Department of the Army awards $31M contract for software publishing services to Softmart Government Services

Contract Overview

Contract Amount: $31,000,584 ($31.0M)

Contractor: Softmart Government Services, Inc

Awarding Agency: Department of Defense

Start Date: 2008-09-16

End Date: 2009-08-31

Contract Duration: 349 days

Daily Burn Rate: $88.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MS ORDER 45766-C2

Place of Performance

Location: DOWNINGTOWN, CHESTER County, PENNSYLVANIA, 19335

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $31.0 million to SOFTMART GOVERNMENT SERVICES, INC for work described as: MS ORDER 45766-C2 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Performance period of 349 days indicates a relatively short-term requirement. 4. The North American Industry Classification System (NAICS) code 511210 points to the software publishing industry. 5. The contract was awarded as a Delivery Order under a larger Master Order Agreement. 6. The base contract value is approximately $31 million. 7. The contract was awarded in September 2008 and completed in August 2009.

Value Assessment

Rating: fair

The contract value of $31 million for software publishing services over approximately one year appears within a reasonable range for government contracts of this nature. However, without specific details on the software or services procured, a precise value-for-money assessment is challenging. Benchmarking against similar software publishing contracts would be necessary for a more definitive evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the method of competition suggests that multiple companies likely vied for this award. This level of competition is generally expected to promote price discovery and potentially lead to more favorable pricing for the government.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation among contractors.

Public Impact

The primary beneficiary of this contract is the Department of the Army, which received software publishing services. The services delivered likely supported the Army's operational or administrative needs through software solutions. The geographic impact is primarily within Pennsylvania, where the contractor is located. Workforce implications would involve personnel at Softmart Government Services involved in fulfilling the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the software or services procured limits the ability to assess the true value and necessity of the expenditure.
The contract was a delivery order, suggesting it was part of a larger, potentially pre-existing agreement, the details of which are not fully visible here.
The contract duration is relatively short, which might indicate a specific, time-bound need or a potential for follow-on contracts.

Positive Signals

Awarded through full and open competition, which generally leads to better pricing and wider access to solutions.
Firm Fixed Price contract type, which provides cost certainty for the government.
The contractor, Softmart Government Services, Inc., was awarded this contract, indicating they met the government's requirements.

Sector Analysis

The software publishing industry (NAICS 511210) is a significant sector within the broader technology market. Government spending on software and related services is substantial, encompassing everything from operating systems and productivity suites to specialized defense and intelligence applications. This contract represents a portion of that spending, focused on the publishing aspect, which could include development, licensing, distribution, or maintenance of software products. Comparable spending benchmarks would depend heavily on the specific type and volume of software involved.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. Therefore, its direct impact on the small business ecosystem is likely minimal, beyond any indirect benefits if Softmart Government Services utilizes small businesses in its supply chain.

Oversight & Accountability

As a delivery order under a master agreement, oversight would likely be managed through the terms and conditions of that master agreement and the specific delivery order. The Department of the Army's contracting officers would be responsible for monitoring performance and ensuring compliance. Transparency is generally facilitated by contract award databases, but detailed performance metrics or specific oversight reports are not publicly available through this data.

Related Government Programs

Software Licensing
Information Technology Services
Defense Software Procurement
Government IT Contracts
Master Agreement Orders

Risk Flags

Potential for cost overruns if scope creep occurs (mitigated by FFP).
Risk of software obsolescence during or shortly after contract performance.
Dependency on contractor performance for timely delivery and quality.
Cybersecurity risks associated with software provision.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to SOFTMART GOVERNMENT SERVICES, INC. MS ORDER 45766-C2

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 $31.0 million.

What is the period of performance?

Start: 2008-09-16. End: 2009-08-31.

What specific software or services were procured under this contract?

The provided data indicates the contract falls under NAICS code 511210, 'Software Publishers.' This suggests the procurement involved software products, which could range from operating systems, application software, databases, or specialized programs. However, the exact nature of the software or services (e.g., licenses, development, maintenance, support) is not detailed in the summary data. Further investigation into the specific contract line items or statement of work would be required to identify the precise software or services acquired by the Department of the Army.

How does the $31 million contract value compare to similar software publishing contracts awarded by the Department of the Army?

A direct comparison of the $31 million contract value requires identifying similar software publishing contracts awarded by the Department of the Army within a comparable timeframe and for similar types of software or services. Without access to a broader dataset of Army software contracts, it's difficult to establish a precise benchmark. However, $31 million for a roughly one-year duration is a significant award, suggesting a substantial requirement. The value could be considered high if it was for off-the-shelf software licenses but potentially reasonable if it involved custom development or extensive support services.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, government contracts, especially those for software, would outline deliverables, quality standards, delivery timelines, and potentially performance standards related to functionality or uptime. The Department of the Army's contracting officer and technical representatives would have monitored these aspects. Information regarding specific KPIs would likely be found within the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not detailed here.

What is the track record of Softmart Government Services, Inc. with federal contracts, particularly in software publishing?

The award of this $31 million contract to Softmart Government Services, Inc. by the Department of the Army indicates they were deemed capable of fulfilling the government's requirements. To assess their broader track record, one would need to examine their contract history across various federal agencies. This would involve looking at the number of contracts awarded, their values, types of services rendered, past performance reviews, and any history of contract disputes or terminations. A comprehensive review would provide insight into their reliability and expertise in the federal contracting space, especially within software publishing.

Were there any notable risks identified during the solicitation or award process for this contract?

The provided data does not explicitly detail any risks identified during the solicitation or award process for this contract. However, general risks associated with software procurement can include technical obsolescence, integration challenges with existing systems, cybersecurity vulnerabilities, and contractor performance issues. Since this contract was awarded under full and open competition and is a Firm Fixed Price type, the government likely aimed to mitigate cost risks. Specific risk assessments would typically be documented in internal agency procurement files.

How has federal spending in the software publishing sector (NAICS 511210) trended over the years, and where does this contract fit?

Federal spending in the software publishing sector (NAICS 511210) has generally seen consistent demand, driven by the need for modernizing IT infrastructure, enhancing cybersecurity, and supporting various agency missions. This $31 million contract, awarded in 2008-2009, represents a specific instance of that spending. To understand its place in the trend, one would need to analyze historical spending data for NAICS 511210 across the federal government. This contract's value would be compared against annual totals and average contract sizes for that period to gauge its relative significance.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Softmart, Inc.

Address: 450 ACORN LN, DOWNINGTOWN, PA, 19335

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $31,035,086

Exercised Options: $31,035,086

Current Obligation: $31,000,584

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0010402AZE84

IDV Type: IDC

Timeline