Treasury's $86.4M software contract with CA, Inc. awarded under full and open competition

Contract Overview

Contract Amount: $86,405,065 ($86.4M)

Contractor: CA, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2011-09-30

End Date: 2016-04-30

Contract Duration: 1,674 days

Daily Burn Rate: $51.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CA ELA

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20703

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $86.4 million to CA, INC. for work described as: CA ELA Key points: 1. Contract value represents a significant investment in software solutions for the IRS. 2. Awarded via full and open competition, suggesting a potentially competitive pricing environment. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. Contract duration of over 4 years indicates a substantial, long-term need. 5. The software publishers' NAICS code points to a specific market segment for IT solutions. 6. The contract's performance period spans a significant portion of the early 2010s.

Value Assessment

Rating: fair

Benchmarking the value of this $86.4 million contract is challenging without specific performance metrics or comparable contract data. However, the firm fixed-price structure suggests an attempt to lock in costs. The duration of over four years for a software delivery order indicates a substantial commitment. Without more granular data on the software's functionality and market alternatives, a definitive value assessment is difficult, but the scale suggests a critical operational need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The fact that it was a delivery order under a larger contract suggests that the initial competition for the base contract was also broad. The number of bidders for this specific delivery order is not provided, but the 'full and open' designation generally implies a healthy level of competition, which can lead to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A full and open competition process typically benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple vendors, leading to better value for public funds.

Public Impact

The primary beneficiaries are the IRS and potentially other Treasury Department components requiring the software solution. The contract delivers essential software, likely for data management, processing, or operational support. Geographic impact is likely nationwide, supporting IRS operations across the United States. Workforce implications may include training for IRS personnel on the new software and potential IT support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on software functionality makes it hard to assess if it's the most cost-effective solution.
Potential for vendor lock-in if the software becomes deeply integrated into IRS systems.
The fixed-price nature could lead to scope creep if not managed tightly, increasing overall cost.
No information on maintenance and support costs post-delivery order.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm fixed-price contract type provides cost certainty.
Long-term contract duration indicates a sustained need and potential for stable operations.
The vendor, CA, Inc., is a known entity in the software market.

Sector Analysis

This contract falls within the Software Publishers (NAICS 511210) sector, a critical component of the broader Information Technology industry. The IT sector is characterized by rapid innovation and significant government spending due to its essential role in modern operations. The market size for enterprise software solutions is vast, with numerous vendors competing. This contract represents a specific procurement within that market, likely for a large-scale enterprise resource planning, data management, or specialized application.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the substantial value and the nature of enterprise software, it is likely that larger, established software vendors were the primary participants. This could mean limited direct opportunities for small businesses unless they were part of a larger vendor's team or provided complementary services.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's Inspector General, responsible for ensuring the integrity of its programs and operations. The firm fixed-price nature provides a degree of financial oversight by limiting cost overruns on the base contract scope. Transparency is generally facilitated through contract databases like FPDS, where basic award information is published. However, detailed performance reviews and specific oversight activities are often internal.

Related Government Programs

IRS IT Modernization Programs
Treasury Department Financial Systems
Federal Enterprise Software Procurements
Software Licensing and Maintenance Contracts

Risk Flags

Contract Value
Software Procurement Complexity
Vendor Performance History (General)
Long-Term Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $86.4 million to CA, INC.. CA ELA

Who is the contractor on this award?

The obligated recipient is CA, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $86.4 million.

What is the period of performance?

Start: 2011-09-30. End: 2016-04-30.

What specific software product or suite was procured under this contract, and what were its primary functions for the IRS?

The provided data does not specify the exact software product or suite procured. However, given the vendor (CA, Inc., now Broadcom) and the NAICS code (Software Publishers), it was likely an enterprise-level solution. Such solutions often encompass areas like database management, application development tools, security software, or business process management suites. For the IRS, these could support tax processing, taxpayer data management, financial reporting, or internal IT infrastructure.

How does the $86.4 million cost compare to similar software procurements by the IRS or other large federal agencies during the contract period (2011-2016)?

Without knowing the specific software, a direct comparison is difficult. However, $86.4 million over approximately 4.5 years is a substantial investment. Large federal agencies frequently spend tens to hundreds of millions on enterprise software licenses, development, and support. For context, major ERP system implementations or large-scale cybersecurity solutions could easily fall within or exceed this range. The IRS, being a massive organization, has significant IT needs, making this expenditure plausible within the landscape of federal IT spending during that era.

What was the track record of CA, Inc. (now Broadcom) with the federal government prior to and during this contract period?

CA, Inc. (before its acquisition by Broadcom) was a long-standing and significant player in the enterprise software market, including with the U.S. federal government. They provided a wide range of software solutions, including mainframe software, enterprise management, security, and database tools. Historically, CA held numerous federal contracts across various agencies. Their track record generally involved supplying established software products to large organizations. Specific performance details for this particular contract are not publicly available, but their presence indicates a history of engaging with government IT needs.

Were there any identified risks or challenges associated with this contract, and how were they managed?

The data provided does not detail specific risks or challenges encountered during the execution of this contract. However, common risks in large software procurements include integration issues with existing systems, user adoption challenges, potential cost overruns if scope is not managed, and vendor performance issues. The firm fixed-price nature of this contract suggests an effort to mitigate financial risks related to scope. Effective management would have involved strong project oversight, clear communication channels, and rigorous adherence to the contract's terms and conditions by both the IRS and CA, Inc.

What was the overall trend in federal spending on software publishers (NAICS 511210) during the period this contract was active (2011-2016)?

Federal spending on software publishers generally saw a steady increase during the 2011-2016 period, driven by the ongoing need for IT modernization, cybersecurity enhancements, and data analytics capabilities across agencies. While specific figures fluctuate, the overall trend reflected a growing reliance on software solutions to improve efficiency and service delivery. This $86.4 million contract aligns with that broader trend of significant federal investment in the software sector to support critical government functions.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 2291 WOOD OAK DR, HERNDON, VA, 20171

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $86,405,065

Exercised Options: $86,405,065

Current Obligation: $86,405,065

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0823M

IDV Type: FSS

Timeline