DoD's $44.4M CA Enterprise Software Contract Awarded to CA, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $44,402,168 ($44.4M)
Contractor: CA, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-09-30
End Date: 2012-11-12
Contract Duration: 774 days
Daily Burn Rate: $57.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CA ENTERPRISE SW AND MAINTENANCE
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $44.4 million to CA, INC. for work described as: CA ENTERPRISE SW AND MAINTENANCE Key points: 1. Significant contract value for enterprise software and maintenance. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk associated with long-term software maintenance contracts. 4. IT sector spending, specifically software publishers.
Value Assessment
Rating: fair
The contract value of $44.4M for enterprise software and maintenance is substantial. Benchmarking against similar large-scale software agreements is necessary to assess pricing effectiveness, as specific per-unit costs are not provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a delivery order under a larger contract suggests a structured procurement process.
Taxpayer Impact: Taxpayer funds are utilized for enterprise software and maintenance, with the expectation of value derived from competitive bidding.
Public Impact
Ensures operational continuity for critical Army enterprise systems. Supports the Department of Defense's IT infrastructure. Potential for cost savings through competitive procurement.
Waste & Efficiency Indicators
Waste Risk Score: 57 / 10
Warning Flags
- Long-term reliance on a single vendor for maintenance.
- Potential for cost escalation in subsequent contract periods.
- Need for robust contract management to ensure service delivery.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Supports essential Army IT functions.
Sector Analysis
This contract falls within the Information Technology sector, specifically software publishers. Spending in this area is critical for government modernization and operational efficiency, with benchmarks varying widely based on software type and scale.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The primary awardee, CA, Inc., is a large corporation, suggesting limited direct opportunities for small businesses in this specific contract.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve program managers and contracting officers ensuring compliance with terms and conditions.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for vendor lock-in.
- Long-term maintenance costs can escalate.
- Reliance on a single software provider.
- Need for continuous contract performance monitoring.
Tags
software-publishers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.4 million to CA, INC.. CA ENTERPRISE SW AND MAINTENANCE
Who is the contractor on this award?
The obligated recipient is CA, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $44.4 million.
What is the period of performance?
Start: 2010-09-30. End: 2012-11-12.
What is the total cost of ownership over the contract's life, including potential renewals and upgrades?
The total cost of ownership requires projecting future maintenance, support, and potential upgrade costs beyond the initial award period. Without data on renewal options or anticipated technology shifts, a precise total cost is speculative. However, given the $44.4M initial award, a multi-year commitment could easily double or triple this figure, necessitating careful budget planning and vendor management.
How does the per-unit cost of this software compare to commercial off-the-shelf (COTS) equivalents or similar government contracts?
A direct per-unit cost comparison is challenging without granular data on the specific software modules and user licenses procured. However, the firm fixed price nature and full and open competition suggest an effort to achieve competitive pricing. Benchmarking against GSA schedules or other agency IT contracts for similar enterprise solutions would be necessary to validate cost-effectiveness.
What is the risk of vendor lock-in and its impact on future IT strategy and budget flexibility?
Vendor lock-in is a significant risk with enterprise software maintenance contracts. If the Army becomes heavily reliant on CA, Inc.'s proprietary technology, switching vendors in the future could be prohibitively expensive and disruptive. This necessitates a proactive strategy for interoperability, data portability, and regular re-evaluation of market alternatives to maintain flexibility.
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
Financial Breakdown
Contract Ceiling: $81,127,458
Exercised Options: $44,402,168
Current Obligation: $44,402,168
Contract Characteristics
Consolidated Contract: Yes
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: GS35F0823M
IDV Type: FSS
Timeline
Start Date: 2010-09-30
Current End Date: 2012-11-12
Potential End Date: 2012-11-12 00:00:00
Last Modified: 2022-04-08
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