DHS awarded $12.25M for Presidio software licenses over 5 years, with 1 bid

Contract Overview

Contract Amount: $12,254,972 ($12.3M)

Contractor: Presidio Networked Solutions, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2004-07-26

End Date: 2009-07-31

Contract Duration: 1,831 days

Daily Burn Rate: $6.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PRESIDEO SOFTWARE LICENSES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.3 million to PRESIDIO NETWORKED SOLUTIONS, LLC for work described as: PRESIDEO SOFTWARE LICENSES Key points: 1. The contract's value of $12.25 million over five years suggests a moderate annual spend. 2. Limited competition indicates potential for higher pricing than a fully open market. 3. The fixed-price contract type offers cost certainty but may limit flexibility. 4. Performance occurred over five years, providing a long-term view of software utility. 5. This contract falls within the IT sector, specifically software licensing and maintenance. 6. The sole bidder raises questions about market availability and contractor leverage.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without more specific software details. However, a $12.25 million spend over five years averages to approximately $2.45 million annually. This figure needs to be compared against the criticality and scope of the software licenses provided. The fixed-price nature provides budget predictability, but the lack of competition suggests taxpayers may not have received the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source delivery order, meaning only one bidder was solicited. This approach is typically used when a specific product or service is required and only one vendor can provide it, or in cases of urgent need. The lack of competition means there was no opportunity to compare offers and potentially drive down costs through a bidding process.

Taxpayer Impact: A sole-source award limits the government's ability to secure competitive pricing, potentially leading to higher costs for taxpayers compared to a contract that underwent a full and open competition.

Public Impact

Federal employees within the Department of Homeland Security likely benefited from access to necessary software licenses. The services delivered were the provision of software licenses, crucial for departmental operations. The geographic impact was concentrated in the District of Columbia, where the contract was managed. Workforce implications are minimal, as this contract primarily concerns software acquisition rather than direct labor services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially inflates costs for taxpayers.
Lack of competition raises concerns about whether the government secured the best value.
Contract duration of five years may not align with rapidly evolving software needs.

Positive Signals

Fixed-price contract provides cost certainty for the agency.
The contract was awarded to Presidio Networked Solutions, LLC, a known entity in IT solutions.
The contract was a delivery order, suggesting it was part of a larger framework or existing relationship.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing and maintenance. The IT sector is characterized by rapid innovation and a wide range of specialized vendors. Spending on software licenses by federal agencies is substantial, often comprising a significant portion of IT budgets. Comparable spending benchmarks would depend heavily on the specific type and volume of software licensed, but annual expenditures in the millions are common for large agencies like DHS.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from this specific award. The primary contractor, Presidio Networked Solutions, LLC, is likely a large business, and the contract did not mandate small business participation.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Homeland Security's Office of Procurement Operations. As a delivery order, it likely falls under a broader contract vehicle with its own oversight mechanisms. Accountability measures would include adherence to the firm fixed-price terms and delivery schedules. Transparency is generally available through federal procurement databases, though detailed performance metrics may not be publicly disclosed.

Related Government Programs

General Services Administration (GSA) Schedules
Department of Defense IT Procurement
Software and Information Technology Unlimited Access (SWIFT) Contracts
Enterprise Software Agreements

Risk Flags

Sole-source award limits competition.
Potential for overpayment due to lack of competitive bidding.
Contract duration may not align with rapid IT evolution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.3 million to PRESIDIO NETWORKED SOLUTIONS, LLC. PRESIDEO SOFTWARE LICENSES

Who is the contractor on this award?

The obligated recipient is PRESIDIO NETWORKED SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2004-07-26. End: 2009-07-31.

What specific software licenses were procured under this contract, and what was their criticality to DHS operations?

The provided data does not specify the exact software licenses purchased. However, given the awarding agency (Department of Homeland Security) and the contract value ($12.25 million over five years), it is reasonable to infer these licenses were critical for departmental functions, potentially including cybersecurity, data management, communication, or operational support systems. Without specific software titles, a precise assessment of criticality is impossible, but DHS relies heavily on robust IT infrastructure for its national security and public safety missions. The duration suggests a need for ongoing access to essential software tools rather than short-term or experimental solutions.

How does the $12.25 million contract value compare to similar software license procurements by DHS or other large federal agencies?

Comparing the $12.25 million contract value requires context on the type and quantity of software licenses. For large federal agencies like DHS, annual IT spending can reach billions of dollars. A five-year contract for software licenses totaling $12.25 million averages $2.45 million per year. This is a moderate amount within the context of a large agency's IT budget. For instance, major enterprise software suites (like Microsoft or Oracle) or specialized security software can easily cost millions annually per agency. Without knowing the specific software, it's difficult to definitively benchmark, but it falls within a plausible range for significant software investments.

What were the risks associated with awarding this contract as a sole-source delivery order?

The primary risk associated with a sole-source award is the lack of competition, which can lead to inflated prices and reduced value for taxpayers. When only one vendor is solicited, there is no market pressure to offer the lowest possible price or the most innovative solution. Other risks include potential vendor lock-in, where the agency becomes dependent on a single provider, making future transitions difficult or costly. Additionally, sole-source awards can sometimes mask underlying issues with market research or procurement planning, potentially indicating a failure to identify alternative solutions or vendors.

What was the track record of Presidio Networked Solutions, LLC with federal contracts prior to or during this period?

Presidio Networked Solutions, LLC has a history of receiving federal contracts. While the specific data provided here focuses on a single DHS contract from 2004-2009, a broader search of federal procurement databases would reveal their overall performance, including past performance ratings, any contract disputes, and the types of services and products they have delivered to various agencies. Their ability to secure this sole-source delivery order suggests they were likely a known and trusted provider of IT solutions to the government at the time, possibly holding existing contracts or possessing unique capabilities.

How did the fixed-price contract type impact the government's ability to manage costs and risks?

A Firm Fixed Price (FFP) contract type, as indicated by 'pt': 'FIRM FIXED PRICE', is generally advantageous for the government in managing costs and risks, especially when the scope of work is well-defined. Under an FFP contract, the contractor assumes the risk of cost overruns. The government pays a set price, providing budget certainty. This contrasts with cost-reimbursement contracts where the government bears the risk of higher-than-expected costs. For software licenses, where the product is standardized and the quantity is known, FFP is often appropriate and helps prevent unexpected increases in expenditure over the contract term.

What does the contract duration of over five years imply about the nature of the software and DHS's needs?

A contract duration of 1831 days (approximately five years) for software licenses suggests that the software was intended for long-term, stable use within the Department of Homeland Security. This duration implies that the software was not for a temporary project or a rapidly evolving technology where frequent upgrades or replacements would be necessary. Instead, it points towards core operational systems or foundational software that the agency relied upon consistently. Such long-term commitments often involve maintenance and support agreements alongside the licenses, ensuring continued functionality and access.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Presidio, Inc. (UEI: 799064451)

Address: 5100 PHILADELPHIA WAY J, LANHAM, MD, 20706

Business Categories: Category Business, Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $12,254,972

Exercised Options: $12,254,972

Current Obligation: $12,254,972

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F4554G

IDV Type: FSS

Timeline