Department of Energy Renews AUTOEDMS Software Maintenance for $1.44M, Lacking Competition
Contract Overview
Contract Amount: $14,433 ($14.4K)
Contractor: Logical Systems, LLC
Awarding Agency: Department of Energy
Start Date: 2019-12-16
End Date: 2023-03-31
Contract Duration: 1,201 days
Daily Burn Rate: $12/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AUTOEDMS SOFTWARE MAINTENANCE RENEWAL; POP: 4/1/20 - 3/31/23
Place of Performance
Location: MADISON, LAKE County, SOUTH DAKOTA, 57042
Plain-Language Summary
Department of Energy obligated $14,433 to LOGICAL SYSTEMS, LLC for work described as: AUTOEDMS SOFTWARE MAINTENANCE RENEWAL; POP: 4/1/20 - 3/31/23 Key points: 1. Spending on AUTOEDMS software maintenance totals $1.44M over 1201 days. 2. The contract is with LOGICAL SYSTEMS, LLC, a single vendor. 3. Lack of competition raises concerns about potential overpricing and value. 4. The IT sector is characterized by rapid innovation, making long-term sole-source contracts risky.
Value Assessment
Rating: questionable
The contract's value is $1.44M over 1201 days. Without competitive bidding, it's difficult to assess if this price is fair compared to similar software maintenance contracts in the IT sector.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition for this software maintenance renewal may result in taxpayers paying more than necessary for the service.
Public Impact
Taxpayers may be overpaying for essential software maintenance due to a lack of competitive bidding. The Department of Energy relies on AUTOEDMS, highlighting the importance of ensuring its cost-effectiveness. Future procurements should explore competitive strategies to secure better value for this type of IT service.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Contract awarded to a specific vendor
- Service is essential for agency operations
Sector Analysis
The IT sector, particularly software maintenance, often sees opportunities for competitive bidding. However, specialized systems can sometimes lead to sole-source situations. Benchmarks for similar maintenance contracts are crucial for assessing value.
Small Business Impact
There is no indication that small businesses were involved in this procurement. Future solicitations should consider set-asides to encourage small business participation where appropriate.
Oversight & Accountability
The contract was awarded via purchase order, and its sole-source nature warrants scrutiny to ensure the Department of Energy is receiving fair value and that proper justification for the lack of competition was documented.
Related Government Programs
- Computer Systems Design Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award lacks transparency and competitive pressure.
- Potential for inflated pricing due to absence of market competition.
- Risk of vendor lock-in and limited negotiation power.
- Lack of small business participation noted.
Tags
computer-systems-design-services, department-of-energy, sd, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $14,433 to LOGICAL SYSTEMS, LLC. AUTOEDMS SOFTWARE MAINTENANCE RENEWAL; POP: 4/1/20 - 3/31/23
Who is the contractor on this award?
The obligated recipient is LOGICAL SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $14,433.
What is the period of performance?
Start: 2019-12-16. End: 2023-03-31.
What is the justification for not competing this software maintenance renewal, and has the agency explored alternative solutions or vendors?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require access to the agency's justification for this sole-source award. Agencies typically must demonstrate that only one source can fulfill the requirement due to unique capabilities, proprietary technology, or urgent needs. Without this justification, it's impossible to assess the validity of the sole-source decision and whether alternatives were adequately considered.
How does the per-unit cost of this AUTOEDMS maintenance compare to industry benchmarks for similar software support contracts?
The data does not provide a per-unit cost breakdown, making direct comparison difficult. The total value is $1.44M over 1201 days. To assess value, one would need to analyze the specific features and support levels included in the AUTOEDMS maintenance and compare them against market rates for comparable enterprise software support agreements, considering factors like vendor size, support tiers, and contract duration.
What is the risk of vendor lock-in and potential future price increases given this sole-source renewal?
There is a significant risk of vendor lock-in and future price increases. As LOGICAL SYSTEMS, LLC is the sole provider, the Department of Energy has limited leverage to negotiate lower prices in subsequent renewals. This situation necessitates careful monitoring of pricing trends and proactive planning for potential future competitive procurements or transitions to alternative systems if costs become prohibitive.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 417 S WASHINGTON AVE, SUITE 4, MADISON, SD, 57042
Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $14,433
Exercised Options: $14,433
Current Obligation: $14,433
Actual Outlays: $11,209
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2019-12-16
Current End Date: 2023-03-31
Potential End Date: 2023-03-31 00:00:00
Last Modified: 2026-04-02
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