DoD's $125M Software Publishers Contract with Softmart Government Services Raises Questions on Value and Competition

Contract Overview

Contract Amount: $125,383,988 ($125.4M)

Contractor: Softmart Government Services, Inc

Awarding Agency: Department of Defense

Start Date: 2006-09-23

End Date: 2009-05-30

Contract Duration: 980 days

Daily Burn Rate: $127.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORDER 22296-C3 (PART 1)

Place of Performance

Location: DOWNINGTOWN, CHESTER County, PENNSYLVANIA, 19335

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $125.4 million to SOFTMART GOVERNMENT SERVICES, INC for work described as: ORDER 22296-C3 (PART 1) Key points: 1. The contract awarded to Softmart Government Services, Inc. for software publishing services is substantial at over $125 million. 2. The contract was awarded under 'Full and Open Competition', suggesting a competitive bidding process. 3. However, the duration of the contract (nearly 1000 days) and the lack of small business participation warrant further scrutiny. 4. The sector is Software Publishers, a critical area for government operations.

Value Assessment

Rating: questionable

The contract value of $125M over approximately 3 years is significant. Without specific performance metrics or comparison data, it's difficult to definitively assess value for money. The 'PA' (Purchase Agreement) type suggests it might be a pre-negotiated agreement, which could impact price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition', indicating that multiple vendors were allowed to bid. This method generally promotes price discovery and competitive pricing. However, the specific details of the bidding process and the number of bids received are not provided.

Taxpayer Impact: The competitive nature of the award suggests an effort to secure fair pricing for taxpayers. However, the overall value and duration mean a significant amount of taxpayer funds are committed.

Public Impact

Taxpayers are funding a significant software acquisition over several years. The Department of the Army relies on this contract for essential software publishing services. The lack of small business participation may limit opportunities for smaller, innovative companies. The long contract duration could mean the software remains in use for an extended period, impacting future technology adoption.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Long contract duration
Limited insight into specific software procured

Positive Signals

Awarded under Full and Open Competition
Firm Fixed Price contract type

Sector Analysis

The Software Publishers sector (NAICS 511210) is crucial for government IT infrastructure, encompassing the development, distribution, and licensing of software. Spending in this sector can vary widely based on agency needs, from operating systems to specialized applications. Benchmarks are difficult without knowing the specific software type.

Small Business Impact

The data indicates that this contract did not involve small businesses (ss: false, sb: false). This suggests that the primary awardee is a large business, and opportunities for small business subcontracting may have been missed. Further investigation into the reasons for this exclusion is warranted.

Oversight & Accountability

The contract was awarded in 2006 and ended in 2009, suggesting it is a historical contract. Oversight would have been managed by the Department of the Army during its active period. The 'PA' (Purchase Agreement) designation might imply a framework agreement with specific task orders, each requiring its own oversight.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of small business participation
Long contract duration without clear performance metrics
Limited transparency on specific software procured
Potential for uncompetitive pricing if 'PA' implies limited negotiation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $125.4 million to SOFTMART GOVERNMENT SERVICES, INC. ORDER 22296-C3 (PART 1)

Who is the contractor on this award?

The obligated recipient is SOFTMART GOVERNMENT SERVICES, 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 $125.4 million.

What is the period of performance?

Start: 2006-09-23. End: 2009-05-30.

What was the specific nature of the software publishing services procured under this contract, and how did the pricing compare to market rates at the time of award?

The contract falls under NAICS code 511210 (Software Publishers). Without detailed task orders or statements of work, the specific software services are unknown. The 'PA' designation and 'Firm Fixed Price' type suggest pre-negotiated terms. A thorough review of the contract's history and any associated documentation would be needed to compare pricing against market benchmarks and assess value for money.

Given the 'Full and Open Competition' award, what was the level of competition, and did the final price reflect significant cost savings for taxpayers?

While 'Full and Open Competition' implies multiple bidders were eligible, the number of bids received and the resulting price negotiation details are not provided. The 'Firm Fixed Price' contract type aims to control costs, but the ultimate taxpayer impact depends on the initial bid competitiveness and the actual value derived from the software services over the contract's duration.

What was the effectiveness of the software procured, and did it meet the Department of the Army's operational requirements throughout the contract period?

The effectiveness of the software is not detailed in the provided data. As a historical contract ending in 2009, assessing its current relevance or past performance requires accessing archived performance reports or user feedback from the Department of the Army. The long duration suggests it met needs, but without specific metrics, its true effectiveness remains unquantified.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Softmart, Inc. (UEI: 050383223)

Address: 450 ACORN LN, DOWNINGTOWN, PA, 06

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $281,644,658

Exercised Options: $125,386,393

Current Obligation: $125,383,988

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0010402AZE84

IDV Type: IDC

Timeline