Interior Department renews Splunk license for $441,915, aiming for enhanced data management

Contract Overview

Contract Amount: $441,915 ($441.9K)

Contractor: Blue Tech Inc.

Awarding Agency: Department of the Interior

Start Date: 2026-04-07

End Date: 2027-04-09

Contract Duration: 367 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IMT SPLUNK LICENSE RENEWAL

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $441,915.12 to BLUE TECH INC. for work described as: IMT SPLUNK LICENSE RENEWAL Key points: 1. The contract focuses on software licensing, a common area for recurring government IT expenses. 2. Competition was open, suggesting potential for price negotiation and value for taxpayer dollars. 3. The duration of the contract (over a year) indicates a need for sustained data services. 4. Fixed-price contracts generally offer cost certainty for the government. 5. The specific NAICS code points to a specialized IT service category.

Value Assessment

Rating: good

The total value of $441,915 for a 367-day software license renewal appears reasonable within the context of enterprise-level data management solutions. Benchmarking against similar large-scale software renewals for government agencies would provide a more precise value-for-money assessment. However, given the open competition, it suggests the pricing is likely competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely considered and allowed to bid. The presence of three bidders suggests a healthy level of competition for this type of IT service, which typically benefits price discovery and can lead to more favorable terms for the government.

Taxpayer Impact: Open competition ensures that taxpayers receive the best possible price by allowing multiple qualified vendors to vie for the contract, preventing single-source price inflation.

Public Impact

The Bureau of Reclamation benefits from this contract through access to essential data management and analysis tools. This renewal supports the agency's operational efficiency by ensuring continuity of its Splunk software. The services delivered are critical for managing and interpreting large datasets related to the Bureau's mission. The geographic impact is primarily within the Bureau of Reclamation's operational areas, supporting its national functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not explored during future procurements.
Reliance on a single software vendor for critical data infrastructure requires ongoing vigilance regarding security updates and support.

Positive Signals

The use of open competition mitigates some risks associated with sole-source renewals.
A fixed-price contract provides cost predictability for the duration of the agreement.

Sector Analysis

The IT services sector, particularly software licensing and data management, is a significant area of federal spending. This contract for Splunk software falls within the 'Other Computer Related Services' category (NAICS 541519). Federal agencies increasingly rely on such platforms for data analytics, cybersecurity, and operational monitoring. Comparable spending benchmarks would involve looking at other large-scale software license renewals across various agencies for similar data management solutions.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor is there information on subcontracting plans. As a software license renewal, it is likely that the primary contractor, Blue Tech Inc., is a larger entity capable of fulfilling the requirements. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this renewal.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Department of the Interior's Inspector General may review such contracts for compliance and efficiency. Transparency is facilitated through contract databases like FPDS, where details of the award are publicly available. The fixed-price nature of the contract also provides a degree of financial oversight.

Related Government Programs

Software Licensing Agreements
Data Analytics Services
IT Infrastructure Support
Bureau of Reclamation IT Procurement

Risk Flags

Potential for price escalation in future renewals.
Over-reliance on a single software vendor.
Need for ongoing security patching and updates.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $441,915.12 to BLUE TECH INC.. IMT SPLUNK LICENSE RENEWAL

Who is the contractor on this award?

The obligated recipient is BLUE TECH INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $441,915.12.

What is the period of performance?

Start: 2026-04-07. End: 2027-04-09.

What is the track record of Blue Tech Inc. in fulfilling federal IT contracts, particularly software renewals?

Blue Tech Inc. has a history of securing federal contracts, primarily within the IT services domain. While specific details on their performance for this particular Splunk license renewal would require a deeper dive into past performance reviews and contract close-outs, their ability to win this 'full and open competition' award suggests a demonstrated capability. Agencies often rely on past performance metrics when evaluating bids. A comprehensive review would involve examining their award history, any reported issues on previous contracts, and client feedback if publicly available, to assess their reliability and expertise in managing similar software agreements for government entities.

How does the per-unit cost or overall value of this Splunk license renewal compare to similar government contracts?

Direct per-unit cost comparison is challenging without knowing the exact number of users, features, or modules licensed under this $441,915 award for a 367-day period. However, the fact that it was awarded under 'full and open competition after exclusion of sources' with three bidders suggests a competitive pricing environment. To benchmark effectively, one would need to compare this contract's value against other federal awards for Splunk Enterprise licenses of similar scope and duration, potentially looking at contracts from agencies like the Department of Defense or other large civilian departments. The fixed-price nature provides cost certainty, but ongoing market analysis of software licensing trends is crucial for ensuring continued value.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential vendor lock-in, where the agency becomes overly dependent on Splunk, making future transitions to alternative solutions costly and complex. Another risk is the potential for price increases in future renewals if competition diminishes or if Splunk's market position strengthens. Mitigation strategies observed here include the use of 'full and open competition,' which encourages multiple bids and helps control costs. The fixed-price contract structure also mitigates budget uncertainty. However, proactive management, including regular market research and exploring alternative solutions during the contract period, is essential to manage long-term risks effectively.

How effective is Splunk software in meeting the Bureau of Reclamation's data management and analysis needs?

The effectiveness of Splunk software for the Bureau of Reclamation is implied by the contract renewal itself; agencies typically renew licenses for solutions that provide significant value and meet their operational requirements. Splunk is widely recognized for its capabilities in log management, security information and event management (SIEM), and operational intelligence, allowing organizations to analyze machine data. For the Bureau of Reclamation, this likely translates to improved monitoring of infrastructure, better data-driven decision-making, and enhanced operational efficiency. The renewal suggests the software is fulfilling its intended purpose, though a formal program effectiveness review would provide more concrete data on its impact.

What are the historical spending patterns for Splunk licenses or similar data management tools within the Department of the Interior?

Analyzing historical spending patterns for Splunk or comparable data management tools within the Department of the Interior would reveal trends in IT investment and the agency's reliance on such technologies. This specific renewal at $441,915 represents a recurring cost. To understand the broader pattern, one would examine prior years' spending on Splunk licenses, potentially identifying year-over-year increases or decreases, and comparing this expenditure to investments in alternative data management solutions. Such analysis helps in forecasting future IT budgets and assessing the overall strategic allocation of resources towards data analytics capabilities within the Department.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140R6026Q0039

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4025 HANCOCK ST. STE. 100, SAN DIEGO, CA, 92110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $441,915

Exercised Options: $441,915

Current Obligation: $441,915

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD00B

IDV Type: GWAC

Timeline