NOAA renews IDL software license for $630K with NV5 Geospatial Solutions, raising questions on competition and value

Contract Overview

Contract Amount: $63,000 ($63.0K)

Contractor: NV5 Geospatial Solutions, Inc.

Awarding Agency: Department of Commerce

Start Date: 2025-05-08

End Date: 2027-04-30

Contract Duration: 722 days

Daily Burn Rate: $87/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RENEWAL INTERACTIVE DATA LANGUAGE (IDL) SOFTWARE LICENSE FOR NCEP USERS

Place of Performance

Location: RIVERDALE, PRINCE GEORGES County, MARYLAND, 20737

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $63,000 to NV5 GEOSPATIAL SOLUTIONS, INC. for work described as: RENEWAL INTERACTIVE DATA LANGUAGE (IDL) SOFTWARE LICENSE FOR NCEP USERS Key points: 1. The contract is a sole-source renewal, indicating a lack of competitive bidding and potential for inflated pricing. 2. The duration of the contract (722 days) suggests a long-term need for this specific software. 3. The firm-fixed-price structure provides cost certainty but does not inherently guarantee value for money. 4. The software is for National Centers for Environmental Prediction (NCEP) users, highlighting its critical role in weather forecasting. 5. The absence of small business set-aside or subcontracting requirements may limit opportunities for smaller firms. 6. The procurement method (Not Competed Under SAP) suggests it may have bypassed standard competitive processes for smaller procurements.

Value Assessment

Rating: questionable

Benchmarking the value of this $630,000 IDL software license renewal is challenging without comparable contract data. The lack of competition suggests that NOAA may not have explored alternative solutions or negotiated the most favorable pricing. The firm-fixed-price contract provides cost certainty, but the absence of competitive pressure raises concerns about whether the government is receiving optimal value for its investment. Further analysis would require understanding the specific functionalities and market alternatives for this specialized software.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to NV5 Geospatial Solutions, Inc. The justification for not competing is not provided, but typically this occurs when a specific product or service is only available from a single source, or for follow-on work where competition is not feasible. The lack of competition means that price discovery through market forces was absent, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the price reflects fair market value.

Public Impact

National Oceanic and Atmospheric Administration (NOAA) scientists and researchers benefit from continued access to essential data analysis software. The software supports critical weather forecasting and climate modeling activities conducted by the National Centers for Environmental Prediction (NCEP). The geographic impact is national, as NCEP's services are utilized across the United States. The contract supports the workforce of NV5 Geospatial Solutions, Inc., and potentially other software developers or support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises concerns about the exploration of alternative solutions.
Limited transparency on the justification for not competing the contract.
Potential for vendor lock-in with specialized software.

Positive Signals

Ensures continuity of critical weather forecasting and climate modeling operations.
Firm-fixed-price contract provides budget certainty for NOAA.
Supports a specialized software publisher, contributing to the software ecosystem.

Sector Analysis

The software publishing industry (NAICS 513210) is characterized by a wide range of companies, from large multinational corporations to specialized niche providers. Interactive Data Language (IDL) is a proprietary programming language and array-based computing environment developed by Harris Geospatial Solutions (formerly Exelis Visual Information Solutions, now part of NV5 Geospatial Solutions). It is widely used in scientific research, particularly in atmospheric science, astronomy, and medical imaging, for data analysis and visualization. The market for specialized scientific software can be concentrated, with limited alternatives for users deeply integrated into a specific platform like IDL. This contract represents a small portion of the overall federal spending on software licenses, which is a significant category within IT procurement.

Small Business Impact

This contract does not appear to include any specific small business set-aside provisions. Furthermore, there is no indication of subcontracting requirements aimed at small businesses. As a sole-source award for specialized software, it is unlikely that small businesses would be directly involved as prime contractors. The impact on the small business ecosystem is minimal in this specific procurement, as it does not appear to leverage small business capabilities or promote their participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. The Department of Commerce's Office of Inspector General (OIG) may conduct audits or investigations into federal procurements, particularly those with sole-source justifications or significant dollar values, to ensure compliance and identify potential waste or fraud. Transparency regarding the justification for the sole-source award and the pricing structure would be key to assessing accountability.

Related Government Programs

NOAA Software Licenses
NCEP Data Processing Systems
Scientific Software Procurement
Geospatial Software Contracts
Federal IT Renewals

Risk Flags

Sole-source procurement
Lack of competition
Potential for overpricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $63,000 to NV5 GEOSPATIAL SOLUTIONS, INC.. RENEWAL INTERACTIVE DATA LANGUAGE (IDL) SOFTWARE LICENSE FOR NCEP USERS

Who is the contractor on this award?

The obligated recipient is NV5 GEOSPATIAL SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $63,000.

What is the period of performance?

Start: 2025-05-08. End: 2027-04-30.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and is a renewal. Typically, sole-source justifications for software renewals arise when the software is proprietary and only available from the original vendor or its successor, or when there's a critical need for continuity with an existing system where switching vendors would be prohibitively expensive or disruptive. Without the specific justification document (e.g., a Justification for Other Than Full and Open Competition - JOFOC), it's impossible to definitively state the reason. However, for specialized scientific software like IDL, vendor lock-in due to unique functionalities or integration with existing workflows is a common rationale. This lack of competition means taxpayers may not benefit from potential cost savings that could arise from a competitive bidding process.

How does the $630,000 cost compare to previous IDL software license renewals or similar scientific software procurements?

Direct comparison is difficult without historical data for this specific IDL license renewal or data on comparable scientific software procurements by NOAA or other agencies. The provided data shows a total award amount of $630,000 over approximately two years (722 days). To assess value, one would need to compare this to previous years' spending on the same license, analyze the price per user or per installation, and benchmark against the cost of alternative data analysis software packages that offer similar functionalities. Given the sole-source nature, it's crucial to determine if the price is aligned with fair market value, which often requires market research or consultation with independent experts in scientific software procurement.

What are the primary risks associated with renewing a sole-source software license for critical operational systems like NCEP?

The primary risks associated with renewing a sole-source software license include: 1. **Cost:** Without competition, the vendor has significant leverage, potentially leading to higher prices than could be achieved through bidding. 2. **Vendor Lock-in:** Agencies can become dependent on a single vendor's technology, making it difficult and costly to switch to alternative solutions in the future, even if better or cheaper options emerge. 3. **Lack of Innovation:** The vendor may have less incentive to innovate or improve the product if they are guaranteed renewals. 4. **Security Vulnerabilities:** Reliance on a single vendor could expose the agency to risks if the vendor's security practices are inadequate or if they discontinue support for older versions. 5. **Limited Support:** The vendor might prioritize larger clients or reduce support levels if they perceive the agency as having no alternatives.

What is the expected performance or outcome of this IDL software license renewal for NCEP users?

The expected outcome of this IDL software license renewal is the continued uninterrupted access to a critical data analysis and visualization tool for users at the National Centers for Environmental Prediction (NCEP). IDL is known for its capabilities in processing and analyzing large datasets, which are fundamental to weather forecasting, climate modeling, and atmospheric research. By renewing the license, NOAA ensures that its scientists and researchers can maintain their operational workflows, continue developing predictive models, and generate essential environmental information. The renewal aims to sustain the analytical capabilities required for NCEP's mission-critical functions without disruption.

What has been the historical spending trend for IDL software licenses by NOAA or related agencies?

Historical spending data for IDL software licenses by NOAA or related agencies is not provided in the current data snippet. To determine historical spending trends, one would need to access procurement databases (like FPDS or USASpending.gov) and search for contracts awarded to NV5 Geospatial Solutions, Inc. (and its predecessors) for IDL software by NOAA or other relevant agencies over several fiscal years. Analyzing this data would reveal if the current $630,000 award represents an increase, decrease, or stable spending level compared to previous periods. Understanding these trends is crucial for identifying potential cost escalations or shifts in procurement strategy.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 142070-25-0055JRW

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: L3harris Technologies, Inc

Address: 385 INTERLOCKEN CRESCENT, BROOMFIELD, CO, 80021

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $94,500

Exercised Options: $63,000

Current Obligation: $63,000

Actual Outlays: $31,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline