DHS TSA Awards IBM $30.4M for Secure Flight IT Support Amidst Transition

Contract Overview

Contract Amount: $30,438,909 ($30.4M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2017-08-20

End Date: 2018-08-19

Contract Duration: 364 days

Daily Burn Rate: $83.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CT::IGF SECURE FLIGHT BRIDGE TO PROVIDE CONTINUED SUPPORT IN APPLICATION DEVELOPMENT, IT SUPPORT TIER 3 SUPPORT AND TRANSITION ACTIVITIES AS CURRENT EFFORT ENDS AND NEW AWARD IS MADE.

Place of Performance

Location: ANNAPOLIS JUNCTION, ANNE ARUNDEL County, MARYLAND, 20701

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IGF::CT::IGF SECURE FLIGHT BRIDGE TO PROVIDE CONTINUED SUPPORT IN APPLICATION DEVELOPMENT, IT SUPPORT TIER 3 SUPPORT AND TRANSITION ACTIVITIES AS CURRENT EFFORT ENDS AND NEW AWARD IS MADE. Key points: 1. Contract value of $30.4M for one year of IT support. 2. IBM secured the contract through full and open competition. 3. Potential risk in transition activities if not managed effectively. 4. IT and software services sector with a focus on application development and support.

Value Assessment

Rating: good

The contract value of $30.4M for a 364-day period appears reasonable for specialized IT support, application development, and Tier 3 services. Benchmarking against similar TSA IT support contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT services.

Public Impact

Ensures continuity of critical IT operations for TSA's Secure Flight program. Supports application development and maintenance, crucial for program functionality. Provides essential Tier 3 support, minimizing disruptions to users. Facilitates a smooth transition to a new award, preventing service gaps.

Waste & Efficiency Indicators

Waste Risk Score: 83 / 10

Warning Flags

Transition risk
Potential for scope creep in application development

Positive Signals

Full and open competition
Continuity of essential services
Experienced contractor (IBM)

Sector Analysis

This contract falls within the IT and software services sector, specifically supporting government application development and IT infrastructure. Spending in this area is substantial across federal agencies, with benchmarks varying widely based on service complexity and duration.

Small Business Impact

While IBM is a large business, the full and open competition process allows for participation by small businesses as subcontractors if they possess the required specialized skills.

Oversight & Accountability

The contract was awarded via a BPA Call, suggesting it aligns with pre-negotiated terms. Oversight would focus on performance metrics, adherence to the time and materials basis, and successful transition management.

Related Government Programs

Computer and Software Stores
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Transition risk
Time and Materials pricing model
Dependence on a single contractor for critical support
Potential for scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IGF::CT::IGF SECURE FLIGHT BRIDGE TO PROVIDE CONTINUED SUPPORT IN APPLICATION DEVELOPMENT, IT SUPPORT TIER 3 SUPPORT AND TRANSITION ACTIVITIES AS CURRENT EFFORT ENDS AND NEW AWARD IS MADE.

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 $30.4 million.

What is the period of performance?

Start: 2017-08-20. End: 2018-08-19.

What is the specific scope of 'transition activities' and what are the key performance indicators for a successful handover?

Transition activities likely encompass knowledge transfer, documentation updates, and the phasing out of current systems/processes while integrating with new ones. Key performance indicators would include minimal service disruption, successful data migration, timely completion of all handover tasks, and positive feedback from the incoming contractor and TSA stakeholders.

How does the time and materials pricing structure mitigate cost overruns for application development and support?

Time and materials (T&M) pricing can be a risk for cost overruns if not tightly managed. Mitigation strategies include establishing clear ceilings, detailed work breakdown structures, regular progress reviews, and robust oversight to ensure efficient labor utilization and prevent scope creep. The government must actively monitor hours and costs against the estimated value.

What are the potential impacts on Secure Flight operations if the transition is not managed effectively?

Ineffective transition management could lead to significant disruptions in Secure Flight operations, including application downtime, data integrity issues, or a lapse in critical IT support. This could impact passenger screening, security protocols, and overall TSA efficiency, potentially affecting national security and traveler experience.

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: TIME AND MATERIALS (Y)

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: $31,271,220

Exercised Options: $30,442,334

Current Obligation: $30,438,909

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $6,101,361

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSTS0313ACIO549

IDV Type: BPA

Timeline