DoD awards $21M contract for software publishing to InterSystems Corp, with no competition

Contract Overview

Contract Amount: $20,969,265 ($21.0M)

Contractor: Intersystems Corp

Awarding Agency: Department of Defense

Start Date: 2013-09-24

End Date: 2015-09-30

Contract Duration: 736 days

Daily Burn Rate: $28.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LOT I - BASE YEAR

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142, UNITED STATES OF AMERICA

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to INTERSYSTEMS CORP for work described as: LOT I - BASE YEAR Key points: 1. Contract awarded to a single vendor, InterSystems Corp. 2. The contract is for software publishing services. 3. The Department of the Navy awarded the contract. 4. The contract duration is 736 days. 5. The contract was not competed.

Value Assessment

Rating: questionable

The award amount of $20,969,265 for software publishing over approximately two years, with a reported break-even of $2,849,100, suggests a potentially high profit margin. Without comparable contract data, it's difficult to definitively assess pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and may result in higher costs for the government.

Taxpayer Impact: The absence of competition likely means taxpayers are paying a premium for this software publishing service.

Public Impact

Military branches may rely on InterSystems Corp for critical software. Lack of competition could set a precedent for future sole-source awards. Taxpayer funds are being spent without competitive bidding, raising accountability concerns.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited transparency

Positive Signals

Specific software need met
Contract awarded to established vendor

Sector Analysis

Software publishing falls under the IT sector. Spending in this area can vary widely depending on agency needs, but competitive bidding is generally expected to ensure value for money.

Small Business Impact

The data indicates this contract was not awarded to a small business, as 'sb' is false. There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

The 'NOT COMPETED' status raises questions about the oversight process and justification for bypassing competitive procedures. Further review is needed to ensure proper accountability.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Limited transparency in procurement process.
No clear indication of small business participation.
Questionable value for taxpayer money due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to INTERSYSTEMS CORP. LOT I - BASE YEAR

Who is the contractor on this award?

The obligated recipient is INTERSYSTEMS CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.0 million.

What is the period of performance?

Start: 2013-09-24. End: 2015-09-30.

What was the specific justification for awarding this contract on a sole-source basis, and was a market research report conducted to confirm the lack of viable alternatives?

The provided data does not include the justification for the sole-source award or details on market research. Typically, agencies must document extensive market research to justify bypassing full and open competition, demonstrating that only one source can meet the requirement. Without this documentation, it's impossible to assess the validity of the sole-source decision.

How does the awarded price compare to industry benchmarks for similar software publishing services, considering the lack of competitive bids?

Without competitive bids, direct price comparison is challenging. However, the reported break-even of $2,849,100 against an award of $20,969,265 suggests a significant potential profit margin. Further analysis would require benchmarking against similar sole-source or competitively awarded contracts for comparable software services to identify potential overpricing.

What is the long-term strategy for acquiring these software publishing services, and will future procurements be subject to competition?

The provided data only covers the base year of this contract. It does not offer insight into future acquisition strategies. It is crucial for the Department of the Navy to plan for future procurements to ensure competitive opportunities are explored, thereby maximizing value and minimizing costs for taxpayers over the long term.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: ONE MEMORIAL DRI, CAMBRIDGE, MA, 02142

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,969,265

Exercised Options: $20,969,265

Current Obligation: $20,969,265

Contract Characteristics

Cost or Pricing Data: NO

Timeline