Agriculture's $476K IBM Software Contract Awarded to Software Information Resource Corp. Under Full and Open Competition

Contract Overview

Contract Amount: $476,268 ($476.3K)

Contractor: Software Information Resource Corp.

Awarding Agency: Department of Agriculture

Start Date: 2026-04-10

End Date: 2026-04-10

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ACCOUNT MANAGEMENT AGENT (AMA) IBM SOFTWARE LICENSES PROVIDE SOFTWARE LICENSES, ONGOING MAINTENANCE SUPPORT FOR SECURITY AND BUG FIXES, AND SUPPORT SERVICES FOR THE INSTALLATION, CONFIGURATION, AND OPERATION OF EACH OF THESE TOOLS.

Place of Performance

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

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $476,268.46 to SOFTWARE INFORMATION RESOURCE CORP. for work described as: ACCOUNT MANAGEMENT AGENT (AMA) IBM SOFTWARE LICENSES PROVIDE SOFTWARE LICENSES, ONGOING MAINTENANCE SUPPORT FOR SECURITY AND BUG FIXES, AND SUPPORT SERVICES FOR THE INSTALLATION, CONFIGURATION, AND OPERATION OF EACH OF THESE TOOLS. Key points: 1. The contract provides essential IBM software licenses and ongoing maintenance, crucial for security and operational support. 2. Awarded through full and open competition, suggesting a competitive pricing environment. 3. The fixed-price contract type helps mitigate cost overrun risks for the agency. 4. The contract duration is relatively short, allowing for periodic reassessment of needs and vendor performance. 5. This spending falls under 'Other Computer Related Services,' a broad category indicating a focus on IT infrastructure support. 6. The primary beneficiary is the Office of the Chief Financial Officer, highlighting the importance of these tools for financial operations.

Value Assessment

Rating: good

The contract value of approximately $476K for IBM software licenses and support appears reasonable given the nature of enterprise software and maintenance agreements. Benchmarking against similar contracts for IBM software would provide a more precise value assessment, but the fixed-price structure suggests an agreed-upon cost for defined services. The absence of specific performance metrics in the provided data makes a deep dive into value-for-money challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that multiple vendors were allowed to bid after an initial exclusion period or process. With 7 bidders, this suggests a healthy level of competition, which typically drives down prices and encourages better service offerings. The agency's approach to competition appears robust, aiming to secure the best value through a broad solicitation.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario. The presence of multiple bidders increases the likelihood that the government is not overpaying for these essential software licenses and support services.

Public Impact

The Office of the Chief Financial Officer within the Department of Agriculture benefits directly from access to updated IBM software and support. The contract ensures the continued availability and functionality of critical IT tools necessary for financial management and operations. The services delivered include software licenses, maintenance, and technical support, underpinning the agency's IT infrastructure. The geographic impact is primarily within the District of Columbia, where the agency's headquarters are located, though remote access may extend its reach. Workforce implications include ensuring IT staff have the necessary tools and support to maintain and operate the software effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specific IBM software requiring ongoing, potentially costly, maintenance.
Reliance on a single software vendor (IBM) could limit flexibility and introduce risks if vendor support changes.
The specific nature of 'Other Computer Related Services' could mask underlying needs for broader IT modernization or integration.
Limited data on performance metrics makes it difficult to assess the true effectiveness and efficiency of the support provided.

Positive Signals

Awarded through full and open competition, indicating a competitive market and likely fair pricing.
Fixed-price contract type provides cost certainty and reduces the risk of budget overruns.
The contract includes ongoing maintenance and support, ensuring the software remains secure and functional.
The agency is procuring necessary software licenses, which are fundamental for its IT operations.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing and support. The market for enterprise software licenses and maintenance is substantial, with major vendors like IBM commanding significant portions. The Department of Agriculture's spending on such services is typical for large federal agencies requiring robust IT infrastructure. Comparable spending benchmarks would involve analyzing other federal contracts for similar IBM software suites or equivalent enterprise solutions across various agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The award to Software Information Resource Corp. does not preclude them from utilizing small businesses as subcontractors, but this is not a mandated requirement of the contract itself.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's contracting officers and program managers responsible for IT procurement and financial systems. Accountability measures are inherent in the firm-fixed-price contract type, requiring the vendor to deliver specified software licenses and support. Transparency is facilitated by the contract's public availability and the competitive bidding process. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Information Technology Acquisition Reform Act (FITARA) related spending
Software and Information Technology, Prime Contracts
IT Infrastructure Modernization Programs
Enterprise Resource Planning (ERP) Systems Support
Cybersecurity Software and Services

Risk Flags

Potential for vendor lock-in
Reliance on proprietary software
Limited transparency on specific performance metrics
Scope creep risk if not managed tightly

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $476,268.46 to SOFTWARE INFORMATION RESOURCE CORP.. ACCOUNT MANAGEMENT AGENT (AMA) IBM SOFTWARE LICENSES PROVIDE SOFTWARE LICENSES, ONGOING MAINTENANCE SUPPORT FOR SECURITY AND BUG FIXES, AND SUPPORT SERVICES FOR THE INSTALLATION, CONFIGURATION, AND OPERATION OF EACH OF THESE TOOLS.

Who is the contractor on this award?

The obligated recipient is SOFTWARE INFORMATION RESOURCE CORP..

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 $476,268.46.

What is the period of performance?

Start: 2026-04-10. End: 2026-04-10.

What is the track record of Software Information Resource Corp. as a federal contractor, particularly with the Department of Agriculture?

A review of federal procurement data would be necessary to fully assess Software Information Resource Corp.'s track record. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of disputes or issues. Without specific data on their past performance, it's difficult to definitively gauge their reliability and effectiveness. However, their ability to win a competitive bid suggests they meet basic qualifications. Further investigation into their past performance ratings and any relevant agency feedback would provide a clearer picture of their capabilities and client satisfaction.

How does the pricing of these IBM software licenses and support compare to market rates for similar enterprise software agreements?

Directly comparing the pricing without knowing the specific IBM software products, license quantities, and support levels is challenging. Enterprise software licensing and maintenance agreements are complex and can vary significantly based on features, user counts, and support tiers. However, the fact that this contract was awarded under full and open competition with seven bidders suggests that the pricing is likely competitive within the market. To perform a precise benchmark, one would need to identify comparable federal or commercial contracts for the same or similar IBM software and analyze their per-license or per-support-unit costs, adjusting for contract duration and scope.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential vendor lock-in with IBM software, requiring continuous and potentially escalating maintenance costs. There's also a risk that the software may become outdated or that vendor support quality might decline over time. Mitigation strategies include the firm-fixed-price contract type, which caps costs for the defined period. The competitive award process helps ensure initial value. Furthermore, the relatively short contract duration allows the Department of Agriculture to periodically re-evaluate its needs, explore alternative solutions, and renegotiate terms or switch vendors at contract end if necessary. Robust internal IT asset management and performance monitoring are also crucial.

How effective is the Office of the Chief Financial Officer likely to be with the provided IBM software and support?

The effectiveness hinges on several factors beyond the contract itself. Assuming the selected IBM software is appropriate for the CFO's needs and the support services are competently delivered, the tools should enhance operational efficiency. The contract ensures access to necessary licenses and maintenance, preventing disruptions. However, true effectiveness also depends on the agency's internal IT infrastructure, the skills of the personnel using the software, and how well the software integrates with other agency systems. The competitive award and fixed-price nature suggest a baseline level of expected performance and cost control.

What are the historical spending patterns for similar IT software and support services within the Department of Agriculture?

Analyzing historical spending patterns for IT software and support within the Department of Agriculture would require access to detailed budget and contract databases over multiple fiscal years. Typically, large agencies like USDA spend millions annually on software licenses, maintenance, and related IT services to support diverse operations. Spending often fluctuates based on technology refresh cycles, new system implementations, and evolving cybersecurity requirements. Understanding these patterns helps in budgeting, identifying potential cost-saving opportunities, and assessing whether current spending levels are consistent with past trends or represent a significant shift.

What is the potential impact of 'Exclusion of Sources' in the competition process on the final price and vendor selection?

The 'Exclusion of Sources' clause, when used in conjunction with 'Full and Open Competition,' typically means that certain potential sources were initially excluded based on specific criteria (e.g., capability, past performance, or specific regulatory requirements), but the remaining pool was then competed openly. This can sometimes limit the number of bidders compared to a completely unrestricted open competition. However, if the exclusion criteria are well-defined and justified, and a sufficient number of qualified bidders remain (as indicated by the 7 bidders here), it can still lead to robust competition. The impact on price depends on the competitiveness of the remaining pool; if the excluded sources were major players, prices might be slightly higher than in a truly unrestricted environment, but the goal is to ensure qualified and capable vendors participate.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 730 24TH ST NW STE 3, WASHINGTON, DC, 20037

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $476,268

Exercised Options: $476,268

Current Obligation: $476,268

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD74B

IDV Type: GWAC

Timeline