Commerce Renews Salesforce Platform for $5.85M with Lancer Information Solutions, Ending Jan 2027

Contract Overview

Contract Amount: $5,849,976 ($5.8M)

Contractor: Lancer Information Solutions, LLC

Awarding Agency: Department of Commerce

Start Date: 2026-01-15

End Date: 2027-01-14

Contract Duration: 364 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SALESFORCE PLATFORM RENEWAL

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $5.8 million to LANCER INFORMATION SOLUTIONS, LLC for work described as: SALESFORCE PLATFORM RENEWAL Key points: 1. The contract is a renewal for the Salesforce platform, indicating ongoing reliance on the service. 2. Lancer Information Solutions, LLC is the awardee, suggesting a specific vendor relationship. 3. The contract value of $5.85 million over one year presents a significant expenditure. 4. The procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' warrants further investigation into the exclusion rationale. 5. The NAICS code 541519 (Other Computer Related Services) places this within the IT services sector.

Value Assessment

Rating: fair

The renewal price of $5.85 million for a one-year term for a Salesforce platform needs comparison against similar government or commercial contracts for comparable scope and user base. Without specific details on the services included, a precise benchmark is difficult, but the amount suggests a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This implies that while competition was intended, certain sources were excluded, potentially limiting the competitive landscape and impacting price discovery. The rationale for exclusion is critical to understanding the fairness of the competition.

Taxpayer Impact: Taxpayer funds are being used for this renewal. The effectiveness of the competition method in securing the best value for taxpayer money is a key consideration.

Public Impact

Government reliance on commercial off-the-shelf software like Salesforce can lead to recurring costs. The specific services provided by Lancer Information Solutions, LLC are not detailed, impacting public understanding of the value. The exclusion of sources in the competition process raises questions about potential missed savings for taxpayers. Renewal of such contracts can indicate a lack of viable alternatives or a strategic decision to maintain continuity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Rationale for exclusion of sources in competition
Lack of detailed service description
Potential for vendor lock-in with platform renewals

Positive Signals

Continued access to a critical platform
Award to a specific vendor may indicate established expertise

Sector Analysis

This contract falls under IT services, specifically 'Other Computer Related Services.' The IT services sector is a significant area of government spending, with benchmarks varying widely based on the type of service, software, and duration. Salesforce platform renewals are common but can represent substantial recurring costs.

Small Business Impact

The awardee is Lancer Information Solutions, LLC, which is not identified as a small business in the provided data. The contract does not indicate any specific set-asides or considerations for small business participation.

Oversight & Accountability

Oversight is needed to ensure the 'exclusion of sources' was justified and that the pricing reflects fair market value. The Department of Commerce's Office of the Secretary is responsible for managing this contract and ensuring accountability for the expenditure.

Related Government Programs

Other Computer Related Services
Department of Commerce Contracting
Office of the Secretary Programs

Risk Flags

Limited competition due to source exclusion
High annual renewal cost for a single platform
Lack of detailed service scope for public review
Potential for vendor lock-in
No indication of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $5.8 million to LANCER INFORMATION SOLUTIONS, LLC. SALESFORCE PLATFORM RENEWAL

Who is the contractor on this award?

The obligated recipient is LANCER INFORMATION SOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2026-01-15. End: 2027-01-14.

What was the specific justification for excluding other potential sources from this full and open competition, and how did this exclusion impact the final price?

The justification for excluding sources is crucial for assessing the integrity of the procurement process. If the exclusion was based on unique capabilities or prior performance, it might be justifiable. However, if it unduly restricted competition, it could have led to a higher price than could have been achieved through broader bidding, ultimately impacting the value for taxpayers.

How does the $5.85 million annual cost compare to industry benchmarks for similar Salesforce platform implementations and support, considering the scope of services provided to the Department of Comme

A comprehensive cost-benefit analysis requires comparing this contract's price against market rates for comparable Salesforce deployments. Factors like user count, modules utilized, customization levels, and support tiers influence pricing. Without these details, it's challenging to definitively assess if the $5.85 million represents excellent value or is inflated due to limited competition or other factors.

What are the long-term strategic implications of renewing the Salesforce platform with this vendor, particularly concerning potential vendor lock-in and future cost containment?

Renewing a platform like Salesforce can lead to vendor lock-in, making it difficult and costly to switch providers later. The Department of Commerce should have a strategy for managing this relationship, including regular performance reviews and exploring cost-saving opportunities. Proactive planning for future needs and potential transitions is essential for effective long-term financial management and avoiding escalating costs.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1818 LIBRARY ST STE 500, RESTON, VA, 20190

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,849,976

Exercised Options: $5,849,976

Current Obligation: $5,849,976

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD29B

IDV Type: GWAC

Timeline