Treasury's $43.9M software maintenance contract for TMS awarded to Gallery Systems, Inc. without competition

Contract Overview

Contract Amount: $43,918 ($43.9K)

Contractor: Gallery Systems, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2022-04-01

End Date: 2027-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $24/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE MUSEUM SYSTEM (TMS) LICENSE MAINTENANCE AND SUPPORT

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10004

State: New York Government Spending

Plain-Language Summary

Department of the Treasury obligated $43,918.16 to GALLERY SYSTEMS, INC. for work described as: THE MUSEUM SYSTEM (TMS) LICENSE MAINTENANCE AND SUPPORT Key points: 1. The contract represents a significant investment in maintaining the functionality of the Museum System (TMS) software. 2. Lack of competition raises concerns about potential overpayment and limited innovation. 3. The firm-fixed-price structure aims to control costs, but without competition, its effectiveness is diminished. 4. The duration of the contract (5 years) suggests a long-term reliance on this specific software solution. 5. The software's function (NAICS 511210) places it within the broader software publishing industry. 6. The contract's value, while substantial, needs benchmarking against similar software maintenance agreements.

Value Assessment

Rating: questionable

The contract value of $43.9 million over five years for software maintenance and support is substantial. Without competitive bidding, it is difficult to assess if this represents fair market value. Benchmarking against similar software maintenance contracts for museum collection management systems would be necessary to determine if the pricing is reasonable. The lack of competition could lead to inflated costs compared to what might be achieved through a competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were solicited or considered. This approach bypasses the standard competitive procurement process, which typically involves soliciting bids from multiple qualified vendors. The absence of competition limits the government's ability to explore alternative solutions or negotiate more favorable terms based on market dynamics.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not benefit from the price reductions and innovations that typically arise from a competitive bidding environment.

Public Impact

The primary beneficiaries are the users and administrators of the Museum System (TMS) software, ensuring its continued operation. The contract delivers essential software maintenance and support services, crucial for the functioning of museum collections management. The geographic impact is primarily within New York (SN: NEW YORK), where the contractor is located, but the software's use may be nationwide. There are no direct workforce implications mentioned, but the contract supports the IT infrastructure necessary for government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing and reduced value for taxpayer funds.
Sole-source awards can stifle innovation by not encouraging vendors to offer improved or alternative solutions.
The long contract duration without re-competition could lock the government into a potentially outdated or overpriced solution.
Transparency is reduced due to the absence of a competitive bidding process and public disclosure of alternatives considered.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government, assuming the scope remains unchanged.
The contract ensures the continued availability and support of critical software for museum operations.
The contractor, Gallery Systems, Inc., is likely experienced in providing TMS support, suggesting a degree of reliability.

Sector Analysis

This contract falls within the Software Publishers (NAICS 511210) sector, specifically for specialized software used in managing museum collections. The market for such specialized software can be niche, but the overall IT services and software market is vast. Comparable spending benchmarks would involve looking at other government or large institutional contracts for similar collection management software maintenance and licensing, which are often subject to competitive bidding to ensure value.

Small Business Impact

This contract does not appear to have a small business set-aside (SS: false, SB: false). As a sole-source award, there is no indication of subcontracting opportunities for small businesses. This contract does not directly contribute to the small business ecosystem through set-asides or mandated subcontracting goals.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of the Fiscal Service within the Department of the Treasury. Accountability measures would involve monitoring contract performance against the agreed-upon terms and service levels. Transparency is limited due to the sole-source nature of the award, with fewer public details available compared to a competed contract. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Software Licensing and Maintenance
IT Services
Museum Operations Support
Government IT Infrastructure

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated pricing due to lack of competition.
Risk of vendor lock-in for critical software.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $43,918.16 to GALLERY SYSTEMS, INC.. THE MUSEUM SYSTEM (TMS) LICENSE MAINTENANCE AND SUPPORT

Who is the contractor on this award?

The obligated recipient is GALLERY SYSTEMS, INC..

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 $43,918.16.

What is the period of performance?

Start: 2022-04-01. End: 2027-03-31.

What is the track record of Gallery Systems, Inc. in providing TMS maintenance and support to government agencies?

Information regarding Gallery Systems, Inc.'s specific track record with government agencies for TMS maintenance and support is not detailed in the provided data. However, the award of a sole-source contract of this magnitude suggests a pre-existing relationship or a perceived unique capability. Further investigation would be required to ascertain the company's performance history, client satisfaction, and any past issues or commendations related to similar contracts. Understanding their experience with the specific 'The Museum System' (TMS) software is crucial, as is their ability to meet federal security and compliance standards. Without this context, the justification for a sole-source award remains less robust.

How does the $43.9 million contract value compare to similar software maintenance agreements in the public or private sector?

Benchmarking the $43.9 million contract value for TMS license maintenance and support is challenging without more specific details on the software's features, user base, and the scope of services included. Generally, software maintenance and support contracts can range significantly based on the criticality and complexity of the software. For specialized systems like museum collection management, costs can be higher due to niche development and support requirements. However, the absence of competition for this Treasury contract makes a direct value comparison difficult. A typical competitive process would likely yield pricing data from multiple vendors, allowing for a more accurate assessment of whether this price is at, above, or below market rates. Without such comparisons, it's hard to definitively state if this represents good or poor value for money.

What are the primary risks associated with awarding a sole-source contract for critical software maintenance?

The primary risks associated with awarding a sole-source contract for critical software maintenance include potential overpayment due to the lack of competitive pressure on pricing. There's also a risk of reduced innovation, as the incumbent contractor may have less incentive to improve services or offer cost-saving solutions. Furthermore, the government becomes heavily reliant on a single vendor, creating vendor lock-in and potential difficulties if the vendor's performance declines or if they cease operations. The absence of competition also limits the government's ability to explore alternative, potentially more suitable or cost-effective software solutions. Finally, transparency and public trust can be eroded when significant contracts are awarded without a clear, competitive justification.

What is the expected effectiveness of the Museum System (TMS) software and its maintenance in supporting the Bureau of the Fiscal Service's mission?

The effectiveness of the Museum System (TMS) software and its maintenance in supporting the Bureau of the Fiscal Service's mission is presumed to be high, given the substantial investment and long-term commitment. TMS is typically used for managing collections, exhibitions, and related data within museums. For the Bureau of the Fiscal Service, this likely pertains to managing assets, historical artifacts, or other collections under their purview. Continuous maintenance and support ensure the software's reliability, security, and availability, which are critical for accurate record-keeping, efficient operations, and compliance. The effectiveness hinges on the software's capabilities aligning with the Bureau's specific needs and the quality of the support provided by Gallery Systems, Inc. to keep the system running optimally.

How has federal spending on software publishers like Gallery Systems, Inc. evolved over the past five years?

Federal spending on software publishers, categorized under NAICS code 511210, has generally seen a consistent increase over the past five years, driven by the government's ongoing digital transformation efforts and increasing reliance on software solutions across various agencies. This includes spending on licenses, subscriptions, maintenance, and support for a wide array of software, from enterprise resource planning (ERP) systems to specialized applications. While this specific contract with Gallery Systems, Inc. is a sole-source award, the broader trend indicates a growing federal market for software publishers. Analyzing overall government spending trends in this sector can provide context for individual contract values, although sole-source awards can skew per-vendor spending patterns compared to highly competed segments of the market.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 20340922Q00051

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mitchell & Mccormick, Inc

Address: 5 HANOVER SQ RM 1901, NEW YORK, NY, 10004

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,918

Exercised Options: $43,918

Current Obligation: $43,918

Actual Outlays: $34,607

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline