IBM Awarded $92M for ERA Operations & Maintenance by National Archives

Contract Overview

Contract Amount: $92,019,627 ($92.0M)

Contractor: International Business Machines Corporation

Awarding Agency: National Archives and Records Administration

Start Date: 2011-09-27

End Date: 2019-09-26

Contract Duration: 2,921 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ERA OPERATIONS AND MAINTENANCE

Place of Performance

Location: KEYSER, MINERAL County, WEST VIRGINIA, 26726

State: West Virginia Government Spending

Plain-Language Summary

National Archives and Records Administration obligated $92.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: ERA OPERATIONS AND MAINTENANCE Key points: 1. Significant contract value of $92 million awarded to a major corporation. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Contract duration spans nearly 8 years, indicating a long-term need. 4. No small business participation noted, potentially limiting broader economic impact.

Value Assessment

Rating: fair

The contract value of $92 million over nearly 8 years is substantial. Without specific unit cost data or benchmarks for similar ERA operations and maintenance services, a precise value assessment is difficult. However, the firm fixed-price structure suggests an attempt to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a delivery order mechanism within this framework allows for flexibility while still leveraging the initial competitive process.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure services at the best possible price. However, the lack of small business involvement might represent a missed opportunity for cost savings or innovation.

Public Impact

Government operations and maintenance services are critical for agency functionality. The long-term nature of the contract impacts budget planning and resource allocation. The award to a large corporation highlights the reliance on established providers for complex IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Long contract duration may lead to vendor lock-in or reduced flexibility

Positive Signals

Full and open competition utilized
Firm fixed-price contract type

Sector Analysis

This contract falls within the IT sector, specifically for operations and maintenance of electronic records archives. Spending in this area is crucial for government data management and compliance. Benchmarks for similar IT O&M contracts vary widely based on complexity and scale.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that the scope of work or the procurement strategy did not actively solicit or include small businesses, potentially missing out on specialized services or cost efficiencies they might offer.

Oversight & Accountability

The National Archives and Records Administration is responsible for this award. Oversight would involve monitoring contract performance, adherence to terms, and financial expenditures to ensure value for money and mission accomplishment.

Related Government Programs

Computer and Software Stores
National Archives and Records Administration Contracting
National Archives and Records Administration Programs

Risk Flags

Potential for vendor lock-in due to long contract duration.
Lack of small business participation may limit competition and innovation.
Complexity of IT operations and maintenance can lead to unforeseen cost increases.
Reliance on a single large vendor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

National Archives and Records Administration awarded $92.0 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. ERA OPERATIONS AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is INTERNATIONAL BUSINESS MACHINES CORPORATION.

Which agency awarded this contract?

Awarding agency: National Archives and Records Administration (National Archives and Records Administration).

What is the total obligated amount?

The obligated amount is $92.0 million.

What is the period of performance?

Start: 2011-09-27. End: 2019-09-26.

What specific services are included under 'ERA Operations and Maintenance' and how do they align with the National Archives' mission?

ERA Operations and Maintenance likely encompasses the upkeep, support, and continuous functioning of the Electronic Records Archives system. This includes ensuring data integrity, system availability, security, and user support. These services are fundamental to the National Archives' mission of preserving and providing access to federal records in a digital environment, ensuring long-term preservation and accessibility.

How does the firm fixed-price structure mitigate risks associated with long-term IT operations and maintenance contracts?

A firm fixed-price (FFP) contract establishes a ceiling price that the contractor must not exceed. For long-term IT O&M, FFP shifts the risk of cost overruns to the contractor, incentivizing efficiency and cost control. This provides budget certainty for the agency, although it may require careful scope definition upfront to avoid change orders.

What is the potential impact of awarding a nearly 8-year contract to a single large vendor on future technological adaptability?

Awarding a long-term contract to a single vendor like IBM can lead to vendor lock-in, potentially hindering the adoption of newer, more cost-effective technologies. While it ensures continuity, it might reduce flexibility and competitive pressure to innovate over the contract's lifespan. The agency must ensure robust performance metrics and potential exit strategies are in place.

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: 5

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: $175,281,741

Exercised Options: $105,847,387

Current Obligation: $92,019,627

Actual Outlays: $11,763,168

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $1,970,475

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4984H

IDV Type: FSS

Timeline