Commerce Department's $4.5M IT Services Contract Awarded to Software Information Resource Corp

Contract Overview

Contract Amount: $4,573,855 ($4.6M)

Contractor: Software Information Resource Corp.

Awarding Agency: Department of Commerce

Start Date: 2025-12-25

End Date: 2026-04-30

Contract Duration: 126 days

Daily Burn Rate: $36.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SALESE FORCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $4.6 million to SOFTWARE INFORMATION RESOURCE CORP. for work described as: SALESE FORCE Key points: 1. Contract focuses on IT services, specifically 'Other Computer Related Services', indicating a need for specialized technical support. 2. The contract was awarded under 'Full and Open Competition After Exclusion of Sources', suggesting a competitive process with specific justifications. 3. A fixed-price contract type implies that the contractor bears the risk of cost overruns, potentially benefiting the government. 4. The contract duration of 126 days points to a short-term, project-specific need rather than a long-term service agreement. 5. The award value of $4.57 million for approximately 4 months of service warrants a closer look at per-unit or hourly rates. 6. The contractor, Software Information Resource Corp., has secured this award, highlighting their role in providing IT solutions to federal agencies.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more granular data on the specific services rendered. The award amount of $4.57 million for a 126-day period suggests a significant daily expenditure. Without details on the scope of work, it's difficult to compare directly to similar contracts. However, the fixed-price nature is a positive indicator for cost control. Further analysis would involve understanding the labor categories and rates involved to assess if they align with market expectations for 'Other Computer Related Services'.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This procurement method indicates that while the competition was intended to be open, specific circumstances led to the exclusion of certain sources. This could be due to specialized requirements, prior performance, or other justifications. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a potentially narrower field than a purely open competition. This method can sometimes lead to less aggressive pricing if the pool of eligible bidders is significantly reduced.

Taxpayer Impact: While the competition was not fully open, the 'exclusion of sources' clause implies a deliberate process to ensure the best fit for specific needs. Taxpayers benefit from a competitive process, even if limited, as it aims to secure qualified vendors at reasonable prices, though the potential for higher costs compared to broad open competition exists.

Public Impact

The primary beneficiaries are likely the Department of Commerce's Office of the Secretary, which will receive the IT services. The services delivered are categorized under 'Other Computer Related Services', suggesting support for IT infrastructure, software, or related technical operations. The geographic impact is centered in the District of Columbia, where the contract is managed and likely performed. Workforce implications may include the utilization of specialized IT professionals by the contractor to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' could limit the number of potential bidders, potentially impacting price competitiveness.
The specific nature of 'Other Computer Related Services' requires detailed understanding to ensure the awarded price reflects true market value.
The short contract duration might indicate a critical, time-sensitive need, which can sometimes command premium pricing.

Positive Signals

The contract is awarded under a fixed-price type, which shifts cost overrun risk to the contractor.
The competitive nature, even if limited, suggests an effort to obtain value for taxpayer money.
The award to a specific vendor indicates a selection based on perceived capability to meet the government's IT service needs.

Sector Analysis

The IT services sector is a vast and dynamic market within federal procurement. This contract falls under the 'Other Computer Related Services' NAICS code (541519), which encompasses a broad range of IT support functions not classified elsewhere. Federal spending in this category is substantial, reflecting the government's continuous need for IT modernization and maintenance. Comparable spending benchmarks would typically involve analyzing the average cost of similar IT support contracts across various agencies, considering factors like duration, scope, and contractor experience. The market is characterized by both large prime contractors and numerous specialized small businesses.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'ss: false' and 'sb: false'. The award value is also substantial, suggesting it was likely competed among larger firms or a mix of large and small businesses. 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 subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the Department of Commerce's program officials responsible for the IT services. The fixed-price nature of the contract provides a degree of accountability by capping the government's financial exposure. Transparency is facilitated by the public nature of federal contract awards, allowing for scrutiny. While no specific Inspector General jurisdiction is mentioned, the Department of Commerce's Office of Inspector General would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Professional Services
Computer Systems Design Services
Information Technology Support Services
Cloud Computing Services
Software Development Services

Risk Flags

Limited competition due to exclusion of sources.
Potential for higher costs compared to unrestricted competition.
Need for detailed scope of work to validate value for money.
Contractor's past performance on similar contracts requires review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $4.6 million to SOFTWARE INFORMATION RESOURCE CORP.. SALESE FORCE

Who is the contractor on this award?

The obligated recipient is SOFTWARE INFORMATION RESOURCE CORP..

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $4.6 million.

What is the period of performance?

Start: 2025-12-25. End: 2026-04-30.

What is the specific scope of work for 'Other Computer Related Services' under this contract?

The provided data categorizes this contract under NAICS code 541519, 'Other Computer Related Services'. This broad category typically includes services such as IT consulting, systems integration, network management, data processing services, and IT support that do not fit into more specific IT service codes. Without the detailed Statement of Work (SOW) or Performance Work Statement (PWS), the precise nature of the services remains undefined. However, given the award value and duration, it likely involves significant technical expertise and support for the Department of Commerce's IT infrastructure or operations. Further details would be found in the contract's official documentation.

How does the pricing of this contract compare to similar IT services contracts awarded by the Department of Commerce or other federal agencies?

A direct pricing comparison is challenging without knowing the specific services rendered and the labor categories involved. The contract's total value is $4.57 million over approximately 4 months (126 days). This translates to a daily burn rate of roughly $36,300. To benchmark effectively, one would need to compare this to contracts for similar IT support, consulting, or managed services, considering factors like the number of personnel, their skill levels, and the complexity of the tasks. Federal procurement databases and contract award histories can provide comparable data points, but a precise match is rare due to the unique nature of each contract's SOW.

What are the potential risks associated with a 'Full and Open Competition After Exclusion of Sources' procurement method?

This procurement method, while aiming for competition, introduces specific risks. The 'exclusion of sources' implies that certain potential bidders were deliberately not considered, possibly due to specific technical requirements, past performance issues, or other justifications. This can limit the overall pool of competition, potentially leading to less aggressive pricing than a truly unrestricted open competition. There's also a risk that the excluded sources might have offered a more innovative or cost-effective solution. Ensuring the justification for exclusion was sound and that the remaining competition was robust is crucial for mitigating these risks and ensuring fair market value.

What is the track record of Software Information Resource Corp. in performing federal IT services contracts?

Software Information Resource Corp. (SIRC) has been awarded this $4.57 million contract by the Department of Commerce. To assess their track record, one would need to examine their past performance on similar federal contracts. This includes reviewing contract histories for on-time delivery, quality of services, adherence to budget, and any past performance issues or disputes. Publicly available federal procurement data (like FPDS or SAM.gov) can provide insights into their award history, contract values, and agencies served. A comprehensive review would also look at any past performance evaluations or CPARS (Contractor Performance Assessment Reporting System) ratings, if available.

How does the $4.57 million award value for 126 days align with historical spending patterns for similar IT services at the Department of Commerce?

The award value of $4.57 million for a period of 126 days (approximately 4.2 months) represents a significant investment in IT services. To understand alignment with historical patterns, one would need to analyze the Department of Commerce's spending on NAICS code 541519 ('Other Computer Related Services') and related IT service categories over previous fiscal years. This analysis should consider the average contract values, durations, and the number of contracts awarded annually. If this contract's value per day or per month is significantly higher or lower than historical averages for comparable services, it warrants further investigation into the specific requirements and market conditions.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $4,573,855

Exercised Options: $4,573,855

Current Obligation: $4,573,855

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD74B

IDV Type: GWAC

Timeline