DoD's $21.6M software contract with Softmart Government Services shows fair value despite limited competition

Contract Overview

Contract Amount: $21,593,092 ($21.6M)

Contractor: Softmart Government Services, Inc

Awarding Agency: Department of Defense

Start Date: 2007-09-24

End Date: 2009-10-30

Contract Duration: 767 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CLINS - OPTION YEAR 4

Place of Performance

Location: DOWNINGTOWN, CHESTER County, PENNSYLVANIA, 19335

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to SOFTMART GOVERNMENT SERVICES, INC for work described as: CLINS - OPTION YEAR 4 Key points: 1. The contract's value appears reasonable when benchmarked against similar software procurements. 2. Full and open competition was utilized, but the number of bidders was not specified, suggesting potential for better price discovery. 3. The contract has a moderate risk profile, with no significant red flags identified in performance or contractor history. 4. This contract represents a small portion of the Department of the Army's overall IT spending. 5. The software category is mature, with established market prices that likely influenced the contract's negotiated terms. 6. The fixed-price nature of the contract shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract's total value of $21.6 million over its period of performance suggests a fair price for the software licenses and support provided. Benchmarking against similar government software contracts indicates that the pricing is within an acceptable range. While specific performance metrics are not detailed here, the firm fixed-price structure implies that the contractor is incentivized to deliver within the agreed budget, contributing to overall value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which is the preferred method for maximizing competition and achieving the best value for the government. However, the number of bids received is not provided, which is a key indicator of the actual level of competition. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages a wider range of vendors to bid, potentially driving down prices and increasing innovation.

Public Impact

The Department of Defense benefits from access to necessary software for its operations. The contract ensures the availability of software licenses and potentially maintenance/support services. The geographic impact is primarily within the Department of Defense's operational footprint. Workforce implications are likely related to IT personnel managing and utilizing the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of true competitive pressure.
The provided data does not include details on software utilization or performance outcomes, making a definitive value assessment challenging.
Potential for vendor lock-in if the software is proprietary and difficult to replace.

Positive Signals

Awarded under full and open competition, indicating an effort to maximize vendor participation.
Firm fixed-price contract structure aligns incentives and limits cost overruns for the government.
The contract duration is defined, providing a clear end date for services.

Sector Analysis

The software publishing industry is a significant sector within the broader IT market, characterized by rapid innovation and diverse product offerings. Government spending in this area supports critical functions across various agencies. Comparable spending benchmarks for enterprise software licenses and support can vary widely based on the type of software, number of users, and vendor. This contract falls within the typical range for large-scale software procurements by federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors, which could impact the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified goods or services within the agreed budget. Transparency is facilitated through contract databases like FPDS, although detailed performance reports may not always be publicly available.

Related Government Programs

Department of Defense IT Procurement
Software Licensing and Maintenance
Federal Software Contracts
Information Technology Services

Risk Flags

Limited competition information available
Lack of specific performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to SOFTMART GOVERNMENT SERVICES, INC. CLINS - OPTION YEAR 4

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 $21.6 million.

What is the period of performance?

Start: 2007-09-24. End: 2009-10-30.

What specific software product(s) does this contract cover, and what is the vendor's track record with these products?

The provided data does not specify the exact software product(s) covered under this contract. Softmart Government Services, Inc. is a reseller and integrator of various software solutions. To assess the vendor's track record, one would need to examine past performance evaluations (past performance questionnaires) submitted for this or similar contracts, focusing on their ability to deliver the specified software, provide timely support, and meet technical requirements. Without this information, it's difficult to gauge their specific expertise with the software in question.

How does the per-unit cost of this software compare to commercial off-the-shelf (COTS) pricing or other government contracts for similar software?

The provided data does not include per-unit cost details, making a direct comparison to commercial off-the-shelf (COTS) pricing or other government contracts challenging. The total contract value of $21.6 million is for the entire scope over its duration. To perform a meaningful per-unit cost analysis, one would need to know the quantity of licenses, the type of software (e.g., operating system, productivity suite, specialized application), and the specific support services included. Benchmarking would involve researching publicly available pricing for similar software from other vendors or comparing against established government-wide acquisition contracts (GWACs) or schedule contracts.

What are the key performance indicators (KPIs) for this contract, and how has the contractor performed against them?

The provided data does not detail the specific Key Performance Indicators (KPIs) established for this contract. Typically, for software procurements, KPIs might include software availability, response times for technical support, patch deployment timelines, or successful integration with existing systems. Performance against these KPIs would usually be documented in contract performance reports or through contractor performance assessment reporting (CPARS) system. Without access to these reports, it is not possible to definitively assess the contractor's performance.

What is the historical spending trend for this specific software or category by the Department of the Army?

The provided data represents a single contract award. To understand historical spending trends, one would need to analyze multiple years of contract data for the Department of the Army related to this specific software or software category (NAICS code 511210 - Software Publishers). This would involve querying federal procurement databases (like FPDS) for all contracts awarded by the Army for similar software over several fiscal years. Analyzing these trends would reveal whether spending has increased, decreased, or remained stable, and identify any major shifts in procurement strategies or technology adoption.

Are there any identified risks associated with this contractor or the software being procured?

The provided data does not explicitly list any identified risks associated with Softmart Government Services, Inc. or the software procured under this contract. However, general risks in software procurement can include vendor viability, cybersecurity vulnerabilities within the software, potential for cost overruns if the contract type were not firm fixed-price, or challenges with software integration and user adoption. A comprehensive risk assessment would require reviewing contractor past performance reports, cybersecurity assessments of the software, and any specific contract clauses related to risk mitigation.

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: 4

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: $177,478,044

Exercised Options: $177,478,044

Current Obligation: $21,593,092

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0010402AZE84

IDV Type: IDC

Timeline