DOJ's $417K VMware Renewal with August Schell Enterprises Raises Questions on Value and Competition
Contract Overview
Contract Amount: $417,616 ($417.6K)
Contractor: August Schell Enterprises, Inc.
Awarding Agency: Department of Justice
Start Date: 2020-08-10
End Date: 2021-08-09
Contract Duration: 364 days
Daily Burn Rate: $1.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 14
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VMWARE FY20 RENEWAL AND TRUE-UP
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850
State: Maryland Government Spending
Plain-Language Summary
Department of Justice obligated $417,616.2 to AUGUST SCHELL ENTERPRISES, INC. for work described as: VMWARE FY20 RENEWAL AND TRUE-UP Key points: 1. The contract for VMware services represents a significant expenditure for the Office of Justice Programs. 2. Competition was limited, raising concerns about potential overpricing and lack of market pressure. 3. The 'Other Computer Related Services' NAICS code is broad, making direct cost comparisons difficult. 4. The renewal's duration and fixed-price nature warrant scrutiny for cost-effectiveness over time.
Value Assessment
Rating: questionable
The $417,616.20 award for VMware services lacks clear benchmarks for similar contracts. Without detailed service breakdowns or competitive bids, assessing the pricing against market rates for 'Other Computer Related Services' is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competitive field. This method may restrict price discovery and potentially lead to higher costs compared to broader solicitations.
Taxpayer Impact: The limited competition raises concerns about taxpayer value, as the government may not have secured the most cost-effective solution available in the market.
Public Impact
Federal agencies rely heavily on software and IT services, making contract oversight crucial. Limited competition in IT procurements can stifle innovation and increase costs for taxpayers. Transparency in contract awards, especially for renewals, is vital for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of clear pricing benchmarks
- Broad NAICS code
- Renewal of existing service
Positive Signals
- Awarded by Department of Justice
- Fixed Price contract type
Sector Analysis
The IT sector is characterized by rapid technological advancements and specialized services. Spending benchmarks for 'Other Computer Related Services' (NAICS 541519) can vary widely due to the diverse nature of services offered, making direct comparisons difficult without specific service details.
Small Business Impact
This contract was awarded to August Schell Enterprises, Inc. Further analysis is needed to determine if this is a small business and if subcontracting opportunities were maximized.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests some level of justification was provided, but the specific reasons for excluding other sources and the subsequent oversight of this limited competition require further investigation.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- Office of Justice Programs Programs
Risk Flags
- Limited competition raises cost concerns.
- Lack of detailed service description hinders value assessment.
- Potential for overpayment due to lack of robust price discovery.
- Broad NAICS code complicates benchmarking.
- Renewal nature may indicate a lack of strategic sourcing.
Tags
other-computer-related-services, department-of-justice, md, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $417,616.2 to AUGUST SCHELL ENTERPRISES, INC.. VMWARE FY20 RENEWAL AND TRUE-UP
Who is the contractor on this award?
The obligated recipient is AUGUST SCHELL ENTERPRISES, INC..
Which agency awarded this contract?
Awarding agency: Department of Justice (Office of Justice Programs).
What is the total obligated amount?
The obligated amount is $417,616.2.
What is the period of performance?
Start: 2020-08-10. End: 2021-08-09.
What specific VMware services were procured under this contract, and how do they align with the agency's needs?
The contract details are for a 'VMWARE RENEWAL AND TRUE-UP,' suggesting ongoing licensing and potentially support services for VMware software. The specific functionalities and versions are not detailed, making it difficult to assess if the procurement precisely meets the Department of Justice's evolving IT infrastructure requirements or if it includes unneeded components.
What was the justification for excluding other potential sources, and was this exclusion adequately documented?
The contract states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This implies that while a broad solicitation was considered, specific reasons led to limiting the pool of potential bidders. A thorough review of the contract file would be necessary to understand the documented justification, such as unique capabilities, prior performance, or specific technical requirements that only August Schell Enterprises could meet.
How does the per-unit cost of this VMware renewal compare to industry benchmarks or previous agency procurements for similar services?
Without specific line-item details on the VMware products and services included in this $417,616.20 renewal, a direct per-unit cost comparison is not feasible. Industry benchmarks for VMware licensing and support vary significantly based on product suite, number of users/sockets, and support levels. A lack of detailed cost breakdown hinders an accurate assessment of value for money.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 15PTDE20Q00000016
Offers Received: 14
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1700 ROCKVILLE PIKE STE 405, ROCKVILLE, MD, 20852
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $417,616
Exercised Options: $417,616
Current Obligation: $417,616
Actual Outlays: $417,616
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD80B
IDV Type: GWAC
Timeline
Start Date: 2020-08-10
Current End Date: 2021-08-09
Potential End Date: 2021-08-09 00:00:00
Last Modified: 2026-04-03
More Contracts from August Schell Enterprises, Inc.
- Software — $37.7M (Department of Defense)
- RED HAT Part Number MCT0696 — $35.1M (Department of Defense)
- Software — $32.9M (Department of Defense)
- Base Year Minimum Annual Subscription — $31.3M (Department of Defense)
- TO Acquire Software Licenses to Facilitate the Development, Security, and Operations (devsecops) Systems Development Life Cycle (sdlc) of the F-35 Lightning II Joint Program Office (JPO) — $27.1M (Department of Defense)
View all August Schell Enterprises, Inc. federal contracts →
Other Department of Justice Contracts
- Contractor Owned and Operated Existing Correctional Facility for Approximately 3,500 LOW Security Male Inmates — $794.5M (Cornell Companies, Inc.)
- Detention Services - SAN Diego — $776.9M (THE GEO Group, Inc.)
- CO: Telly Renfroe Award of NEW Task Order Base Year Initial Funding — $616.4M (AT&T Enterprises, LLC)
- TAS 151060 - Services for the Management and Operation of a Contractor-Owned, Contractor-Operated, Correctional Facility for 2,567 Beds in Adams County, Mississippi — $574.3M (Corecivic, Inc.)
- Provide Services for the Management and Operation of a Correctional Facility in Accordance With Rfp-Pcc-0014 — $568.9M (Cornell Companies, Inc.)