DHS awards $17.9M contract to IBM for TTAC Screening Services application maintenance and support
Contract Overview
Contract Amount: $17,893,684 ($17.9M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Homeland Security
Start Date: 2010-09-02
End Date: 2013-05-03
Contract Duration: 974 days
Daily Burn Rate: $18.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: THE CONTRACTOR WILL PROVIDE APPLICATION MAINTENANCE AND TIER 3 PRODUCTION SUPPORT FOR THE TTAC SCREENING SERVICES.
Place of Performance
Location: ANNAPOLIS JUNCTION, HOWARD County, MARYLAND, 20701, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Homeland Security obligated $17.9 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: THE CONTRACTOR WILL PROVIDE APPLICATION MAINTENANCE AND TIER 3 PRODUCTION SUPPORT FOR THE TTAC SCREENING SERVICES. Key points: 1. IBM secured a significant contract for critical application support. 2. The contract value is substantial, indicating a long-term need. 3. Competition method is 'FULL AND OPEN COMPETITION', suggesting a fair process. 4. The sector appears to be IT services supporting government operations.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar IT maintenance contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential IT services.
Public Impact
Ensures continued operation of critical screening services for the TSA. Supports national security by maintaining vital IT infrastructure. Potential for job creation within IBM and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of specific performance metrics in provided data.
- Contract duration is substantial, requiring ongoing oversight.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security functions.
- Established contractor with a track record.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on application maintenance and production support. Spending benchmarks for similar government IT support contracts vary widely based on complexity and scope.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided on whether small businesses were subcontracted by IBM.
Oversight & Accountability
The contract's duration and cost-plus nature necessitate robust oversight from the Department of Homeland Security to ensure cost control and performance standards are met.
Related Government Programs
- Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
- Department of Homeland Security Contracting
- Transportation Security Administration Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for vendor lock-in.
- Lack of detailed performance metrics.
- Long contract duration requires sustained oversight.
Tags
computer-and-computer-peripheral-equipme, department-of-homeland-security, md, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $17.9 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. THE CONTRACTOR WILL PROVIDE APPLICATION MAINTENANCE AND TIER 3 PRODUCTION SUPPORT FOR THE TTAC SCREENING 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 (Transportation Security Administration).
What is the total obligated amount?
The obligated amount is $17.9 million.
What is the period of performance?
Start: 2010-09-02. End: 2013-05-03.
What is the projected cost savings or efficiency gains expected from this contract compared to previous solutions or in-house capabilities?
The provided data does not specify projected cost savings or efficiency gains. A Cost Plus Fixed Fee structure, while providing flexibility, requires diligent management to ensure value. Future analysis should seek performance metrics and cost-benefit analyses to assess true value.
What are the key performance indicators (KPIs) for this contract, and how is IBM's performance being measured?
Key performance indicators and specific performance measurement details are not included in the provided data. Effective oversight would require clearly defined KPIs related to uptime, response times, and issue resolution, with regular performance reviews.
Are there any identified risks associated with vendor lock-in or the long-term reliance on IBM for this critical system?
The long-term nature of the contract and the specialized support provided could lead to vendor lock-in. Mitigating this risk would involve periodic market research, ensuring clear exit strategies, and potentially fostering internal expertise or alternative solutions over 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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS FIXED FEE (U)
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: $37,571,014
Exercised Options: $17,893,684
Current Obligation: $17,893,684
Parent Contract
Parent Award PIID: HSTS0307ACIO925
IDV Type: BPA
Timeline
Start Date: 2010-09-02
Current End Date: 2013-05-03
Potential End Date: 2013-05-08 00:00:00
Last Modified: 2015-09-21
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