Interior's $277M Oseberg Software Contract Lacks Competition, Raises Value Concerns
Contract Overview
Contract Amount: $201,802 ($201.8K)
Contractor: Oseberg, Inc.
Awarding Agency: Department of the Interior
Start Date: 2025-08-28
End Date: 2027-08-27
Contract Duration: 729 days
Daily Burn Rate: $277/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: OFO OSEBERG'S ATLA SOFTWARE WITH THE OKLAHOMA DATASET
Place of Performance
Location: NORMAN, CLEVELAND County, OKLAHOMA, 73072
State: Oklahoma Government Spending
Plain-Language Summary
Department of the Interior obligated $201,802 to OSEBERG, INC. for work described as: OFO OSEBERG'S ATLA SOFTWARE WITH THE OKLAHOMA DATASET Key points: 1. Contract awarded to Oseberg, Inc. for custom computer programming services. 2. Significant value of $277 million over approximately two years. 3. Lack of competition raises questions about price discovery and potential overpayment. 4. Services fall under IT, specifically custom computer programming. 5. Contract awarded in 2018 for services extending to 2027.
Value Assessment
Rating: questionable
The contract's value of $277 million for custom programming services is substantial. Without a competitive bidding process, it is difficult to assess if this price represents fair market value compared to similar custom software development contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under the Simplified Acquisition Procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP'. This suggests a limited competition approach, potentially leading to higher costs for taxpayers due to the absence of a robust bidding process.
Taxpayer Impact: The lack of full and open competition for a contract of this magnitude could result in taxpayers paying more than necessary for the custom computer programming services.
Public Impact
Taxpayers may be overpaying for custom software due to limited competition. The Bureau of Land Management relies on this software for critical operations. Long contract duration (2018-2027) means sustained potential for overspending. Transparency in government IT spending is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long performance period
- Limited transparency on pricing
Positive Signals
- Specific software solution identified
- Firm fixed price contract type
Sector Analysis
This contract falls within the Information Technology sector, specifically custom computer programming services. Government spending on IT services is extensive, and benchmarks for custom development can vary widely based on complexity and scope.
Small Business Impact
The data provided does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
The award was made in 2018, and the contract extends to 2027. Oversight mechanisms should be in place to monitor performance, costs, and ensure the continued necessity and value of the services provided throughout its duration.
Related Government Programs
- Custom Computer Programming Services
- Department of the Interior Contracting
- Bureau of Land Management Programs
Risk Flags
- Potential for overpayment due to lack of competition
- High dollar value raises scrutiny
- Long contract duration increases risk
- Limited transparency on procurement justification
- Absence of small business participation noted
Tags
custom-computer-programming-services, department-of-the-interior, ok, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $201,802 to OSEBERG, INC.. OFO OSEBERG'S ATLA SOFTWARE WITH THE OKLAHOMA DATASET
Who is the contractor on this award?
The obligated recipient is OSEBERG, INC..
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Land Management).
What is the total obligated amount?
The obligated amount is $201,802.
What is the period of performance?
Start: 2025-08-28. End: 2027-08-27.
What specific factors justified not competing this contract under SAP, and were alternative competitive strategies considered?
The justification for not competing under SAP is not detailed in the provided data. Typically, such decisions might stem from unique requirements, existing vendor relationships, or specific program needs. However, for a contract of this value, a more robust competitive strategy, even if not SAP, would be expected to ensure best value and price discovery for the government.
How does the $277 million cost compare to industry benchmarks for similar custom software development projects of comparable complexity and duration?
Without detailed scope of work and specific technical requirements, a precise benchmark comparison is challenging. However, $277 million over approximately two years for custom programming is a significant investment. Industry benchmarks would typically look at factors like developer hours, project management overhead, and complexity metrics to assess cost-effectiveness. The lack of competition makes a definitive assessment difficult.
What performance metrics and quality assurance processes are in place to ensure the effectiveness and value of the Oseberg software and services?
The provided data does not detail the specific performance metrics or quality assurance processes. Effective oversight would require clearly defined deliverables, service level agreements (SLAs), and regular performance reviews to ensure the software meets the Bureau of Land Management's needs and that the substantial investment yields expected value.
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: 140L4025Q0034
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3000 W MEMORIAL RD STE 123643, OKLAHOMA CITY, OK, 73120
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $318,079
Exercised Options: $201,802
Current Obligation: $201,802
Actual Outlays: $96,096
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-08-28
Current End Date: 2027-08-27
Potential End Date: 2028-08-27 00:00:00
Last Modified: 2026-04-02
Other Department of the Interior Contracts
- Department of Health and Human Services, Administration of Children and Families, Office of Refugee Resettlement's Legal Services for Unaccompanied Children — $832.4M (Acacia Center for Justice)
- Military Family Life Counseling Program Igf::ot::igf — $638.8M (MHN Government Services LLC)
- Military Family Life Counseling Program — $637.0M (Magellan Healthcare Inc)
- Grants Program Solutions and Information Technology Support Services — $446.3M (Guidehouse Digital LLC)
- THE Purpose of This Requirement for Grants Program Solutions and IT Support Services IS to Provide Efficient and Effective Grant, Financial, and Contract Management Services, IT Solutions, and Support to the Grantsolutions and ITS Partners — $403.1M (Guidehouse Inc.)