The Internal Revenue Service issued a delivery order to International Business Machines Corporation on December 15, 2023, for hardware maintenance services for IBM LinuxOne III mainframes, with a ceiling value of $1,237,551.00. This is a delivery order under the Enterprise Systems IBM Support (ESIS) Indefinite Delivery Contract, a $999 million IDC administered by the IRS through July 14, 2031, that provides authority for task orders supporting mainframe upgrades, data encryption services, cloud modernization, cybersecurity initiatives, and software maintenance across the agency's enterprise IT infrastructure.
Place of performance is Kearneysville, WV. The order's period of performance runs December 1, 2025 through November 30, 2026. This unilateral funding modification fully funds an option period by incorporating contract line-item number 2001C in the amount of $278,199.86.
In fiscal year 2024, IBM invoiced $333 thousand across 79 contractor hours, yielding a derived government-paid hourly rate of $4,197.78/hr. IBM self-performed all reported labor with no subcontractors reported.