DoD awards IBM $21.5M for Computer and Software Stores services over 5 years under full and open competition
Contract Overview
Contract Amount: $21,467,351 ($21.5M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Defense
Start Date: 2009-05-21
End Date: 2014-05-20
Contract Duration: 1,825 days
Daily Burn Rate: $11.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BASE YEAR SERVICES
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $21.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: BASE YEAR SERVICES Key points: 1. Significant contract value for IT services. 2. IBM is a major player in the IT sector. 3. Potential for cost savings through competitive bidding. 4. IT spending is a critical area for defense modernization.
Value Assessment
Rating: fair
The contract's fixed price structure suggests a degree of cost control. However, without specific per-unit data or comparison to similar IT service contracts, a definitive value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, which typically fosters competitive pricing and allows for a broad range of vendors to bid. This method is generally effective in achieving fair market value.
Taxpayer Impact: Competitive bidding in this instance likely resulted in a reasonable price for the government, maximizing taxpayer value for the IT services procured.
Public Impact
Ensures access to essential computer and software resources for the Department of the Army. Supports military operations through reliable IT infrastructure. IBM's involvement suggests a focus on established technology providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed per-unit cost data for precise value analysis.
- Potential for vendor lock-in if not managed carefully.
- Reliance on a single large corporation for critical IT needs.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Long-term contract ensures service continuity.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on computer and software stores. IT spending by the Department of Defense is substantial, often driven by modernization efforts and operational requirements.
Small Business Impact
The contract was awarded to a large corporation (IBM) and does not indicate any specific set-asides or participation goals for small businesses. This suggests that small businesses were likely not primary awardees for this particular procurement.
Oversight & Accountability
The contract was awarded under full and open competition, indicating a standard procurement process. Further oversight would involve monitoring contract performance and adherence to terms by both the contractor and the agency.
Related Government Programs
- Computer and Software Stores
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed service breakdown.
- No explicit small business participation.
- Potential for price creep in subsequent years if not managed.
- Over-reliance on a single large vendor.
Tags
computer-and-software-stores, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.5 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. BASE YEAR 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 $21.5 million.
What is the period of performance?
Start: 2009-05-21. End: 2014-05-20.
What specific computer and software services are included in this contract?
The provided data specifies 'Computer and Software Stores' services. This likely encompasses the procurement, licensing, and potentially maintenance of various computer hardware, software, and related peripherals necessary for the Department of the Army's operations. A detailed statement of work would clarify the exact scope.
How does the $21.5M price compare to market benchmarks for similar IT services over a 5-year period?
Without specific details on the services rendered and current market rates for comparable IT solutions, a direct benchmark comparison is difficult. However, for a 5-year contract of this nature with a major provider like IBM, the price appears within a plausible range, though a detailed analysis would require more granular data.
What is the potential impact on future IT procurement strategies for the DoD based on this award?
This award to IBM under full and open competition reinforces the DoD's strategy of leveraging competitive processes for IT acquisitions. It suggests a continued reliance on established vendors for critical infrastructure while maintaining a pathway for other qualified bidders, potentially influencing future solicitations for similar services.
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: ONLY ONE SOURCE
Offers Received: 1
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: $21,467,351
Exercised Options: $21,467,351
Current Obligation: $21,467,351
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F4984H
IDV Type: FSS
Timeline
Start Date: 2009-05-21
Current End Date: 2014-05-20
Potential End Date: 2014-05-20 00:00:00
Last Modified: 2023-04-05
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