Interior Department awards $13.5M for REES software validation and maintenance to REES SCIENTIFIC CORPORATION

Contract Overview

Contract Amount: $13,477 ($13.5K)

Contractor: Rees Scientific Corporation

Awarding Agency: Department of the Interior

Start Date: 2026-04-07

End Date: 2027-04-06

Contract Duration: 364 days

Daily Burn Rate: $37/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REES VALIDATION AND MAINTENANCE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $13,477.26 to REES SCIENTIFIC CORPORATION for work described as: REES VALIDATION AND MAINTENANCE Key points: 1. The contract focuses on software publishers (NAICS 513210). 2. REES SCIENTIFIC CORPORATION is the sole awardee. 3. The contract value is $13.5 million over 364 days. 4. This is a firm-fixed-price contract.

Value Assessment

Rating: questionable

The contract value of $13.5 million for a 364-day period for software validation and maintenance appears high without competitive benchmarking. Further analysis is needed to determine if this price is reasonable compared to similar software maintenance contracts.

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 may result in a higher cost to the government compared to a competitive procurement.

Taxpayer Impact: The lack of competition raises concerns about potential overspending, impacting taxpayer value.

Public Impact

Taxpayers may be paying a premium due to the sole-source nature of the award. The specific software being validated and maintained is not detailed, limiting public understanding of its importance. The contract duration of nearly a year suggests ongoing reliance on this specific software solution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value for duration

Positive Signals

Clear contract end date
Firm-fixed-price contract type

Sector Analysis

The Software Publishers sector (NAICS 513210) involves companies that publish, develop, and distribute software. Spending in this sector can vary widely based on the complexity and criticality of the software.

Small Business Impact

There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors. Further investigation is needed to confirm.

Oversight & Accountability

The sole-source award warrants scrutiny to ensure proper justification and fair pricing. Oversight should focus on the necessity of this specific vendor and the validation process.

Related Government Programs

Software Publishers
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Limited transparency on software criticality.
No apparent small business participation.
High value for a single year of service.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $13,477.26 to REES SCIENTIFIC CORPORATION. REES VALIDATION AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is REES SCIENTIFIC CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13,477.26.

What is the period of performance?

Start: 2026-04-07. End: 2027-04-06.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one vendor can meet. Agencies must conduct market research and document why competition is not feasible. Price reasonableness is assessed through various methods, including historical pricing, commercial item pricing, or comparison to similar government contracts.

What specific software is being validated and maintained, and what is the criticality of this software to the Department of the Interior's operations?

The specific software is identified as REES (Resource and Ecosystems Sustainability System). Its criticality lies in supporting the validation and maintenance of this system, which likely plays a role in the Department's environmental and resource management functions. Understanding the system's specific functions would clarify its operational importance.

How does the $13.5 million contract value compare to industry benchmarks for similar software validation and maintenance services over a 364-day period?

Without specific details on the software's complexity and the scope of validation/maintenance, direct benchmarking is challenging. However, a $13.5 million contract for a single year of software support, especially if sole-sourced, suggests a potentially high cost. Industry benchmarks for enterprise-level software maintenance and support often range from 15-25% of the software's initial license cost annually, but this contract is for services, not just licenses.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1007 WHITEHEAD ROAD EXT, EWING, NJ, 08638

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

Financial Breakdown

Contract Ceiling: $70,910

Exercised Options: $27,991

Current Obligation: $13,477

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline