DHS Coast Guard awards $10.3M for P.Soft hosting to IBM over 5 years

Contract Overview

Contract Amount: $10,285,713 ($10.3M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2006-05-16

End Date: 2011-09-15

Contract Duration: 1,948 days

Daily Burn Rate: $5.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HOSTING SERVICES FOR P.SOFT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20593

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: HOSTING SERVICES FOR P.SOFT Key points: 1. IBM secured a significant contract for essential software hosting. 2. The contract value is substantial, indicating a critical need for these services. 3. Competition method and pricing details are crucial for assessing value. 4. IT infrastructure and software services are key sectors for government spending.

Value Assessment

Rating: fair

The contract value of $10.3M over 5 years averages $2.06M annually. Benchmarking against similar large-scale hosting contracts is needed to determine if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract type is 'COMPETITIVE DELIVERY ORDER', suggesting competition occurred. However, the specific details of the competition and how price was discovered are not provided, making a full assessment difficult.

Taxpayer Impact: The final price paid by taxpayers depends on the competitiveness of the bidding process and the efficiency of the service delivery.

Public Impact

Ensures continuity of critical P.Soft services for the U.S. Coast Guard. Supports the operational capabilities of a major federal agency. Potential for long-term reliance on IBM for these hosting services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency in competition details.
Potential for vendor lock-in with long-term hosting contracts.
Need to verify if pricing reflects market rates.

Positive Signals

Secures essential IT infrastructure for a key agency.
Contract awarded through a competitive process (indicated).

Sector Analysis

This contract falls within the IT sector, specifically software and cloud hosting services. Government spending in this area is substantial, with a focus on reliability and security.

Small Business Impact

This contract was awarded to a large corporation (IBM) and does not appear to have specific provisions for small business participation based on the provided data.

Oversight & Accountability

Oversight would involve monitoring service delivery, performance metrics, and adherence to contract terms by the U.S. Coast Guard to ensure value for money.

Related Government Programs

Computer and Software Stores
Department of Homeland Security Contracting
U.S. Coast Guard Programs

Risk Flags

Lack of detailed competition information.
Potential for price escalation in future contract periods.
Vendor lock-in risk.
Need for performance validation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. HOSTING SERVICES FOR P.SOFT

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. Coast Guard).

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2006-05-16. End: 2011-09-15.

What was the competitive landscape for this contract, and how did it influence the final price?

The contract is listed as a 'COMPETITIVE DELIVERY ORDER,' implying multiple bids were considered. However, without details on the number of bidders, their proposals, and the evaluation criteria, it's difficult to assess the extent to which competition drove down costs or ensured the best value for the government.

What are the risks associated with a long-term hosting contract with a single vendor like IBM?

Long-term hosting contracts can lead to vendor lock-in, making it difficult and costly to switch providers. There's also a risk of price increases over time if competition is limited in subsequent renewals. Ensuring robust service level agreements and exit strategies is crucial to mitigate these risks.

How effectively does this contract support the U.S. Coast Guard's mission objectives?

The contract's effectiveness hinges on the reliability and performance of the P.Soft hosting services provided by IBM. If these services are stable and meet the Coast Guard's operational needs without interruption, the contract is effective. Performance metrics and user feedback would provide a clearer picture.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCG23-06-Q-TP9023

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,808,649

Exercised Options: $10,285,713

Current Obligation: $10,285,713

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4984H

IDV Type: FSS

Timeline