FEMA awards $9.9M for logistics support to IBM, raising questions on value and competition
Contract Overview
Contract Amount: $9,937,326 ($9.9M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2007-09-28
End Date: 2012-09-30
Contract Duration: 1,829 days
Daily Burn Rate: $5.4K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)
Sector: Other
Official Description: LOGISTICS SUPPORT SERVICES
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $9.9 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: LOGISTICS SUPPORT SERVICES Key points: 1. IBM secured a significant contract for logistics support, highlighting potential reliance on large contractors. 2. The contract's duration and value suggest a substantial commitment of taxpayer funds. 3. Analysis needed to determine if the pricing reflects fair market value for these services. 4. The specific nature of 'logistics support' requires further definition to assess its impact.
Value Assessment
Rating: questionable
The award value of $9.9M over 5 years for administrative management and general management consulting services needs benchmarking against similar contracts. Without specific deliverables, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract type is listed as 'COMPETITIVE DELIVERY ORDER', but details on the competitive process are not provided. The lack of clarity on competition methods makes it difficult to assess price discovery.
Taxpayer Impact: The use of taxpayer funds for this contract warrants scrutiny to ensure efficiency and effectiveness in service delivery.
Public Impact
Citizens expect efficient use of funds for essential government services. Transparency in contracting processes builds public trust. Potential for cost savings through competitive bidding and performance monitoring.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition information
- Vague service description
- Long contract duration
Positive Signals
- Contract awarded to a well-known entity (IBM)
Sector Analysis
Logistics support services are crucial for government operations, particularly for agencies like FEMA. Benchmarks for similar consulting services vary widely based on scope and duration.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract, suggesting a potential lack of small business participation.
Oversight & Accountability
Oversight is needed to ensure IBM meets performance expectations and that the contract remains cost-effective throughout its duration. Regular reviews of deliverables and pricing are essential.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Homeland Security Contracting
- Federal Emergency Management Agency Programs
Risk Flags
- Potential for cost overruns due to vague service description
- Limited transparency in the competitive bidding process
- Long contract duration may not reflect evolving needs
- Lack of small business participation
Tags
administrative-management-and-general-ma, department-of-homeland-security, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $9.9 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. LOGISTICS SUPPORT SERVICES
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 (Federal Emergency Management Agency).
What is the total obligated amount?
The obligated amount is $9.9 million.
What is the period of performance?
Start: 2007-09-28. End: 2012-09-30.
What specific logistics support services were provided by IBM under this contract, and how did they align with FEMA's operational needs?
The provided data categorizes the service under 'Administrative Management and General Management Consulting Services' (NAICS 541611). However, the specific logistics support functions are not detailed. Understanding the exact nature of these services is critical to evaluating their necessity and effectiveness in supporting FEMA's mission, especially during emergencies.
What was the competitive landscape for this contract, and how was the winning bid determined to be the best value?
While labeled as a 'COMPETITIVE DELIVERY ORDER', the specifics of the competition are absent. Further investigation is required to ascertain the number of bidders, the evaluation criteria, and the justification for selecting IBM's proposal. This information is vital for assessing whether taxpayers received the best possible price and service.
How does the per-unit cost or overall pricing of this contract compare to industry benchmarks for similar logistics support services?
Without a detailed breakdown of services and associated costs, a direct comparison to industry benchmarks is challenging. The total award of $9.9 million over approximately five years necessitates a granular analysis of the pricing structure against comparable contracts to determine if it represents fair market value and avoids potential overspending.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HSFEHQ-07-Q-0216
Offers Received: 2
Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)
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: $29,811,978
Exercised Options: $10,346,143
Current Obligation: $9,937,326
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F7107H
IDV Type: FSS
Timeline
Start Date: 2007-09-28
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2021-12-06
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