HHS FDA Awards $5.6M for Documentum Software Maintenance to Sdvo Solutions, LLC

Contract Overview

Contract Amount: $5,621,683 ($5.6M)

Contractor: Sdvo Solutions, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2019-06-28

End Date: 2024-06-30

Contract Duration: 1,829 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DOCUMENTUM&ASSOCIATED SOFTWARE MAINTENANCE FY19

Place of Performance

Location: FREDERICK, FREDERICK County, MARYLAND, 21701

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.6 million to SDVO SOLUTIONS, LLC for work described as: DOCUMENTUM&ASSOCIATED SOFTWARE MAINTENANCE FY19 Key points: 1. The contract is for software maintenance, a critical but often costly IT function. 2. SDVO Solutions, LLC, a small business, is the awardee. 3. The contract spans five years, indicating a long-term need. 4. The NAICS code 541519 suggests a broad category of computer-related services.

Value Assessment

Rating: fair

The contract value of $5.6M over five years averages to approximately $1.12M annually. Benchmarking this against similar software maintenance contracts is difficult without more specific service details, but it appears to be within a reasonable range for enterprise-level software support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while competition was sought, specific circumstances led to excluding certain potential bidders. The price discovery mechanism is likely robust due to the open competition, but the exclusion of sources warrants scrutiny.

Taxpayer Impact: Taxpayers are impacted by the $5.6M expenditure. The use of full and open competition aims to ensure the best value is obtained, but the exclusion of sources could potentially limit cost savings.

Public Impact

Ensures continued operation of critical DOCUMENTUM software for the FDA. Supports the FDA's mission by providing necessary IT infrastructure. Potential for long-term reliance on a single vendor for maintenance. The five-year duration may lock in current pricing, missing potential future market reductions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in competition
Long contract duration (5 years)
Potential for vendor lock-in

Positive Signals

Full and open competition utilized
Awarded to a small business

Sector Analysis

Information Technology (IT) spending for software maintenance is a significant portion of agency budgets. This contract falls within the IT sector, specifically supporting enterprise content management systems. Benchmarks for such contracts vary widely based on software complexity and vendor.

Small Business Impact

The awardee, SDVO SOLUTIONS, LLC, is identified as a small business. This aligns with federal goals to support small and disadvantaged businesses. However, the contract value and duration suggest a significant undertaking for a small business, requiring substantial capacity and resources.

Oversight & Accountability

The contract's 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause requires careful oversight to ensure the exclusion was justified and did not unduly restrict competition. The five-year term necessitates ongoing performance monitoring to ensure value for money.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Potential for limited competition due to source exclusion.
Long-term commitment (5 years) may not adapt to market changes.
Risk of vendor lock-in for critical software maintenance.
Lack of detailed service scope makes precise value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.6 million to SDVO SOLUTIONS, LLC. DOCUMENTUM&ASSOCIATED SOFTWARE MAINTENANCE FY19

Who is the contractor on this award?

The obligated recipient is SDVO SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2019-06-28. End: 2024-06-30.

What specific criteria led to the exclusion of sources in this full and open competition, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical requirements, security protocols, or unique capabilities are only met by a limited number of vendors. Understanding these criteria is crucial to assess if the exclusion was justified or if it unnecessarily limited the competitive landscape. If only a few vendors could meet the requirements, the price discovery process might be less robust, potentially leading to a higher cost for the government compared to a scenario with broader competition.

What is the risk associated with a five-year contract for software maintenance, particularly regarding technological obsolescence and vendor lock-in?

A five-year contract for software maintenance carries the risk of technological obsolescence if the underlying software or the maintenance services become outdated. It also increases the likelihood of vendor lock-in, making it difficult and costly to switch providers even if better alternatives emerge. This necessitates careful contract management, including options for technology refresh or performance-based metrics that incentivize innovation and prevent stagnation.

How effectively does this contract support the FDA's mission, and what are the key performance indicators for success?

This contract is essential for maintaining the operational integrity of DOCUMENTUM, a system likely used for managing critical documents and data within the FDA. Success hinges on ensuring uninterrupted system availability, timely software updates and patches, and responsive technical support. Key performance indicators should focus on uptime percentages, resolution times for reported issues, and successful deployment of updates, all directly contributing to the FDA's ability to perform its regulatory and scientific functions.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110 W CHURCH ST, FREDERICK, MD, 21701

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,621,683

Exercised Options: $5,621,683

Current Obligation: $5,621,683

Actual Outlays: $2,369,585

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD32B

IDV Type: GWAC

Timeline