DHS Spends $125.8M on CA Software Maintenance via Full and Open Competition

Contract Overview

Contract Amount: $125,800,775 ($125.8M)

Contractor: CA, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-12-31

End Date: 2015-09-30

Contract Duration: 1,734 days

Daily Burn Rate: $72.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CA SOFTWARE MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20229

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $125.8 million to CA, INC. for work described as: CA SOFTWARE MAINTENANCE Key points: 1. Significant expenditure on software maintenance for critical customs and border protection systems. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of 1734 days (approx. 4.75 years) indicates a long-term need. 4. The sector is software publishing, supporting IT infrastructure for a major federal agency.

Value Assessment

Rating: fair

The total award amount of $125.8M over nearly 5 years suggests a substantial investment. Benchmarking against similar large-scale software maintenance contracts would be necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The specific price discovery mechanisms and negotiation outcomes are not detailed here.

Taxpayer Impact: Taxpayer funds are utilized for essential software maintenance, ensuring the operational continuity of critical border security systems. The competitive award process aims to optimize cost-effectiveness.

Public Impact

Ensures operational continuity for U.S. Customs and Border Protection systems. Supports national security by maintaining critical software infrastructure. Represents a significant investment in IT maintenance for a large federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of detailed cost breakdown for maintenance services.
  • Potential for vendor lock-in with long-term software maintenance.
  • Need for ongoing performance monitoring to ensure value.

Positive Signals

  • Awarded through full and open competition.
  • Supports critical national security functions.
  • Long-term contract provides stability for system operations.

Sector Analysis

This contract falls within the IT sector, specifically software publishing and maintenance. Federal spending on software maintenance is substantial, supporting agency operations and modernization efforts. Benchmarks vary widely based on software criticality and vendor.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor, CA, Inc., is a large software company, suggesting this contract was likely not awarded to small businesses.

Oversight & Accountability

Oversight would typically be managed by the Department of Homeland Security and U.S. Customs and Border Protection program managers. Accountability for performance and cost is crucial for such a large contract.

Related Government Programs

  • Software Publishers
  • Department of Homeland Security Contracting
  • U.S. Customs and Border Protection Programs

Risk Flags

  • High total contract value.
  • Long contract duration.
  • Lack of detailed cost breakdown.
  • Potential for vendor lock-in.
  • Need for robust performance monitoring.

Tags

software-publishers, department-of-homeland-security, dc, delivery-order, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $125.8 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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $125.8 million.

What is the period of performance?

Start: 2010-12-31. End: 2015-09-30.

What specific software modules or services are covered under this maintenance contract, and how do their costs compare to industry standards?

The provided data lacks specifics on the software modules or services included. A detailed breakdown is needed to compare costs against industry standards for similar maintenance agreements. Without this, assessing the true value and identifying potential overspending is challenging.

What are the key performance indicators (KPIs) used to measure the effectiveness of this software maintenance contract, and how has the vendor performed against them?

The data does not specify the KPIs or vendor performance metrics. Effective oversight requires clearly defined KPIs related to uptime, response times, and issue resolution. Regular performance reviews are essential to ensure the vendor meets contractual obligations and delivers value.

Given the $125.8M expenditure, what is the projected return on investment or cost savings achieved through this maintenance contract for the agency?

Calculating the ROI or cost savings requires comparing the maintenance cost against the potential costs of system failure, data loss, or the expense of developing in-house solutions. The contract's value is realized through ensuring system reliability and supporting operational efficiency.

Industry Classification

NAICS: InformationSoftware PublishersSoftware Publishers

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: CA Inc.

Address: 2291 WOOD OAK DR, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $194,660,775

Exercised Options: $125,800,775

Current Obligation: $125,800,775

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0823M

IDV Type: FSS

Timeline

Start Date: 2010-12-31

Current End Date: 2015-09-30

Potential End Date: 2015-09-30 00:00:00

Last Modified: 2022-10-29

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