Agriculture's $16.3M ICBS RE-ENGINEERING contract awarded to MANUGISTICS, INC. for custom computer programming

Contract Overview

Contract Amount: $16,278,494 ($16.3M)

Contractor: Manugistics, Inc

Awarding Agency: Department of Agriculture

Start Date: 2005-05-09

End Date: 2011-10-31

Contract Duration: 2,366 days

Daily Burn Rate: $6.9K/day

Number of Offers Received: 5

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ICBS RE-ENGINEERING

Place of Performance

Location: GOLDEN, JEFFERSON County, COLORADO, 80401

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $16.3 million to MANUGISTICS, INC for work described as: ICBS RE-ENGINEERING Key points: 1. Contract value of $16.3M over 6 years suggests a significant investment in IT infrastructure. 2. Awarded to a single vendor, raising questions about the extent of competition. 3. The contract's duration and scope indicate a need for specialized custom programming services. 4. Performance period spans over 6 years, implying a long-term project with potential for evolving requirements. 5. The IT sector, particularly custom programming, is a critical area for government operations. 6. The contract's focus on re-engineering suggests an effort to modernize or improve existing systems.

Value Assessment

Rating: fair

The contract value of $16.3 million over approximately six years for custom computer programming services appears substantial. Benchmarking this against similar large-scale IT re-engineering projects within federal agencies is challenging without more specific details on the scope and deliverables. However, the duration suggests a potentially high total cost if not managed efficiently. The absence of a clear per-unit cost makes a direct value-for-money assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded as a sole-source procurement, meaning only one vendor was considered. This approach is typically used when a unique capability or proprietary technology is required, or in specific emergency situations. The lack of competition means that the government did not benefit from a bidding process that could have potentially driven down prices or offered alternative solutions.

Taxpayer Impact: Sole-source awards limit opportunities for other businesses and may result in higher costs for taxpayers as competitive pressures are absent.

Public Impact

The primary beneficiaries are likely the Department of Agriculture's internal operations, which rely on the ICBS system. The services delivered are custom computer programming, aimed at re-engineering the ICBS system. The geographic impact is primarily within the Department of Agriculture, potentially affecting its nationwide operations. Workforce implications could include the need for specialized IT personnel to manage and implement the re-engineering project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Long contract duration may lead to scope creep and cost overruns if not managed tightly.
Custom programming is inherently complex and carries risks of technical challenges and integration issues.

Positive Signals

Focus on re-engineering suggests a commitment to modernizing critical IT infrastructure.
Award to a single vendor implies a belief in their specialized capability for this specific task.
The contract duration allows for thorough development and implementation of complex IT solutions.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The federal IT market is vast, with significant spending on software development, system integration, and IT modernization. Re-engineering projects like this are common as agencies seek to update legacy systems to improve efficiency and security. Comparable spending benchmarks would depend on the specific nature of the ICBS system and its criticality to the agency's mission.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a sole-source award, it is unlikely that subcontracting opportunities for small businesses were a primary consideration in the procurement strategy. This contract does not appear to directly support the small business ecosystem through set-asides.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers, program managers within the Department of Agriculture, and potentially agency-level IT oversight bodies. Transparency is often limited for sole-source procurements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Department of Agriculture IT Modernization Programs
Custom Software Development Contracts
Federal Enterprise Resource Planning (ERP) Systems
Information Systems Re-engineering Projects

Risk Flags

Sole-source award
Long contract duration
Custom programming complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $16.3 million to MANUGISTICS, INC. ICBS RE-ENGINEERING

Who is the contractor on this award?

The obligated recipient is MANUGISTICS, INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $16.3 million.

What is the period of performance?

Start: 2005-05-09. End: 2011-10-31.

What was the specific justification for awarding this contract on a sole-source basis?

Sole-source awards are typically justified when only one responsible source is available or capable of meeting the agency's needs. For custom computer programming services, this could be due to proprietary software, unique technical expertise, or a critical need that cannot be met through competitive means within the required timeframe. The specific justification document for this contract would detail the rationale provided by the Department of Agriculture, outlining why other vendors were not considered or could not fulfill the requirement for the ICBS RE-ENGINEERING project.

How does the total contract value of $16.3 million compare to similar IT re-engineering projects within the federal government?

Comparing the $16.3 million total contract value requires context on the scope, complexity, and duration of the ICBS RE-ENGINEERING project. Large-scale IT modernization and re-engineering efforts within federal agencies can range from a few million to hundreds of millions of dollars. Projects involving custom programming for core enterprise systems, like an Integrated Command and Business System (ICBS), often represent significant investments. Without detailed project scope, deliverables, and performance metrics, a direct comparison is difficult. However, $16.3 million over six years suggests a substantial, ongoing effort in custom software development.

What are the key risks associated with a sole-source custom programming contract of this magnitude and duration?

Key risks include a lack of competitive pricing, potentially leading to higher costs for taxpayers. There's also a risk of vendor lock-in, where the agency becomes heavily reliant on the sole provider. Custom programming projects are inherently complex and carry technical risks such as integration challenges, scope creep, and schedule delays. Without competition, there may be less incentive for the contractor to innovate or maintain optimal performance. Effective contract management, clear performance metrics, and robust oversight are crucial to mitigate these risks.

What specific IT systems or functionalities does the ICBS RE-ENGINEERING project aim to improve?

The provided data only identifies the contract as 'ICBS RE-ENGINEERING' and the service as 'Custom Computer Programming Services.' The specific functionalities or systems targeted by the ICBS (Integrated Command and Business System) re-engineering are not detailed. Typically, such projects aim to modernize legacy systems, improve data management, enhance user interfaces, increase system efficiency, ensure cybersecurity, or integrate disparate systems. Further analysis would require access to the contract's statement of work (SOW) or related project documentation to understand the precise objectives and scope of the re-engineering effort.

What is the track record of MANUGISTICS, INC. in performing custom computer programming services for the federal government?

MANUGISTICS, INC. was awarded this contract for custom computer programming services. To assess their track record, one would need to examine their past performance on similar federal contracts. This includes reviewing past performance evaluations, any documented issues or successes, and their experience with large-scale IT re-engineering projects. Without access to a comprehensive contract performance database or specific details on MANUGISTICS, INC.'s history with the government, a definitive assessment of their track record for this type of work is not possible based solely on the provided data.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Contractor Details

Parent Company: JDA Software Group, Inc. (UEI: 942603325)

Address: 14400 N 87TH ST, SCOTTSDALE, AZ, 01

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $17,984,777

Exercised Options: $17,984,777

Current Obligation: $16,278,494

Parent Contract

Parent Award PIID: GS35F0388K

IDV Type: FSS

Timeline