Interior Dept. Spends $17.2M on Computer Stores via Competitive Delivery Order

Contract Overview

Contract Amount: $17,256,802 ($17.3M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of the Interior

Start Date: 2005-12-23

End Date: 2008-12-22

Contract Duration: 1,095 days

Daily Burn Rate: $15.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 61294 - ADVANCED BROADBAND SOLUTIONS, INC.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $17.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: 61294 - ADVANCED BROADBAND SOLUTIONS, INC. Key points: 1. The Department of the Interior awarded a $17.2 million contract for computer and software stores. 2. IBM Corporation was the competitor, indicating a potentially competitive market. 3. The contract was a firm-fixed-price delivery order, providing cost certainty. 4. The spending falls under the 'Computer and Software Stores' NAICS code.

Value Assessment

Rating: fair

The contract value of $17.2 million for computer and software stores appears reasonable given the duration and the presence of a major competitor like IBM. However, without specific details on the hardware/software procured, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This was a competitive delivery order, suggesting multiple bids were solicited and evaluated. The competitive nature likely contributed to price discovery and a more favorable outcome for the government.

Taxpayer Impact: The competitive bidding process for this $17.2 million contract likely resulted in taxpayer savings compared to a sole-source award.

Public Impact

Government agencies rely on accessible computer and software stores for essential IT infrastructure. The duration of the contract (nearly 3 years) suggests ongoing needs for these supplies. The involvement of a large competitor like IBM highlights the importance of competitive sourcing for IT procurements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Spending on computer and software stores is a common and necessary expenditure for federal agencies to maintain IT operations. Benchmarks vary widely based on the specific hardware, software, and services procured.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement. Given the competitor was IBM, it's possible larger businesses dominated, but subcontracts could have involved SMBs.

Oversight & Accountability

The contract was awarded as a competitive delivery order, implying a structured procurement process. Further oversight would involve reviewing the specific solicitation, evaluation criteria, and performance monitoring.

Related Government Programs

Risk Flags

Tags

computer-and-software-stores, department-of-the-interior, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $17.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. 61294 - ADVANCED BROADBAND SOLUTIONS, INC.

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2005-12-23. End: 2008-12-22.

What specific computer hardware and software were procured under this contract, and how do their prices compare to market rates at the time of award?

The provided data lacks specifics on the exact computer hardware and software. To assess value, a detailed review of the contract line items, quantities, and vendor pricing against contemporaneous market data would be necessary. This would reveal if the $17.2 million expenditure represented a fair market price for the goods received.

What was the competitive landscape beyond IBM, and did the competition effectively drive down costs for the government?

While IBM is listed as a competitor, the extent of other participants and their bids are unknown. A truly effective competitive process would involve multiple qualified bidders vying for the contract. Understanding the number of bids received and the price spread among them would clarify the degree to which competition influenced cost savings for the Department of the Interior.

How effectively did the firm-fixed-price contract type protect the government from cost overruns given the nearly three-year duration?

A firm-fixed-price contract generally offers strong protection against cost overruns, as the contractor assumes the risk. However, for a nearly three-year duration, the initial price might not have accounted for significant market fluctuations or unforeseen technological changes. Effective management and potential price adjustments (if contractually allowed) would be key to ensuring continued value.

Industry Classification

NAICS: Retail TradeElectronics and Appliance StoresComputer and Software Stores

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

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: $17,256,802

Exercised Options: $17,256,802

Current Obligation: $17,256,802

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4984H

IDV Type: FSS

Timeline

Start Date: 2005-12-23

Current End Date: 2008-12-22

Potential End Date: 2008-12-22 00:00:00

Last Modified: 2021-12-02

More Contracts from International Business Machines Corporation

View all International Business Machines Corporation federal contracts →

Other Department of the Interior Contracts

View all Department of the Interior contracts →

Explore Related Government Spending