IBM contract for AT&L/SCST support awarded $14.19M, highlighting IT services for the Department of Defense

Contract Overview

Contract Amount: $14,191,565 ($14.2M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Defense

Start Date: 2005-06-13

End Date: 2008-05-31

Contract Duration: 1,083 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: IT

Official Description: ACQUISITION DOMAIN ENTERPRISE INITIATIVE SUPPORT FOR AT&L/SCST TAS::21 2020::TAS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22240

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: ACQUISITION DOMAIN ENTERPRISE INITIATIVE SUPPORT FOR AT&L/SCST TAS::21 2020::TAS Key points: 1. The contract value of $14.19M over approximately three years suggests a moderate investment in IT support services. 2. IBM, a large established contractor, secured this award, indicating its continued presence in the federal IT landscape. 3. The award was made under full and open competition, implying a potentially competitive bidding process. 4. The duration of the contract (1083 days) points to a medium-term engagement for the services provided. 5. The primary service category is Computer and Software Stores, suggesting procurement of IT hardware and related software. 6. The contract's focus on AT&L/SCST (likely Acquisition, Technology, and Logistics / Science, Technology, and Engineering) indicates support for critical defense functions.

Value Assessment

Rating: fair

Benchmarking the value of this $14.19M contract is challenging without specific service details or comparable contract data. However, for a three-year IT support and services contract within the Department of Defense, the average annual value of approximately $4.73M appears within a reasonable range for specialized support. Further analysis would require understanding the scope of services, such as software licensing, hardware provision, or technical support, to assess true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit bids. This typically leads to a more robust bidding environment, potentially resulting in better pricing and a wider range of solutions. The fact that it was competed openly is a positive indicator for price discovery and efficient use of taxpayer funds.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The Department of the Army benefits from enhanced IT support for its Acquisition, Technology, and Logistics (AT&L) and Science, Technology, and Engineering (SCST) functions. The contract likely supports critical defense acquisition and technology development processes, contributing to national security objectives. Personnel within the AT&L/SCST domains receive the IT resources and support necessary for their operations. The geographic impact is primarily within the Department of Defense's operational areas, potentially supporting various military installations or research facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details makes it difficult to fully assess value for money.
The contract duration is substantial, requiring ongoing monitoring for performance and cost control.
Reliance on a single large contractor (IBM) for critical IT support could pose risks if not managed effectively.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing structure.
IBM is a well-established contractor with a significant track record in federal IT services.
The contract supports key defense acquisition and technology functions, aligning with strategic priorities.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer and software stores and related support services. The federal IT market is vast, with agencies consistently investing in hardware, software, and services to maintain and modernize their technological infrastructure. This contract represents a portion of the Department of Defense's broader IT spending, which is among the largest in the federal government. Comparable spending benchmarks would typically involve analyzing IT procurement data for similar support services across defense agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business subcontracting) is also false. This suggests that small businesses were not specifically targeted for this award or for subcontracting opportunities under this particular contract. Consequently, the direct impact on the small business ecosystem for this specific award is likely minimal, though IBM may engage small businesses in its broader supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be embedded in the contract's terms and conditions, including performance metrics and delivery schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Modernization Programs
Army Acquisition Support Services
Defense Science and Technology Support Contracts
Federal Civilian IT Services Procurement
Enterprise IT Solutions

Risk Flags

Lack of detailed service scope
Potential for vendor lock-in with large IT providers
Need for ongoing performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. ACQUISITION DOMAIN ENTERPRISE INITIATIVE SUPPORT FOR AT&L/SCST TAS::21 2020::TAS

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 Army).

What is the total obligated amount?

The obligated amount is $14.2 million.

What is the period of performance?

Start: 2005-06-13. End: 2008-05-31.

What specific IT hardware and software were procured under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code as 443120, which corresponds to 'Computer and Software Stores'. This suggests the contract likely involved the procurement of computer hardware (e.g., servers, workstations, peripherals) and software licenses or products. However, the specific items, quantities, and vendors of the hardware/software are not detailed in the summary data. Further investigation into the contract's statement of work or delivery orders would be necessary to identify the precise IT assets acquired.

How does the $14.19M contract value compare to similar IT support contracts within the Department of Defense?

Comparing the $14.19M value requires context on the duration and scope. This contract spanned approximately three years (1083 days), averaging about $4.73M annually. Within the Department of Defense, IT support contracts can range significantly. For specialized acquisition and technology support, this value is moderate. Larger enterprise-wide IT service contracts can reach hundreds of millions or billions. Smaller, project-specific IT procurements might be in the low millions. Without knowing the exact services (e.g., managed services, software development, hardware provisioning), a precise benchmark is difficult, but it appears to be a mid-tier contract for its likely specialized function.

What is IBM's track record with the Department of the Army for similar IT services?

IBM has a long-standing and extensive track record of providing a wide array of IT services and products to the Department of Defense, including the Department of the Army. Their engagements typically span hardware, software, cloud services, cybersecurity, and complex system integration. While this specific contract focuses on 'Computer and Software Stores' and AT&L/SCST support, IBM's broader history suggests a capacity to deliver on such requirements. Analyzing past performance evaluations and other contracts awarded to IBM by the Army would provide a more granular view of their specific performance history in this domain.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided summary data does not include details on specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, such metrics would be defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These would outline expectations for delivery timelines, system uptime, response times for support requests, and quality standards. The absence of this information in the summary means that a direct assessment of performance expectations and potential risks related to unmet SLAs cannot be made from this data alone.

What was the historical spending trend for AT&L/SCST IT support prior to this contract?

The provided data focuses on a single contract award and does not offer historical spending trends for AT&L/SCST IT support. To analyze historical spending, one would need to query federal procurement databases (like FPDS) for similar contracts awarded to the Department of the Army or specific AT&L/SCST offices over several fiscal years. This would involve identifying relevant NAICS codes, contract types, and keywords related to acquisition and technology support. Without this broader dataset, it's impossible to determine if the $14.19M award represents an increase, decrease, or stable level of investment in this area.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

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: $14,346,441

Exercised Options: $14,346,441

Current Obligation: $14,191,565

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4984H

IDV Type: FSS

Timeline