USDA Forest Service Renews ERDAS Software for $3.09M, Awarded to Hexagon US Federal

Contract Overview

Contract Amount: $308,656 ($308.7K)

Contractor: Hexagon US Federal, Inc

Awarding Agency: Department of Agriculture

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $282/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FY24 RENEWAL ERDAS SOFTWARE BASE PLUS 4 OPTIONS

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35824

State: Alabama Government Spending

Plain-Language Summary

Department of Agriculture obligated $308,656.02 to HEXAGON US FEDERAL, INC for work described as: FY24 RENEWAL ERDAS SOFTWARE BASE PLUS 4 OPTIONS Key points: 1. The contract is a renewal for ERDAS software, indicating ongoing operational needs. 2. Hexagon US Federal, Inc. is the sole awardee, raising questions about competition. 3. The contract spans three years, suggesting a medium-term commitment. 4. The Forest Service is the primary agency, highlighting its reliance on this software.

Value Assessment

Rating: fair

The total award amount is $3,086,560.20 over three years. Without specific pricing for individual components or options, a direct per-unit cost comparison is difficult. However, the overall value seems reasonable for enterprise-level geospatial software.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition. This method typically allows for the widest range of potential bidders, which should theoretically lead to better price discovery and value for the government.

Taxpayer Impact: Taxpayers are funding the renewal of essential software for the Forest Service's operations, ensuring continued land management and data analysis capabilities.

Public Impact

Ensures continued access to critical geospatial data analysis tools for the Forest Service. Supports land management, environmental monitoring, and resource planning activities. Potential for cost savings if the competitive process yielded favorable pricing. Reliability of software is crucial for ongoing agency operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for vendor lock-in with specialized software.
Renewal nature might indicate limited market alternatives.

Positive Signals

Awarded under full and open competition.
Long-term contract duration suggests stable operational needs.
Firm fixed price contract provides cost certainty.

Sector Analysis

The IT sector, particularly software licensing and maintenance, represents a significant portion of government spending. Benchmarks for similar geospatial software contracts can vary widely based on features, user count, and support levels.

Small Business Impact

The awardee is Hexagon US Federal, Inc., a large business. There is no indication in the provided data that small businesses were involved in this specific award, either as prime contractors or subcontractors.

Oversight & Accountability

The contract was awarded via a delivery order under a larger contract vehicle. Oversight would typically involve monitoring performance, adherence to terms, and ensuring the software meets the Forest Service's needs throughout the contract period.

Related Government Programs

Electronic Computer Manufacturing
Department of Agriculture Contracting
Forest Service Programs

Risk Flags

Potential for vendor lock-in with specialized software.
Limited insight into specific software modules and their current utility.
Reliance on a single vendor for critical software functions.
Need to verify the effectiveness of the 'full and open competition' in practice.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $308,656.02 to HEXAGON US FEDERAL, INC. FY24 RENEWAL ERDAS SOFTWARE BASE PLUS 4 OPTIONS

Who is the contractor on this award?

The obligated recipient is HEXAGON US FEDERAL, INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $308,656.02.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What specific ERDAS software modules are included in this renewal, and how do their functionalities align with current Forest Service needs?

The provided data does not specify the exact ERDAS modules covered by this renewal. Understanding the specific functionalities is crucial to assess if the software remains relevant and cost-effective for the Forest Service's evolving geospatial analysis and data management requirements. Without this detail, it's difficult to confirm optimal value.

What was the competitive landscape during the initial award, and were there any challenges in attracting bidders for this type of specialized software?

While the award states 'full and open competition,' the nature of specialized software like ERDAS can sometimes limit the number of qualified bidders. Further investigation into the bidding process and the number of proposals received would clarify the extent of actual competition and whether Hexagon US Federal, Inc. faced significant rivals, impacting price discovery.

Are there plans for future competitive procurements or opportunities to explore alternative geospatial software solutions to ensure long-term cost-effectiveness?

The renewal suggests a continued reliance on ERDAS. To ensure long-term cost-effectiveness and leverage technological advancements, the Forest Service should periodically assess the market for alternative geospatial software. Planning for future competitive procurements or exploring open-source solutions could mitigate risks associated with vendor lock-in and potentially reduce costs.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12760424Q0112

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 301 COCHRAN RD SW, HUNTSVILLE, AL, 35824

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $1,241,766

Exercised Options: $308,656

Current Obligation: $308,656

Actual Outlays: $269,244

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA18D003G

IDV Type: FSS

Timeline