DoD's $11.2M software license contract with Nortonlifelock Inc. awarded under full and open competition

Contract Overview

Contract Amount: $11,229,207 ($11.2M)

Contractor: Nortonlifelock Inc.

Awarding Agency: Department of Defense

Start Date: 2007-12-28

End Date: 2013-01-27

Contract Duration: 1,857 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE LICENSES/SUPPORT

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $11.2 million to NORTONLIFELOCK INC. for work described as: SOFTWARE LICENSES/SUPPORT Key points: 1. The contract value of $11.2 million over its period of performance suggests a significant investment in software licensing and support. 2. Awarded under full and open competition, this contract indicates a market where multiple vendors could potentially offer competitive solutions. 3. The duration of the contract (over 5 years) implies a long-term need for the software and associated support services. 4. The fixed-price contract type suggests that the government has a clear understanding of the scope and cost, mitigating cost overrun risks. 5. The absence of small business set-asides may warrant further investigation into opportunities for smaller vendors in this procurement space. 6. The contract's focus on software licenses and support aligns with common IT infrastructure needs across federal agencies.

Value Assessment

Rating: fair

Benchmarking the value of this $11.2 million contract for software licenses and support is challenging without specific details on the software and user base. However, the duration of over five years suggests a sustained need. Comparing it to similar large-scale software procurements would be necessary to determine if the pricing is competitive. The fixed-price nature provides some cost certainty, but the overall value depends heavily on the utility and necessity of the licensed software.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that the solicitation was made available to all responsible sources. The presence of 3 bidders suggests a moderate level of competition for this software licensing and support requirement. This competitive environment is generally favorable for price discovery and potentially achieving better value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services compared to sole-source or limited competition awards.

Public Impact

The Department of Defense benefits from access to necessary software licenses and ongoing support, ensuring operational continuity. Personnel within the DoD will utilize the licensed software for their daily tasks and mission requirements. The geographic impact is likely widespread within the Department of Defense, supporting its various installations and operational units. The contract supports the IT workforce by ensuring they have the tools and licenses required for their functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the software licensed makes it difficult to assess if it's the most cost-effective solution.
The duration of the contract could lead to vendor lock-in if not managed carefully.
Potential for unutilized licenses if user numbers fluctuate significantly over the contract period.
Reliance on a single vendor for both licenses and support might limit negotiation leverage in the future.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Fixed-price contract type provides cost predictability for the government.
The contract duration indicates a stable and predictable need for the software.
The number of bidders (3) shows some level of market interest and competition.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on software licensing and support. The market for enterprise software licenses and maintenance is substantial, with numerous vendors offering a wide range of products. Federal agencies are significant consumers of such software, often requiring specialized solutions for defense and operational needs. Benchmarking would involve comparing this contract's value and terms against other large federal software procurements, considering factors like user volume, software criticality, and vendor support levels.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was likely aimed at larger, established vendors capable of meeting the scale and requirements of the Department of Defense. There is no explicit information on subcontracting plans, but in the absence of a small business set-aside, the direct impact on the small business ecosystem might be limited unless specific subcontracting goals were mandated within the contract terms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer's representative (COR) within the Defense Information Systems Agency (DISA). Accountability measures are embedded in the firm fixed-price contract type, which obligates the contractor to deliver specified software licenses and support within the agreed-upon cost. Transparency is generally maintained through contract award databases, although specific performance metrics and detailed spending breakdowns may not always be publicly available.

Related Government Programs

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

Risk Flags

Potential for vendor lock-in due to long contract duration.
Risk of software obsolescence over the contract period.
Limited visibility into specific software products and their criticality.
Need for further analysis to benchmark value-for-money against industry standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.2 million to NORTONLIFELOCK INC.. SOFTWARE LICENSES/SUPPORT

Who is the contractor on this award?

The obligated recipient is NORTONLIFELOCK INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $11.2 million.

What is the period of performance?

Start: 2007-12-28. End: 2013-01-27.

What specific software products are covered under this $11.2 million contract, and how critical are they to the Department of Defense's operations?

The provided data does not specify the exact software products licensed under this contract. However, given the awarding agency (DISA) and the nature of the contract (software licenses/support), it likely pertains to essential operating systems, cybersecurity tools, productivity software, or specialized defense-related applications. The criticality would depend on the function of the software; for instance, if it's a core operating system or a vital cybersecurity platform, its importance would be extremely high, directly impacting mission readiness and operational continuity. Without this specific information, a precise assessment of its criticality is not possible, but its substantial value suggests a significant role.

How does the per-unit cost or total cost compare to industry benchmarks for similar software licenses and support over the contract's duration?

A direct comparison to industry benchmarks for per-unit cost is not feasible with the provided data, as the specific software titles, number of users, and support levels are unknown. The total contract value of $11.2 million over approximately 5.3 years (from Dec 2007 to Jan 2013) averages around $2.1 million per year. To benchmark this, one would need to identify comparable software suites (e.g., enterprise resource planning, operating systems, cybersecurity platforms) procured by similar large organizations, noting the number of licenses and the scope of support. Factors like volume discounts, negotiated enterprise agreements, and the specific vendor's pricing structure heavily influence these benchmarks. The fixed-price nature suggests the government aimed for cost certainty, but whether it achieved optimal value requires detailed market analysis.

What was the track record of NortonLifelock Inc. with the Department of Defense prior to or during this contract award?

The provided data indicates that NortonLifelock Inc. (co: NORTONLIFELOCK INC.) was the contractor for this specific $11.2 million software license and support contract with the Department of Defense (ag: Department of Defense), awarded by the Defense Information Systems Agency (sa: Defense Information Systems Agency). To assess their track record, one would need to examine other contracts awarded to NortonLifelock Inc. by the DoD, looking at performance history, past performance evaluations, any disputes or contract modifications, and their overall experience with government procurements. This single contract award doesn't provide a comprehensive view of their historical performance, but it does confirm their engagement with the DoD for IT-related services.

Given the $11.2 million value and 5+ year duration, what are the potential risks associated with this contract, such as vendor lock-in or obsolescence?

Several risks are associated with a contract of this magnitude and duration. Vendor lock-in is a significant concern; once the DoD becomes reliant on NortonLifelock's software and support, switching to a different vendor could be costly and disruptive. Software obsolescence is another risk; technology evolves rapidly, and the licensed software might become outdated or unsupported before the contract ends, requiring costly upgrades or replacements. Furthermore, the fixed-price nature, while offering cost certainty, could lead to the contractor cutting corners on support quality if not adequately monitored. Finally, the concentration of spending with one vendor for critical software could pose a security risk if the vendor experiences a breach or operational failure.

How effective was the competition, with 3 bidders, in driving down costs for these software licenses and support?

Having 3 bidders for this contract suggests a moderate level of competition. While more bidders generally lead to better price discovery and potentially lower costs, three offers indicate that the market was responsive and that multiple vendors were interested and capable of fulfilling the requirement. The effectiveness in driving down costs would depend on the nature of the bids submitted. If the bids were closely contested, it implies competitive pricing. However, without access to the bid amounts and the government's negotiation outcomes, it's difficult to definitively state how much costs were driven down. The full and open competition framework itself is designed to maximize competitive pressure.

What is the historical spending pattern for software licenses and support by the Defense Information Systems Agency (DISA) in this category?

The provided data only details one specific contract ($11.2 million from 2007-2013). To understand DISA's historical spending patterns for software licenses and support, a broader analysis of their procurement history would be necessary. This would involve querying federal procurement databases for all contracts awarded by DISA related to 'SOFTWARE LICENSES/SUPPORT' (NAICS 611420 or similar IT-related codes) over multiple fiscal years. Examining trends in contract values, number of awards, types of services procured, and dominant contractors would reveal patterns. This single data point suggests a significant, multi-year investment, but it's insufficient to establish a comprehensive historical spending trend for DISA in this area.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Computer Training

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 20330 STEVENS CREEK BLVD, CUPERTINO, CA, 17

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $11,229,208

Exercised Options: $11,229,207

Current Obligation: $11,229,207

Parent Contract

Parent Award PIID: GS35F0240T

IDV Type: FSS

Timeline