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

State: Pennsylvania Government Spending

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 TradeProfessional and Commercial Equipment and Supplies Merchant WholesalersComputer 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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