DOE's $2.6M Software Maintenance Renewal for Wood Mackenzie North America awarded to GenScape, Inc
Contract Overview
Contract Amount: $2,620,621 ($2.6M)
Contractor: Genscape, Inc.
Awarding Agency: Department of Energy
Start Date: 2022-10-01
End Date: 2026-09-30
Contract Duration: 1,460 days
Daily Burn Rate: $1.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MAINTENANCE RENEWAL FOR WOOD MACKENZIE NORTH AMERICA
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20426
Plain-Language Summary
Department of Energy obligated $2.6 million to GENSCAPE, INC. for work described as: MAINTENANCE RENEWAL FOR WOOD MACKENZIE NORTH AMERICA Key points: 1. Spending on software maintenance represents a recurring cost for government operations. 2. The contract is a sole-source award, limiting competitive pricing opportunities. 3. Potential risks include vendor lock-in and lack of market-driven price adjustments. 4. The IT sector relies heavily on software for data analysis and operational efficiency.
Value Assessment
Rating: fair
The contract's price of $2.62 million over four years for software maintenance appears reasonable given the specialized nature of the software. However, without competitive bidding, it's difficult to ascertain if this represents the best possible value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning it was not competed. This approach can lead to higher prices as there is no market pressure to offer the most competitive rate.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition, potentially diverting funds from other critical government needs.
Public Impact
Federal agencies rely on specialized software for critical functions like energy regulation. The renewal ensures continued access to essential tools for the Federal Energy Regulatory Commission. Lack of competition in sole-source contracts can impact overall government efficiency and cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition
- Potential for overpayment without competitive benchmarking
- Long-term reliance on a single vendor
Positive Signals
- Ensures continuity of essential software services
- Fixed-price contract provides cost predictability
Sector Analysis
The IT sector, particularly software publishers, is crucial for government operations. Spending on software maintenance is a common and necessary expenditure, but competitive procurement is vital to ensure value for taxpayer money.
Small Business Impact
This contract was awarded to GenScape, Inc., a single entity. There is no indication of subcontracting opportunities for small businesses within this award, which is common for sole-source software maintenance agreements.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the pricing is justified and that efforts to introduce competition in future renewals are considered.
Related Government Programs
- Software Publishers
- Department of Energy Contracting
- Federal Energy Regulatory Commission Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for price creep over contract duration
- Dependency on a single vendor
Tags
software-publishers, department-of-energy, dc, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $2.6 million to GENSCAPE, INC.. MAINTENANCE RENEWAL FOR WOOD MACKENZIE NORTH AMERICA
Who is the contractor on this award?
The obligated recipient is GENSCAPE, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Federal Energy Regulatory Commission).
What is the total obligated amount?
The obligated amount is $2.6 million.
What is the period of performance?
Start: 2022-10-01. End: 2026-09-30.
What is the justification for the sole-source award, and what steps are being taken to explore competitive alternatives for future renewals?
The justification for a sole-source award typically stems from unique capabilities or proprietary software. Agencies should document this rationale thoroughly. For future renewals, proactive market research and planning for competitive solicitations are essential to ensure the government obtains the best value and fosters innovation.
How does the per-unit cost of this maintenance renewal compare to industry benchmarks for similar software, considering the lack of competition?
Without competitive bids, a direct per-unit cost comparison is challenging. However, the agency should have conducted internal cost analysis or sought independent estimates to validate the reasonableness of the price. Benchmarking against publicly available data for comparable software maintenance contracts, while imperfect, can provide some context.
What is the potential impact on operational effectiveness if this software maintenance is disrupted, and are there contingency plans in place?
Disruption of critical software maintenance, especially for regulatory bodies like FERC, could severely impact operational effectiveness, leading to delays in decision-making and potential non-compliance. Robust contingency plans, including vendor support escalation procedures and potential alternative solutions, are crucial to mitigate such risks.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89603022Q0072
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Euromoney Institutional Investor PLC
Address: 1140 GARVIN PL, LOUISVILLE, KY, 40203
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $3,359,667
Exercised Options: $2,620,621
Current Obligation: $2,620,621
Actual Outlays: $2,620,621
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2022-10-01
Current End Date: 2026-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-02-04
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