DoD awards IBM $4.37M for Custom Computer Programming Services under Seaport NxG
Contract Overview
Contract Amount: $4,371,506 ($4.4M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Defense
Start Date: 2025-06-01
End Date: 2026-02-28
Contract Duration: 272 days
Daily Burn Rate: $16.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SEAPORT NXG APPLICATION
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $4.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: SEAPORT NXG APPLICATION Key points: 1. Contract awarded to a single, large vendor (IBM). 2. Focus on custom programming services, a common IT need. 3. Potential for higher costs due to limited competition. 4. Short contract duration (272 days) may limit long-term impact.
Value Assessment
Rating: fair
The contract value of $4.37M for custom programming is moderate. Benchmarking against similar contracts for this service type is difficult without more specific details on the scope of work, but the price appears within a reasonable range for a large vendor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award went to a single vendor, IBM, which may indicate specific capabilities or a strategic choice by the Navy.
Taxpayer Impact: The taxpayer impact is the $4.37M allocated for these services. The competitive process aims to ensure fair pricing, but the ultimate value depends on the successful delivery of the custom programming.
Public Impact
Enhances Navy's IT capabilities through custom software development. Supports critical defense operations requiring specialized programming. Potential for follow-on work based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single large vendor.
- Potential for cost overruns if scope expands.
- Limited duration may necessitate future contract actions.
Positive Signals
- Awarded through full and open competition.
- Addresses specific custom programming needs.
- Fixed-price contract provides cost certainty.
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming services. Spending in this area is substantial across government agencies, with significant variation based on project complexity and vendor rates. Benchmarks are highly dependent on the specific technical requirements.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. While IBM is a large corporation, the Seaport NxG vehicle itself may have provisions for small business participation in subcontracts, though this is not detailed in the provided data.
Oversight & Accountability
The Department of the Navy, under the Department of Defense, is responsible for oversight. The contract's fixed-price nature and defined duration provide a framework for accountability, with performance metrics likely evaluated upon delivery.
Related Government Programs
- Custom Computer Programming Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for vendor lock-in.
- Scope creep risk.
- Dependence on a single large contractor.
- Limited duration may lead to follow-on contract costs.
Tags
custom-computer-programming-services, department-of-defense, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $4.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. SEAPORT NXG APPLICATION
Who is the contractor on this award?
The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $4.4 million.
What is the period of performance?
Start: 2025-06-01. End: 2026-02-28.
What is the specific nature of the custom computer programming services required by the Navy?
The provided data lacks specifics on the exact programming services. This could range from developing new software applications to modifying existing systems or providing specialized technical support. Understanding the scope is crucial for assessing the true value and necessity of the $4.37M expenditure.
How does IBM's pricing compare to other potential bidders for similar custom programming tasks?
While awarded under full and open competition, the specific pricing comparison is not available. IBM's established reputation and capabilities likely influenced the bid. A detailed cost analysis would be needed to determine if IBM's pricing is competitive against other large IT service providers for this specific project.
What are the key performance indicators (KPIs) for this contract to ensure effective delivery of services?
The data does not specify the KPIs. Effective delivery would likely be measured by adherence to project timelines, successful integration of custom code, meeting functional requirements, and overall system performance post-deployment. The fixed-price nature suggests penalties or incentives might be tied to these metrics.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
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: 1 NEW ORCHARD RD, ARMONK, NY, 10504
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,371,506
Exercised Options: $4,371,506
Current Obligation: $4,371,506
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F110DA
IDV Type: FSS
Timeline
Start Date: 2025-06-01
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2026-01-12
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