Department of the Army awards $128M software contract to Softmart Government Services, Inc

Contract Overview

Contract Amount: $128,144,937 ($128.1M)

Contractor: Softmart Government Services, Inc

Awarding Agency: Department of Defense

Start Date: 2007-10-23

End Date: 2009-10-30

Contract Duration: 738 days

Daily Burn Rate: $173.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

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 $128.1 million to SOFTMART GOVERNMENT SERVICES, INC for work described as: CLINS - OPTION YEAR 4 Key points: 1. Contract awarded under firm-fixed-price terms, indicating predictable costs for the government. 2. The contract was competed on a full and open basis, suggesting a competitive bidding process. 3. Seven bids were received, indicating a healthy level of interest and competition for this requirement. 4. The contract duration of 738 days (approximately 2 years) suggests a medium-term software provision. 5. The contract is for software publishers (NAICS 511210), aligning with the need for specific software solutions. 6. This award represents a significant investment in software procurement by the Department of the Army.

Value Assessment

Rating: good

The contract's firm-fixed-price structure is generally favorable for cost control. Benchmarking the per-unit cost of the software against similar government or commercial licenses would provide a clearer picture of value. Without specific software details, a direct comparison is challenging, but the competitive nature of the award suggests pricing was likely scrutinized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Seven bids were received, which is a strong indicator of robust competition. This level of competition typically drives down prices and encourages contractors to offer their best value to secure the award.

Taxpayer Impact: The full and open competition and multiple bids received are beneficial for taxpayers, as they increase the likelihood of obtaining the software at a competitive market price.

Public Impact

The Department of the Army is the primary beneficiary, receiving software solutions to meet its operational needs. The services delivered include the provision of software, likely supporting various military functions and administrative tasks. The contract is geographically focused on Pennsylvania, where the awardee is located, but the software's use may be widespread. The contract supports the software publishing industry, potentially impacting jobs within that sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software is highly specialized and difficult to replace.
Risk of cost overruns if the scope of software support or maintenance is not clearly defined.
Dependence on a single contractor for critical software could pose a supply chain risk.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition with multiple bidders suggests a competitive pricing environment.
Award to a single entity simplifies contract management and oversight.

Sector Analysis

The software publishing industry is a significant segment of the technology sector, encompassing companies that develop, publish, and distribute software. Government spending on software is substantial, driven by the need for operational systems, cybersecurity tools, and specialized applications across all agencies. This contract fits within the broader trend of federal agencies investing in commercial off-the-shelf (COTS) software and specialized solutions to enhance capabilities and efficiency.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The awardee, Softmart Government Services, Inc., is likely a large business. This means the direct economic impact on the small business ecosystem from this specific award is minimal, though the software itself may be used by small businesses if it's a widely adopted commercial product.

Oversight & Accountability

The firm-fixed-price contract type provides a degree of cost certainty, simplifying oversight. The Department of the Army's contracting officers and program managers will oversee performance and adherence to contract terms. Transparency is facilitated by the public nature of contract awards, though specific performance metrics and detailed spending breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Software Procurement
Information Technology Services Contracts
Commercial Software Licenses
Federal Software Publishers

Risk Flags

Contract Duration
Software Specificity
Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $128.1 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 $128.1 million.

What is the period of performance?

Start: 2007-10-23. End: 2009-10-30.

What specific software product(s) are being procured under this contract, and what is their intended use by the Department of the Army?

The provided data indicates the contract is for 'Software Publishers' (NAICS 511210) and was awarded to Softmart Government Services, Inc. However, the specific software product(s) are not detailed in the available information. Typically, such contracts could cover operating systems, productivity suites, specialized military applications, or enterprise resource planning software. The intended use would depend on the specific software procured, ranging from administrative functions and communication to mission-critical operational support for Army personnel and units. Further investigation into the contract's statement of work or associated documentation would be necessary to identify the exact software and its application.

How does the awarded price of $128,144,937.41 compare to the estimated value or budget for this software procurement?

The provided data shows the awarded amount for the contract, but it does not include the government's initial estimated value or budget for this procurement. To assess how the awarded price compares, one would need to access the original solicitation documents or budget justifications. A competitive award, especially with seven bidders, often suggests the final price is in line with or below market expectations. However, without the government's estimated cost, a direct comparison of value realization is not possible from this data alone. The firm-fixed-price nature implies the government agreed this price represented fair value for the defined scope.

What is the track record of Softmart Government Services, Inc. in fulfilling similar government software contracts?

Information on Softmart Government Services, Inc.'s specific track record with similar government software contracts is not detailed in the provided data. To assess their performance history, one would typically review contract databases (like FPDS or SAM.gov) for past awards, performance evaluations (e.g., CPARS reports), and any history of contract modifications, disputes, or terminations. A positive performance history with previous Department of Defense or other federal agency software contracts would indicate a lower risk for this current award. Conversely, a history of issues might raise concerns about delivery, quality, or cost management.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how is performance being measured?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. These details are usually found within the contract's statement of work (SOW) or performance work statement (PWS). For a software contract, KPIs might include software uptime, availability, response times for technical support, patch deployment timelines, or successful integration with existing systems. Performance measurement would involve regular reporting by the contractor and government oversight to ensure compliance with the SOW and SLAs. Without this information, assessing the effectiveness of the delivered software and services is difficult.

How has federal spending on software publishers evolved over the past five years, and where does this contract fit within that trend?

Federal spending on software publishers has generally trended upwards over the past five years, driven by digital transformation initiatives, modernization efforts, and increasing reliance on technology across government agencies. This contract, valued at approximately $128 million over its duration, represents a significant, but not extraordinary, investment within this category. It aligns with the broader trend of agencies procuring commercial off-the-shelf (COTS) software and specialized solutions to meet evolving operational and security requirements. The specific amount reflects the scale of the Department of the Army's needs for software solutions within its domain.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 450 ACORN LN, DOWNINGTOWN, PA, 19335

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $128,331,748

Exercised Options: $128,331,748

Current Obligation: $128,144,937

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0010402AZE84

IDV Type: IDC

Timeline