DoD's ITES-2S Contract Awarded to IBM for $55.3M, Utilizing Full and Open Competition

Contract Overview

Contract Amount: $55,327,500 ($55.3M)

Contractor: International Business Machines Corporation

Awarding Agency: Department of Defense

Start Date: 2008-03-21

End Date: 2013-04-23

Contract Duration: 1,859 days

Daily Burn Rate: $29.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ITES-2S

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22033, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $55.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION for work described as: ITES-2S Key points: 1. The contract value is $55.3 million, indicating a significant investment in IT services. 2. IBM secured this award under full and open competition, suggesting a competitive bidding process. 3. The duration of 1859 days points to a long-term IT support requirement. 4. The NAICS code 517110 relates to Wired Telecommunications Carriers, defining the scope of services.

Value Assessment

Rating: good

The contract's firm fixed price structure suggests predictable costs. Benchmarking against similar large-scale IT service contracts would provide further insight into its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was used, which typically drives competitive pricing and ensures the government receives the best value. The award to a single large contractor suggests a focus on established providers.

Taxpayer Impact: The competitive nature of the award is expected to yield favorable pricing for taxpayers over the contract's duration.

Public Impact

Ensures the Department of Defense has access to essential wired telecommunications services. Supports critical military operations through reliable communication infrastructure. IBM's involvement suggests the integration of advanced technological solutions. The long contract duration implies a stable and ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to long-term contract.
Reliance on a single large contractor may limit flexibility.

Positive Signals

Competitive award process.
Firm fixed price contract for cost certainty.

Sector Analysis

This contract falls within the IT sector, specifically wired telecommunications. Spending benchmarks for similar DoD IT service contracts would be relevant for a comprehensive assessment.

Small Business Impact

The contract was awarded under full and open competition, and there is no specific indication of small business participation in this award. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

The Department of the Air Force managed this award. Standard DoD oversight mechanisms for large IT contracts would apply, focusing on performance and financial accountability.

Related Government Programs

Wired Telecommunications Carriers
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long contract duration may lead to outdated technology.
Potential for cost overruns if scope changes significantly.
Limited visibility into specific service deliverables.
Reliance on a single vendor could pose a risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.3 million to INTERNATIONAL BUSINESS MACHINES CORPORATION. ITES-2S

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 Air Force).

What is the total obligated amount?

The obligated amount is $55.3 million.

What is the period of performance?

Start: 2008-03-21. End: 2013-04-23.

What specific telecommunications services are covered under this contract, and how do they align with current DoD technological needs?

The contract falls under NAICS code 517110 (Wired Telecommunications Carriers). This typically includes services like local and long-distance voice and data services, internet access, and private line services delivered over wired infrastructure. Given the 2008 award date, it likely supported established communication needs at the time, though its alignment with evolving DoD technological requirements would need to be assessed against the contract's scope and any subsequent modifications or task orders.

What were the key performance metrics and evaluation criteria used during the full and open competition for this contract?

While specific evaluation criteria are not detailed in the provided data, a full and open competition for a contract of this magnitude typically involves evaluating technical approach, past performance, management capability, and price. Key performance metrics would likely focus on service availability, network uptime, data transmission speeds, and response times for issue resolution, ensuring reliable and efficient telecommunications support for the Department of Defense.

How did the firm fixed price structure impact the government's ability to adapt to potential technological advancements or changes in service requirements during the contract's term?

A firm fixed price contract provides cost certainty but can limit flexibility. While the base contract price is fixed, the government might have utilized contract modifications or separate task orders to incorporate new technologies or adjust service requirements, potentially at an additional cost. The effectiveness of adaptation would depend on the contract's flexibility clauses and the agency's strategy for managing evolving needs within the fixed-price framework.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6710 ROCKLEDGE DR, BETHESDA, MD, 20817

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $55,327,500

Exercised Options: $55,327,500

Current Obligation: $55,327,500

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0010

IDV Type: IDC

Timeline