DHS TSA Awards IBM $18.5M for IT Support Extension Amidst Contract Transition

Contract Overview

Contract Amount: $18,582,686 ($18.6M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2010-03-01

End Date: 2013-01-31

Contract Duration: 1,067 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS PR ADDS STAFF TO THE SUPPORT TEAM AND CONTINUES THE SUPPORT FROM MARCH 1, 2010 TO APRIL 30, 2010 UNDER TASK 23. IT IS ANTICIPATED THAT THIS EFFORT WILL TRANSITION TO THE NEW ITIPS CONTRACT AT THE END OF THIS TERM BUT IF THAT IS NOT POSSIBLE ANOTHER EXTENSION WILL BE NECESSARY.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: THIS PR ADDS STAFF TO THE SUPPORT TEAM AND CONTINUES THE SUPPORT FROM MARCH 1, 2010 TO APRIL 30, 2010 UNDER TASK 23. IT IS ANTICIPATED THAT THIS EFFORT WILL TRANSITION TO THE NEW ITIPS CONTRACT AT THE END OF THIS TERM BUT IF THAT IS NOT POSSIBLE ANOTHER EXTENSION WILL BE NECESSAR… Key points: 1. IBM secures a significant contract extension for IT support services. 2. The award highlights potential challenges in transitioning to new IT contracts. 3. The duration and cost suggest a need for robust oversight. 4. This IT support contract falls within the broader technology services sector.

Value Assessment

Rating: fair

The $18.5M award for a 34-month period represents a significant investment. Benchmarking against similar IT support contracts is difficult without more granular data on services provided, but the duration suggests a substantial ongoing need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. However, the need for potential extensions suggests that the initial competition may not have fully addressed long-term needs or that market conditions shifted.

Taxpayer Impact: Taxpayer funds are being utilized for essential IT support services, with the cost reflecting the duration and scope of the support provided.

Public Impact

Ensures continuity of critical IT support for the Transportation Security Administration. Potential for increased costs if transition to new ITIPS contract is delayed. Highlights the government's reliance on established contractors for essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if new contract transition is delayed.
Lack of clarity on specific deliverables and performance metrics.
Reliance on a single vendor for an extended period.

Positive Signals

Ensures continued operational support for TSA.
Awarded through a competitive process.
Potential for seamless transition to a new contract.

Sector Analysis

This contract falls within the Information Technology sector, specifically IT support services. Spending in this area is substantial across federal agencies, driven by the increasing reliance on digital infrastructure and cybersecurity.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award to IBM.

Oversight & Accountability

The need for potential extensions and the mention of transitioning to a new contract warrant close oversight to ensure cost-effectiveness and timely delivery of services. Monitoring performance and managing the transition process are key.

Related Government Programs

Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Potential for contract creep and scope expansion.
Dependency on a single large contractor.
Uncertainty regarding successful transition to new contract.
Limited transparency on specific service deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. THIS PR ADDS STAFF TO THE SUPPORT TEAM AND CONTINUES THE SUPPORT FROM MARCH 1, 2010 TO APRIL 30, 2010 UNDER TASK 23. IT IS ANTICIPATED THAT THIS EFFORT WILL TRANSITION TO THE NEW ITIPS CONTRACT AT THE END OF THIS TERM BUT IF THAT IS NOT POSSIBLE ANOTHER EXTENSION WILL BE NECESSARY.

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 $18.6 million.

What is the period of performance?

Start: 2010-03-01. End: 2013-01-31.

What specific IT support services are being provided under this contract, and how do they align with TSA's current and future needs?

The provided data lacks specific details on the IT support services. Understanding the scope, including hardware/software maintenance, help desk support, network management, and cybersecurity functions, is crucial. Aligning these services with TSA's evolving technological requirements and strategic goals will determine the true value and effectiveness of this contract.

What are the primary risks associated with the potential extension or the transition to the new ITIPS contract, and what mitigation strategies are in place?

Key risks include potential cost increases due to prolonged reliance on the current contract, disruption of services during transition, and failure to meet the new contract's requirements. Mitigation strategies should involve proactive planning for the ITIPS transition, clear performance metrics, contingency plans for service continuity, and thorough vendor evaluation.

How does the pricing structure and total award amount compare to industry benchmarks for similar IT support contracts of this duration and scope?

Without detailed service descriptions, a precise benchmark is challenging. However, $18.5 million over 34 months averages approximately $544,000 per month. This figure needs to be assessed against the complexity and criticality of the IT infrastructure supported, the number of users, and the specific services rendered to determine if it represents fair market value.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $18,582,686

Exercised Options: $18,582,686

Current Obligation: $18,582,686

Parent Contract

Parent Award PIID: HSTS0307ACIO925

IDV Type: BPA

Timeline