DoD awards IBM $7.8M for Cognos Unlimited License, expiring Dec 2025
Contract Overview
Contract Amount: $7,805,547 ($7.8M)
Contractor: Vertosoft, LLC
Awarding Agency: Department of Defense
Start Date: 2022-12-16
End Date: 2025-12-16
Contract Duration: 1,096 days
Daily Burn Rate: $7.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INTERNATIONAL BUSINNESS MACHINES COGNOS UNLIMITED LICENSE
Place of Performance
Location: ARMONK, WESTCHESTER County, NEW YORK, 10504
State: New York Government Spending
Plain-Language Summary
Department of Defense obligated $7.8 million to VERTOSOFT, LLC for work described as: INTERNATIONAL BUSINNESS MACHINES COGNOS UNLIMITED LICENSE Key points: 1. Spending on software licenses is a recurring cost for government agencies. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract is a delivery order under a larger agreement, indicating potential for follow-on work. 4. The sector is Software Publishers, a critical area for government IT infrastructure.
Value Assessment
Rating: good
The award amount of $7.8M over approximately 3 years for software licenses appears reasonable given the nature of enterprise software. Benchmarking against similar large-scale software license agreements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives better pricing through market forces. The use of a delivery order suggests this is part of a broader procurement strategy.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary software.
Public Impact
Ensures continued access to critical financial and business intelligence software for the Department of Defense. Supports the operational needs of the Defense Finance and Accounting Service. The software is likely used for data analysis and reporting, impacting strategic decision-making.
Waste & Efficiency Indicators
Waste Risk Score: 71 / 10
Warning Flags
- Potential for vendor lock-in with specialized software.
- Reliance on a single software publisher for critical functions.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type.
- Long-term contract duration provides budget stability.
Sector Analysis
The IT sector, particularly software licensing, represents a significant portion of government spending. Benchmarks for similar enterprise software licenses vary widely based on functionality and user base.
Small Business Impact
This contract was awarded to Vertosoft, LLC, a small business. This award demonstrates the government's commitment to supporting small businesses in its procurement processes.
Oversight & Accountability
The contract is a delivery order, suggesting it falls under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the management of this specific order and its alignment with the parent contract.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Defense Finance and Accounting Service Programs
Risk Flags
- Potential for vendor lock-in.
- Reliance on a single software publisher.
- Limited visibility into specific software usage and impact.
- Potential for future price increases upon contract renewal.
Tags
software-publishers, department-of-defense, ny, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.8 million to VERTOSOFT, LLC. INTERNATIONAL BUSINNESS MACHINES COGNOS UNLIMITED LICENSE
Who is the contractor on this award?
The obligated recipient is VERTOSOFT, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Finance and Accounting Service).
What is the total obligated amount?
The obligated amount is $7.8 million.
What is the period of performance?
Start: 2022-12-16. End: 2025-12-16.
What is the specific functionality and user base for this Cognos Unlimited License to assess its value?
The specific functionality and user base are crucial for determining the true value of the Cognos Unlimited License. Without this detail, it's difficult to ascertain if the $7.8M award is cost-effective. Understanding the scope of use across the Department of Defense and the criticality of the data analytics and reporting capabilities provided by Cognos is essential for a comprehensive value assessment.
What are the risks associated with relying on a single software publisher for critical financial and business intelligence functions?
Relying on a single software publisher like IBM for critical functions introduces risks such as vendor lock-in, potential price increases upon renewal, and vulnerability to the publisher's business decisions (e.g., product discontinuation or acquisition). This dependence can limit flexibility and bargaining power for the Department of Defense, potentially leading to higher long-term costs and operational disruptions if the vendor's strategy shifts.
How effectively does this software contribute to the Department of Defense's overall mission and financial management?
The effectiveness of the Cognos Unlimited License hinges on its integration and utilization within the DoD's financial management and intelligence systems. If it enables efficient data analysis, accurate reporting, and informed decision-making, it is highly effective. However, if adoption is low, integration is poor, or the insights generated are not actionable, its effectiveness is diminished, regardless of the cost.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
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: HQ042322Q0073
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vertosoft LLC
Address: 1602 VILLAGE MARKET BLVD #215, LEESBURG, VA, 20175
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $10,016,335
Exercised Options: $7,805,547
Current Obligation: $7,805,547
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: W52P1J20D0067
IDV Type: IDC
Timeline
Start Date: 2022-12-16
Current End Date: 2025-12-16
Potential End Date: 2027-12-15 00:00:00
Last Modified: 2025-12-05
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