Department of Transportation Awarded a Contract to INTERNATIONAL BUSINESS MACHINES CORPORATION for $48,199,168.53

Summary of Award

The JSON data represents a significant contractual arrangement between the United States federal government and International Business Machines Corporation (IBM). This contract, identified as "CONT_IDV_6973GH24A00004_6920", is categorized as an Indefinite Delivery Vehicle (IDV) with the specific type being a Blanket Purchase Agreement (BPA). The BPA, a strategic contract type used by federal agencies to simplify recurring purchases from approved suppliers, is aimed at procurement flexibility and cost-effectiveness.

The contract was officially signed on November 1, 2023, and spans a period of five years, terminating on October 31, 2028. Such extended engagement signifies the government's reliance on IBM’s capabilities to consistently provide necessary services over this term. This BPA is part of a multiple-award arrangement, implying that similar agreements have been set up with other vendors to foster competition and gather the best qualitative and financial offerings in procurement.

From an agency perspective, both the awarding and funding agency is the Department of Transportation (DOT), notably through its Federal Aviation Administration (FAA) subdivision. This partnership underscores the FAA's strategic needs in areas of professional, scientific, and technical services where IBM's expertise aligns with the NAICS code 541990. This code denotes IBM’s role in offering specialized, technical professional services that do not fall into predefined categories, hinting at bespoke, high-tech, or niche service provisions. The contract’s core objective revolves around IBM functioning as a partner in the IBM Teaming Partner Acquisition Follow-On, emphasizing a follow-up initiative likely linked to prior successful collaboration. This agreement showcases the government's trust in IBM, not merely on the tech frontier but also as a formidable professional services provider. Interestingly, within the comprehensive contract, the total obligated funds remain at zero. This figure might reflect the BPA's flexible nature, where funds are allocated on a per-order basis rather than upfront. The total potential value, $48,199,168.53, indicates the maximum projected outlay should the government exploit full contract opportunities. No subawards or foreign funding are reported, which aligns with IBM's position as a domestic corporate giant capable of internally managing large-scale government projects. Looking into the organizational details, IBM is a corporate entity not marked as a small business, recognized for manufacturing goods, and has been classified under numerous business categories that ascertain its status as a U.S.-owned business with substantial operational capacity. Headquartered in Bethesda, Maryland, IBM’s location reinforces its strategic proximity to major governmental hubs. The transactions linked to this contract represent crucial financial and administrative activities facilitating its management. Three transactions are logged, dated from November 2023 through April 2025. Despite their zero-dollar transaction amounts, these are modifications or administrative maneuvers pivotal for record-keeping, compliance, and potential triggering of particular contract phases or conditions. Each transaction references modifications of the BPA: - The first transaction, dated November 1, 2023, marks the initial action, crucial for establishing contract enactment. - A following transaction on August 1, 2024, labeled Mod P00001, indicates a likely modification or adjustment in contract terms or structure. - The most recent transaction, dated April 10, 2025, under Mod P00002, reflects subsequent agreements or alterations within the BPA framework. The consistent zero values in "Transaction Amount" across entries affirm the procedural, rather than monetary, significance of these transactions at this stage in the agreement. This procedural focus aligns with BPAs as they predicate actual spending on task orders rather than predetermined allocations, allowing fiscal maneuverability and timely alignment with governmental priorities. In essence, this BPA illustrates a complex interplay of governmental procurement strategy with trusted private partners, ensuring access to essential professional services. IBM's recognized capabilities as a tech and service provider highlight why such an influential entity is contracted, underpinning the FAA's commitment to leveraging premier expertise for national benefit. Furthermore, the contract demonstrates a meticulous governmental approach to large-scale service procurement, characterized by financial prudence and tactical contracting frameworks. Though the transactions do not convey immediate fiscal shifts, they underscore essential procedural continuity and compliance within the overarching strategic objective, building on IBM's legacy of governmental collaboration and innovation-driven service provision.