DoD awards $3.6M contract to Beacon Interactive Systems for software publishing services

Contract Overview

Contract Amount: $3,588,977 ($3.6M)

Contractor: Beacon Interactive Systems LLC

Awarding Agency: Department of Defense

Start Date: 2023-08-21

End Date: 2026-08-20

Contract Duration: 1,095 days

Daily Burn Rate: $3.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ETAGOUT SOFTWARE ENGINEERING

Place of Performance

Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02452

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $3.6 million to BEACON INTERACTIVE SYSTEMS LLC for work described as: ETAGOUT SOFTWARE ENGINEERING Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. Limited competition raises concerns about price discovery and potential for inflated costs. 3. Contract duration of 1095 days suggests a long-term need for these services. 4. The contract falls under the Software Publishers NAICS code, indicating a focus on digital solutions. 5. Awarded by the Department of the Navy, highlighting a specific defense sector need. 6. The contract value is relatively modest, suggesting it may be a component of a larger initiative.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee structure requires careful monitoring to ensure value for money. Without comparable contract data, it's difficult to definitively benchmark the pricing. However, the lack of robust competition suggests that the government may not have secured the most competitive rates possible. The total award value of $3.6 million over three years needs to be assessed against the specific deliverables and market rates for similar software publishing services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This significantly limits the opportunity for competitive bidding and price negotiation. While sole-source awards can be justified in specific circumstances, such as unique capabilities or urgent needs, they generally lead to higher prices and reduced innovation compared to full and open competition. The absence of multiple bidders means the government did not benefit from a competitive process to drive down costs.

Taxpayer Impact: Sole-source awards mean taxpayers may be paying a premium, as there was no competitive pressure to ensure the lowest possible price for these software publishing services.

Public Impact

The Department of the Navy benefits from specialized software publishing services to support its operations. This contract likely supports the development, maintenance, or distribution of critical software for naval systems. The geographic impact is primarily within the defense sector, potentially supporting naval bases or command centers. Workforce implications may include specialized software engineers and technical staff employed by Beacon Interactive Systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs for taxpayers.
Cost-plus-fixed-fee contract type can incentivize higher spending if not closely managed.
Lack of detailed performance metrics in the provided data makes it hard to assess effectiveness.
The specific software being published is not detailed, making it difficult to gauge its criticality or impact.

Positive Signals

Award to a single vendor suggests they possess unique or highly specialized capabilities.
The contract is for a defined period, allowing for reassessment of needs and competition in the future.
The Department of the Navy is a major federal agency, implying a need for robust and reliable software solutions.

Sector Analysis

The software publishing industry is a critical component of the broader technology sector, encompassing companies that develop, market, and distribute software. This contract falls within the Information Technology (IT) sector, specifically supporting the government's need for specialized software solutions. Comparable spending in this area can vary widely depending on the complexity and scale of the software required. The government frequently procures software development and publishing services to maintain and upgrade its vast array of digital systems.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, Beacon Interactive Systems, as the prime contractor, may engage small businesses for specialized services or components, which would be detailed in their subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Navy. Accountability measures would be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including adherence to the Statement of Work and delivery schedules. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense IT Services
Software Development Contracts
Naval Information Technology Programs
Cost-Plus-Fixed-Fee Contracts
Sole-Source IT Procurements

Risk Flags

Sole-source award may indicate limited market availability or specific technical requirements.
Cost-plus-fixed-fee contract type carries inherent cost escalation risks.
Lack of detailed performance metrics requires close monitoring of deliverables.
Contract duration of three years necessitates a review of long-term necessity and potential for future competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.6 million to BEACON INTERACTIVE SYSTEMS LLC. ETAGOUT SOFTWARE ENGINEERING

Who is the contractor on this award?

The obligated recipient is BEACON INTERACTIVE SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2023-08-21. End: 2026-08-20.

What is the specific nature of the software being published under this contract, and what is its intended use within the Department of the Navy?

The provided data does not specify the exact nature or intended use of the software being published. The NAICS code 513210 (Software Publishers) indicates a broad category that includes companies involved in developing, marketing, and distributing software. For the Department of the Navy, this could range from operational software for naval vessels and aircraft to administrative or training applications. Understanding the specific software would be crucial for assessing its criticality, potential risks, and overall value to the Navy's mission. Further details would likely be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

How does the pricing structure (Cost Plus Fixed Fee) compare to industry standards for similar software publishing services, and what are the associated risks?

Cost Plus Fixed Fee (CPFF) contracts are common in government contracting, especially when the scope of work is not precisely defined or involves research and development. The 'cost-plus' portion means the government reimburses the contractor for allowable costs, while the 'fixed fee' represents the contractor's profit. The primary risk for the government in a CPFF contract is that costs can escalate beyond initial estimates, potentially leading to a higher total price than anticipated. For software publishing, this structure can be advantageous if the project scope evolves, but it requires robust oversight to ensure costs remain reasonable and that the contractor is incentivized to control expenses. Benchmarking against similar CPFF software contracts would be necessary for a precise value assessment.

Given the sole-source nature of this award, what justification was provided by the Department of the Navy for not seeking competitive bids?

Sole-source awards are typically granted when only one responsible source can satisfy the agency's needs. Common justifications include unique capabilities, proprietary technology, urgent and compelling requirements where competition is not feasible, or when a previous contract expires and only one vendor can continue the service without unacceptable delay or duplication of cost. The specific justification for this $3.6 million contract awarded to Beacon Interactive Systems LLC would be documented in the contract file, often referred to as a Justification and Approval (J&A) for Other Than Full and Open Competition. Without access to this documentation, the precise reason remains unknown.

What is Beacon Interactive Systems LLC's track record with the federal government, particularly with the Department of Defense, in delivering software publishing services?

Information on Beacon Interactive Systems LLC's specific track record with the federal government, especially for software publishing services within the Department of Defense, is not detailed in the provided data. Federal procurement databases (like FPDS or SAM.gov) would typically contain records of past awards, contract performance evaluations (e.g., CPARS), and payment history. A thorough assessment would require reviewing these sources to understand their past performance, any issues encountered, and their overall reliability as a government contractor in this domain.

How does the $3.6 million contract value compare to historical spending by the Department of the Navy on similar software publishing services?

Comparing this $3.6 million contract to historical spending requires access to historical data for similar software publishing services procured by the Department of the Navy. Without that specific data, it's difficult to determine if this award represents an increase, decrease, or stable level of investment. Factors influencing historical spending include changes in technology, evolving mission requirements, and overall budget allocations. A comprehensive analysis would involve querying procurement databases for contracts with similar NAICS codes (513210) and service descriptions awarded to various entities by the Navy over several fiscal years.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003923R5000

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 465 WAVERLEY OAKS RD STE 301, WALTHAM, MA, 02452

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $9,084,921

Exercised Options: $4,413,106

Current Obligation: $3,588,977

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline