DoD Spends $40.7M on CA Software Maintenance with CA, Inc. via Definitive Contract
Contract Overview
Contract Amount: $40,714,063 ($40.7M)
Contractor: CA, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-03-31
End Date: 2026-03-30
Contract Duration: 729 days
Daily Burn Rate: $55.8K/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 $40.7 million to CA, INC. for work described as: CA SOFTWARE MAINTENANCE Key points: 1. Significant spending on essential software maintenance for the Defense Information Systems Agency. 2. Sole-source award to CA, Inc. raises questions about competition and potential overpricing. 3. Long-term contract duration (729 days) requires careful monitoring for value and performance. 4. The $40.7M expenditure falls within the Software Publishers sector (NAICS 513210).
Value Assessment
Rating: questionable
The contract value of $40.7M for 729 days of software maintenance is substantial. Without specific benchmarks for this particular software or comparable contracts, it's difficult to definitively assess if the pricing is competitive. The lack of competition further complicates value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to CA, Inc. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying a premium for software maintenance services.
Public Impact
Ensures continued operation of critical defense information systems. Potential for increased costs due to lack of competitive bidding. Dependency on a single vendor for essential software support. Long-term commitment may limit flexibility in adopting new technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Essential software maintenance
- Definitive contract award
Sector Analysis
This contract falls under the Software Publishers sector, characterized by companies that develop and publish software. Spending benchmarks in this sector can vary widely based on software complexity and criticality. The $40.7M expenditure is a significant investment for maintenance alone.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was a sole-source award to a large corporation. Opportunities for small business participation were likely missed.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent vendor lock-in. The Defense Information Systems Agency must actively monitor performance and costs throughout the contract's duration.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for overpricing due to sole-source award.
- Lack of competitive pressure may lead to reduced service quality.
- Vendor lock-in and difficulty in switching to alternative solutions.
- Long-term commitment may not align with evolving technological needs.
- Insufficient transparency regarding the justification for sole-sourcing.
Tags
software-publishers, department-of-defense, pa, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.7 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 $40.7 million.
What is the period of performance?
Start: 2024-03-31. End: 2026-03-30.
What is the specific software being maintained, and what is its criticality to DISA operations?
The specific software is not detailed in the provided data. However, its maintenance by the Defense Information Systems Agency (DISA) suggests it is critical for supporting defense information systems. Understanding the software's function and its impact on military operations is essential for justifying the contract's value and necessity.
What efforts were made to justify the sole-source award and ensure fair and reasonable pricing?
The data indicates the contract was 'NOT COMPETED,' suggesting a sole-source justification was made. However, the specific justification and the process for ensuring fair and reasonable pricing are not detailed. A thorough review of the justification documentation and price analysis is needed to confirm the government received good value.
How does the annual cost of this maintenance contract compare to industry benchmarks for similar software?
Without knowing the specific software and its features, a direct comparison to industry benchmarks is challenging. However, the total contract value of $40.7M over approximately two years suggests an annual cost of roughly $20.35M. This figure should be benchmarked against similar enterprise-level software maintenance agreements, considering factors like support levels and included services.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC102824R0025
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Broadcom Inc.
Address: 1900 RESTON METRO PLZ STE 602, RESTON, VA, 20190
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $118,463,852
Exercised Options: $40,714,063
Current Obligation: $40,714,063
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-03-31
Current End Date: 2026-03-30
Potential End Date: 2029-03-30 00:00:00
Last Modified: 2025-03-13
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