DOJ's FBI Renews Cority Software License for $4.08M, Lacking Competition

Contract Overview

Contract Amount: $4,075,144 ($4.1M)

Contractor: Cority Software Inc.

Awarding Agency: Department of Justice

Start Date: 2022-01-01

End Date: 2026-12-31

Contract Duration: 1,825 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CORITY LICENSE SUBSCRIPTION RENEWAL

Plain-Language Summary

Department of Justice obligated $4.1 million to CORITY SOFTWARE INC. for work described as: CORITY LICENSE SUBSCRIPTION RENEWAL Key points: 1. The FBI is renewing a Cority software license subscription for $4.08 million over five years. 2. The sole source of this software is Cority Software Inc., indicating a lack of direct competition. 3. The contract is a firm fixed price, providing cost certainty but limiting flexibility. 4. The renewal falls under the Software Publishers NAICS code (511210).

Value Assessment

Rating: fair

The $4.08 million cost for a five-year software license appears reasonable given the specialized nature of EHS software. However, without competitive bids, it's difficult to definitively assess if this is the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Cority Software Inc. This limits price discovery and potentially leads to higher costs than a competitive procurement.

Taxpayer Impact: Taxpayers are potentially overpaying due to the lack of competition for this essential software.

Public Impact

Environmental, Health, and Safety (EHS) compliance software is critical for federal agencies. The FBI's reliance on Cority suggests a significant investment in their EHS management system. Lack of competition raises concerns about long-term cost-effectiveness for taxpayers. The renewal period extends through December 2026, locking in current pricing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competitive bidding
Potential for overpayment

Positive Signals

Firm fixed price contract
Long-term renewal provides stability

Sector Analysis

The FBI's procurement of EHS software falls within the IT sector, specifically software publishers. Benchmarks for similar enterprise-level EHS software can vary widely, but competitive procurements typically yield better pricing.

Small Business Impact

This contract does not appear to involve small businesses, as it is a sole-source renewal with an established software vendor.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the FBI adequately justified the lack of competition and obtained fair pricing.

Related Government Programs

Software Publishers
Department of Justice Contracting
Federal Bureau of Investigation Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Vendor lock-in
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $4.1 million to CORITY SOFTWARE INC.. CORITY LICENSE SUBSCRIPTION RENEWAL

Who is the contractor on this award?

The obligated recipient is CORITY SOFTWARE INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2022-01-01. End: 2026-12-31.

What is the justification for not competing this software license renewal, and what steps were taken to ensure fair and reasonable pricing?

The justification for not competing this renewal is not provided in the data. Agencies typically sole-source when a product is unique, or there's a compelling reason for continuity. To ensure fair pricing, the agency should have conducted a price analysis against market data or previous contract pricing, though the absence of competition inherently limits robust price discovery.

What are the risks associated with a sole-source renewal of specialized software like Cority?

The primary risk is paying a premium due to the lack of competitive pressure. This can lead to inflated costs over the contract's life. Additionally, the agency becomes dependent on a single vendor, potentially limiting future options for upgrades, integrations, or more cost-effective solutions that might emerge in the market.

How does this sole-source renewal impact the FBI's ability to leverage modern EHS software capabilities effectively?

A sole-source renewal can hinder the adoption of new technologies if the incumbent vendor's roadmap doesn't align with evolving EHS needs or if competitors offer superior features at a better price. It may lock the FBI into an older version or a less adaptable system, potentially impacting operational efficiency and compliance effectiveness.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - END USER

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: 250 BLOOR ST E 9TH FL, TORONTO

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

Financial Breakdown

Contract Ceiling: $4,075,144

Exercised Options: $4,075,144

Current Obligation: $4,075,144

Actual Outlays: $4,075,144

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Timeline