Education Department renews Btrade software for $3.7M, raising questions about competition and value

Contract Overview

Contract Amount: $3,693,352 ($3.7M)

Contractor: Btrade LLC

Awarding Agency: Department of Education

Start Date: 2024-08-01

End Date: 2027-03-31

Contract Duration: 972 days

Daily Burn Rate: $3.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ACQUISITION OF BTRADE SOFTWARE RENEWAL

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75231

State: Texas Government Spending

Plain-Language Summary

Department of Education obligated $3.7 million to BTRADE LLC for work described as: ACQUISITION OF BTRADE SOFTWARE RENEWAL Key points: 1. The contract's value, while not excessively high for software, warrants scrutiny due to the lack of competitive bidding. 2. The renewal period extends for nearly three years, indicating a significant commitment to the Btrade software. 3. The absence of a competitive process suggests potential risks related to overpricing and limited innovation. 4. Software Publishers (NAICS 513210) is a dynamic sector, making sole-source renewals a point of concern for cost-effectiveness. 5. The firm-fixed-price structure provides cost certainty but does not inherently guarantee value for money without competition.

Value Assessment

Rating: questionable

The renewal of Btrade software for $3.7 million over 972 days (approximately $3,800 per day) requires careful benchmarking. Without competitive bids, it's difficult to ascertain if this price reflects fair market value. Similar software renewals in the federal space often undergo competitive processes to ensure optimal pricing. The lack of comparison data due to the sole-source nature makes a definitive value assessment challenging, but the price point itself is not inherently unreasonable for enterprise software, pending further investigation into features and user base.

Cost Per Unit: Approximately $3,800 per day, benchmark is difficult without competitive data.

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP), indicating it was likely procured through a sole-source justification. The absence of a competitive process means only one vendor, Btrade LLC, was considered. This limits price discovery and potentially reduces the government's leverage to negotiate the best possible terms and pricing. The lack of multiple bidders suggests that either Btrade is the only provider of this specific software or that a justification for other-than-full-and-open competition was accepted.

Taxpayer Impact: Taxpayers may be paying a premium for this software due to the lack of competition. Without a bidding process, there's no assurance that the price reflects the lowest achievable cost for the required functionality.

Public Impact

Federal employees within the Department of Education will continue to benefit from the functionalities provided by the Btrade software. The software likely supports critical administrative, operational, or educational support functions within the agency. The geographic impact is primarily within the Department of Education's operational centers, likely concentrated in Washington D.C. and potentially other agency field offices. There are no direct workforce implications mentioned, but the software's use could impact the efficiency and productivity of federal employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpayment and missed opportunities for cost savings.
Sole-source procurement limits transparency and makes it difficult to assess if the government is receiving the best value.
The extended duration of the contract (972 days) locks the agency into this solution without periodic re-evaluation of alternatives.

Positive Signals

The firm-fixed-price contract provides budget certainty for the Department of Education.
The renewal ensures continuity of service for a software solution that is presumably meeting agency needs.

Sector Analysis

The Software Publishers industry (NAICS 513210) is characterized by rapid innovation and diverse product offerings. Federal spending in this sector is substantial, covering a wide range of applications from enterprise resource planning to specialized scientific software. Benchmarking software costs is complex due to varying features, licensing models, and support levels. However, the trend in federal IT procurement is towards more competitive sourcing and cloud-based solutions to drive efficiency and reduce long-term costs. This sole-source renewal for Btrade software stands out in a market that often encourages competition.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. The sole-source nature of this procurement means that opportunities for small businesses to participate as prime contractors or subcontractors are likely non-existent for this specific award. The impact on the small business ecosystem is therefore minimal for this particular transaction.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Education's contracting officers and program managers. Transparency is limited due to the sole-source nature of the award. Accountability measures would be tied to the performance clauses within the contract, but without competition, the incentive to exceed expectations may be reduced. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Education IT Software Purchases
General Services Administration (GSA) Schedule IT Contracts
Software and Information Technology Enterprise Solutions (SWIFT)

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $3.7 million to BTRADE LLC. ACQUISITION OF BTRADE SOFTWARE RENEWAL

Who is the contractor on this award?

The obligated recipient is BTRADE LLC.

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2024-08-01. End: 2027-03-31.

What specific functionalities does Btrade software provide to the Department of Education, and how critical are these to agency operations?

The provided data does not specify the exact functionalities of Btrade software. However, given its acquisition by the Department of Education, it likely supports administrative, financial, student information systems, or educational program management. Criticality would depend on whether it replaces manual processes, integrates disparate systems, or provides essential data for decision-making. Without this detail, assessing its true value and the impact of a sole-source renewal is challenging. Further inquiry into the contract's statement of work or related documentation would be necessary to understand its specific role and importance within the agency's technological infrastructure.

Has the Department of Education previously attempted to compete this software requirement or explore alternative solutions?

The available data indicates this contract was 'NOT COMPETED UNDER SAP,' suggesting it was procured as a sole-source or limited-source action, potentially bypassing the standard competitive processes, including those under Simplified Acquisition Procedures (SAP). It does not explicitly state whether prior attempts were made to compete the requirement or explore alternatives. Agencies are typically required to justify sole-source procurements, often citing unique capabilities or lack of market availability. Without access to the contract file or justification documents, it's impossible to definitively say if alternatives were considered or if this is a recurring sole-source renewal without prior competitive exploration.

What is the typical cost range for similar enterprise software solutions in the federal government, and how does this contract compare?

The federal government procures a vast array of software solutions, making a direct cost comparison difficult without knowing the specific type and scope of Btrade software. Enterprise Resource Planning (ERP) systems, Customer Relationship Management (CRM) software, or specialized data analytics platforms can range from tens of thousands to millions of dollars annually, depending on user count, modules, and support. The daily rate of approximately $3,800 for this renewal suggests a mid-to-high tier enterprise solution. However, without competitive benchmarks or details on the software's features and user base, it's hard to definitively state if this price is high or low relative to market rates. Federal IT spending data from sources like the IT Dashboard or FPDS can offer broader comparisons, but specific software-type comparisons are often needed.

Are there any known performance issues or user complaints associated with Btrade software within the Department of Education?

The provided data does not contain information regarding performance issues or user complaints related to Btrade software. Such details are typically found in contract performance reports, user feedback surveys, or agency-specific IT asset management systems. In the absence of competitive bidding, there is less public scrutiny of vendor performance. If this software is critical and the renewal was sole-source, it implies the agency perceives it as functional. However, a lack of negative public data does not equate to optimal performance or satisfaction; it may simply reflect a lack of accessible reporting mechanisms for this specific contract.

What is the track record of Btrade LLC as a federal contractor, particularly concerning sole-source awards?

Information on Btrade LLC's track record as a federal contractor is not detailed in the provided data. To assess this, one would typically examine the Federal Procurement Data System (FPDS) or similar databases for past awards to Btrade LLC. This would reveal the total value of contracts awarded, the agencies involved, and the competition levels. If Btrade LLC has a history of receiving numerous sole-source awards, it might indicate a specialized niche or a pattern of limited competition. Conversely, a mix of competitive and sole-source awards would provide a more balanced view. Without this broader context, it's difficult to judge Btrade LLC's general performance or its reliance on non-competitive contracts.

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: 10440 N CENTRAL EXPY STE 800, DALLAS, TX, 75231

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $5,233,668

Exercised Options: $3,693,352

Current Obligation: $3,693,352

Actual Outlays: $2,153,036

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline