DoD's $42.3M Enterprise Software Assurance contract awarded to Softmart Government Services shows fair value with 4 bidders

Contract Overview

Contract Amount: $42,328,199 ($42.3M)

Contractor: Softmart Government Services, Inc

Awarding Agency: Department of Defense

Start Date: 2009-06-30

End Date: 2009-10-31

Contract Duration: 123 days

Daily Burn Rate: $344.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE SOFTWARE ASSURANCE

Place of Performance

Location: DOWNINGTOWN, CHESTER County, PENNSYLVANIA, 19335

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $42.3 million to SOFTMART GOVERNMENT SERVICES, INC for work described as: ENTERPRISE SOFTWARE ASSURANCE Key points: 1. The contract's value appears reasonable given the scope of enterprise software assurance. 2. Competition dynamics indicate a healthy market for this type of IT service. 3. Risk indicators are low, suggesting a well-defined and managed contract. 4. Performance context is within the expected range for IT service delivery. 5. The contract positions the Department of the Army as a significant buyer in the enterprise software market.

Value Assessment

Rating: good

The contract's total value of approximately $42.3 million over its duration suggests a moderate investment for enterprise software assurance. Benchmarking against similar large-scale software licensing and support contracts within the federal government indicates that this price point is competitive. The firm fixed-price nature of the contract further supports value for money by shifting risk to the contractor. Without specific per-unit data, a direct cost comparison is difficult, but the overall expenditure appears aligned with market expectations for comprehensive software assurance services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bidders suggests a reasonably competitive environment for this type of IT service. A higher number of bidders typically leads to more aggressive pricing and better terms for the government, but four bidders still provide a solid basis for price discovery and selection of the most advantageous offer.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive bidding process that drives down costs and improves service quality.

Public Impact

The Department of Defense benefits from enhanced cybersecurity and operational continuity through assured software. Critical IT infrastructure and systems within the Army are protected from vulnerabilities. The contract supports the operational readiness of military personnel by ensuring reliable software. Workforce implications include the need for IT professionals to manage and integrate the assured software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if renewal terms are not carefully managed.
Dependence on a single vendor for critical software assurance could pose a risk.
Ensuring ongoing compliance with evolving software versions and security patches requires diligent oversight.

Positive Signals

Firm fixed-price contract structure provides cost certainty.
Full and open competition likely resulted in competitive pricing.
Award to a known entity suggests a degree of contractor reliability.

Sector Analysis

The federal IT sector is characterized by significant spending on software licenses, maintenance, and assurance services to maintain operational capabilities and security. This contract falls within the broader category of IT services, specifically focusing on ensuring the integrity and security of enterprise software used by the Department of the Army. Comparable spending benchmarks in this area often involve multi-year agreements for large enterprise resource planning (ERP) systems or cybersecurity suites, where assurance is a critical component.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions, as indicated by the 'false' values for 'ss' and 'sb'. The primary contractor, Softmart Government Services, Inc., is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses for support services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within budget. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Army Enterprise Resource Planning (ERP) Systems
Software Licensing and Maintenance Contracts
Cybersecurity Assurance Services

Risk Flags

Potential for scope creep if not clearly defined.
Risk of outdated technology if assurance services lag.
Dependence on contractor performance for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.3 million to SOFTMART GOVERNMENT SERVICES, INC. ENTERPRISE SOFTWARE ASSURANCE

Who is the contractor on this award?

The obligated recipient is SOFTMART GOVERNMENT SERVICES, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $42.3 million.

What is the period of performance?

Start: 2009-06-30. End: 2009-10-31.

What is the track record of Softmart Government Services, Inc. in delivering similar enterprise software assurance services to the federal government?

Assessing the track record of Softmart Government Services, Inc. requires a review of their past performance on federal contracts, particularly those involving enterprise software assurance. While this specific award indicates they were selected for a significant contract, further investigation into their performance history, including any past performance evaluations, contract modifications, or disputes, would provide a more comprehensive understanding of their reliability and capability. Information from sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS) would be crucial for a thorough analysis of their past performance and suitability for this role.

How does the per-unit cost of this contract compare to industry benchmarks for enterprise software assurance?

A precise per-unit cost comparison is challenging without detailed breakdowns of the software components and services covered under this $42.3 million contract. Enterprise software assurance can encompass a wide range of elements, including licensing, maintenance, technical support, security patching, and vulnerability management. To benchmark effectively, one would need to identify comparable contracts that specify costs for similar software suites (e.g., operating systems, databases, productivity software) and the level of assurance provided. Industry benchmarks for such services vary significantly based on the software vendor, the number of users or endpoints, and the service level agreements (SLAs) in place. The firm fixed-price nature suggests that the government has negotiated a comprehensive package, and the value would be assessed against the totality of services delivered.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this enterprise software assurance contract include potential vendor lock-in, where the government becomes overly dependent on Softmart Government Services, Inc. and its associated software, making future transitions difficult or costly. Another risk is the rapid evolution of technology and cybersecurity threats, which could render the assured software outdated or vulnerable if the assurance services do not keep pace. Mitigation strategies likely involve clearly defined contract terms and conditions, including exit clauses and data portability requirements. Regular performance reviews, continuous monitoring of the threat landscape, and proactive engagement with the contractor to ensure services remain relevant and effective are also crucial. The firm fixed-price structure itself mitigates cost overrun risks for the government.

How effective has the Department of the Army been in managing similar large-scale IT assurance contracts in the past?

The effectiveness of the Department of the Army in managing large-scale IT assurance contracts can be evaluated by examining historical contract performance data, audit reports from the Government Accountability Office (GAO) or the Inspector General (IG), and program reviews. Success is often measured by the achievement of contract objectives, such as maintaining system integrity, ensuring operational availability, and achieving cost efficiencies. Challenges can include scope creep, contractor performance issues, and adapting to technological advancements. A review of specific past contracts, their outcomes, and any lessons learned would provide a clearer picture of the Army's management capabilities in this domain.

What is the historical spending trend for enterprise software assurance within the Department of Defense or the Department of the Army?

Analyzing historical spending trends for enterprise software assurance within the Department of Defense (DoD) or the Department of the Army requires access to comprehensive federal procurement data over several fiscal years. This would involve aggregating spending on contracts categorized under software maintenance, licensing, support, and assurance. Trends might reveal increasing or decreasing investment in such services, potentially influenced by factors like modernization initiatives, cybersecurity priorities, or budget allocations. Understanding these patterns provides context for the current $42.3 million award, indicating whether it represents a typical expenditure, an increase, or a decrease in investment for this capability.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91QUZ09R0022

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Softmart, Inc.

Address: 450 ACORN LN, DOWNINGTOWN, PA, 19335

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $42,328,199

Exercised Options: $42,328,199

Current Obligation: $42,328,199

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ09A0004

IDV Type: IDC

Timeline