Interior's USGS Renews SAP Software Support for $77.7M, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $77,671 ($77.7K)

Contractor: Software Information Resource Corp.

Awarding Agency: Department of the Interior

Start Date: 2026-04-02

End Date: 2026-09-30

Contract Duration: 181 days

Daily Burn Rate: $429/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: SAP LICENSE CONTRACT RENEWAL ENTERPRISE SUPPORT RENEWAL FOR LIST LICENSED SOFTWARE (UNITS OF $10000 SAP MAINTENANCE BASE)

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20192

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $77,671.45 to SOFTWARE INFORMATION RESOURCE CORP. for work described as: SAP LICENSE CONTRACT RENEWAL ENTERPRISE SUPPORT RENEWAL FOR LIST LICENSED SOFTWARE (UNITS OF $10000 SAP MAINTENANCE BASE) Key points: 1. The contract is for enterprise support and license renewal for SAP software. 2. The awardee is SOFTWARE INFORMATION RESOURCE CORP. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The total value is $77.7 million, with a duration of 181 days. 5. The contract is firm-fixed-price.

Value Assessment

Rating: fair

The contract value of $77.7 million for approximately six months of support seems high, especially considering the per-unit cost is not explicitly detailed. Benchmarking against similar enterprise software support contracts is difficult without more granular data on the specific SAP modules and user counts covered.

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 an attempt to solicit multiple bids. However, the short duration and significant value raise questions about the pricing strategy and whether the competition effectively drove down costs.

Taxpayer Impact: Taxpayers are funding a substantial renewal for essential enterprise software, with the effectiveness of competition in securing the best price for this period needing further scrutiny.

Public Impact

Ensures continued operation of critical USGS data management and analysis systems. Supports scientific research and resource management activities across the U.S. Potential for cost savings if competition truly optimized pricing for this renewal period. Impact on agency's IT budget and resource allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a short duration.
Lack of detailed per-unit cost breakdown.
Potential for price escalation in subsequent renewals.

Positive Signals

Awarded under full and open competition.
Firm-fixed-price contract type provides cost certainty.
Supports critical agency functions.

Sector Analysis

This contract falls within the 'Other Computer Related Services' NAICS code, which encompasses a broad range of IT support and consulting. The spending benchmark for this sector can vary widely based on the specific services and software involved. A $77.7 million renewal for enterprise software support, even for a limited period, suggests a significant investment in critical IT infrastructure.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Given the nature of enterprise software support for large government agencies, it is common for such contracts to be awarded to larger, established vendors or their authorized resellers.

Oversight & Accountability

The contract was awarded under full and open competition, which is a positive sign for oversight. However, the significant expenditure warrants detailed review of the pricing justification and performance metrics to ensure accountability and value for taxpayer money.

Related Government Programs

Other Computer Related Services
Department of the Interior Contracting
U.S. Geological Survey Programs

Risk Flags

High cost for a short duration.
Lack of detailed cost breakdown.
Potential for vendor lock-in with enterprise software.
Need for further justification of competitive process effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $77,671.45 to SOFTWARE INFORMATION RESOURCE CORP.. SAP LICENSE CONTRACT RENEWAL ENTERPRISE SUPPORT RENEWAL FOR LIST LICENSED SOFTWARE (UNITS OF $10000 SAP MAINTENANCE BASE)

Who is the contractor on this award?

The obligated recipient is SOFTWARE INFORMATION RESOURCE CORP..

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $77,671.45.

What is the period of performance?

Start: 2026-04-02. End: 2026-09-30.

What specific SAP modules and user licenses are covered under this renewal, and how does the $77.7 million cost break down per module or user?

The provided data lacks specifics on the SAP modules and user licenses included in this renewal. A detailed breakdown is crucial for understanding the value proposition. Without this, it's difficult to assess if the $77.7 million is justified for the approximately six-month support period, especially when compared to industry standards for similar enterprise software agreements.

Given the 'full and open competition after exclusion of sources' clause, what was the competitive landscape, and how did it influence the final price?

The 'exclusion of sources' clause suggests that while the competition was intended to be open, certain pre-qualified vendors or specific conditions might have limited the pool. Understanding the number of bidders and the justification for excluding other potential sources is key to assessing if this competition truly maximized price discovery and achieved the best possible outcome for taxpayers.

What is the historical spending trend for this SAP license and support, and how does this renewal's cost compare to previous periods?

The provided data does not include historical spending information. To evaluate the effectiveness and value of this renewal, it's essential to compare the current $77.7 million cost against previous contract periods for the same or similar SAP support. Significant price increases or decreases would warrant further investigation into the underlying reasons and their impact on agency operations.

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 - APLLICATIONS

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: 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: $77,671

Exercised Options: $77,671

Current Obligation: $77,671

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD74B

IDV Type: GWAC

Timeline