State Department's $26M contract for GEMS software O&M services awarded to Solarity Inc

Contract Overview

Contract Amount: $26,155,818 ($26.2M)

Contractor: Solerity Inc

Awarding Agency: Department of State

Start Date: 2009-01-21

End Date: 2015-11-19

Contract Duration: 2,493 days

Daily Burn Rate: $10.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: THE VENDOR WILL PROVIDE OPERATION AND MAINTENANCE SERVICES FOR THE GEMS SOFTWARE.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20037

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $26.2 million to SOLERITY INC for work described as: THE VENDOR WILL PROVIDE OPERATION AND MAINTENANCE SERVICES FOR THE GEMS SOFTWARE. Key points: 1. The contract's value of $26.16 million over its period of performance suggests a significant investment in maintaining critical software infrastructure. 2. The 'Other Computer Related Services' NAICS code indicates a broad scope, potentially encompassing various IT support functions. 3. The contract was awarded as a competitive delivery order, implying some level of market vetting, though details on the competition are needed. 4. The long duration of the contract (2493 days) raises questions about long-term vendor lock-in and the potential for price escalation. 5. The absence of small business set-aside flags suggests this was not specifically targeted to boost small business participation. 6. The contract's performance period spans a considerable timeframe, requiring ongoing monitoring for effectiveness and value.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the services provided and comparable market rates for GEMS software operation and maintenance. The total value of over $26 million spread across approximately 7 years suggests an average annual cost of around $3.7 million. This figure needs to be assessed against the criticality of the GEMS software and the scope of services rendered. Without more granular data on labor hours, specific maintenance tasks, and the number of users or modules supported, a definitive value-for-money assessment is difficult. However, the duration of the contract could indicate potential for cost savings through long-term partnership, or conversely, risks of inflated pricing if competition was limited or oversight lax.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract is listed as a 'COMPETITIVE DELIVERY ORDER,' which suggests it was awarded under a pre-existing contract vehicle that underwent some form of competition. However, the specific details of this competition, such as the number of bidders invited or the evaluation criteria used for this particular delivery order, are not provided. A competitive delivery order implies that multiple vendors could have bid, potentially leading to better pricing and service offerings. The level of competition directly impacts price discovery and ensures that the government receives fair market value.

Taxpayer Impact: A competitive award process, even for a delivery order, generally benefits taxpayers by fostering a more efficient marketplace and encouraging vendors to offer competitive pricing. This can lead to cost savings compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are likely the Department of State personnel who rely on the GEMS software for their daily operations. The services delivered include operation and maintenance, ensuring the software remains functional, secure, and up-to-date. The geographic impact is primarily within the District of Columbia, where the Department of State is headquartered, but could extend to users globally. Workforce implications may include the need for specialized IT personnel within the Department of State to manage and oversee the contract, as well as the vendor's technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long contract duration (2493 days) could lead to vendor lock-in and reduced flexibility in adopting newer technologies or renegotiating terms.
Lack of detailed competition information for this specific delivery order makes it difficult to ascertain if the best possible price was achieved.
The broad 'Other Computer Related Services' NAICS code might obscure the specific nature of services, potentially impacting performance monitoring.
The contract's end date in 2015 means current performance data is unavailable, limiting assessment of recent value and effectiveness.
No indication of small business subcontracting goals could mean missed opportunities for small business participation.

Positive Signals

Awarded as a competitive delivery order, suggesting some level of market engagement and potential for competitive pricing.
The vendor, Solarity Inc., has a contract history, implying some established capability to perform such services.
The contract's focus on operation and maintenance indicates a commitment to sustaining essential IT infrastructure.
The long performance period, if managed effectively, can provide stability and predictability for critical software support.

Sector Analysis

The IT services sector, particularly software operation and maintenance, is a critical component of government operations. This contract falls under the broader category of IT support services, which is a large and dynamic market. Government spending in this area is substantial, driven by the need to maintain legacy systems while also adopting new technologies. Comparable spending benchmarks would typically involve analyzing the cost of similar software maintenance contracts across federal agencies or within the private sector, considering factors like software complexity, user base, and service level agreements. The market for specialized software maintenance can be competitive, but also prone to consolidation, potentially impacting pricing.

Small Business Impact

There is no indication that this contract included a small business set-aside. The 'ss' and 'sb' fields are both false. This means the contract was not specifically targeted to award to small businesses. Consequently, there may be missed opportunities for small businesses to participate in providing these essential IT services. While the prime contractor, Solarity Inc., may engage small businesses as subcontractors, the absence of a set-aside or specific subcontracting goals means this is not guaranteed and depends on the prime contractor's procurement strategy.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of State's contracting officers and program managers responsible for ensuring that Solarity Inc. meets the terms and conditions of the contract, including service level agreements and performance standards. Transparency is facilitated through contract databases like FPDS. Accountability measures are tied to performance metrics and the potential for contract modifications, termination, or penalties if services are not delivered satisfactorily. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

Department of State IT Modernization Efforts
Government-wide IT Services Contracts
Software Maintenance and Support Services
Legacy System Modernization Programs

Risk Flags

Lack of detailed competition information
Potential for vendor lock-in due to long duration
Absence of specified performance metrics (KPIs/SLAs)
Limited insight into specific software modules supported

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $26.2 million to SOLERITY INC. THE VENDOR WILL PROVIDE OPERATION AND MAINTENANCE SERVICES FOR THE GEMS SOFTWARE.

Who is the contractor on this award?

The obligated recipient is SOLERITY INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $26.2 million.

What is the period of performance?

Start: 2009-01-21. End: 2015-11-19.

What specific GEMS software modules or functionalities were covered under this operation and maintenance contract?

The provided data does not specify the exact modules or functionalities of the GEMS software that were covered under this operation and maintenance contract. GEMS (Global Enterprise Management System) is a broad term, and such systems often encompass various components related to financial management, human resources, or other enterprise-level functions. Understanding the specific modules is crucial for assessing the complexity of the maintenance required, the criticality of the software to the Department of State's mission, and for benchmarking costs against similar specialized software support contracts. Without this detail, the scope of work remains generalized under 'Other Computer Related Services'.

How many bids were received for this competitive delivery order, and what was the basis for award?

The provided data indicates this was a 'COMPETITIVE DELIVERY ORDER' but does not specify the number of bids received or the basis for award. A competitive delivery order implies that it was issued under a larger contract vehicle (like a GSA Schedule or an IDIQ) that was itself competed. However, the competition for this specific delivery order could have involved multiple vendors submitting proposals, or it could have been a limited competition among pre-qualified vendors. The basis for award typically involves factors such as price, technical approach, past performance, and small business participation. Knowing these details would help assess the effectiveness of the competition in securing optimal value for the government.

What were the key performance indicators (KPIs) and service level agreements (SLAs) for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. For an operation and maintenance contract of this nature and duration, KPIs and SLAs are critical for measuring the vendor's performance and ensuring the government receives the expected level of service. Typical metrics might include software uptime, response times for issue resolution, patch deployment success rates, and security vulnerability remediation timelines. Without these defined metrics, it is difficult to objectively assess whether Solarity Inc. met its contractual obligations and delivered value for the $26.16 million expenditure.

What is the historical spending trend for GEMS software operation and maintenance at the Department of State?

The provided data only details a single contract for GEMS software operation and maintenance awarded to Solarity Inc. from January 2009 to November 2015, totaling $26,155,817.60. To understand the historical spending trend, one would need to examine spending data for GEMS O&M across multiple years and potentially multiple contracts or vendors. This would involve searching federal procurement databases for all contracts related to GEMS O&M, including any prior or subsequent contracts. Analyzing these trends would reveal whether spending has increased, decreased, or remained stable over time, and whether this specific contract represented a significant portion of the overall investment in GEMS maintenance.

Did Solarity Inc. have a track record of performance issues or successes with similar government contracts prior to or during this period?

The provided data does not offer insight into Solarity Inc.'s specific track record of performance issues or successes with this or other government contracts. While the award of this contract suggests they met initial qualification criteria, a comprehensive assessment would require reviewing past performance evaluations, contract administration records, and any documented disputes or awards related to Solarity Inc.'s government contracts. Understanding their performance history is crucial for evaluating the risk associated with awarding such a significant contract and for assessing the overall value delivered during the contract's lifecycle.

How does the per-unit cost or annual cost of this contract compare to industry benchmarks for similar software maintenance services?

The provided data does not allow for a direct comparison of per-unit cost or annual cost to industry benchmarks. The total contract value is $26.16 million over approximately 2493 days (roughly 6.8 years), averaging about $3.85 million per year. However, without knowing the specific services rendered (e.g., number of users supported, complexity of the software, specific maintenance tasks, included support levels), it's impossible to establish a meaningful 'per-unit' cost (like cost per user, cost per module, or cost per support ticket). Industry benchmarks for enterprise software maintenance vary widely based on the software's nature and vendor. A detailed analysis would require comparing the scope of services and the annual cost against data from similar government or commercial contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 7925 JONES BRANCH DR STE 6200, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $26,177,390

Exercised Options: $26,177,390

Current Obligation: $26,155,818

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0060J

IDV Type: FSS

Timeline