Interior's $26.3M FBMS Deployment 7 Contract Awarded to IBM Under Full and Open Competition
Contract Overview
Contract Amount: $26,302,760 ($26.3M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of the Interior
Start Date: 2011-04-30
End Date: 2013-04-30
Contract Duration: 731 days
Daily Burn Rate: $36.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FBMS - DEPLOYMENT 7, BUSINESS BLUEPRINT(CLIN 0001)
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20170
State: Virginia Government Spending
Plain-Language Summary
Department of the Interior obligated $26.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: FBMS - DEPLOYMENT 7, BUSINESS BLUEPRINT(CLIN 0001) Key points: 1. IBM secured a significant contract for FBMS Deployment 7, indicating strong capabilities in IT services. 2. The contract value of $26.3M suggests a substantial project scope within the Department of the Interior. 3. Full and open competition was utilized, implying a potentially competitive bidding process. 4. The 'Other Computer Related Services' NAICS code points to a specialized IT service requirement.
Value Assessment
Rating: fair
The contract value of $26.3M for a 2-year deployment seems within a reasonable range for large-scale IT projects. However, without specific details on deliverables and comparable project costs, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests that multiple vendors had the opportunity to bid, which typically drives better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario.
Public Impact
Federal agencies rely on systems like FBMS for critical business operations, impacting efficiency and service delivery. The success of this deployment could influence future IT modernization efforts across government. IBM's involvement highlights the role of major technology providers in government IT infrastructure. Taxpayers benefit from competitive procurement processes that aim to secure best value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics.
- Potential for cost overruns in complex IT deployments.
- Limited visibility into the specific services provided under NAICS 541519.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type can limit cost uncertainty.
- Long-term deployment suggests a strategic investment by the agency.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government, supporting a wide range of agency functions. Benchmarks for similar large-scale IT deployments vary widely based on scope and complexity.
Small Business Impact
The awardee is IBM, a large corporation, and the contract was awarded under full and open competition. There is no indication that small businesses were specifically targeted or subcontracted for this particular award.
Oversight & Accountability
The contract was awarded by the Department of the Interior. Oversight would typically involve contract officers, program managers, and potentially agency inspectors general to ensure performance and adherence to terms.
Related Government Programs
- Other Computer Related Services
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Potential for cost overruns if scope is not tightly managed.
- Dependence on a single large vendor (IBM) for a critical system.
- Lack of specific performance metrics in the provided data.
- The broad NAICS code may obscure the exact nature of specialized services required.
Tags
other-computer-related-services, department-of-the-interior, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $26.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. FBMS - DEPLOYMENT 7, BUSINESS BLUEPRINT(CLIN 0001)
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 $26.3 million.
What is the period of performance?
Start: 2011-04-30. End: 2013-04-30.
What specific business functions does FBMS Deployment 7 support, and how does its successful implementation contribute to the Department of the Interior's mission?
FBMS (Federal Business Management System) typically supports core financial management and administrative functions. A successful deployment of Deployment 7 would streamline operations, improve data accuracy, and enhance decision-making capabilities within the Department of the Interior, ultimately contributing to more efficient service delivery and resource management.
Given the firm fixed price, what mechanisms are in place to manage scope creep and ensure the $26.3M budget remains adhered to throughout the 2-year period?
With a firm fixed price contract, robust change control processes are crucial. The government likely has defined procedures for evaluating any proposed changes to the scope, requiring formal modification approvals and potentially renegotiating price if changes are approved. Strong project management and clear initial requirements are key to preventing scope creep.
How does the 'Other Computer Related Services' classification (NAICS 541519) differentiate this contract from more standard IT services, and what specialized expertise does IBM bring?
NAICS 541519 is a broad category encompassing services not elsewhere classified, often including IT consulting, system integration, and specialized technical support. This suggests the FBMS deployment may involve unique integration challenges or require expertise beyond typical software development or network management, leveraging IBM's broad capabilities in complex enterprise solutions.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
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: FIRM FIXED PRICE (J)
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: $26,302,760
Exercised Options: $26,302,760
Current Obligation: $26,302,760
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: INN06PC10435
IDV Type: IDC
Timeline
Start Date: 2011-04-30
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2017-06-27
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