DOI's $1.6M software license for Flow3D CFD software awarded to Flow Science, Inc

Contract Overview

Contract Amount: $160,600 ($160.6K)

Contractor: Flow Science, Inc

Awarding Agency: Department of the Interior

Start Date: 2023-09-01

End Date: 2027-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $110/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: LICENSE FOR FLOW3D- CFD SOFTWARE

Place of Performance

Location: SANTA FE, SANTA FE County, NEW MEXICO, 87505

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $160,600 to FLOW SCIENCE, INC for work described as: LICENSE FOR FLOW3D- CFD SOFTWARE Key points: 1. Value for money is difficult to assess without market benchmarks for this specialized software. 2. The contract was awarded sole-source, limiting competitive dynamics and potentially impacting price discovery. 3. Risk indicators include the sole-source nature and the long duration, which could lead to price increases. 4. Performance context is limited as this is a software license, not a service contract. 5. The contract positions Flow Science, Inc. as the sole provider for this specific CFD software. 6. The contract duration of four years suggests a sustained need for this particular software.

Value Assessment

Rating: fair

Benchmarking the value of this software license is challenging due to its specialized nature and the lack of competitive bidding. The firm fixed-price contract provides cost certainty for the period. However, without comparative pricing data or a competitive process, it's difficult to definitively state if the $1.6 million represents excellent value. The price is set for the duration, but future renewals could be subject to different market conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning it was not competed. The justification for a sole-source award typically involves a unique capability or proprietary technology that only one vendor can provide. The lack of competition means that the government did not explore alternative solutions or pricing from other potential vendors, which can limit price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure. Without a competitive process, there is less assurance that the price reflects the best possible value for the government.

Public Impact

The U.S. Geological Survey (USGS) within the Department of the Interior benefits from this license. The software is used for Computational Fluid Dynamics (CFD) simulations, likely supporting scientific research and analysis. The geographic impact is national, as the USGS operates across the United States. There are no direct workforce implications mentioned, as this is a software license purchase.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Long contract duration may not reflect evolving software market prices.
Lack of transparency on the specific use cases and performance metrics.

Positive Signals

Firm fixed-price contract provides cost certainty.
Specific software addresses a unique need for the agency.
Long duration indicates sustained operational requirement.

Sector Analysis

The market for specialized Computational Fluid Dynamics (CFD) software is a niche within the broader software publishing industry. Companies like Flow Science, Inc. develop sophisticated simulation tools used in various scientific and engineering fields. The total addressable market for such specialized software can be significant, but it is often fragmented by specific application areas. This contract represents a direct purchase of a license for a specific tool, fitting within the government's broader IT and R&D spending categories.

Small Business Impact

This contract does not appear to involve any small business set-asides or subcontracting requirements. The award is made directly to Flow Science, Inc., a specific software publisher. Therefore, there is no direct impact on the small business ecosystem from this particular award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's internal procurement and financial management systems. The U.S. Geological Survey is responsible for ensuring the software is utilized as intended and that payments are made according to the contract terms. Transparency is limited due to the sole-source nature of the award, but contract details are publicly available through federal procurement databases.

Related Government Programs

Software Licenses
Computational Fluid Dynamics Software
Scientific Simulation Software
Department of the Interior IT Spending
U.S. Geological Survey Research Support

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpayment due to lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $160,600 to FLOW SCIENCE, INC. LICENSE FOR FLOW3D- CFD SOFTWARE

Who is the contractor on this award?

The obligated recipient is FLOW SCIENCE, INC.

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 $160,600.

What is the period of performance?

Start: 2023-09-01. End: 2027-08-31.

What is the specific application or research area for which the USGS requires Flow3D CFD software?

The provided data does not specify the exact application or research area for which the U.S. Geological Survey (USGS) requires the Flow3D CFD software. However, Flow3D is known for its capabilities in simulating fluid flow, heat transfer, and related phenomena. Given the USGS's mission, potential applications could include hydrological modeling, groundwater flow analysis, sediment transport studies, coastal engineering simulations, or environmental contaminant transport modeling. Understanding the specific use case would be crucial for a more in-depth value assessment and to determine if alternative software solutions could meet the same requirements.

How does the $1.6 million price compare to previous purchases of Flow3D licenses by the government or similar agencies?

Without access to historical pricing data for Flow3D licenses, either from the USGS or other federal agencies, a direct comparison is not possible. The sole-source nature of this award further complicates benchmarking. To assess value, one would ideally look at prior contract awards for the same software, or comparable CFD software from other vendors, to identify trends in pricing and identify any significant deviations. The current data does not provide this comparative context, making it difficult to determine if this $1.6 million represents an increase or decrease compared to past expenditures or market rates.

What is Flow Science, Inc.'s track record with government contracts, particularly with the Department of the Interior?

The provided data indicates that Flow Science, Inc. is the contractor for this specific software license. However, it does not offer details on their broader track record with government contracts, including past performance, past disputes, or the volume and value of previous awards. A comprehensive assessment would require reviewing federal procurement databases (like SAM.gov or FPDS) for other contracts awarded to Flow Science, Inc., especially by the Department of the Interior or the U.S. Geological Survey, to understand their history of performance, compliance, and overall reliability as a government vendor.

What are the key performance indicators or deliverables associated with this software license purchase?

As this is a license for software, the primary 'deliverable' is the right to use the Flow3D CFD software for the specified duration (September 1, 2023, to August 31, 2027). Key performance indicators (KPIs) are not typically associated with software license purchases in the same way they are for service contracts. Instead, the performance is measured by the software's functionality, reliability, and its ability to meet the scientific and analytical needs of the U.S. Geological Survey. The agency's internal assessment of the software's utility and effectiveness in supporting its research and operational objectives would constitute the performance evaluation.

Are there any known risks associated with the sole-source procurement of specialized software like Flow3D?

Yes, sole-source procurements of specialized software like Flow3D carry several known risks. The most significant is the lack of price competition, which can lead to the government paying a premium compared to what might be achieved in a competitive bidding environment. Another risk is vendor lock-in; once an agency becomes reliant on a specific proprietary software, it can be difficult and costly to switch to alternatives, even if better or more cost-effective options emerge. Furthermore, sole-source awards can sometimes indicate a lack of market research or an insufficient understanding of available commercial off-the-shelf (COTS) solutions that might meet the agency's needs more affordably. Finally, without competition, there's less incentive for the vendor to offer the most favorable terms or pricing.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 683 HARKLE RD STE A, SANTA FE, NM, 87505

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

Financial Breakdown

Contract Ceiling: $160,600

Exercised Options: $160,600

Current Obligation: $160,600

Actual Outlays: $160,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline