DoD awards $15.4M for Project Management Support Services to IBM under full and open competition
Contract Overview
Contract Amount: $15,375,022 ($15.4M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Defense
Start Date: 2007-08-01
End Date: 2012-10-31
Contract Duration: 1,918 days
Daily Burn Rate: $8.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DEFENSE PERSONAL PROPERTY PROGRAM PROJECT MANAGEMENT SUPPORT SERVICES
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $15.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: DEFENSE PERSONAL PROPERTY PROGRAM PROJECT MANAGEMENT SUPPORT SERVICES Key points: 1. IBM secured a significant contract for project management support, indicating strong capabilities in this area. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 4 years) implies a substantial need for these services. 4. The firm-fixed-price structure aims to control costs for the Department of Defense.
Value Assessment
Rating: good
The contract value of $15.4 million over approximately 4.8 years suggests a reasonable annual spend for specialized project management support. Benchmarking against similar large-scale government IT or management consulting contracts would provide a clearer picture of its cost-effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, allowing any qualified vendor to bid. This method generally promotes competitive pricing and ensures the government receives the best value by considering multiple offers.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing taxpayer value for the services rendered.
Public Impact
Ensures efficient management of defense personal property programs. Supports critical administrative and general management functions within the Department of the Army. IBM's involvement suggests a reliance on established private sector expertise for government operations.
Waste & Efficiency Indicators
Waste Risk Score: 80 / 10
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Award to a well-established contractor.
Sector Analysis
This contract falls under administrative management and general management consulting services, a broad category often supporting complex government operations. Spending in this sector can vary widely based on agency needs and project scope.
Small Business Impact
The contract was awarded to IBM, a large corporation, and there is no indication of small business participation or subcontracting requirements in the provided data. This suggests limited direct benefit to small businesses from this specific award.
Oversight & Accountability
The firm-fixed-price contract type provides a degree of cost certainty. However, ongoing oversight by the Department of the Army is crucial to ensure performance standards are met and the services align with program objectives.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is substantial.
- No explicit small business set-aside or subcontracting noted.
- Potential for vendor lock-in with a large incumbent.
Tags
administrative-management-and-general-ma, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.4 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. DEFENSE PERSONAL PROPERTY PROGRAM PROJECT MANAGEMENT SUPPORT SERVICES
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 $15.4 million.
What is the period of performance?
Start: 2007-08-01. End: 2012-10-31.
What specific project management methodologies and tools were employed by IBM to ensure efficient execution of the Defense Personal Property Program?
The provided data does not detail the specific project management methodologies or tools used by IBM. Further investigation into contract performance reports or statements of work would be necessary to ascertain the exact approaches and technologies implemented to manage the Defense Personal Property Program effectively.
How did the competitive bidding process under full and open competition ensure the government secured the most cost-effective solution for these management support services?
Full and open competition allows multiple qualified vendors to submit bids, fostering a competitive environment. This typically drives down prices as contractors vie for the award. The government's evaluation criteria, focusing on both technical merit and price, would have determined the most cost-effective solution among the proposals received.
What are the potential risks associated with relying on a single large contractor like IBM for critical project management support services over an extended period?
Potential risks include vendor lock-in, reduced flexibility to adapt to changing needs, and a potential decrease in competitive pressure over time. Over-reliance on one contractor could also pose a risk if the contractor experiences financial difficulties or strategic shifts that impact service delivery.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
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: $15,375,022
Exercised Options: $15,375,022
Current Obligation: $15,375,022
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F7107H
IDV Type: FSS
Timeline
Start Date: 2007-08-01
Current End Date: 2012-10-31
Potential End Date: 2012-10-31 00:00:00
Last Modified: 2021-12-09
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