IBM contract for IT hardware and software totals over $34.7M, awarded by DHS

Contract Overview

Contract Amount: $34,726,133 ($34.7M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2007-09-29

End Date: 2012-07-27

Contract Duration: 1,763 days

Daily Burn Rate: $19.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Sector: IT

Place of Performance

Location: ANNAPOLIS JUNCTION, ANNE ARUNDEL County, MARYLAND, 20701, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: Key points: 1. Value for money appears fair given the contract duration and scope. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period. 4. Performance context shows a significant investment in IT infrastructure. 5. Sector positioning is within the IT hardware and software wholesale market.

Value Assessment

Rating: fair

The total award amount of over $34.7 million for this contract, spanning nearly five years, suggests a substantial investment. Benchmarking against similar large-scale IT hardware and software procurements is challenging without more specific details on the exact goods and services provided. However, the duration of the contract implies a need for consistent supply and support, which could justify the overall expenditure if the technology delivered met the agency's evolving needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely considered and allowed to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which should theoretically lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for cost savings by encouraging a wide range of suppliers to offer their best prices and terms.

Public Impact

The Department of Homeland Security, specifically the Transportation Security Administration, benefits from this contract through the acquisition of necessary IT hardware and software. Essential IT infrastructure and equipment are delivered, supporting the agency's operational capabilities. The primary geographic impact is within Maryland, where the contract is managed or services are delivered. Workforce implications are indirect, relating to the IT support and maintenance personnel required to manage the procured hardware and software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 4 years) could lead to technology obsolescence if not managed proactively.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the procured IT assets.
The broad NAICS code (423430) for wholesale trade of computer equipment may obscure the specific nature and value of the software components.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract was awarded to a major IT provider (IBM), potentially indicating reliability and established support.
The contract supported a critical agency (DHS/TSA) with essential IT resources.

Sector Analysis

This contract falls within the Information Technology sector, specifically the wholesale distribution of computer hardware and software. The market for IT hardware and software procurement by federal agencies is substantial, with significant spending allocated annually. This contract represents a portion of that spending, likely for equipping or upgrading the Transportation Security Administration's IT infrastructure. Comparable spending benchmarks would depend on the specific types and quantities of hardware and software procured.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of small business subcontracting requirements (ss: false). Therefore, this contract likely did not directly benefit small businesses through set-asides or mandated subcontracting. The primary awardee, IBM, is a large corporation, suggesting that the focus was on securing IT resources from established, large-scale providers rather than fostering small business participation in this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and procurement offices, with potential involvement from the Transportation Security Administration's program managers. Accountability measures would be defined by the contract's terms and conditions, including delivery schedules and performance standards. Transparency is facilitated by public contract databases, though detailed operational performance data may be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DHS IT Modernization Programs
TSA Technology Procurement
Federal IT Hardware and Software Purchasing
GSA Schedule Contracts (potential overlap)
Large-Scale IT Infrastructure Projects

Risk Flags

Long contract duration may lead to technology obsolescence.
Lack of specific performance metrics hinders value assessment.
Broad NAICS code limits specificity of goods/services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.7 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. See the official description on USAspending.

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $34.7 million.

What is the period of performance?

Start: 2007-09-29. End: 2012-07-27.

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

The provided data indicates the contract falls under NAICS code 423430, which pertains to 'Computer and Computer Peripheral Equipment and Software Merchant Wholesalers.' However, it does not specify the exact models of hardware or the particular software applications acquired. This level of detail is typically found in the contract's statement of work or line item details, which are not included in the summary data. Understanding the specific items is crucial for assessing their relevance to TSA's mission and for comparing costs against market benchmarks for those particular products.

How does the total award amount of over $34.7 million compare to similar IT procurements by the TSA or DHS?

Direct comparison of the total award amount requires identifying contracts with similar scope, duration, and types of IT goods and services. Without a detailed statement of work, it's difficult to benchmark precisely. However, $34.7 million over nearly five years represents an average annual expenditure of approximately $7 million. This figure should be evaluated against the agency's overall IT budget and the criticality of the procured items. Larger, more complex IT modernization efforts within DHS often involve significantly higher figures, while smaller, targeted purchases would be less.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. These metrics are essential for evaluating the contractor's performance and ensuring the government receives the expected value. Typically, KPIs for IT hardware and software contracts might include delivery timelines, equipment uptime, software functionality, and technical support response times. The absence of this information in the summary data limits a thorough assessment of performance and value realization.

What is IBM's track record with the Department of Homeland Security for similar IT contracts?

IBM has a long history of contracting with various U.S. federal agencies, including the Department of Homeland Security (DHS). While this specific contract award is for over $34.7 million, IBM has secured numerous other contracts across different agencies for a wide range of IT services and products. Assessing their overall track record with DHS would involve reviewing multiple contract awards, performance evaluations, and any past issues or successes. Generally, large IT providers like IBM are common partners for federal agencies due to their extensive capabilities and established presence.

Were there any identified risks or challenges during the performance period of this contract?

The summary data does not explicitly list risks or challenges encountered during the performance of this contract. However, contracts of this duration (nearly five years) and value inherently carry risks such as potential technology obsolescence, changes in agency requirements, vendor performance issues, or budget fluctuations. Proactive contract management by the TSA would have been necessary to mitigate these potential risks. Without specific performance reports or issue logs, it's impossible to detail any actual challenges faced.

How has spending on IT hardware and software wholesale by the TSA evolved over time, and does this contract represent a significant shift?

Analyzing the evolution of TSA's spending on IT hardware and software wholesale requires historical spending data beyond this single contract. This contract, awarded in 2007 and ending in 2012, represents a snapshot of spending during that period. To understand trends, one would need to examine spending patterns before and after this contract, as well as other contracts awarded during its term. Factors like technological advancements, agency growth, and evolving security needs would influence spending patterns over time. This contract's value suggests a substantial, but not necessarily unprecedented, investment for its time.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

Product/Service Code: RESEARCH AND DEVELOPMENT › General Science and Technology R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $71,185,961

Exercised Options: $34,726,133

Current Obligation: $34,726,133

Parent Contract

Parent Award PIID: HSTS0307ACIO925

IDV Type: BPA

Timeline