DoD Spends $37.2M on CA, Inc. Software Maintenance via Non-Competitive Delivery Order
Contract Overview
Contract Amount: $37,242,314 ($37.2M)
Contractor: CA, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-09-27
End Date: 2018-09-26
Contract Duration: 1,825 days
Daily Burn Rate: $20.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PURCHASING SOFTWARE MAINTENANCE.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $37.2 million to CA, INC. for work described as: PURCHASING SOFTWARE MAINTENANCE. Key points: 1. Significant spending on software maintenance highlights ongoing operational needs. 2. Sole-source award to CA, Inc. raises questions about potential lack of competition. 3. Long contract duration (5 years) may indicate a critical, long-term dependency. 4. The 'VA' status suggests potential for specific program or system relevance.
Value Assessment
Rating: questionable
The total award of $37.2M over five years for software maintenance is substantial. Without competitive bids, it's difficult to assess if this price represents fair market value compared to similar maintenance contracts for enterprise software.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may lead to higher costs for taxpayers as there was no opportunity for vendors to bid against each other.
Taxpayer Impact: The lack of competition likely resulted in a higher cost to taxpayers than a fully competed contract would have achieved.
Public Impact
Taxpayers may be overpaying for essential software maintenance due to lack of competition. Dependence on a single vendor for critical software could pose future supply chain risks. The long-term nature of the contract suggests potential for vendor lock-in. Transparency in the justification for sole-source awards is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- High total value
Positive Signals
- Essential software maintenance secured
- Long-term support provided
Sector Analysis
The Department of Defense frequently procures IT software and maintenance services. Spending benchmarks for similar enterprise software maintenance contracts vary widely based on the software's criticality and vendor, but non-competitive awards often exceed market rates.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The sole-source nature of the award likely precluded small business participation.
Oversight & Accountability
The justification for not competing this contract should be thoroughly reviewed by oversight bodies to ensure it aligns with federal procurement regulations and serves the best interest of the government.
Related Government Programs
- Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Risk of vendor lock-in.
- Lack of transparency regarding sole-source justification.
- No indication of small business participation.
Tags
computer-and-computer-peripheral-equipme, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.2 million to CA, INC.. PURCHASING SOFTWARE MAINTENANCE.
Who is the contractor on this award?
The obligated recipient is CA, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $37.2 million.
What is the period of performance?
Start: 2013-09-27. End: 2018-09-26.
What was the specific justification provided for awarding this software maintenance contract on a sole-source basis, and was it adequately documented?
The provided data does not include the justification for the sole-source award. Federal regulations typically require detailed documentation for non-competitive procurements, outlining why competition is not feasible or not in the government's best interest. A review of the contract file would be necessary to ascertain the specific rationale and its adequacy.
What is the specific software being maintained, and what is its criticality to Department of the Army operations?
The data does not specify the exact software product being maintained, only that it falls under the broad category of 'Computer and Computer Peripheral Equipment and Software Merchant Wholesalers'. The criticality can be inferred from the substantial, long-term investment by the Department of Defense, suggesting it supports essential functions.
Were any efforts made to transition to a more competitive environment or alternative solutions prior to or during this contract period?
The provided data does not indicate whether any efforts were made to transition to a more competitive environment or explore alternative solutions. Given the five-year duration, it is plausible that such considerations were part of the initial award decision or could be explored for future procurements.
Industry Classification
NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: CA Inc.
Address: 2291 WOOD OAK DRIVE, HERNDON, VA, 20171
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $71,804,870
Exercised Options: $37,242,314
Current Obligation: $37,242,314
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QUZ04A0002
IDV Type: IDC
Timeline
Start Date: 2013-09-27
Current End Date: 2018-09-26
Potential End Date: 2018-09-26 00:00:00
Last Modified: 2023-06-30
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