USDA FPAC FSA Awards $22.5M for Web-Based Farm Business Software

Contract Overview

Contract Amount: $22,490,000 ($22.5M)

Contractor: Moody's Analytics Solutions, LLC

Awarding Agency: Department of Agriculture

Start Date: 2021-09-29

End Date: 2025-09-29

Contract Duration: 1,461 days

Daily Burn Rate: $15.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE OBJECTIVE OF THE USDA FARM PRODUCTION AND CONSERVATION (FPAC) FARM SERVICES AGENCY (FSA) IS TO OBTAIN FULLY ACCESSIBLE, STATE-OF-THE-ART WEB-BASED COMMERCIAL OFF-THE-SHELF (COTS) FARM BUSINESS PLANNING AND FINANCIAL/CREDIT ANALYSIS SOFTWARE, WITH

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68114

State: Nebraska Government Spending

Plain-Language Summary

Department of Agriculture obligated $22.5 million to MOODY'S ANALYTICS SOLUTIONS, LLC for work described as: THE OBJECTIVE OF THE USDA FARM PRODUCTION AND CONSERVATION (FPAC) FARM SERVICES AGENCY (FSA) IS TO OBTAIN FULLY ACCESSIBLE, STATE-OF-THE-ART WEB-BASED COMMERCIAL OFF-THE-SHELF (COTS) FARM BUSINESS PLANNING AND FINANCIAL/CREDIT ANALYSIS SOFTWARE, WITH Key points: 1. The USDA is acquiring state-of-the-art, web-based farm business planning and financial analysis software. 2. The contract was awarded to Moody's Analytics Solutions, LLC. 3. This is a definitive contract with a firm fixed price. 4. The contract duration is approximately 4 years. 5. The software aims to provide fully accessible tools for farm management.

Value Assessment

Rating: fair

The contract value of $22.5 million for a 4-year period appears to be within a reasonable range for comprehensive financial software solutions. However, without specific feature comparisons or detailed cost breakdowns, a precise valuation against similar contracts is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces competitive pressure to achieve the lowest possible price for the government.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for the software compared to what might have been achieved through a competitive bidding process.

Public Impact

Farmers and ranchers will gain access to advanced tools for business planning and financial management. Improved financial analysis capabilities could lead to better decision-making and creditworthiness for agricultural producers. The web-based nature ensures accessibility from various locations and devices. This investment supports the operational efficiency of the Farm Service Agency in assisting producers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to sole-source award

Positive Signals

Acquisition of advanced, state-of-the-art software
Focus on accessibility and user-friendliness
Supports critical agricultural sector functions

Sector Analysis

The IT sector, specifically custom computer systems design services (NAICS 541512), is characterized by a wide range of solutions. Spending benchmarks vary significantly based on software complexity, customization, and vendor. This contract appears to be for a specialized COTS solution.

Small Business Impact

The data indicates this contract was not competed and awarded to a specific vendor, Moody's Analytics Solutions, LLC. There is no explicit mention of small business participation or subcontracting goals, suggesting limited direct benefit to small businesses from this specific award.

Oversight & Accountability

The contract is a definitive contract with a firm fixed price, which provides cost certainty. However, the lack of competition raises questions about the effectiveness of oversight in ensuring the best value for taxpayer dollars.

Related Government Programs

Computer Systems Design Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Limited transparency on specific software capabilities
No clear small business set-aside or subcontracting plan mentioned

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $22.5 million to MOODY'S ANALYTICS SOLUTIONS, LLC. THE OBJECTIVE OF THE USDA FARM PRODUCTION AND CONSERVATION (FPAC) FARM SERVICES AGENCY (FSA) IS TO OBTAIN FULLY ACCESSIBLE, STATE-OF-THE-ART WEB-BASED COMMERCIAL OFF-THE-SHELF (COTS) FARM BUSINESS PLANNING AND FINANCIAL/CREDIT ANALYSIS SOFTWARE, WITH

Who is the contractor on this award?

The obligated recipient is MOODY'S ANALYTICS SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $22.5 million.

What is the period of performance?

Start: 2021-09-29. End: 2025-09-29.

What specific features and functionalities does this software offer that justify its state-of-the-art designation and the $22.5 million price tag?

The software is intended to provide fully accessible, web-based commercial off-the-shelf (COTS) solutions for farm business planning and financial/credit analysis. Key functionalities likely include budgeting tools, financial statement generation, loan application support, risk assessment modeling, and data visualization. The 'state-of-the-art' aspect suggests advanced analytics, user-friendly interfaces, and robust data security features tailored to the agricultural sector's unique needs.

Given the sole-source nature of this award, what steps were taken to ensure the price is fair and reasonable?

When a contract is sole-sourced, agencies typically rely on mechanisms like price analysis based on historical pricing, commercial price lists, or comparisons with similar services if available. However, without a competitive process, the agency's ability to independently verify the 'fairness and reasonableness' of the price is inherently limited. Documentation of these price analysis efforts is crucial for accountability.

How will the effectiveness of this software in improving farm business planning and financial analysis be measured and evaluated?

Effectiveness can be measured through user adoption rates, feedback surveys from farmers and FSA staff, and quantifiable improvements in key performance indicators such as loan processing times, accuracy of financial projections, or the number of producers successfully utilizing the planning tools. Establishing clear metrics and regular performance reviews post-implementation is essential for assessing the software's true value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 12314421R0015

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Moody's Corporation

Address: 1010 N 102ND ST STE 100, OMAHA, NE, 68114

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,490,000

Exercised Options: $22,490,000

Current Obligation: $22,490,000

Actual Outlays: $25,540,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline