State Department awards $118.7K for SYSTRAN neural server license and maintenance, with limited competition

Contract Overview

Contract Amount: $118,709 ($118.7K)

Contractor: Systran Software, Inc.

Awarding Agency: Department of State

Start Date: 2023-05-23

End Date: 2027-05-22

Contract Duration: 1,460 days

Daily Burn Rate: $81/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SYSTRAN NEURAL SERVER LICENSE AND MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $118,709.27 to SYSTRAN SOFTWARE, INC. for work described as: SYSTRAN NEURAL SERVER LICENSE AND MAINTENANCE Key points: 1. Value for money is difficult to assess without market benchmarks for this specific software license and maintenance. 2. Competition dynamics indicate a sole-source or limited competition award, potentially impacting price. 3. Risk indicators include the long contract duration (4 years) and the lack of a competitive bidding process. 4. Performance context is limited to the provision of a neural server license and maintenance. 5. Sector positioning is within IT services, specifically software licensing and support.

Value Assessment

Rating: fair

The contract value of $118,709.27 over four years for a SYSTRAN neural server license and maintenance appears moderate. However, without comparable contract data or established market rates for this specialized software, a definitive assessment of value for money is challenging. The pricing structure (firm fixed price) provides cost certainty, but the absence of competition raises questions about whether the government secured the most advantageous pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under the Simplified Acquisition Procedures (SAP), and the data indicates it was a 'NOT COMPETED UNDER SAP' award, suggesting it may have been sole-source or awarded under specific exceptions to full and open competition. The limited competition means there were likely few, if any, alternative vendors considered, which can reduce price pressure and potentially lead to higher costs for the government.

Taxpayer Impact: Limited competition means taxpayers may not have benefited from the most competitive pricing that could have been achieved through a broader bidding process.

Public Impact

The primary beneficiary is the Department of State, which receives the SYSTRAN neural server license and maintenance. The service delivered is access to and support for advanced language processing technology. The geographic impact is primarily within the District of Columbia, where the agency is located. Workforce implications are likely related to personnel who will utilize or manage the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of full and open competition may lead to suboptimal pricing.
Long contract duration without clear performance metrics could pose a risk.
Reliance on a single vendor for specialized software can create vendor lock-in.

Positive Signals

Firm fixed price contract provides cost predictability.
The software addresses a specific need for neural server technology.
The vendor, SYSTRAN SOFTWARE, INC., is a known provider in the language technology space.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software licensing and maintenance for advanced language processing. The market for specialized neural server technology can be niche, with a limited number of providers capable of offering such solutions. Comparable spending benchmarks are difficult to establish without more granular data on the specific features and scale of the SYSTRAN neural server being licensed.

Small Business Impact

The data indicates this contract was not competed under SAP and does not specify small business set-asides. Given the specialized nature of the software, it is unlikely that small businesses were primary bidders unless they were resellers or integrators. There is no explicit information on subcontracting plans for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of State's contracting and program management offices. Accountability measures are established through the contract's terms and conditions, including the firm fixed price and delivery schedule. Transparency is limited due to the non-competitive nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Software Licenses
IT Services
Language Processing Software
Neural Networks
Cloud Computing Services

Risk Flags

Limited Competition
Long Contract Duration
Potential for Vendor Lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $118,709.27 to SYSTRAN SOFTWARE, INC.. SYSTRAN NEURAL SERVER LICENSE AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is SYSTRAN SOFTWARE, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $118,709.27.

What is the period of performance?

Start: 2023-05-23. End: 2027-05-22.

What is the specific functionality and intended use of the SYSTRAN NEURAL SERVER license being procured?

The SYSTRAN NEURAL SERVER license and maintenance are procured to provide advanced language processing capabilities. SYSTRAN is a company specializing in machine translation and natural language processing (NLP) technologies. This specific license likely enables the Department of State to leverage neural machine translation (NMT) models for tasks such as translating large volumes of text, analyzing sentiment, extracting information, or powering real-time communication tools. The 'neural server' aspect suggests it's a dedicated hardware or software environment optimized for running these computationally intensive AI models, potentially for on-premise deployment or high-performance cloud integration, ensuring data security and rapid processing for sensitive government communications or intelligence analysis.

How does the $118,709.27 cost compare to similar neural server licenses or maintenance agreements in the federal market?

Benchmarking the $118,709.27 cost for the SYSTRAN neural server license and maintenance against similar federal contracts is challenging without more specific details on the license scope (e.g., number of users, processing capacity, specific modules included) and the exact nature of the maintenance services. However, for specialized enterprise software licenses and multi-year support, this figure appears to be on the lower end, especially if it covers significant processing power or advanced features. Many large-scale enterprise software agreements, particularly those involving AI and advanced analytics, can run into hundreds of thousands or even millions of dollars annually. The limited competition aspect, however, means this price might not reflect the best possible market value achievable through a competitive process.

What are the primary risks associated with a sole-source or limited competition award for this type of software?

The primary risks associated with a sole-source or limited competition award for specialized software like the SYSTRAN neural server license include: 1) Inflated Pricing: Without competitive pressure, the vendor may charge a premium, leading to the government paying more than necessary. 2) Limited Innovation: The agency may miss out on potentially superior or more cost-effective solutions offered by other vendors. 3) Vendor Lock-in: Dependence on a single provider can make future transitions difficult and costly, especially if the vendor's technology becomes outdated or their pricing increases significantly. 4) Reduced Service Quality: The vendor might have less incentive to provide exceptional customer support or timely updates if they know the client has limited alternatives. 5) Lack of Transparency: The procurement process is less transparent, making it harder to justify the expenditure to oversight bodies and taxpayers.

What is SYSTRAN SOFTWARE, INC.'s track record with the federal government, particularly for similar IT services?

SYSTRAN SOFTWARE, INC. has a history of providing language translation and processing solutions to the U.S. federal government. Federal procurement databases show various contracts awarded to SYSTRAN for software licenses, maintenance, and related services across different agencies, including defense and intelligence communities. These contracts often involve translation engines, customization, and integration support. While specific details on the scale and nature of past contracts vary, SYSTRAN is recognized as a long-standing player in the machine translation market. The Department of State's award suggests continued reliance on their technology for specific language-related mission requirements, indicating a level of satisfaction or unique capability alignment with their offerings.

How does the 4-year duration (1460 days) impact the assessment of this contract's value and risk?

The 4-year duration (1460 days) for the SYSTRAN neural server license and maintenance has mixed implications for value and risk. On the positive side, a longer-term commitment can provide cost stability and predictability, potentially securing a lower annual rate than multiple short-term renewals. It also allows the agency to fully integrate and leverage the technology without frequent procurement cycles. However, it also increases risk, particularly in the rapidly evolving IT and AI landscape. Technology can become obsolete quickly, and a 4-year commitment might lock the government into a solution that is surpassed by newer, more efficient, or more secure alternatives. Furthermore, it extends the period during which the government is reliant on a single vendor, potentially exacerbating vendor lock-in issues and limiting flexibility to adapt to changing mission needs or budget constraints.

Industry Classification

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

Product/Service Code: IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4445 EASTGATE MALL, SAN DIEGO, CA, 92121

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $129,487

Exercised Options: $118,709

Current Obligation: $118,709

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline