USDA's $20M Broadcom Software Maintenance Contract Awarded to Copper River Enterprise Services
Contract Overview
Contract Amount: $19,998,548 ($20.0M)
Contractor: Copper River Enterprise Services, LLC
Awarding Agency: Department of Agriculture
Start Date: 2020-09-29
End Date: 2025-04-07
Contract Duration: 1,651 days
Daily Burn Rate: $12.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CA-BROADCOM SOFTWARE MAINTENANCE
Place of Performance
Location: KANSAS CITY, JACKSON County, MISSOURI, 64114
State: Missouri Government Spending
Plain-Language Summary
Department of Agriculture obligated $20.0 million to COPPER RIVER ENTERPRISE SERVICES, LLC for work described as: CA-BROADCOM SOFTWARE MAINTENANCE Key points: 1. Contract value of $19.99M over its period. 2. Sole-source award raises questions about competition. 3. Risk of vendor lock-in and potential cost escalation. 4. IT services sector, specifically software maintenance.
Value Assessment
Rating: questionable
Pricing is based on a firm fixed price contract. Without competitive bids or benchmarks for similar Broadcom software maintenance contracts, it's difficult to assess if the $19.99M price is reasonable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition for this $20M contract could lead to suboptimal pricing, impacting taxpayer funds.
Public Impact
Farmers and agricultural businesses may rely on services supported by this maintenance. Potential for disruption if software maintenance is not adequately provided. Taxpayers are funding a significant software maintenance agreement without competitive pricing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competitive pricing
- Long contract duration (approx. 4.5 years)
Positive Signals
- Firm fixed price contract provides cost certainty
Sector Analysis
This contract falls within the IT services sector, specifically software maintenance. Spending benchmarks for similar government software maintenance contracts are highly variable and depend on the specific software and vendor.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
Oversight is managed by the Department of Agriculture's Office of the Chief Financial Officer. The sole-source nature of the award warrants close scrutiny to ensure value for money.
Related Government Programs
- Other Computer Related Services
- Department of Agriculture Contracting
- Office of the Chief Financial Officer Programs
Risk Flags
- Sole-source award limits competition and price negotiation.
- Potential for cost overruns if pricing is not benchmarked.
- Vendor lock-in risk with proprietary software maintenance.
- Lack of transparency on performance metrics and oversight.
Tags
other-computer-related-services, department-of-agriculture, mo, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Agriculture awarded $20.0 million to COPPER RIVER ENTERPRISE SERVICES, LLC. CA-BROADCOM SOFTWARE MAINTENANCE
Who is the contractor on this award?
The obligated recipient is COPPER RIVER ENTERPRISE SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).
What is the total obligated amount?
The obligated amount is $20.0 million.
What is the period of performance?
Start: 2020-09-29. End: 2025-04-07.
What is the justification for the sole-source award, and were alternatives explored?
The justification for the sole-source award is not provided in the data. Typically, sole-source contracts are justified when only one vendor can provide the required goods or services due to unique capabilities, proprietary technology, or urgent needs. Exploring alternatives, even if ultimately not feasible, is crucial for ensuring fair pricing and maximizing taxpayer value.
How is the performance of Copper River Enterprise Services being monitored to ensure effective software maintenance?
Performance monitoring details are not available in the provided data. Effective oversight would involve tracking key performance indicators (KPIs) related to software uptime, response times for issues, and successful implementation of updates. Regular performance reviews and clear deliverables outlined in the contract are essential for ensuring the vendor meets its obligations.
What is the long-term strategy for Broadcom software maintenance to avoid perpetual sole-source reliance?
The long-term strategy is unclear from the data. Agencies should consider market research for potential competitive solutions or alternative software that could reduce reliance on a single vendor. Developing an exit strategy or a plan for future competitive procurements is vital to prevent long-term, potentially costly, sole-source arrangements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 12314420Q0094
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 721 DEPOT DR, ANCHORAGE, AK, 99501
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,998,548
Exercised Options: $19,998,548
Current Obligation: $19,998,548
Actual Outlays: $19,998,548
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2020-09-29
Current End Date: 2025-04-07
Potential End Date: 2025-04-07 00:00:00
Last Modified: 2025-04-02
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