Treasury's $3.3M Salesforce order to Lancers Information Solutions for MuleSoft API services

Contract Overview

Contract Amount: $3,336,720 ($3.3M)

Contractor: Lancer Information Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2024-04-28

End Date: 2026-04-27

Contract Duration: 729 days

Daily Burn Rate: $4.6K/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: TREASURY-WIDE SALESFORCE SOFTWARE PRODUCTS CATALOG ORDER - MULESOFT API

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $3.3 million to LANCER INFORMATION SOLUTIONS, LLC for work described as: TREASURY-WIDE SALESFORCE SOFTWARE PRODUCTS CATALOG ORDER - MULESOFT API Key points: 1. Contract awarded for essential API integration services, supporting Treasury's digital infrastructure. 2. Competition was open, suggesting a competitive bidding process for this service. 3. The contract duration of 729 days indicates a medium-term need for these services. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Virginia-based contractor suggests potential for localized economic impact. 6. This order falls under IT services, a critical area for government operations.

Value Assessment

Rating: good

The contract value of $3.34 million for a 729-day period appears reasonable for specialized API integration services. Benchmarking against similar government contracts for Salesforce and MuleSoft integration projects indicates that pricing is within expected ranges. The firm fixed-price structure provides cost predictability for the Bureau of the Fiscal Service. While specific per-unit costs are not detailed, the overall value proposition seems sound given the critical nature of API management for modern IT systems.

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 while the competition was broad, specific circumstances led to the exclusion of certain potential bidders. The exact number of bidders is not specified, but the 'full and open' designation suggests multiple interested parties were considered. This level of competition generally promotes price discovery and encourages competitive pricing.

Taxpayer Impact: The open competition, even with exclusions, likely resulted in a fair market price for taxpayers, preventing excessive costs associated with sole-source or limited competition awards.

Public Impact

Federal agencies utilizing Salesforce and requiring robust API integration will benefit from enhanced data flow and system interoperability. The services delivered will support the modernization and efficiency of Treasury's financial management systems. The primary geographic impact is within the Department of the Treasury's operational footprint. Workforce implications include the need for skilled IT professionals to manage and implement API solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized MuleSoft expertise is not widely available.
Reliance on a single contractor for critical API integration could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost certainty.
Open competition suggests a competitive market for these services.
Contract duration aligns with the expected lifecycle of such IT services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software and API integration. The market for API management and integration platforms like MuleSoft is substantial, with significant government and commercial spending. Comparable spending benchmarks for similar IT services contracts within federal agencies often range from hundreds of thousands to millions of dollars, depending on scope and duration. This contract represents a moderate investment in maintaining and enhancing critical IT infrastructure.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. Large businesses or those capable of competing in an open environment were likely the primary participants.

Oversight & Accountability

Oversight for this contract would primarily reside with the Bureau of the Fiscal Service within the Department of the Treasury. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Salesforce Government Cloud Contracts
API Management Solutions
IT Services for Financial Management
Cloud Integration Services
MuleSoft Software Licensing and Support

Risk Flags

Potential for vendor lock-in
Reliance on specialized software (MuleSoft)
Justification for 'Exclusion of Sources' needs review

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $3.3 million to LANCER INFORMATION SOLUTIONS, LLC. TREASURY-WIDE SALESFORCE SOFTWARE PRODUCTS CATALOG ORDER - MULESOFT API

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 (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2024-04-28. End: 2026-04-27.

What is the track record of Lancers Information Solutions, LLC with federal contracts, particularly in IT services?

Lancers Information Solutions, LLC has a history of federal contracting, primarily within IT services. Analysis of available data indicates they have secured various contracts, often related to software, cloud solutions, and IT support. Their performance history on previous contracts, including delivery timeliness, quality of service, and adherence to budget, would be crucial for assessing their reliability on this Treasury order. While specific details on past performance metrics are not provided here, a review of their contract awards and any associated performance reviews or past performance questionnaires would offer deeper insights into their capabilities and reliability as a federal contractor.

How does the $3.34 million value compare to similar API integration contracts awarded by the Treasury or other federal agencies?

The $3.34 million value for a 729-day (approximately 2-year) contract for Salesforce and MuleSoft API services appears to be within a reasonable range for specialized IT integration projects. Similar contracts for enterprise-level API management and integration solutions within federal agencies can vary significantly based on scope, complexity, and the specific technologies involved. Contracts for large-scale CRM integration or middleware solutions often fall into the multi-million dollar range. Given that this is for Treasury-wide salesforce software products, the value suggests a comprehensive scope of work, likely involving significant integration points and customization, making it comparable to other substantial IT modernization efforts across government.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential performance issues with Lancers Information Solutions, LLC, delays in service delivery impacting Treasury operations, and the possibility of cost overruns if the fixed-price contract doesn't adequately account for unforeseen complexities. Another risk is vendor lock-in, given the specialized nature of MuleSoft. Mitigation strategies likely include robust contract oversight by the Bureau of the Fiscal Service, clearly defined performance metrics and deliverables, and regular progress reviews. The firm fixed-price nature itself acts as a cost mitigation tool. For vendor lock-in, Treasury might ensure knowledge transfer and documentation requirements are stringent.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' approach aims to balance broad market participation with specific requirements that might necessitate excluding certain vendors. While 'full and open' competition is generally preferred for maximizing price discovery and achieving best value, the 'exclusion of sources' element requires careful justification. If the exclusions were based on legitimate technical requirements, security needs, or prior performance issues with specific vendors, then this approach can still yield good value. However, if exclusions are arbitrary or overly restrictive, it could limit competition and potentially lead to higher prices for taxpayers. The effectiveness hinges on the transparency and validity of the reasons for exclusion.

What is the historical spending pattern for similar API integration or Salesforce-related services at the Department of the Treasury?

Historical spending patterns for API integration and Salesforce-related services at the Department of the Treasury likely show a consistent and increasing trend over the years, mirroring broader government-wide digital transformation initiatives. Agencies like Treasury rely heavily on integrated systems for financial management, reporting, and citizen services. Spending in this area typically involves contracts for software licenses, implementation services, customization, ongoing support, and integration with other enterprise systems. The value of individual contracts can range from tens of thousands for smaller projects to several million dollars for large-scale enterprise deployments, reflecting the complexity and criticality of these IT investments.

What are the potential long-term implications of this contract on Treasury's IT infrastructure and vendor relationships?

This contract signifies a commitment to leveraging Salesforce and its associated API capabilities (MuleSoft) for critical functions within the Treasury. The long-term implication is the deepening integration of these platforms into the agency's core operations, potentially leading to increased efficiency and data interoperability. It also solidifies the relationship with Lancers Information Solutions, LLC for this specific service, which could lead to future task orders or extensions if performance is satisfactory. Conversely, it might also signal a strategic direction that could influence future IT procurement decisions, potentially favoring vendors with expertise in the Salesforce ecosystem.

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: 2033H624Q00001

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: $5,557,177

Exercised Options: $3,336,720

Current Obligation: $3,336,720

Actual Outlays: $3,270,708

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD29B

IDV Type: GWAC

Timeline