Commerce Dept. Awards $14.5M for Microsoft Licenses, Follow-on to Competed Action

Contract Overview

Contract Amount: $14,486,507 ($14.5M)

Contractor: Countertrade Products, Inc.

Awarding Agency: Department of Commerce

Start Date: 2009-09-16

End Date: 2010-09-17

Contract Duration: 366 days

Daily Burn Rate: $39.6K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT ENTERPRISE LICENSE AGREEMENT

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $14.5 million to COUNTERTRADE PRODUCTS, INC. for work described as: MICROSOFT ENTERPRISE LICENSE AGREEMENT Key points: 1. Significant contract value of $14.5 million for enterprise software. 2. Follow-on to a competed action suggests prior competition, but current method is limited. 3. Risk of vendor lock-in and potential for price increases on future renewals. 4. IT sector spending, specifically on electronic computer manufacturing software licenses.

Value Assessment

Rating: fair

The $14.5 million award for Microsoft licenses appears to be within a reasonable range for enterprise agreements of this scale. However, without specific details on the exact software suite and user count, a precise benchmark is difficult. The firm fixed-price structure provides cost certainty for this period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract is a follow-on to a competed action, indicating that competition occurred previously. However, the current award is classified as limited, suggesting that full and open competition was not pursued this time. This could be due to specific requirements or a lack of market research for alternative solutions.

Taxpayer Impact: Taxpayer funds are being used for essential software licenses. While the follow-on nature suggests some prior value assessment, the limited competition raises questions about whether the best possible price was secured.

Public Impact

Ensures continued access to critical Microsoft software for the U.S. Census Bureau. Supports the operational needs of a key government agency. Potential for future contract actions impacting long-term software costs for the government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition on follow-on action
Potential for price escalation in future renewals
Reliance on a single vendor for critical software

Positive Signals

Firm fixed-price contract provides cost certainty
Follow-on to a previously competed action

Sector Analysis

This contract falls within the Information Technology sector, specifically related to software licensing for electronic computer manufacturing. Government spending on enterprise software licenses is substantial, with benchmarks varying widely based on the software suite, number of users, and contract type.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large enterprise license agreements often involve major software vendors, potentially limiting direct participation opportunities for small businesses unless they are subcontractors.

Oversight & Accountability

The contract is a delivery order under a larger agreement. Oversight would typically involve monitoring contract performance, adherence to terms, and ensuring the software meets the agency's needs. Accountability rests with the U.S. Census Bureau and the Department of Commerce.

Related Government Programs

Electronic Computer Manufacturing
Department of Commerce Contracting
U.S. Census Bureau Programs

Risk Flags

Limited competition on follow-on action
Potential for price escalation
Vendor lock-in risk
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $14.5 million to COUNTERTRADE PRODUCTS, INC.. MICROSOFT ENTERPRISE LICENSE AGREEMENT

Who is the contractor on this award?

The obligated recipient is COUNTERTRADE PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2009-09-16. End: 2010-09-17.

What was the rationale for limiting competition on this follow-on action, and was a thorough market analysis conducted to ensure no viable alternatives were overlooked?

The rationale for limiting competition on a follow-on action often stems from factors like vendor-specific expertise, existing infrastructure integration, or the need for continuity. A thorough market analysis is crucial to justify such limitations and ensure that taxpayers are not disadvantaged. Agencies should document why full and open competition was not feasible, considering factors like specialized requirements or the cost and effort of transitioning to a new vendor.

How does the government plan to mitigate the risk of vendor lock-in and potential price increases for future Microsoft Enterprise License Agreements?

Mitigating vendor lock-in and price increases involves proactive strategies such as conducting regular market research for alternative solutions, negotiating longer-term agreements with favorable pricing and renewal options, and exploring open-source alternatives where feasible. Agencies can also leverage aggregated purchasing power across multiple departments and establish clear exit strategies or transition plans to maintain negotiating leverage.

What specific performance metrics or service level agreements (SLAs) are in place to ensure the effectiveness and value of this Microsoft Enterprise License Agreement for the U.S. Census Bureau?

Effectiveness and value are typically ensured through clearly defined performance metrics and Service Level Agreements (SLAs) within the contract. These might include uptime guarantees for cloud-based services, response times for technical support, availability of software updates and patches, and adherence to security protocols. Regular performance reviews and reporting mechanisms allow the agency to track vendor performance against these agreed-upon standards.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

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

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5145 IDYLWILD TRL, BOULDER, CO, 80301

Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $14,486,507

Exercised Options: $14,486,507

Current Obligation: $14,486,507

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DOC45PAPT0903000

IDV Type: BPA

Timeline