Department of Health and Human Services Awarded a Contract to INTERNATIONAL BUSINESS MACHINES CORPORATION for $20,000,000,000.00

Summary of Award

The contract detailed above is a Government-Wide Acquisition Contract (GWAC) between the U.S. federal government, specifically the Department of Health and Human Services (HHS), and International Business Machines Corporation (IBM), a renowned leader in information technology and consulting services. This agreement, structured as an Indefinite Delivery Vehicle (IDV), is identified by the unique award ID "CONT_IDV_HHSN316201200030W_7529" and aims to provide comprehensive IT and Telecommunications services.

### Overview of the Contract

The contract was signed on May 21, 2012, and is valued at a potential $20 billion if all options are exercised. It represents a significant commitment by the government to bolster its IT infrastructure through a partnership with IBM. This contract has a period of performance extending from May 21, 2012, to April 29, 2025, ensuring a long-term collaboration for the delivery of critical IT services. ### Funding and Financials Despite the high ceiling value, the contract obligations currently sit at a minimal $0.01, signifying that payments and fund transfers are largely performance-based and contingent upon the delivery of specified services. The total reported outlay to date is approximately $19,374,309.24, funded through code "Q" of federal accounts, which indicates that substantial financial commitments have already been directed towards this project. However, there are no recorded subawards under this contract, neither in count nor in financial outlay, suggesting IBM retains full responsibility for the delivery of the described services. ### Transactions The absence of visible transactions in the data suggests that there may have been a system lag in recording them, or they operate under specific confidential arrangements. Regardless, given IBM's longstanding relationship with federal work, it is anticipated that transactions would be methodically documented and executed according to federal guidelines. This oversight in documented transactions underlines the priority for continued evaluation and transparency, aligning with federal requisites for accountability. ### Description and Scope of Services The core scope under this contract revolves around the delivery of IT and Telecom services, specifically categorized under the Product or Service Code (PSC) "D399," with NAICS Code 541512 specifying "Computer Systems Design Services." This implies that IBM's responsibilities include comprehensive design and implementation of computer systems, maintenance, and possibly expanding into innovative IT solutions tailored for healthcare applications used within federal agencies. The contract is aligned with the CIO-SP3, a major program acronym denoting Chief Information Officer – Solutions and Partners 3, which advocates for establishing reliable IT infrastructures across federal agencies. These initiatives, aimed at integrating and optimizing IT solutions, play a pivotal role in elevating healthcare services offered by entities like the National Institutes of Health (NIH), a subset of HHS, which is directly involved in overseeing contract execution. ### Competition and Selection The competitive nature of this contract is evidenced by the receipt of 67 offers and its designation under "Full and Open Competition." Such a bidding process ensures that IBM was selected under stringent evaluation criteria, emphasizing not only cost-effectiveness but innovative capabilities and reliability, essential for managing intricate IT needs of federal health services. ### Recipient Details IBM, headquartered in Bethesda, Maryland, uniquely positions itself as a U.S.-owned business, contributing to the national economy while offering a breadth of technological expertise. Described under several business categories including Corporate Entity Not Tax Exempt and Not Designated as a Small Business, IBM stands as a robust and experienced partner capable of handling projects at this magnitude and complexity. Its global presence and advanced R&D capabilities strengthen its role in securing and implementing transformative IT solutions under this contract. ### Future Implications With this contract set to iterate through 2025, its potential impact extends beyond immediate IT infrastructure enhancements. The strategic improvements facilitated by IBM may drive significant transformations in national healthcare services, potentially influencing broader public health outcomes through improved technology in data management, patient care systems, and health program administration. Given the evolving nature of technology, this collaboration promises not only to meet current demands but also position federal health agencies at the forefront of technological innovation in the coming years. The critical partnership suggests potential advancements that can address key health challenges, fostering efficient agency operations conducive to enhanced public service delivery. ### Conclusion Overall, this contract encapsulates a significant federal investment in IT advancements, leveraging IBM's expertise to meet strategic goals outlined under HHS. As an exemplary model of public-private collaboration, it underscores the importance of sustaining transparent and efficient government contracting processes, ensuring that financial commitments are effectively matched with performance objectives, ultimately achieving significant advancements in public health IT infrastructures.