Treasury's $250M Salesforce SEWP contract with Lancer Information Solutions faces scrutiny over competition and value
Contract Overview
Contract Amount: $250,351,503 ($250.4M)
Contractor: Lancer Information Solutions, LLC
Awarding Agency: Department of the Treasury
Start Date: 2025-03-01
End Date: 2027-04-14
Contract Duration: 774 days
Daily Burn Rate: $323.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SALESFORCE SEWP CATALOG NNG15SD29B
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220
Plain-Language Summary
Department of the Treasury obligated $250.4 million to LANCER INFORMATION SOLUTIONS, LLC for work described as: SALESFORCE SEWP CATALOG NNG15SD29B Key points: 1. The contract's large value ($250M) necessitates careful oversight. 2. Competition method (full and open after exclusion of sources) requires detailed justification. 3. Potential risks include vendor lock-in and ensuring competitive pricing. 4. The IT sector context highlights the importance of efficient software and services procurement.
Value Assessment
Rating: questionable
The contract value is substantial, but without specific performance data or comparable contract benchmarks, assessing its value for money is difficult. The 'Other Computer Related Services' NAICS code is broad, making direct price comparisons challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition was 'full and open after exclusion of sources,' indicating a potentially limited initial pool. This method can impact price discovery if not managed rigorously to ensure the best possible pricing is achieved.
Taxpayer Impact: Taxpayer funds are committed to this contract; ensuring competitive pricing and effective service delivery is crucial for maximizing the value of this investment.
Public Impact
Federal agencies rely on platforms like Salesforce for critical operations, impacting service delivery to citizens. The use of SEWP (Solutions for Enterprise-Wide Procurement) aims to streamline IT acquisition, but its effectiveness depends on the specific contract. Transparency in large IT contracts is vital for public trust and accountability in government spending. The duration of the contract (over 6 years) means long-term implications for agency IT strategy and budget.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Competition method requires further justification.
- Lack of detailed performance metrics.
- Broad NAICS code limits direct cost comparison.
- Long contract duration.
Positive Signals
- Utilizes SEWP vehicle for potential efficiency.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services.' Government IT spending is a significant portion of the federal budget, with benchmarks often focusing on software licensing, cloud services, and IT consulting.
Small Business Impact
The contract does not indicate specific set-asides for small businesses, and the prime contractor is not listed as a small business. This suggests a potential missed opportunity for small business participation in this significant federal contract.
Oversight & Accountability
Oversight will be critical to ensure Lancer Information Solutions meets performance expectations and that the Treasury Department actively manages the contract to achieve best value. Regular reviews of pricing and service delivery are essential.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Departmental Offices Programs
Risk Flags
- Limited competition justification.
- Potential for price inflation.
- Lack of small business participation.
- Broad service category.
Tags
other-computer-related-services, department-of-the-treasury, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $250.4 million to LANCER INFORMATION SOLUTIONS, LLC. SALESFORCE SEWP CATALOG NNG15SD29B
Who is the contractor on this award?
The obligated recipient is LANCER INFORMATION SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Departmental Offices).
What is the total obligated amount?
The obligated amount is $250.4 million.
What is the period of performance?
Start: 2025-03-01. End: 2027-04-14.
How does the pricing for Salesforce services under this contract compare to commercial market rates and other government contracts for similar services?
A comprehensive comparison is difficult without specific service details. However, government contracts often aim for discounted rates compared to commercial prices due to volume. The SEWP vehicle itself is intended to provide competitive pricing. Further analysis would require breaking down the $250M into specific Salesforce products and services (e.g., licenses, support, customization) and benchmarking those against GSA schedules, other agency contracts, and commercial price lists.
What are the specific risks associated with the 'full and open competition after exclusion of sources' method for this large IT contract?
This method implies that while the competition was intended to be open, certain sources were excluded, potentially limiting the number of bidders. Risks include reduced price competition if the excluded sources represented significant market players, potential for protests if exclusions are not well-justified, and the possibility that the final awardee may not represent the absolute best value achievable through broader competition.
How effectively will this contract enable the Department of the Treasury to achieve its mission-critical IT objectives over its multi-year duration?
The effectiveness hinges on the alignment of the awarded Salesforce services with Treasury's specific needs and the vendor's ability to deliver. The long duration suggests a strategic investment. Success will depend on robust contract management, clear performance metrics, and adaptability to evolving technological requirements and agency priorities throughout the contract period.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1818 LIBRARY ST STE 500, RESTON, VA, 20190
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $491,317,534
Exercised Options: $257,380,516
Current Obligation: $250,351,503
Actual Outlays: $222,584,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SD29B
IDV Type: GWAC
Timeline
Start Date: 2025-03-01
Current End Date: 2027-04-14
Potential End Date: 2028-04-14 00:00:00
Last Modified: 2025-11-13
More Contracts from Lancer Information Solutions, LLC
- This IS a Delivery Order to Purchase Treasury Enterprise Level Salesforce Software and Services — $60.7M (Department of the Treasury)
- Vmware Vendor Cloud Program for IRS Computer Virtualization Capabilities Covid-19 — $44.1M (Department of the Treasury)
- Enterprise Audit Application and Enterprise Compliance Software Support Award to Lancer Information Solutions, LLC — $12.4M (Department of the Treasury)
- Salesforce Renewal Licenses — $10.0M (Consumer Financial Protection Bureau)
- Counsel Salesforce CRM — $10.0M (Department of the Treasury)
View all Lancer Information Solutions, LLC federal contracts →
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)