IBM contract for computer hardware and software stores valued at $43.5M, awarded by DHS

Contract Overview

Contract Amount: $43,485,302 ($43.5M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2015-07-08

End Date: 2018-05-31

Contract Duration: 1,058 days

Daily Burn Rate: $41.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CT::IGF

Place of Performance

Location: SPRINGFIELD, LOUDOUN County, VIRGINIA, 20598

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $43.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IGF::CT::IGF Key points: 1. Contract awarded to a single, large vendor, potentially limiting competitive pricing. 2. The contract duration of over 3 years suggests a need for ongoing IT support. 3. Awarded under full and open competition, indicating an attempt to solicit broad vendor interest. 4. The specific nature of 'Computer and Software Stores' implies procurement of IT assets and related services. 5. Performance period spans across fiscal years, requiring sustained budget allocation. 6. The contract type is a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this $43.5 million contract is challenging without specific details on the hardware and software procured. However, given the award to a major IT vendor like IBM, the pricing is likely competitive within the enterprise-level IT procurement market. The contract's duration and the nature of IT procurement suggest that the value is tied to the provision of essential technology infrastructure and support services for U.S. Customs and Border Protection.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The fact that it resulted in a single delivery order to IBM indicates that IBM was the selected vendor among potentially several proposals. The level of competition for this specific delivery order is not explicitly detailed, but the initial broad solicitation aims to ensure fair market pricing.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by encouraging a wider range of bids, which can lead to more competitive pricing and better value for government spending.

Public Impact

This contract directly benefits U.S. Customs and Border Protection by providing necessary computer hardware and software. The services delivered likely include the procurement, installation, and potentially maintenance of IT equipment and software licenses. The geographic impact is primarily within the operational areas of DHS, supporting border security and customs operations nationwide. Workforce implications include ensuring that CBP personnel have access to up-to-date technology to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single large vendor for critical IT infrastructure could lead to vendor lock-in.
The specific details of the software and hardware procured are not provided, making it difficult to assess if the best value was obtained.
The contract's value is substantial, requiring careful monitoring to ensure funds are used efficiently.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
The contract supports a critical government agency (DHS), ensuring operational continuity.
The vendor, IBM, is a well-established technology provider with a track record in government contracting.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on the procurement of computer hardware and software. The market for enterprise IT solutions is dominated by large, established vendors like IBM, who offer a wide range of products and services. Government spending in this area is substantial, driven by the need for modern infrastructure to support agency operations. Comparable spending benchmarks would involve analyzing other large IT procurement contracts awarded by federal agencies for similar equipment and software.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the award to IBM, a large corporation, it is unlikely that significant subcontracting opportunities for small businesses were mandated within this specific delivery order. The focus appears to be on direct procurement from a major IT solutions provider.

Oversight & Accountability

Oversight for this contract would fall under the Department of Homeland Security's internal procurement and program management offices. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this spending. Transparency is generally maintained through contract databases like FPDS, though specific details of the procured items may be limited.

Related Government Programs

DHS IT Modernization Programs
Federal Supply Schedule (FSS) IT Contracts
GSA Schedule 70 (General Purpose Commercial Information Technology Equipment, Software, and Services)

Risk Flags

Lack of specific itemization for hardware and software.
Absence of performance metrics and evaluation data.
Potential for vendor lock-in with large IT providers.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $43.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IGF::CT::IGF

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 $43.5 million.

What is the period of performance?

Start: 2015-07-08. End: 2018-05-31.

What specific types of computer hardware and software were procured under this contract?

The provided data indicates the contract was for 'Computer and Software Stores' but does not specify the exact hardware (e.g., servers, workstations, peripherals) or software (e.g., operating systems, applications, licenses) purchased. This level of detail is crucial for a thorough value assessment. Without it, we cannot determine if the procured items were state-of-the-art, appropriately licensed, or if alternative, more cost-effective solutions were overlooked. Further investigation into the contract's statement of work or associated documentation would be necessary to ascertain the precise nature of the IT assets acquired.

How does the total contract value of $43.5 million compare to similar IT procurements by DHS or other agencies?

Comparing the $43.5 million value requires context regarding the contract's duration and scope. If this represents a multi-year procurement of enterprise-level hardware and software, it could be within the typical range for a large federal agency like DHS. However, without knowing the specific items and quantities, a direct comparison is difficult. For instance, a similar value could represent a large number of individual workstations or a smaller number of high-end servers and complex software licenses. Benchmarking against other DHS IT contracts or similar procurements from agencies like the GSA or DoD for comparable goods and services would provide a clearer picture of whether this represents a reasonable expenditure.

What was the track record of INTERNATIONAL BUSINESS MACHINES CORPORATION with DHS prior to or during this contract?

INTERNATIONAL BUSINESS MACHINES CORPORATION (IBM) is a major federal contractor with a long history of providing IT products and services across numerous government agencies, including DHS. Prior to and during this contract period (2015-2018), IBM would have had numerous existing contracts. Assessing their specific track record with DHS for this particular type of procurement would involve reviewing past performance evaluations, any documented issues or successes on similar contracts, and their overall standing as a vendor within the agency. Generally, large vendors like IBM are expected to have established processes for government contracting, but individual contract performance can vary.

What were the key performance indicators (KPIs) for this contract, and how was IBM's performance measured?

The provided data does not include specific Key Performance Indicators (KPIs) or details on how IBM's performance was measured for this contract. Typically, IT procurement contracts include metrics related to delivery timelines, product specifications adherence, warranty support, and potentially service level agreements (SLAs) for any associated support. Performance evaluations are usually documented by the contracting officer. Without access to these performance reports, it's impossible to definitively assess whether IBM met or exceeded expectations, or if there were any deficiencies that impacted the agency's operations or the overall value received.

Were there any significant cost overruns or changes to the contract scope after its initial award?

The available data does not indicate whether there were significant cost overruns or changes to the contract scope. Delivery Orders under IDIQ contracts can sometimes be modified, or subsequent orders might reflect changes in requirements or pricing. A comprehensive review of contract modification history and financial records would be necessary to determine if the final expenditure deviated significantly from the initial award amount or if the scope of work evolved substantially over the contract's life.

How did the 'full and open competition' process for this contract ensure fair pricing and prevent potential monopolies?

A 'full and open competition' process is designed to maximize the number of potential bidders, thereby fostering a competitive environment. This typically involves publishing a solicitation widely, allowing any responsible source to submit an offer. The agency then evaluates proposals based on pre-defined criteria, selecting the offer that represents the best value. For this contract, the process aimed to encourage multiple vendors to compete for the opportunity to supply computer hardware and software to DHS. While IBM was ultimately awarded the delivery order, the initial broad competition theoretically put downward pressure on prices and ensured that the selected offer was deemed the most advantageous, preventing a sole-source situation or undue market power concentration for this specific procurement.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DRIVE, BETHESDA, MD, 20817

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

Financial Breakdown

Contract Ceiling: $46,177,512

Exercised Options: $43,485,302

Current Obligation: $43,485,302

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4984H

IDV Type: FSS

Timeline