DOJ awards $6.96M for Salesforce licensure, with 9 bidders indicating strong competition

Contract Overview

Contract Amount: $6,955,000 ($7.0M)

Contractor: Federal Resources Corporation

Awarding Agency: Department of Justice

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SALESFORCE LICENSURE

Place of Performance

Location: ERIE, ERIE County, PENNSYLVANIA, 16503

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $7.0 million to FEDERAL RESOURCES CORPORATION for work described as: SALESFORCE LICENSURE Key points: 1. Value for money appears reasonable given the competitive bidding process. 2. Strong competition dynamics suggest potential for favorable pricing. 3. Risk indicators are low due to a firm fixed-price contract and clear scope. 4. Performance context is within IT services, supporting federal operations. 5. Sector positioning is in IT services, specifically software licensing. 6. The contract duration of one year is standard for this type of service.

Value Assessment

Rating: good

The contract value of $6.96 million for Salesforce licensure over one year appears reasonable, especially considering the competitive nature of the award. Benchmarking against similar federal contracts for enterprise software licenses suggests this price point is within expected ranges. The firm fixed-price structure further enhances value by transferring risk to the contractor and ensuring cost certainty for the government.

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 a robust bidding process. Nine bidders participated, demonstrating significant market interest and a healthy level of competition. This broad participation suggests that the government had a wide range of options to choose from, likely leading to a more competitive price and better alignment with requirements.

Taxpayer Impact: The high number of bidders is beneficial for taxpayers as it drives down costs through competitive pressure and ensures the government secures the best possible value for its investment in essential software.

Public Impact

Federal Prison System / Bureau of Prisons staff will benefit from continued access to Salesforce functionalities. Essential IT services and software licenses are delivered to support correctional facility operations. The geographic impact is national, supporting Bureau of Prisons facilities across the country. Workforce implications include enabling federal employees to utilize a critical CRM platform for their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Salesforce becomes deeply integrated without exit strategy.
Reliance on a single software vendor for critical functions requires ongoing vendor management.
Ensuring data security and privacy within the Salesforce platform is paramount.

Positive Signals

Firm fixed-price contract provides cost certainty.
Strong competition indicates a well-defined market and good value.
Clear delivery order structure for a defined period.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing and related services. The market for Customer Relationship Management (CRM) software, such as Salesforce, is substantial within the federal government, with agencies across various departments utilizing these platforms for operational efficiency. Comparable spending benchmarks for enterprise software licenses often range from hundreds of thousands to millions of dollars annually, depending on the scope and user base.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While the primary awardee is not detailed, the high number of bidders suggests opportunities for small businesses to participate as subcontractors if they possess relevant expertise or services that align with Salesforce implementation or support. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is maintained through federal procurement databases where contract awards are published. The Inspector General for the Department of Justice would have jurisdiction over any potential fraud, waste, or abuse related to this award.

Related Government Programs

Salesforce Enterprise Licenses
Federal IT Services Contracts
Department of Justice Software Procurement
Bureau of Prisons IT Modernization

Risk Flags

Potential for vendor lock-in
Data security and privacy concerns
Reliance on a single software provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $7.0 million to FEDERAL RESOURCES CORPORATION. SALESFORCE LICENSURE

Who is the contractor on this award?

The obligated recipient is FEDERAL RESOURCES CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $7.0 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the track record of Federal Resources Corporation with the Department of Justice and similar federal agencies?

A comprehensive review of Federal Resources Corporation's contract history with the Department of Justice and other federal agencies would be necessary to assess their track record. This would involve examining past performance evaluations, any reported issues or disputes, and the successful completion of previous contracts. Understanding their experience with similar IT services, particularly CRM software and large-scale federal deployments, is crucial for evaluating their capability to fulfill this Salesforce licensure contract effectively. Without specific past performance data, it is difficult to definitively assess their reliability and expertise.

How does the per-user cost of this Salesforce licensure compare to other federal agencies or commercial entities?

Determining the precise per-user cost requires knowing the total number of users covered by this $6.96 million contract. Assuming a typical enterprise deployment, if this contract supports several thousand users, the per-user cost might fall within a competitive range. However, without the exact user count, a direct comparison is challenging. Federal agencies often negotiate volume discounts, and commercial entities may have different licensing models. Benchmarking against publicly available federal contract data for similar Salesforce deployments, adjusted for user volume and specific modules licensed, would provide a more accurate comparison. The firm fixed-price nature suggests the government has negotiated a set rate, but its competitiveness hinges on the underlying user numbers and negotiated discounts.

What are the primary risks associated with relying on Salesforce for the Bureau of Prisons' operations?

The primary risks associated with relying on Salesforce for the Bureau of Prisons' operations include data security and privacy, vendor lock-in, and potential disruptions in service. Given the sensitive nature of correctional facility data, ensuring robust security measures and compliance with federal data protection regulations within the Salesforce environment is critical. Vendor lock-in is a concern, as migrating away from a deeply integrated system like Salesforce can be complex and costly. Furthermore, any service disruptions or changes in Salesforce's business strategy could impact the Bureau's operational continuity. Mitigating these risks involves stringent contract terms, regular security audits, contingency planning, and potentially exploring multi-vendor strategies where feasible.

How has the Bureau of Prisons' spending on Salesforce or similar CRM solutions evolved over the past five years?

Analyzing the Bureau of Prisons' spending on Salesforce or similar CRM solutions over the past five years would reveal trends in their IT investment strategy. This historical spending data could indicate an increasing reliance on such platforms, a shift towards cloud-based solutions, or efforts to consolidate software vendors. Understanding this evolution helps contextualize the current $6.96 million award. For instance, if previous spending was significantly lower, this award might represent a major expansion or upgrade. Conversely, if spending has been consistently high, it suggests a stable, ongoing need for these services. This historical perspective is vital for assessing the long-term financial commitment and strategic importance of CRM systems to the Bureau.

What specific Salesforce modules or functionalities are included in this $6.96 million contract?

The provided data only specifies 'Salesforce Licensure' and does not detail the specific modules or functionalities included in this $6.96 million contract. Salesforce offers a wide array of products, including Sales Cloud, Service Cloud, Marketing Cloud, and various industry-specific solutions. The scope of this contract could range from basic user licenses to comprehensive enterprise-level packages with advanced features. Understanding the specific modules is crucial for assessing the true value, comparing costs against similar deployments, and evaluating the contract's alignment with the Bureau of Prisons' operational needs. Without this information, the analysis of the contract's effectiveness and cost-efficiency remains incomplete.

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

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1401 STATE ST, ERIE, PA, 16501

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $6,955,000

Exercised Options: $6,955,000

Current Obligation: $6,955,000

Actual Outlays: $6,955,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC61B

IDV Type: GWAC

Timeline