Interior's $2.85M software maintenance contract awarded to Schlumberger Technology Corporation

Contract Overview

Contract Amount: $2,850,464 ($2.9M)

Contractor: Schlumberger Technology Corporation

Awarding Agency: Department of the Interior

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SIS GIT MAINTENANCE FY24

Place of Performance

Location: SUGAR LAND, FORT BEND County, TEXAS, 77478

State: Texas Government Spending

Plain-Language Summary

Department of the Interior obligated $2.9 million to SCHLUMBERGER TECHNOLOGY CORPORATION for work described as: SIS GIT MAINTENANCE FY24 Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and duration. 2. Full and open competition suggests a competitive bidding process. 3. Risk indicators are low, with a firm-fixed-price contract and defined duration. 4. Performance context is software maintenance, a critical but standard IT function. 5. Sector positioning is within IT services, specifically software publishers. 6. The contract is a delivery order under a larger IDIQ, indicating potential for future task orders.

Value Assessment

Rating: good

The contract's firm-fixed-price (FFP) structure provides cost certainty for the government. While a direct per-unit cost comparison is not feasible without more detailed service level agreements, the total award amount of $2.85 million for one year of maintenance for a software publisher (NAICS 511210) appears within a reasonable range for enterprise-level software support. Benchmarking against similar IT maintenance contracts would provide further insight, but the FFP nature mitigates significant overspending risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This typically leads to a more robust selection process and potentially better pricing due to market forces. The specific number of bidders is not provided, but the designation suggests a healthy competitive environment was sought.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through multiple bids and encouraging innovative solutions from a wider pool of vendors.

Public Impact

The Bureau of Ocean Energy Management (BOEM) benefits from continued access to essential software. Services delivered include maintenance and support for critical software systems. The geographic impact is primarily within the Department of the Interior's operations, with the contractor located in Texas. Workforce implications are minimal for the government, with the contractor responsible for specialized maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software is proprietary and requires specialized maintenance.
Dependence on a single vendor for critical software updates and security patches.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive award process.
Defined contract duration limits long-term financial commitment.
Awarded to a known entity, Schlumberger Technology Corporation, suggesting established capabilities.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically software publishers and maintenance services. The IT services market is vast and highly competitive, with significant government spending allocated to software licensing, development, and maintenance. Comparable spending benchmarks for enterprise software maintenance can vary widely based on the complexity and criticality of the software, but this award represents a moderate investment for specialized support.

Small Business Impact

There is no indication that this contract included a small business set-aside. Schlumberger Technology Corporation is a large business. Therefore, the direct impact on small businesses through this specific award is likely minimal, though the prime contractor may engage small businesses for subcontracting opportunities, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically reside with the Bureau of Ocean Energy Management (BOEM) contracting officer and program managers. As a delivery order under a larger contract vehicle, oversight may also be influenced by the terms of the base contract. Transparency is facilitated by public contract databases, but detailed performance metrics and specific oversight activities are not publicly disclosed.

Related Government Programs

Department of the Interior IT Modernization Efforts
Bureau of Ocean Energy Management Software Systems
Government-wide IT Services Contracts
Software Maintenance and Support Services

Risk Flags

Potential vendor lock-in due to proprietary software.
Dependence on a single supplier for critical updates and security.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.9 million to SCHLUMBERGER TECHNOLOGY CORPORATION. SIS GIT MAINTENANCE FY24

Who is the contractor on this award?

The obligated recipient is SCHLUMBERGER TECHNOLOGY CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Ocean Energy Management).

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

What is the specific software being maintained under this contract?

The provided data does not specify the exact software product being maintained. However, the North American Industry Classification System (NAICS) code 511210 indicates 'Software Publishers,' suggesting the contract relates to the maintenance and support of software developed or distributed by Schlumberger Technology Corporation. This could range from operating systems and databases to specialized geological or energy sector software critical for the Bureau of Ocean Energy Management's operations. Further details would require access to the contract's statement of work.

How does the $2.85 million award compare to previous spending on similar software maintenance for BOEM?

Without historical spending data for this specific software or similar maintenance contracts at the Bureau of Ocean Energy Management (BOEM), a direct comparison is not possible. However, the award amount of $2.85 million for a one-year firm-fixed-price contract for software maintenance is a significant investment. Analyzing past contract awards for BOEM's IT infrastructure and software support would be necessary to determine if this represents an increase, decrease, or stable level of spending for comparable services. The duration of 365 days suggests a standard annual maintenance agreement.

What are the key performance indicators (KPIs) for this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) for this contract. Typically, software maintenance contracts include KPIs related to response times for critical issues, resolution times for bugs and defects, availability of support personnel, and successful application of patches and updates. The firm-fixed-price nature suggests that the contractor is obligated to provide the defined services within the agreed budget, with penalties or remedies potentially in place for failing to meet critical performance standards. These would be outlined in the contract's Statement of Work (SOW).

What is Schlumberger Technology Corporation's track record with the Department of the Interior?

Schlumberger Technology Corporation has a history of contracting with various U.S. government agencies, including potentially the Department of the Interior. Analyzing federal procurement databases would reveal the extent and nature of their past performance with DOI. Factors to consider include the types of contracts awarded, their value, performance ratings (if available), and any past performance issues or successes. A positive track record with DOI or similar agencies would generally indicate a lower risk for this current contract.

What is the risk associated with relying on a single vendor for this software maintenance?

The primary risk associated with relying on a single vendor, such as Schlumberger Technology Corporation, for critical software maintenance is vendor lock-in and potential price escalation upon contract renewal. If the software is proprietary and requires specialized knowledge only the vendor possesses, the government has limited leverage. This can also pose a risk if the vendor experiences financial difficulties or decides to discontinue support for the product. Mitigation strategies include negotiating favorable terms, ensuring clear exit clauses, and exploring alternative solutions or open-source options where feasible.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 225 SCHLUMBERGER DR, SUGAR LAND, TX, 77478

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,850,464

Exercised Options: $2,850,464

Current Obligation: $2,850,464

Actual Outlays: $2,850,464

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140M0120D0002

IDV Type: IDC

Timeline