DoD Spends $80.7M on CA Software Maintenance, Facing Limited Competition Post-Exclusion
Contract Overview
Contract Amount: $80,725,839 ($80.7M)
Contractor: CA, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-03-29
End Date: 2024-03-30
Contract Duration: 1,828 days
Daily Burn Rate: $44.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CA SOFTWARE MAINTENANCE AND SUPPORT RENEWAL
Place of Performance
Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201
Plain-Language Summary
Department of Defense obligated $80.7 million to CA, INC. for work described as: CA SOFTWARE MAINTENANCE AND SUPPORT RENEWAL Key points: 1. Significant expenditure on essential software maintenance and support. 2. Competition was initially full and open but later excluded sources. 3. Potential risk associated with reliance on a single vendor post-exclusion. 4. Sector is Software Publishers, critical for defense information systems.
Value Assessment
Rating: questionable
The contract value of $80.7M over five years for software maintenance is substantial. Benchmarking is difficult without knowing the specific software and its criticality, but the limited competition raises concerns about potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was initially awarded under full and open competition but later involved exclusion of sources. This suggests a shift towards a more restricted procurement, potentially limiting price discovery and increasing vendor lock-in.
Taxpayer Impact: Taxpayer funds are being used for a significant software maintenance contract where competition may have been reduced, potentially impacting overall value for money.
Public Impact
Defense Information Systems Agency relies on this software for critical operations. Potential for increased costs due to limited vendor options. Ensuring continued software functionality and security is paramount.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition after source exclusion
- Potential vendor lock-in
- High contract value
Positive Signals
- Firm Fixed Price contract type
- Long-term support agreement
Sector Analysis
This contract falls within the Software Publishers sector, which is crucial for providing the digital tools and systems government agencies rely on. Spending benchmarks for enterprise software maintenance can vary widely based on the software's complexity and market.
Small Business Impact
The data does not indicate any specific involvement or benefit for small businesses in this contract. The nature of the vendor and the procurement process suggest it is likely focused on larger, established software providers.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency, an agency with established oversight mechanisms. However, the 'exclusion of sources' aspect warrants further scrutiny to ensure fair procurement practices and value.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Limited competition after source exclusion
- Potential for price escalation
- Vendor lock-in risk
- Lack of transparency on source exclusion justification
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 $80.7 million to CA, INC.. CA SOFTWARE MAINTENANCE AND SUPPORT RENEWAL
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 $80.7 million.
What is the period of performance?
Start: 2019-03-29. End: 2024-03-30.
What was the justification for excluding sources after the initial full and open competition, and what impact did this have on the final price?
The justification for excluding sources after initial full and open competition is not provided in the data. This exclusion likely reduced competitive pressure, potentially leading to a higher price than if full and open competition had been maintained throughout the contract's lifecycle. Further investigation into the specific reasons and their financial implications is warranted.
What are the risks associated with relying on a single vendor for critical software maintenance, especially after competition was limited?
Relying on a single vendor for critical software maintenance after competition has been limited poses several risks. These include potential price increases due to lack of alternatives, reduced incentive for the vendor to innovate or provide superior service, and significant disruption if the vendor experiences financial difficulties or decides to discontinue support. This vendor lock-in can also hinder the adoption of newer, potentially more cost-effective solutions.
How does the $80.7M expenditure compare to industry benchmarks for similar software maintenance contracts, considering the limited competition?
Direct comparison to industry benchmarks for this $80.7M software maintenance contract is challenging without specific details on the software product, its criticality, and the vendor's market position. However, the fact that competition was limited after an initial full and open phase suggests that the price may not reflect the most competitive market rate. This raises concerns about whether the government is achieving optimal value for its investment compared to potentially more competitive scenarios.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HC108419R0002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Broadcom Inc.
Address: 2291 WOOD OAK DR, HERNDON, VA, 20171
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $86,088,226
Exercised Options: $80,725,839
Current Obligation: $80,725,839
Actual Outlays: $33,065,358
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-03-29
Current End Date: 2024-03-30
Potential End Date: 2024-03-30 00:00:00
Last Modified: 2024-02-07
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