IBM Wins $1 Billion Department of the Interior Contract

Following on the heels of Lockheed Martin's (NYSE: LMT  ) announcement that it had won a $1 billion government contract to help "transition" the U.S. Department of the Interior "to the cloud" last week, a second major government contractor made a similar announcement, of similar size, today.

On Wednesday, IBM (NYSE: IBM  ) announced that it, too, has been awarded a $1 billion contract by the U.S. Department of the Interior. As with the Lockheed contract, IBM will be embarking upon a decade-long transformation of the IT systems at interior. IBM, like Lockheed, will work under what's known as an indefinite delivery, indefinite quantity contract (IDIQ), under which IBM will bid on work for specific task orders up to a $1 billion ceiling value on the underlying contract.

IBM's work will focus on data storage, secure file transfers, virtual machines, databases, Web hosting, development testing, and SAP application hosting, and it will utilize IBM's "Smart Cloud for Government," hosted at the IBM Federal Data Center, plus "Smart Cloud for Enterprise" commercial offerings, and also IBM's "AIX Cloud," which the company says is "very cost competitive."

According a report in the Federal Times, IBM's contract and Lockheed Martin's contract are not one and the same. Rather, they are separate contracts, each of which makes up approximately 10% of a $10 billion "pot" of federal money that is being allocated among multiple contractors for the purpose of bringing Interior into the "cloud."

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2595932, ~/Articles/ArticleHandler.aspx, 9/29/2016 4:44:08 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:01 PM
IBM $158.11 Down -0.18 -0.11%
IBM CAPS Rating: ****
LMT $242.34 Down -3.41 -1.39%
Lockheed Martin CAPS Rating: ****