DoD's $24.1M Sybase Software Purchase: Full & Open Competition, Firm Fixed Price

Contract Overview

Contract Amount: $24,124,510 ($24.1M)

Contractor: Sybase, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-06-28

End Date: 2010-07-21

Contract Duration: 23 days

Daily Burn Rate: $1.0M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SYBASE SOFTWARE LICENSES AND MAINTENANCE

Place of Performance

Location: SCOTT AFB, ST. CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to SYBASE, INC. for work described as: SYBASE SOFTWARE LICENSES AND MAINTENANCE Key points: 1. Significant investment in software licenses and maintenance. 2. Competition was full and open, suggesting market-driven pricing. 3. Risk appears moderate given firm fixed-price contract. 4. Sector is IT, specifically software publishing.

Value Assessment

Rating: good

The contract value of $24.1M for Sybase software licenses and maintenance appears reasonable given the nature of enterprise software agreements. Benchmarking against similar large-scale software procurements would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive environment generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible pricing through market forces.

Public Impact

Ensures access to critical software for Air Force operations. Supports ongoing maintenance and updates for Sybase software. Potential for long-term cost savings through competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized software.
Maintenance costs can escalate over time.
Need for ongoing assessment of software utility and alternatives.

Positive Signals

Full and open competition utilized.
Firm fixed-price contract structure.
Clear contract duration.

Sector Analysis

The IT sector, particularly software licensing and maintenance, represents a significant portion of government spending. Benchmarks for similar software procurements vary widely based on software type, volume, and vendor.

Small Business Impact

This data does not indicate specific participation or impact on small businesses. Large enterprise software contracts are often dominated by major software publishers.

Oversight & Accountability

The contract was awarded by the Department of the Air Force, implying oversight from within the DoD. Further details on specific oversight mechanisms would require access to contract management documentation.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Potential for vendor lock-in.
Risk of escalating maintenance costs.
Software obsolescence risk.
Need for ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to SYBASE, INC.. SYBASE SOFTWARE LICENSES AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is SYBASE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $24.1 million.

What is the period of performance?

Start: 2010-06-28. End: 2010-07-21.

What is the long-term value proposition of this Sybase software investment for the Air Force?

The long-term value hinges on the software's continued utility in supporting Air Force missions, the effectiveness of maintenance in preventing obsolescence, and the ability to negotiate favorable renewal terms. Without specific operational context, it's difficult to quantify the precise value beyond the initial acquisition and maintenance costs.

What are the primary risks associated with this large software license and maintenance contract?

Key risks include potential vendor lock-in, where switching to alternative software becomes prohibitively expensive or complex. Escalating maintenance costs over time, the risk of software becoming outdated or unsupported, and the possibility of underutilization of licensed features also pose significant risks to the government's investment.

How effectively does this contract ensure the Air Force has the necessary software capabilities?

The contract ensures access to Sybase software and its maintenance, addressing immediate capability needs. However, effectiveness is also measured by whether the software remains the best solution over its lifecycle, the efficiency of its deployment, and its integration with other systems. Continuous evaluation against evolving requirements is crucial.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA445210QA060

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: SAP AG (UEI: 316268655)

Address: 6550 ROCK SPRING DRIVE, BETHESDA, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,124,510

Exercised Options: $24,124,510

Current Obligation: $24,124,510

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAB1599A1003

IDV Type: IDC

Timeline