Interior's $185M TDA Software Purchase Lacks Competition, Raises Cost Concerns

Contract Overview

Contract Amount: $185,232 ($185.2K)

Contractor: Natuvion Americas, Inc.

Awarding Agency: Department of the Interior

Start Date: 2022-05-01

End Date: 2027-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $101/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NATUVION TEST DATA ANONYMIZATION (TDA) DATA SCRAMBLING SOFTWARE

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20192

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $185,232 to NATUVION AMERICAS, INC. for work described as: NATUVION TEST DATA ANONYMIZATION (TDA) DATA SCRAMBLING SOFTWARE Key points: 1. Significant spending on custom programming services for data anonymization. 2. Sole-source procurement limits price discovery and potential savings. 3. Long-term contract duration (5 years) increases risk exposure. 4. Lack of small business participation noted.

Value Assessment

Rating: questionable

The contract's value of $185.2 million over five years for custom programming services is substantial. Without competitive bidding, it's difficult to assess if this price is reasonable compared to similar data anonymization software solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating it likely exceeded the threshold for full and open competition. The 'NOT COMPETED' status suggests a limited or sole-source approach, hindering price discovery and potentially leading to higher costs.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for this critical data security software.

Public Impact

Essential data anonymization capabilities for government agencies. Potential for sensitive data breaches if software is inadequate or overpriced. Impacts agencies relying on data for operations and analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
No small business participation

Positive Signals

Essential service for data security

Sector Analysis

This contract falls under Custom Computer Programming Services (NAICS 541511), a sector experiencing high demand for specialized software development. Benchmarks for similar custom programming contracts vary widely based on complexity and duration.

Small Business Impact

The contract data indicates no specific set-aside for small businesses, and the prime contractor is a large business. This suggests limited opportunities for small businesses to participate in this significant IT procurement.

Oversight & Accountability

The 'NOT COMPETED' status warrants further review by oversight bodies to ensure proper justification for the procurement method and to assess if taxpayer funds were used efficiently.

Related Government Programs

Custom Computer Programming Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Lack of competitive bidding
Potential for overpricing
Long-term vendor lock-in
No small business participation
Limited transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $185,232 to NATUVION AMERICAS, INC.. NATUVION TEST DATA ANONYMIZATION (TDA) DATA SCRAMBLING SOFTWARE

Who is the contractor on this award?

The obligated recipient is NATUVION AMERICAS, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $185,232.

What is the period of performance?

Start: 2022-05-01. End: 2027-04-30.

What is the specific justification for procuring this data anonymization software on a limited or sole-source basis, and were alternative solutions explored?

The justification for a limited or sole-source procurement is crucial. Agencies typically cite unique capabilities, proprietary technology, or urgent needs. Without this information, it's impossible to determine if alternatives were adequately considered or if the chosen approach truly represents the best value for the government and taxpayers.

How will the Department of the Interior ensure the effectiveness and security of the TDA software over the five-year contract period, given the lack of competitive pressure?

Ensuring effectiveness and security without competition relies heavily on robust contract management, performance metrics, and regular technical evaluations. The agency must proactively monitor the vendor's performance, conduct independent testing, and maintain clear communication channels to address any emerging issues or security vulnerabilities promptly.

What is the estimated cost savings the government could have achieved if this contract had been awarded through a full and open competitive process?

Estimating cost savings from a lack of competition is challenging without specific market data. However, competitive procurements typically yield savings of 10-30% compared to sole-source or limited-source awards. For this $185 million contract, potential savings could range from $18.5 million to over $55 million over its five-year term.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140D0422Q0328

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nippon Telegraph and Telephone Corporation

Address: 26 RAFFAELA DR, MALVERN, PA, 19355

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $185,232

Exercised Options: $185,232

Current Obligation: $185,232

Actual Outlays: $157,224

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline