DHS awards IBM $33.6M for Secure Flight IT services under OASIS II, highlighting a competitive BPA call

Contract Overview

Contract Amount: $33,620,417 ($33.6M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2014-08-20

End Date: 2016-08-19

Contract Duration: 730 days

Daily Burn Rate: $46.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::OT::IGF OASIS II TASK ORDER #40 - SECURE FLIGHT APPLICATION DEVELOPMENT AND IT SUPPORT SERVICES.

Place of Performance

Location: ANNAPOLIS JUNCTION, HOWARD County, MARYLAND, 20701

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: IGF::OT::IGF OASIS II TASK ORDER #40 - SECURE FLIGHT APPLICATION DEVELOPMENT AND IT SUPPORT SERVICES. Key points: 1. The contract value of $33.6M for IT support and application development is significant. 2. IBM secured this contract through a full and open competition, indicating a competitive bidding process. 3. The contract duration of 730 days (2 years) suggests a medium-term need for these services. 4. The primary sector is IT, with specific application to aviation security.

Value Assessment

Rating: good

The award amount of $33.6M appears reasonable for two years of specialized IT support and application development. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition via a BPA Call, suggesting a robust process for price discovery and selection of the most advantageous offer. This method generally leads to competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers likely received fair value for the services rendered, minimizing the risk of overpayment.

Public Impact

Enhances aviation security through the Secure Flight program. Ensures continued IT support for critical transportation security functions. Supports the operational capabilities of the Transportation Security Administration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours exceed estimates.
Dependency on a single contractor (IBM) for critical IT services.

Positive Signals

Awarded through full and open competition.
Supports a vital national security program (Secure Flight).

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on application development and IT support services for a government agency. Spending benchmarks for similar IT services contracts with agencies like DHS can vary widely based on scope and duration.

Small Business Impact

The contract was awarded to IBM, a large business. There is no indication that small businesses were involved as subcontractors in this specific task order, which is common for large prime contracts.

Oversight & Accountability

The award was made under the OASIS II GWAC, which is designed to provide agencies with a flexible and efficient contracting vehicle. Oversight would typically involve contract performance monitoring by the TSA contracting officer's representative.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to labor hour contract type.
Lack of small business participation noted.
Contract duration is fixed, limiting flexibility for scope changes.
Dependency on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. IGF::OT::IGF OASIS II TASK ORDER #40 - SECURE FLIGHT APPLICATION DEVELOPMENT AND IT 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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $33.6 million.

What is the period of performance?

Start: 2014-08-20. End: 2016-08-19.

What was the specific basis for selecting IBM's bid among all proposals received during the full and open competition?

The provided data indicates the contract was awarded via a BPA Call under full and open competition. While this suggests a competitive process, the specific evaluation criteria and the rationale for selecting IBM's proposal over others are not detailed. Typically, such evaluations consider factors like technical approach, past performance, price, and small business participation.

Are there any identified risks associated with the labor hour pricing model for this contract?

Labor hour contracts can pose a risk of cost overruns if the actual hours worked exceed initial estimates or if labor rates are higher than anticipated. Effective oversight and diligent monitoring of hours expended by the government are crucial to mitigate this risk and ensure costs remain within budget and aligned with the value received.

How does the performance of these IT services by IBM contribute to the overall effectiveness of the Secure Flight program?

The Secure Flight program is critical for national security by identifying potential threats before passengers board aircraft. Reliable application development and IT support services are essential for the program's operational continuity, data integrity, and ability to adapt to evolving security needs, directly impacting its effectiveness.

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: LABOR HOURS (Z)

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: $68,078,934

Exercised Options: $33,620,417

Current Obligation: $33,620,417

Subaward Activity

Number of Subawards: 39

Total Subaward Amount: $18,087,127

Parent Contract

Parent Award PIID: HSTS0313ACIO549

IDV Type: BPA

Timeline