Treasury's $8.3M ESPRIT Software Maintenance Contract Awarded to Hexagon Manufacturing Intelligence
Contract Overview
Contract Amount: $8,308 ($8.3K)
Contractor: Hexagon Manufacturing Intelligence, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2026-05-07
End Date: 2027-05-06
Contract Duration: 364 days
Daily Burn Rate: $23/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ESPRIT SOFTWARE MAINTENANCE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001
Plain-Language Summary
Department of the Treasury obligated $8,307.8 to HEXAGON MANUFACTURING INTELLIGENCE, INC. for work described as: ESPRIT SOFTWARE MAINTENANCE Key points: 1. The contract is for software maintenance, a critical but often recurring expense. 2. Hexagon Manufacturing Intelligence is the sole provider, raising concerns about competition. 3. The firm fixed price contract type offers some cost certainty. 4. The spending is categorized under Software Publishers (NAICS 513210).
Value Assessment
Rating: questionable
The contract value of $8.3M for a 1-year period for software maintenance needs benchmarking against similar contracts for ESPRIT software or comparable enterprise solutions. Without this data, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and may lead to inflated costs for taxpayers.
Taxpayer Impact: The absence of competition for this software maintenance contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying a premium due to the lack of competitive bidding. Reliance on a single vendor for critical software maintenance can create operational risks. The Treasury Department's ability to secure favorable terms is diminished without competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Firm fixed price contract
- Defined contract period
Sector Analysis
The software publishing sector is characterized by proprietary technology and specialized maintenance needs. Benchmarking requires identifying comparable software maintenance contracts, which can be challenging for unique systems like ESPRIT.
Small Business Impact
This contract was not awarded to a small business. Analysis of the procurement process did not reveal specific efforts to engage small businesses for this requirement.
Oversight & Accountability
Oversight is needed to ensure the Treasury Department justifies the sole-source award and negotiates the best possible price. Regular reviews of software maintenance needs and market alternatives are recommended.
Related Government Programs
- Software Publishers
- Department of the Treasury Contracting
- Bureau of the Fiscal Service Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
- Vendor lock-in
- Limited transparency in pricing
Tags
software-publishers, department-of-the-treasury, dc, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $8,307.8 to HEXAGON MANUFACTURING INTELLIGENCE, INC.. ESPRIT SOFTWARE MAINTENANCE
Who is the contractor on this award?
The obligated recipient is HEXAGON MANUFACTURING INTELLIGENCE, INC..
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of the Fiscal Service).
What is the total obligated amount?
The obligated amount is $8,307.8.
What is the period of performance?
Start: 2026-05-07. End: 2027-05-06.
What is the justification for the sole-source award of the ESPRIT software maintenance contract?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the vendor being the only entity capable of providing the required maintenance. Without further documentation, it's presumed Hexagon Manufacturing Intelligence holds exclusive rights or expertise for ESPRIT software maintenance, necessitating this approach to ensure continuity of operations.
What are the risks associated with a sole-source contract for software maintenance?
Sole-source contracts carry significant risks, including inflated pricing due to lack of competition, vendor lock-in, and potential for reduced service quality as the vendor faces no competitive pressure. There's also a risk of vendor viability issues, where the government becomes overly dependent on a single entity that may face financial or operational challenges.
How can the Treasury Department ensure value for money on this sole-source contract?
To ensure value, the Treasury should conduct thorough market research to establish a fair and reasonable price, potentially using independent cost estimates or benchmarks from similar, albeit not identical, contracts. Regular performance reviews and clear service level agreements are crucial. Exploring options for future competition or alternative solutions should also be a priority.
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
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 20340926Q00048
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hexagon AB
Address: 250 CIRCUIT DR, NORTH KINGSTOWN, RI, 02852
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $8,308
Exercised Options: $8,308
Current Obligation: $8,308
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-05-07
Current End Date: 2027-05-06
Potential End Date: 2027-05-06 00:00:00
Last Modified: 2026-04-02
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