Commerce Department awards $1.24M for software database licenses to Lightcast, LLC

Contract Overview

Contract Amount: $124,519 ($124.5K)

Contractor: Lightcast, LLC

Awarding Agency: Department of Commerce

Start Date: 2025-03-31

End Date: 2027-03-30

Contract Duration: 729 days

Daily Burn Rate: $171/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOFTWARE DATABASE LICENSES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $124,519 to LIGHTCAST, LLC for work described as: SOFTWARE DATABASE LICENSES Key points: 1. Contract awarded on a non-competitive basis, raising questions about potential cost savings. 2. The duration of the contract (729 days) suggests a need for ongoing services. 3. Fixed-price contract type aims to control costs, but the lack of competition limits price discovery. 4. The specific software database licenses are crucial for departmental operations, indicating strategic importance. 5. The award to a single vendor warrants scrutiny for potential overpayment or suboptimal service. 6. Geographic location of the contractor (District of Columbia) may influence local economic impact.

Value Assessment

Rating: questionable

Without competitive bidding, it is difficult to benchmark the value for money. The $1.24 million award for software database licenses over two years suggests a significant investment. A comparison to similar contracts for comparable database solutions would be necessary to assess if the pricing is fair. The lack of competition means there's no market validation of the price point, making it hard to determine if taxpayers are receiving excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded through a sole-source justification. The absence of multiple bidders means there was no opportunity for price negotiation or discovery through a competitive process. This approach can lead to higher costs for the government as the vendor faces no pressure to offer the most competitive pricing.

Taxpayer Impact: The lack of competition means taxpayers may be paying a premium for these software database licenses, as the government did not leverage market forces to secure the best possible price.

Public Impact

The Department of Commerce benefits from access to essential software database licenses. These licenses likely support critical data analysis, research, and operational functions within the agency. The services provided are primarily internal to the Department of Commerce, with no direct public-facing services specified. The workforce implications are likely limited to the IT and data analysis personnel within the Department of Commerce who will utilize the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Potential for vendor lock-in due to sole-source award.
Limited transparency in the procurement process.
Difficulty in assessing true market value without bids.

Positive Signals

Firm fixed-price contract type helps manage budget predictability.
The contract duration suggests a stable, ongoing need for the software.
Awarding to a single vendor might indicate a specialized or unique solution required.

Sector Analysis

The market for software database licenses is vast and highly competitive, with numerous vendors offering a wide range of solutions. However, specific niche databases or proprietary systems can limit competition. The Department of Commerce's spending on such licenses is typical for a large federal agency relying on data-driven operations. Benchmarking would require identifying the specific type of database and its market share.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a single entity, Lightcast, LLC, does not appear to directly benefit the small business ecosystem in this instance, as it bypasses competitive opportunities that could have been made available.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Commerce's internal procurement and financial management systems. The lack of competition means fewer external checks and balances typically provided by a competitive bidding process. Transparency is limited due to the sole-source nature, and any Inspector General review would focus on the justification for the sole-source award and the reasonableness of the price paid.

Related Government Programs

Department of Commerce IT Procurement
Software Licensing Agreements
Data Management Services
Federal Database Solutions

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $124,519 to LIGHTCAST, LLC. SOFTWARE DATABASE LICENSES

Who is the contractor on this award?

The obligated recipient is LIGHTCAST, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $124,519.

What is the period of performance?

Start: 2025-03-31. End: 2027-03-30.

What specific type of software database licenses are being procured, and what is their criticality to the Department of Commerce's mission?

The provided data indicates 'SOFTWARE DATABASE LICENSES' without specifying the exact type (e.g., relational, NoSQL, data warehousing). The criticality is implied by the award of a significant contract by the Office of the Secretary, suggesting these licenses are essential for core departmental functions, likely involving data analysis, reporting, or operational support. Further details on the specific software vendor and its capabilities would be needed to fully assess its mission criticality. Without this, we assume it supports key departmental objectives related to its broad mandate.

What is the historical spending pattern for similar software database licenses within the Department of Commerce?

Historical spending data for similar software database licenses within the Department of Commerce is not provided in the current dataset. To conduct a thorough analysis, one would need to access historical procurement records to identify previous awards for database licenses, their values, durations, and the vendors involved. This would help establish a baseline for current spending and identify any trends or significant deviations. Understanding past investments can inform whether the current $1.24 million award represents an increase, decrease, or consistent level of expenditure for these types of resources.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for this sole-source award is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the agency's needs. This could be due to proprietary software, unique technical requirements, or a lack of market availability from other vendors. The Department of Commerce would need to provide a formal justification (e.g., a Justification and Approval document) outlining the specific reasons why full and open competition was not feasible or advantageous for these software database licenses. Without this documentation, the rationale remains unclear.

How does the per-unit cost or overall value of this contract compare to market rates for similar software database licenses?

A direct comparison of the per-unit cost or overall value to market rates is challenging without knowing the specific software database licenses being procured. The market for database solutions varies widely in price depending on features, scalability, and vendor. Given this is a sole-source award, there is no competitive benchmark. To assess value, one would need to identify comparable commercial off-the-shelf (COTS) database products and their licensing costs, or consult industry pricing guides. The $1.24 million for a 729-day period suggests a substantial investment, and without competitive data, it's difficult to ascertain if it aligns with market norms or represents a premium.

What are the potential risks associated with awarding a significant contract for essential software licenses on a sole-source basis?

The primary risk associated with a sole-source award for essential software licenses is the potential for inflated costs due to the lack of competitive pressure. The government may end up paying more than necessary without market validation. Another risk is vendor lock-in, where the agency becomes dependent on a single provider, making future transitions difficult and potentially costly. Furthermore, sole-source awards can reduce transparency and limit opportunities for innovation that might arise from a competitive process. There's also a risk that the chosen vendor may not be the most efficient or cost-effective solution available in the broader market.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: BMC Software, Inc.

Address: 232 N ALMON ST, MOSCOW, ID, 83843

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

Financial Breakdown

Contract Ceiling: $316,001

Exercised Options: $124,519

Current Obligation: $124,519

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline