DoD Spends $73.4M on CA Software Maintenance, Lacking Competition
Contract Overview
Contract Amount: $73,437,866 ($73.4M)
Contractor: CA, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-03-30
End Date: 2014-03-31
Contract Duration: 1,827 days
Daily Burn Rate: $40.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CA SOFTWARE MAINTENANCE
Place of Performance
Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201
Plain-Language Summary
Department of Defense obligated $73.4 million to CA, INC. for work described as: CA SOFTWARE MAINTENANCE Key points: 1. Significant spending on software maintenance for a single vendor. 2. Lack of competition raises concerns about potential overpricing. 3. Long contract duration (5 years) limits flexibility. 4. IT sector spending, but specific application unclear.
Value Assessment
Rating: questionable
The contract's value of $73.4M over five years for software maintenance is substantial. Without competitive bidding, it's difficult to assess if this price is reasonable compared to market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly reduces price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely results in higher spending than could be achieved through a competitive process, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying for essential software maintenance due to lack of competition. The long-term commitment to a single vendor could stifle innovation and prevent the adoption of more cost-effective solutions. Dependence on a single vendor for critical software can create significant operational risks if the vendor faces issues.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long contract duration
- Sole-source award
Positive Signals
- Essential software maintenance provided
- Firm fixed price contract
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending on software maintenance is common, but the lack of competition here is a key concern.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential weaknesses in the procurement process oversight. Further review is needed to understand why competition was not pursued.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpricing
- Vendor lock-in
- Limited transparency on justification
- Long-term commitment without re-evaluation
Tags
computer-systems-design-services, department-of-defense, pa, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.4 million to CA, INC.. CA SOFTWARE MAINTENANCE
Who is the contractor on this award?
The obligated recipient is CA, 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 $73.4 million.
What is the period of performance?
Start: 2009-03-30. End: 2014-03-31.
What specific software is covered by this maintenance contract, and what is its criticality to DoD operations?
The data does not specify the exact software. However, given the substantial investment and the awarding agency (DISA), it is likely a critical system supporting defense information infrastructure. Understanding the software's function is crucial for assessing the necessity of the expenditure and the potential impact of vendor lock-in.
What justification was provided for not competing this contract, and were alternatives considered?
The provided data simply states 'NOT COMPETED' without elaboration. A thorough review would require accessing the contract file to determine the specific justification, such as proprietary software, urgent need, or lack of available sources. Without this, it's impossible to assess if the decision was warranted or if it represents a missed opportunity for savings.
How does the annual cost of this maintenance contract compare to industry benchmarks for similar software?
Benchmarking is difficult without knowing the specific software and its features. However, a $73.4M spend over five years ($14.7M annually) for maintenance alone is significant. If the software is widely available or has commercial off-the-shelf components, this cost could be disproportionately high compared to competitive market pricing.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC102809T2008
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2291 WOOD OAK DR, HERNDON, VA, 11
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $73,437,866
Exercised Options: $73,437,866
Current Obligation: $73,437,866
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-03-30
Current End Date: 2014-03-31
Potential End Date: 2014-03-31 00:00:00
Last Modified: 2014-03-29
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