Department of Labor awards $2.06M contract for Software AG Government Solutions to Countertrade Products, Inc
Contract Overview
Contract Amount: $2,057,561 ($2.1M)
Contractor: Countertrade Products, Inc.
Awarding Agency: Department of Labor
Start Date: 2022-03-31
End Date: 2027-03-30
Contract Duration: 1,825 days
Daily Burn Rate: $1.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TO PROCURE THE SOFTWARE AG GOVERNMENT SOLUTIONS FOR OCIO.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210
Plain-Language Summary
Department of Labor obligated $2.1 million to COUNTERTRADE PRODUCTS, INC. for work described as: TO PROCURE THE SOFTWARE AG GOVERNMENT SOLUTIONS FOR OCIO. Key points: 1. The contract is for Software AG Government Solutions, a niche software category. 2. Countertrade Products, Inc. is the sole awardee, raising questions about competition. 3. The contract spans five years, indicating a long-term need for the software. 4. The award is a Delivery Order under an unspecified contract vehicle.
Value Assessment
Rating: fair
The contract value of $2.06 million over five years appears reasonable for specialized government software. However, without knowing the specific Software AG modules and user count, a precise benchmark is difficult. The lack of competitive bidding further complicates value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a limited competition scenario. This method may not have yielded the best possible price discovery, as only one source was ultimately considered.
Taxpayer Impact: The limited competition may result in taxpayers paying more than if a broader range of vendors had been allowed to bid on this software procurement.
Public Impact
Ensures continued operation of critical government IT systems reliant on Software AG. Potential for increased costs due to limited competition. Supports a specific software vendor's ecosystem within the federal government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of transparency in source exclusion
Positive Signals
- Addresses a specific software need
- Long-term contract provides stability
Sector Analysis
This contract falls within the IT services sector, specifically focusing on software procurement and maintenance. Government spending on enterprise software like Software AG is common, but benchmarks vary widely based on the specific product suite and agency needs.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. The nature of specialized software contracts often favors larger, established vendors.
Oversight & Accountability
The award is a Delivery Order, implying it's part of a larger, potentially pre-existing contract. Oversight would depend on the terms of that base contract and the agency's internal procurement review processes.
Related Government Programs
- Other Computer Related Services
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Limited competition
- Lack of detailed justification for source exclusion
- Potential for overpayment due to lack of competitive pressure
- Risk of vendor lock-in
Tags
other-computer-related-services, department-of-labor, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $2.1 million to COUNTERTRADE PRODUCTS, INC.. TO PROCURE THE SOFTWARE AG GOVERNMENT SOLUTIONS FOR OCIO.
Who is the contractor on this award?
The obligated recipient is COUNTERTRADE PRODUCTS, INC..
Which agency awarded this contract?
Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).
What is the total obligated amount?
The obligated amount is $2.1 million.
What is the period of performance?
Start: 2022-03-31. End: 2027-03-30.
What specific Software AG modules are being procured, and what is the justification for excluding other potential sources?
The specific Software AG modules are not detailed in the provided data. The justification for excluding other sources under the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is also missing. This information is crucial for understanding the necessity of this specific award and whether alternative solutions were adequately considered, impacting the overall value for taxpayers.
What is the benchmark pricing for similar Software AG Government Solutions contracts within the federal government?
Benchmarking pricing for specific enterprise software like Software AG is challenging without detailed module information, user counts, and support levels. However, the $2.06 million over five years suggests a significant investment. Comparing this to other government contracts for similar Software AG deployments, adjusted for scope and duration, would be necessary to assess if this price is competitive, especially given the limited competition.
How does the limited competition impact the long-term cost-effectiveness and potential for vendor lock-in?
Limited competition inherently reduces price pressure, potentially leading to higher costs over the contract's five-year duration. It also increases the risk of vendor lock-in, making it more difficult and expensive to switch to alternative solutions in the future. This necessitates careful monitoring of performance and pricing throughout the contract term to mitigate these risks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7585 W 66TH AVE, ARVADA, CO, 80003
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $2,057,561
Exercised Options: $2,057,561
Current Obligation: $2,057,561
Actual Outlays: $1,582,730
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC65B
IDV Type: GWAC
Timeline
Start Date: 2022-03-31
Current End Date: 2027-03-30
Potential End Date: 2027-03-30 00:00:00
Last Modified: 2026-03-19
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