Awards $53.9M for Computer Systems Design Services to IBM under Full and Open Competition

Contract Overview

Contract Amount: $53,944,797 ($53.9M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2013-07-29

End Date: 2018-02-28

Contract Duration: 1,675 days

Daily Burn Rate: $32.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AWARD TO IBM

Place of Performance

Location: LORTON, FAIRFAX County, VIRGINIA, 22079

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $53.9 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: AWARD TO IBM Key points: 1. Significant contract value of $53.9M awarded to a major IT provider. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract duration of 1675 days (approx. 4.6 years) indicates a long-term need for these services. 4. The sector is IT, specifically Computer Systems Design Services, a critical area for government operations.

Value Assessment

Rating: good

The contract is a firm fixed price delivery order, which helps control costs. Without specific benchmarks for similar 'Computer Systems Design Services' contracts from CBP, a direct per-unit cost comparison is difficult, but the overall value seems reasonable for the duration and scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process.

Public Impact

Ensures continued IT support for U.S. Customs and Border Protection operations. Supports critical functions related to border security and trade facilitation. Potential for technological advancements and system improvements through contracted services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcomes in the provided data.
Potential for cost overruns if scope creep occurs, despite fixed-price nature.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type helps manage costs.
Long-term contract provides stability for essential services.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is crucial for government modernization and operational efficiency. Benchmarks for similar services can vary widely based on complexity and agency needs.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses from this specific award, and opportunities for subcontracting are not detailed here.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security (DHS) to U.S. Customs and Border Protection (CBP). Oversight would typically involve program managers within CBP monitoring IBM's performance against the contract requirements.

Related Government Programs

Computer Systems Design Services
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Contract awarded to a single large corporation.
Limited information on specific deliverables and performance metrics.
Long contract duration could lead to vendor lock-in if not managed carefully.
No indication of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $53.9 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. AWARD TO IBM

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 $53.9 million.

What is the period of performance?

Start: 2013-07-29. End: 2018-02-28.

What specific computer systems design services were provided, and how did they contribute to CBP's mission effectiveness?

The provided data identifies the service as 'Computer Systems Design Services' (NAICS 541512) but lacks specifics on the exact nature of the design work. To assess mission effectiveness, details on the systems designed, their implementation, and their impact on CBP's operational capabilities, such as data processing, border surveillance, or trade management, would be necessary.

How does the $53.9M award compare to industry benchmarks for similar long-term IT system design contracts?

Comparing this $53.9M award for 1675 days (approx. 4.6 years) requires detailed market research on IT system design services. Factors like the complexity of the systems, the level of innovation required, and the specific technologies involved significantly influence pricing. Without these specifics, a precise benchmark is difficult, but the full and open competition suggests an attempt to achieve competitive market rates.

What mechanisms are in place to ensure the value delivered by IBM aligns with taxpayer investment over the contract's duration?

The firm fixed price contract type provides a degree of cost certainty for taxpayers. However, ongoing oversight by CBP program managers is crucial to ensure IBM delivers the agreed-upon services and meets performance standards. Regular reviews and performance evaluations would be key to verifying that the $53.9M investment yields the intended technological improvements and operational benefits.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $68,871,962

Exercised Options: $53,944,797

Current Obligation: $53,944,797

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200030W

IDV Type: GWAC

Timeline