DoD's $171M Enterprise Software Assurance Contract Awarded to Softmart Government Services
Contract Overview
Contract Amount: $17,113,291 ($17.1M)
Contractor: Softmart Government Services, Inc
Awarding Agency: Department of Defense
Start Date: 2009-12-17
End Date: 2010-01-15
Contract Duration: 29 days
Daily Burn Rate: $590.1K/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
Plain-Language Summary
Department of Defense obligated $17.1 million to SOFTMART GOVERNMENT SERVICES, INC for work described as: ENTERPRISE SOFTWARE ASSURANCE Key points: 1. Significant contract value of $171.1 million for enterprise software assurance. 2. Competition method was 'Full and Open', suggesting broad market participation. 3. The contract duration is short (29 days), indicating a specific, time-bound need. 4. The NAICS code 423430 points to wholesale distribution of computer equipment and software.
Value Assessment
Rating: fair
The contract value is substantial, but the short duration and lack of detailed performance metrics make a direct value assessment difficult without further context. Benchmarking against similar long-term software assurance contracts might reveal cost efficiencies or inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'Full and Open Competition' method is positive for price discovery, as it allows multiple vendors to bid. This should theoretically lead to competitive pricing, though the short duration might limit the depth of proposals and long-term strategic pricing.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by leveraging market forces to secure the best possible price for the required software assurance.
Public Impact
Ensures the security and integrity of critical Department of the Army enterprise software. Supports the operational readiness of military systems through software assurance. Potential impact on software vendors and the broader IT services market. The short performance period suggests a focused, potentially urgent, need for this assurance.
Waste & Efficiency Indicators
Waste Risk Score: 59 / 10
Warning Flags
- Short contract duration may indicate a reactive rather than proactive approach.
- Lack of detail on specific software covered and assurance services provided.
- Potential for vendor lock-in if this is a recurring need without re-competition.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type can provide cost certainty.
- Awarded to a government services provider, suggesting specialized expertise.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on software assurance. Spending benchmarks for similar IT assurance contracts vary widely based on scope, duration, and the criticality of the systems being protected.
Small Business Impact
While the award was made to Softmart Government Services, Inc., the data does not indicate whether small businesses were involved as subcontractors or partners in this specific delivery order. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract was awarded via a delivery order under a larger contract vehicle, implying some level of pre-qualification and oversight. However, the short duration and limited public details necessitate robust oversight to ensure effective service delivery and value for money.
Related Government Programs
- Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Short contract duration for a large value.
- Lack of detailed scope of work and deliverables.
- Potential for urgent need driving up costs.
- Limited information on specific software and services provided.
- Need for further oversight to confirm effectiveness and value.
Tags
computer-and-computer-peripheral-equipme, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.1 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 $17.1 million.
What is the period of performance?
Start: 2009-12-17. End: 2010-01-15.
What specific software systems and vulnerabilities were addressed by this enterprise software assurance contract, and how did the scope align with the $171 million award?
The provided data lacks specifics on the exact software systems covered or the nature of the assurance services. The $171 million value suggests a broad scope, potentially encompassing numerous critical systems within the Department of the Army. Without detailed documentation, it's difficult to ascertain if the scope fully justified the expenditure or if there were opportunities for cost savings through more targeted assurance efforts.
Given the short 29-day duration, what were the immediate risks or critical needs that necessitated such a rapid and substantial software assurance effort?
The extremely short duration of 29 days for a $171 million contract raises questions about the nature of the requirement. It could indicate an urgent response to a newly identified critical vulnerability, a time-sensitive compliance deadline, or a bridging action while a longer-term solution is procured. The primary risk is that such a compressed timeline might lead to rushed assessments, incomplete analysis, or inflated pricing due to the urgency.
How effective was the 'Full and Open Competition' in driving competitive pricing for this specific enterprise software assurance requirement, considering the short performance period?
While 'Full and Open Competition' is generally a strong mechanism for price discovery, its effectiveness can be limited by a very short performance period. Vendors may have had less time to conduct thorough analyses or develop innovative, cost-effective solutions. The $171 million value suggests significant resources were allocated, and the effectiveness hinges on whether the competitive bids truly reflected the best possible value under the time constraints, or if the urgency allowed for premium pricing.
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. (UEI: 050383223)
Address: 450 ACORN LN, DOWNINGTOWN, PA, 19335
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business
Financial Breakdown
Contract Ceiling: $17,113,291
Exercised Options: $17,113,291
Current Obligation: $17,113,291
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ09A0004
IDV Type: IDC
Timeline
Start Date: 2009-12-17
Current End Date: 2010-01-15
Potential End Date: 2010-01-15 00:00:00
Last Modified: 2020-02-25
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