DoD's $24.2M Cisco Software Agreement with World Wide Technology faces scrutiny over value and competition
Contract Overview
Contract Amount: $24,246,810 ($24.2M)
Contractor: World Wide Technology LLC
Awarding Agency: Department of Defense
Start Date: 2023-07-26
End Date: 2026-09-28
Contract Duration: 1,160 days
Daily Burn Rate: $20.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MISSION PARTNER CAPABILITY OFFICE CISCO ENTERPRISE SOFTWARE AGREEMENT/ENTERPRISE AGREEMENT
Place of Performance
Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.2 million to WORLD WIDE TECHNOLOGY LLC for work described as: MISSION PARTNER CAPABILITY OFFICE CISCO ENTERPRISE SOFTWARE AGREEMENT/ENTERPRISE AGREEMENT Key points: 1. The $24.2M Cisco Enterprise Software Agreement represents a significant investment in IT infrastructure. 2. Competition was full and open, but the award to World Wide Technology LLC warrants further review. 3. Potential risks include vendor lock-in and the need for ongoing cost-effectiveness validation. 4. The IT sector is characterized by rapid technological change, requiring adaptable and value-driven procurement.
Value Assessment
Rating: fair
The $24.2M contract value for Cisco enterprise software needs comparison against similar agreements. Without specific per-unit cost data or benchmarks for comparable software licenses and support, assessing its value proposition is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing strategies and the ultimate price discovery achieved through this method require deeper analysis to ensure optimal taxpayer value.
Taxpayer Impact: Ensuring competitive pricing for enterprise software is crucial for maximizing taxpayer value and avoiding overspending on essential IT resources.
Public Impact
Air Force personnel rely on this Cisco software for critical mission operations. The long-term implications of this agreement on future IT modernization efforts are significant. Transparency in software licensing costs impacts overall defense budget allocation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown
- Potential for vendor lock-in
- Need for ongoing performance metrics
Positive Signals
- Full and open competition utilized
- Long-term agreement provides stability
Sector Analysis
This agreement falls within the IT sector, specifically focusing on enterprise software and services. Spending benchmarks in this area are highly variable, depending on the specific software, licensing models, and support levels required by government agencies.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as both the prime contractor (World Wide Technology LLC) and the small business flag are not applicable. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
Oversight will be critical to ensure the Department of the Air Force maximizes the value of this Cisco software agreement and that World Wide Technology LLC meets all contractual obligations throughout the performance period.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of detailed cost justification
- Potential for price increases upon renewal
- Limited visibility into software utilization
- Dependency on a single vendor's ecosystem
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.2 million to WORLD WIDE TECHNOLOGY LLC. MISSION PARTNER CAPABILITY OFFICE CISCO ENTERPRISE SOFTWARE AGREEMENT/ENTERPRISE AGREEMENT
Who is the contractor on this award?
The obligated recipient is WORLD WIDE TECHNOLOGY LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $24.2 million.
What is the period of performance?
Start: 2023-07-26. End: 2026-09-28.
What is the specific breakdown of costs for software licenses versus maintenance and support within this $24.2M agreement?
A detailed cost breakdown is essential for understanding the true value proposition of this Cisco Enterprise Software Agreement. Without it, it's difficult to ascertain how much is allocated to perpetual licenses versus ongoing support and maintenance, which can fluctuate significantly in price and necessity over the contract's duration.
How does the government plan to mitigate the risk of vendor lock-in with Cisco software over the long term?
Mitigating vendor lock-in requires proactive strategies such as exploring multi-vendor solutions in future procurements, negotiating favorable exit clauses, and ensuring robust documentation of configurations and data. Regular reviews of alternative technologies and open-source options should also be considered to maintain flexibility.
What key performance indicators (KPIs) are being used to measure the effectiveness and value delivered by this Cisco software agreement?
Effective measurement requires defining clear KPIs tied to mission objectives, such as system uptime, user adoption rates, reduction in support tickets, and successful integration with other IT systems. These metrics should be regularly reviewed against the contract's performance requirements to ensure the software is delivering tangible benefits.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA714623Q0002
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1 WORLD WIDE WAY, SAINT LOUIS, MO, 63146
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,598,310
Exercised Options: $24,246,810
Current Obligation: $24,246,810
Actual Outlays: $6,953,670
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SC55B
IDV Type: GWAC
Timeline
Start Date: 2023-07-26
Current End Date: 2026-09-28
Potential End Date: 2028-07-25 00:00:00
Last Modified: 2025-09-18
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