Agriculture renews Cohesity software licenses for $6.8M, raising questions about long-term value and competition

Contract Overview

Contract Amount: $6,820,879 ($6.8M)

Contractor: Colossal Contracting LLC

Awarding Agency: Department of Agriculture

Start Date: 2023-08-01

End Date: 2025-07-31

Contract Duration: 730 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: COHESITY SOFTWARE LICENSES AND MAINTENANCE RENEWAL

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64114

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.8 million to COLOSSAL CONTRACTING LLC for work described as: COHESITY SOFTWARE LICENSES AND MAINTENANCE RENEWAL Key points: 1. The contract's value is substantial, representing a significant investment in data management software. 2. Limited competition details suggest potential for price optimization. 3. The renewal period of two years warrants scrutiny for ongoing necessity and market alternatives. 4. Firm Fixed Price contract type offers cost certainty but may limit flexibility. 5. The 'Other Computer Related Services' NAICS code is broad, potentially obscuring specific service details. 6. The renewal follows a prior award, indicating an established relationship with the vendor.

Value Assessment

Rating: fair

The $6.82 million renewal for Cohesity software licenses over two years appears to be a standard operational expense for data management. Benchmarking this specific renewal against similar government-wide software license agreements is challenging without more granular data on the exact software modules and user counts. However, the firm fixed-price nature provides cost predictability. Further analysis would be needed to determine if the pricing reflects current market rates for comparable data management solutions or if alternative solutions could offer better value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while the initial solicitation was open, specific circumstances led to excluding certain potential bidders. This type of competition, while not sole-source, limits the pool of offerors. The exact reasons for excluding other sources are not detailed, making it difficult to assess the breadth of competition. A more open competition could potentially drive down prices and encourage innovation.

Taxpayer Impact: The limited competition may mean taxpayers are not receiving the most competitive pricing available in the market, as the vendor pool was restricted.

Public Impact

Federal agencies, particularly within the Department of Agriculture, benefit from enhanced data backup, recovery, and security capabilities. The software ensures the continuity of critical government operations by protecting vital data assets. The services delivered support the Office of the Chief Financial Officer's IT infrastructure needs. The geographic impact is national, supporting the Department of Agriculture's widespread operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to specialized software.
Lack of transparency regarding the specific reasons for excluding other sources in the competition.
The renewal period might not align with the most cost-effective procurement cycles for software.

Positive Signals

Firm Fixed Price contract provides budget certainty.
The renewal ensures continuity of essential data management services.
The vendor has an existing relationship, potentially leading to smoother implementation and support.

Sector Analysis

The market for data management and storage solutions is highly competitive, with numerous established players and emerging technologies. This contract falls within the broader IT services sector, specifically focusing on software licensing and maintenance for data protection. Government spending in this area is substantial, driven by increasing data volumes and stringent security requirements. Comparable spending benchmarks would typically involve analyzing other agencies' procurements of similar enterprise-level data management software.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no explicit mention of subcontracting goals for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for support services not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's Office of the Chief Financial Officer, which is responsible for financial management and IT investments. The firm fixed-price contract type offers a degree of accountability by fixing the cost. Transparency regarding the competition process and the specific justification for excluding sources would be key areas for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Data Storage Solutions
Software Licensing
IT Infrastructure Modernization
Cloud Data Services
Cybersecurity Software

Risk Flags

Limited competition raises concerns about potential overpayment.
Lack of detailed justification for source exclusion hinders transparency.
Absence of performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.8 million to COLOSSAL CONTRACTING LLC. COHESITY SOFTWARE LICENSES AND MAINTENANCE RENEWAL

Who is the contractor on this award?

The obligated recipient is COLOSSAL CONTRACTING 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 $6.8 million.

What is the period of performance?

Start: 2023-08-01. End: 2025-07-31.

What is the specific Cohesity software product and its primary function under this contract?

The provided data does not specify the exact Cohesity software product or its primary function beyond 'Software Licenses and Maintenance Renewal.' Cohesity is known for its data management platform that offers solutions for backup, data protection, disaster recovery, and file sharing across hybrid and multi-cloud environments. For the Department of Agriculture, this likely supports critical data backup and recovery operations, ensuring business continuity and data integrity for various financial and operational systems managed by the Office of the Chief Financial Officer. Understanding the specific modules and their utilization would be crucial for a comprehensive value assessment.

How does the $6.82 million renewal cost compare to previous Cohesity contracts or market benchmarks?

The provided data indicates a renewal cost of $6,820,878.50 over a 730-day period (two years). Without access to historical contract data for this specific vendor and agency, or broader market analysis reports for Cohesity software licenses, a direct comparison is difficult. However, the 'br': 9344 value might represent a benchmark or reference price, though its exact meaning is unclear. To assess value, this cost should be benchmarked against similar government contracts for enterprise data management software, considering factors like user count, storage capacity, and included features. A significant increase from previous renewals or a price higher than comparable market offerings would raise concerns about value for money.

What were the specific reasons for 'Exclusion of Sources' in this Full and Open Competition?

The data states the contract type as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' but does not provide the specific reasons for this exclusion. Typically, such exclusions occur when only one or a limited number of sources are capable of meeting the agency's needs, often due to proprietary technology, unique capabilities, or urgent requirements where only specific vendors can respond in time. The agency would usually publish a Justification for Other Than Full and Open Competition (JOFOC) or a similar document detailing these reasons. Without this documentation, it's impossible to definitively assess if the exclusion was warranted or if it limited potential competition unnecessarily, potentially impacting price discovery.

What is the track record of Colossal Contracting LLC with the Department of Agriculture and similar IT contracts?

The provided data lists 'COLOSSAL CONTRACTING LLC' as the contractor. However, it does not offer details on their track record, past performance, or experience with the Department of Agriculture or similar IT contracts. To assess their reliability and capability, one would need to review their contract history, past performance evaluations (e.g., CPARS), and any awards or debarments. A contractor with a strong, positive track record typically indicates lower performance risk. Conversely, a history of issues could signal potential problems for this renewal.

Are there alternative data management solutions that the Department of Agriculture considered or could consider?

The data does not indicate whether alternative data management solutions were considered during this procurement. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests that the field of potential bidders was narrowed. A comprehensive review would involve understanding the agency's technology roadmap and procurement strategy. Agencies often conduct market research to identify potential alternatives. Given the dynamic nature of IT solutions, it would be prudent for the Department of Agriculture to periodically reassess the market for data management solutions to ensure they are leveraging the most effective and cost-efficient technologies available, potentially through future competitive solicitations.

What are the performance metrics or Service Level Agreements (SLAs) associated with this software maintenance renewal?

The provided data focuses on the contract's administrative and financial aspects (award amount, dates, type) and does not include details on performance metrics or Service Level Agreements (SLAs) for the Cohesity software maintenance. These SLAs are critical for ensuring the software functions as expected, particularly for data backup and recovery. Key metrics might include uptime guarantees, data recovery time objectives (RTO), recovery point objectives (RPO), and vendor support response times. The absence of this information makes it difficult to objectively assess the vendor's performance obligations and the agency's recourse if those obligations are not met.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 HARRY S TRUMAN PKWY STE G, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $17,052,196

Exercised Options: $6,820,879

Current Obligation: $6,820,879

Actual Outlays: $6,820,879

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD72B

IDV Type: GWAC

Timeline