DoD's $170M software contract with Plumtree Software shows significant spending over 5 years

Contract Overview

Contract Amount: $16,992,954 ($17.0M)

Contractor: Plumtree Software, Inc

Awarding Agency: Department of Defense

Start Date: 2002-09-30

End Date: 2007-09-30

Contract Duration: 1,826 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COMBINATION (TWO OR MORE)

Sector: IT

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46249

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $17.0 million to PLUMTREE SOFTWARE, INC for work described as: Key points: 1. The contract's value suggests a substantial investment in software solutions by the Department of Defense. 2. Full and open competition was utilized, indicating a broad market solicitation for this requirement. 3. The contract duration of five years points to a long-term need for the software. 4. The award to Plumtree Software, Inc. places it as a key vendor for this specific DoD need. 5. The contract's performance period spans a significant portion of the early 2000s, reflecting technology adoption trends of that era.

Value Assessment

Rating: fair

Benchmarking the value of this $170 million contract over five years is challenging without specific performance metrics or comparable contract data from the period. However, the substantial amount suggests a significant investment. The per-year average of $34 million indicates a considerable expenditure for software licensing and support. Without details on the software's functionality and impact, assessing its value-for-money is difficult, but the duration implies sustained utility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. This approach typically fosters a competitive environment, potentially leading to better pricing and terms for the government. The number of bidders is not specified, but the open competition is a positive indicator for price discovery and market responsiveness.

Taxpayer Impact: Taxpayers benefit from full and open competition as it generally drives down costs through market forces, ensuring the government receives competitive pricing for its procurements.

Public Impact

The Department of Defense is the primary beneficiary, receiving software solutions to support its operations. The software likely supports various defense finance and accounting functions, improving efficiency. The geographic impact is national, supporting DoD operations across various locations. Workforce implications include enabling DoD personnel to utilize new software for their tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it hard to gauge true value for money.
The significant duration could lead to vendor lock-in if not managed carefully.
Technology obsolescence is a risk for long-term software contracts.
The absence of small business participation noted in the data warrants further investigation into subcontracting opportunities.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The substantial contract value indicates a critical need met by the software.
The long contract duration implies the software provided sustained value over time.

Sector Analysis

This contract falls within the Software Publishers industry (NAICS 511210). The market for enterprise software, particularly for large government organizations like the DoD, is characterized by significant investment and long procurement cycles. Spending benchmarks for similar large-scale software deployments in the public sector can range from tens to hundreds of millions of dollars over several years, depending on the scope and complexity of the solution.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all responsible sources, and large businesses likely dominated the bidding landscape. There is no explicit information on subcontracting plans, which could represent missed opportunities for small businesses to participate in fulfilling this significant DoD requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's existing procurement regulations and the Defense Contract Audit Agency (DCAA) for financial oversight. The Defense Finance and Accounting Service (DFAS) would also be involved in managing the financial aspects. Transparency is generally maintained through contract award databases, though detailed performance reviews might be internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DoD Enterprise Software Licenses
Defense Financial Systems
IT Modernization Programs
Government Software Procurement

Risk Flags

Potential for vendor lock-in due to long-term contract and specialized software.
Risk of technology obsolescence given the five-year duration in a rapidly evolving IT landscape.
Lack of explicit small business subcontracting data may indicate missed opportunities for SMB participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.0 million to PLUMTREE SOFTWARE, INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is PLUMTREE SOFTWARE, INC.

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 $17.0 million.

What is the period of performance?

Start: 2002-09-30. End: 2007-09-30.

What was the specific software provided by Plumtree Software, Inc. under this contract, and what were its primary functions for the Department of Defense?

The provided data does not specify the exact software product. However, Plumtree Software was known for its enterprise portal and collaboration software in the early 2000s. For the Department of Defense, such software could have been used for internal communication, knowledge management, document sharing, and creating centralized access points for various defense applications and information. Its primary functions likely revolved around enhancing collaboration and information dissemination across different DoD branches or units, supporting operational efficiency and decision-making.

How did the $170 million contract value compare to other similar software procurements by the DoD or other federal agencies during the 2002-2007 period?

During the 2002-2007 period, $170 million was a substantial, but not unprecedented, amount for enterprise software solutions, especially for large organizations like the Department of Defense. Major IT procurements for enterprise resource planning (ERP), customer relationship management (CRM), or large-scale portal solutions often reached or exceeded this figure. For instance, other agencies like the IRS or GSA also engaged in multi-million dollar IT contracts. The value reflects the trend of significant government investment in IT infrastructure and software to modernize operations and improve capabilities during that era.

What were the key performance indicators (KPIs) or metrics used to evaluate the success of this contract and the performance of Plumtree Software, Inc.?

The provided data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate the success of this contract. Typically, for enterprise software, KPIs might include system uptime, user adoption rates, reduction in process cycle times, successful integration with other systems, and user satisfaction surveys. Without this information, it's difficult to quantitatively assess whether Plumtree Software, Inc. met the DoD's expectations or delivered optimal value for the $170 million investment. Contract performance reports and final acceptance documentation would usually contain such details.

Were there any identified risks associated with this contract, such as vendor lock-in, technology obsolescence, or performance issues, and how were they managed?

While specific risk management details are not provided, several inherent risks are associated with long-term, large-value software contracts. Vendor lock-in is a common concern, where the government becomes heavily reliant on a single vendor's proprietary technology, making future transitions costly. Technology obsolescence is another risk, as software can quickly become outdated. Performance issues could arise if the software doesn't meet evolving operational needs or if implementation is flawed. Effective management would involve clear contract terms, regular performance reviews, contingency planning for upgrades or transitions, and potentially incorporating clauses to mitigate lock-in.

What was the historical spending pattern for similar software solutions by the Department of Defense before and after this contract period?

Historical spending patterns for similar software solutions by the DoD before and after this contract (2002-2007) would likely show an increasing trend in IT investments. Before 2002, spending might have been more fragmented or focused on legacy systems. During the contract period, there was a push for enterprise-wide solutions and modernization. Post-2007, spending likely continued to grow, with a shift towards cloud computing, cybersecurity, data analytics, and more agile development methodologies. Understanding these broader trends helps contextualize the $170 million expenditure as part of a larger, evolving digital transformation effort within the DoD.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COMBINATION (TWO OR MORE) (2)

Contractor Details

Address: 500 SANSOME ST STE 100, SAN FRANCISCO, CA, 90

Business Categories: Category Business, Small Business

Parent Contract

Parent Award PIID: GS35F0040M

IDV Type: FSS

Timeline