The General Services Administration granted IBM a six-month $16 million extension on its contract to operate and modernize the SAM.gov system as the agency considers whether to put the business up for bidding.
The extension was announced in a contracting document dated Aug. 13 that cited an urgent need to keep IBM on the job while the agency explores the possibility of a competitive offering.
IBM has held the System for Award Management Architecture and Operations Contract Services contract for eight years, and it is leading the effort to modernize the system of systems that government agencies and vendors use to manage hundreds of billions in government contracts annually.
IBM’s contract expired Aug. 14. GSA had intended to award IBM another long-term deal, but according to contracting documents, that move was overturned because of a ruling that more market research needs to be conducted to support a decision to justify a sole source award.
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