DoD awards IBM $10.6M contract for PEO Soldier FIAR services, running through August 2026
Contract Overview
Contract Amount: $10,610,961 ($10.6M)
Contractor: International Business Machines Corporation
Awarding Agency: Department of Defense
Start Date: 2022-08-20
End Date: 2026-08-19
Contract Duration: 1,460 days
Daily Burn Rate: $7.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: PEO SOLDIER FINANCIAL IMPROVEMENT AUDIT READINESS (FIAR) SERVICES FOLLOW-ON CONTRACT.
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $10.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: PEO SOLDIER FINANCIAL IMPROVEMENT AUDIT READINESS (FIAR) SERVICES FOLLOW-ON CONTRACT. Key points: 1. Contract focuses on financial improvement and audit readiness for PEO Soldier. 2. IBM is the sole awardee, raising questions about competition. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The sector is IT services, specifically 'Other Computer Related Services'.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking is difficult without specific performance metrics and comparable contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. However, the data indicates this is a delivery order, suggesting a potential for limited competition if the base contract was not widely bid.
Taxpayer Impact: The value of $10.6M represents taxpayer funds allocated to enhance financial accountability within the Department of the Army.
Public Impact
Ensures financial data integrity for a key Army program. Supports audit readiness, a critical compliance requirement. Potential for increased costs due to the contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of specific performance metrics
- Potential for cost overruns
Positive Signals
- Focus on audit readiness
- Full and open competition cited
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across the government, supporting various operational and administrative functions.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
Oversight will be crucial to monitor costs and ensure IBM meets the financial improvement and audit readiness objectives for PEO Soldier, especially given the CPFF structure.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Limited visibility into specific performance metrics
- Sole awardee (IBM) raises questions about competition effectiveness
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.6 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. PEO SOLDIER FINANCIAL IMPROVEMENT AUDIT READINESS (FIAR) SERVICES FOLLOW-ON CONTRACT.
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 $10.6 million.
What is the period of performance?
Start: 2022-08-20. End: 2026-08-19.
What specific financial improvement and audit readiness tasks will IBM perform, and how will success be measured?
The contract aims to support PEO Soldier's Financial Improvement and Audit Readiness (FIAR) initiatives. Specific tasks likely include data reconciliation, process improvement, system integration, and documentation to meet audit standards. Success will be measured against predefined milestones and the achievement of audit compliance, though these specifics are not detailed in the provided data.
What are the primary risks associated with a Cost Plus Fixed Fee contract for these services?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the fee is fixed, the government bears the risk of increased costs incurred by the contractor. This structure can incentivize contractors to incur higher costs if not closely monitored, potentially leading to expenditures exceeding initial estimates.
How does this contract contribute to the overall effectiveness of the Department of the Army's financial management?
This contract is intended to enhance the effectiveness of the Department of the Army's financial management by ensuring PEO Soldier's financial data is accurate, complete, and auditable. Achieving audit readiness is crucial for accountability, transparency, and compliance, ultimately strengthening the Army's ability to manage its resources efficiently and responsibly.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 6710 ROCKLEDGE DRIVE, BETHESDA, MD, 20817
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,884,716
Exercised Options: $13,129,921
Current Obligation: $10,610,961
Actual Outlays: $692,762
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J18DA032
IDV Type: IDC
Timeline
Start Date: 2022-08-20
Current End Date: 2026-08-19
Potential End Date: 2027-08-19 00:00:00
Last Modified: 2025-12-22
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