Calculation of Overcharges

Description Date of
Order
Date of
IBM
Price
Reduction
Ship
Date
(iGov to
the
FDICa)
Units
Shipped
GSA
Unit
Priceb
Calculated
Unit Price
(IBM
Price
Reduction
+ 18%
Negotiated
Discount)c
FDIC
Unit
Price
Paidc
Unit Price
Difference
(FDIC
Unit Price
Paid less
Calculated
Unit
Price)
Questioned
(Unit Price
Difference
x Units
Shipped)
Purchase
Order
12/10/03 11/13/03 12/11/03 200 $2,309 $1,893    $2,328 $435      $87,000
03/09/04 03/17/04
to
04/15/04
3,300 $2,196 $1,801 $2,328 $527   1,739,100
Contract
Modification
No. 1
02/26/04 03/09/04 03/17/04
to
04/15/04
83 $2,196 $1,801 $2,328 $527        43,741
Contract
Modification
No. 3d
05/06/04 03/09/04 06/29/04 68 $2,196 $1,801 $2,328 $527        35,836
Contract
Modification
No. 4
06/01/04 03/09/04 07/09/04 118 $2,196 $1,801 $2,328 $527        62,186
Totals    3,769 $1,967,863
Source: OIG analysis of IBM FSS price changes and unit prices the FDIC paid.

a We were unable to obtain IBM’s shipping dates to iGov.
b The GSA unit price is the IBM FSS price as of the shipment date from iGov to the FDIC.
c We calculated the unit price by reducing the GSA unit price as of each shipping date
(based on IBM’s FSS contract clause that assured the government the lower price as of either the date of order or date of shipment) by 18 percent in accordance with the terms of the BPA.
d Contract Modification No. 2 is not shown because it pertained to peripheral equipment and not laptops.

Last updated 7/08/2005