DOE awards $16.3M for Perpetual Software Licenses for Power Flow Maintenance to GE Vernova
Contract Overview
Contract Amount: $16,261 ($16.3K)
Contractor: GE Vernova International LLC
Awarding Agency: Department of Energy
Start Date: 2025-02-25
End Date: 2026-02-28
Contract Duration: 368 days
Daily Burn Rate: $44/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TO ACQUIRE THE 2025 STEADY STATE POWER FLOW ANNUAL MAINTENANCE FOR PERPETUAL SOFTWARE LICENSES FROM GE
Place of Performance
Location: LAKEWOOD, JEFFERSON County, COLORADO, 80228
State: Colorado Government Spending
Plain-Language Summary
Department of Energy obligated $16,261.38 to GE VERNOVA INTERNATIONAL LLC for work described as: TO ACQUIRE THE 2025 STEADY STATE POWER FLOW ANNUAL MAINTENANCE FOR PERPETUAL SOFTWARE LICENSES FROM GE Key points: 1. The contract is for essential annual maintenance of perpetual software licenses. 2. Sole-source award to GE Vernova suggests limited competition or unique vendor capabilities. 3. Risk of vendor lock-in and potential for price increases due to lack of competition. 4. Spending falls within the Software Publishers sector, with specific benchmarks to be determined.
Value Assessment
Rating: fair
The $16.38 million award for annual maintenance of perpetual software licenses appears to be a standard renewal. Without comparable contract data for similar perpetual software maintenance agreements, a precise value assessment is difficult. However, the firm-fixed-price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed under the Simplified Acquisition Procedures, indicating a sole-source award to GE Vernova. This approach limits price discovery and competition, potentially leading to higher costs than if multiple vendors were considered.
Taxpayer Impact: Taxpayer funds are being used for this sole-source acquisition, highlighting the importance of ensuring fair pricing and necessity given the lack of competitive bidding.
Public Impact
Ensures continued operation of critical power flow management systems. Potential for increased costs to taxpayers due to sole-source nature. Reliability of the power grid may depend on this maintenance. Lack of competition could stifle innovation in power management software.
Waste & Efficiency Indicators
Waste Risk Score: 44 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Potential for vendor lock-in with perpetual licenses.
- No indication of small business participation.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Essential service for power flow management.
Sector Analysis
The Software Publishers sector (NAICS 513210) encompasses companies that produce and distribute software. Benchmarking for perpetual software license maintenance can be challenging due to proprietary nature and varying support levels. This award represents a specific instance of government spending within this sector for critical infrastructure support.
Small Business Impact
There is no indication of small business participation in this contract. The award was made directly to GE Vernova International LLC, a large entity, suggesting that opportunities for small businesses were either not sought or not available for this specific sole-source requirement.
Oversight & Accountability
Oversight for this contract will likely fall under the Department of Energy's contracting and financial management divisions. The sole-source nature necessitates careful review to ensure the price is fair and reasonable and that the service is essential.
Related Government Programs
- Software Publishers
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award
- Lack of competition
- Potential for price escalation
- No small business participation identified
- Vendor lock-in risk
Tags
software-publishers, department-of-energy, co, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $16,261.38 to GE VERNOVA INTERNATIONAL LLC. TO ACQUIRE THE 2025 STEADY STATE POWER FLOW ANNUAL MAINTENANCE FOR PERPETUAL SOFTWARE LICENSES FROM GE
Who is the contractor on this award?
The obligated recipient is GE VERNOVA INTERNATIONAL LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $16,261.38.
What is the period of performance?
Start: 2025-02-25. End: 2026-02-28.
What is the justification for the sole-source award, and were alternative solutions or vendors considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. The Department of Energy would need to provide documentation detailing why GE Vernova International LLC was the only viable option for this specific perpetual software license maintenance, and whether any market research was conducted to explore alternatives or competitive options.
How does the $16.38 million cost compare to industry benchmarks for similar perpetual software maintenance contracts?
Benchmarking this $16.38 million award against industry standards for perpetual software maintenance is difficult without specific details on the software's criticality, the scope of support, and the vendor's pricing model. Generally, perpetual license maintenance costs can range from 15-25% of the initial license fee annually. A detailed cost analysis by the agency is crucial to validate the reasonableness of this expenditure.
What is the long-term strategy for managing perpetual software licenses and avoiding future sole-source procurements?
The long-term strategy should focus on evaluating the necessity of perpetual licenses versus subscription models, exploring competitive procurement opportunities for future maintenance or replacements, and potentially consolidating software assets to achieve economies of scale. Proactive contract management and market analysis are key to mitigating risks associated with sole-source awards and ensuring cost-effectiveness over time.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: 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: 28 LIBERTY ST, NEW YORK, NY, 10005
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,550
Exercised Options: $29,550
Current Obligation: $16,261
Actual Outlays: $16,261
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2025-02-25
Current End Date: 2026-02-28
Potential End Date: 2026-02-28 00:00:00
Last Modified: 2026-04-02
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