Treasury's OCC Awards $297K for OpenText EDOCS Maintenance and Optimization

Contract Overview

Contract Amount: $297,163 ($297.2K)

Contractor: Open Text Inc.

Awarding Agency: Department of the Treasury

Start Date: 2026-04-10

End Date: 2027-01-31

Contract Duration: 296 days

Daily Burn Rate: $1.0K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OPENTEXT RECORDS MANAGEMENT FOR EDOCS MAINTENANCE AND OPTIMIZE SERVICE PROGRAM

Place of Performance

Location: MENLO PARK, SAN MATEO County, CALIFORNIA, 94025

State: California Government Spending

Plain-Language Summary

Department of the Treasury obligated $297,162.61 to OPEN TEXT INC. for work described as: OPENTEXT RECORDS MANAGEMENT FOR EDOCS MAINTENANCE AND OPTIMIZE SERVICE PROGRAM Key points: 1. Spending is concentrated with a single vendor, Open Text Inc. 2. The contract is for software maintenance and optimization services. 3. Limited competition raises questions about potential overpayment. 4. The IT sector is characterized by specialized software needs.

Value Assessment

Rating: questionable

The contract value of $297,162.61 for approximately 2 years of service is difficult to benchmark without specific details on the scope of 'maintenance and optimize'. Given the sole-source nature, it's hard to determine if this represents fair market value compared to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP) and appears to be a sole-source award to Open Text Inc. This lack of competition limits price discovery and may result in a higher cost to the government.

Taxpayer Impact: The absence of competitive bidding for this software maintenance contract could lead to taxpayers paying more than necessary for these services.

Public Impact

Government reliance on specific software vendors can lead to increased costs. Ensuring competitive sourcing for software maintenance is crucial for fiscal responsibility. Transparency in sole-source contract justifications is vital for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for inflated pricing

Positive Signals

Specific software maintenance addressed
Defined contract period

Sector Analysis

The IT sector, particularly software publishers (NAICS 513210), often involves proprietary technology. While specialized, agencies should strive for competitive sourcing where possible, even for maintenance, to ensure value.

Small Business Impact

This contract was awarded to Open Text Inc., a large business. There is no indication of any subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract was not competed under SAP, suggesting a potential deviation from standard procurement practices. Further review of the justification for this sole-source award is warranted to ensure proper oversight.

Related Government Programs

Software Publishers
Department of the Treasury Contracting
Office of the Comptroller of the Currency Programs

Risk Flags

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

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $297,162.61 to OPEN TEXT INC.. OPENTEXT RECORDS MANAGEMENT FOR EDOCS MAINTENANCE AND OPTIMIZE SERVICE PROGRAM

Who is the contractor on this award?

The obligated recipient is OPEN TEXT INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $297,162.61.

What is the period of performance?

Start: 2026-04-10. End: 2027-01-31.

What is the specific justification for awarding this contract sole-source to Open Text Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, such justifications would cite reasons like proprietary software, lack of alternatives, or urgent need where competition is not feasible. A thorough review would require accessing the contract file and associated documentation.

How does the pricing compare to industry benchmarks for similar software maintenance and optimization services?

Without detailed service level agreements and specific optimization tasks, a direct price comparison is challenging. However, sole-source contracts inherently lack the price discovery mechanism of competition. The $297K for roughly two years suggests a need to verify if this aligns with market rates for comparable, competitively bid contracts.

What is the potential risk of vendor lock-in and future cost increases associated with this sole-source award?

There is a significant risk of vendor lock-in, as the government is dependent on Open Text Inc. for maintenance and optimization of their EDOCS system. This dependence can lead to future price increases, as the vendor faces no competitive pressure. The agency should plan for future competitive procurements or explore alternative solutions.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2440 SAND HILL RD, MENLO PARK, CA, 94025

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

Financial Breakdown

Contract Ceiling: $297,163

Exercised Options: $297,163

Current Obligation: $297,163

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline