FTC awards $2.89M sole-source contract for CASEMAP maintenance, raising questions on competition and value

Contract Overview

Contract Amount: $288,800 ($288.8K)

Contractor: Relx Inc.

Awarding Agency: Federal Trade Commission

Start Date: 2023-06-01

End Date: 2027-05-31

Contract Duration: 1,460 days

Daily Burn Rate: $198/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CASEMAP MAINT RENEWAL 2023

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20580

State: District of Columbia Government Spending

Plain-Language Summary

Federal Trade Commission obligated $288,800 to RELX INC. for work described as: CASEMAP MAINT RENEWAL 2023 Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract value represents a significant investment in software maintenance for a critical system. 3. Duration of the contract extends over four years, indicating a long-term need. 4. Firm Fixed Price contract type provides cost certainty but may not incentivize efficiency. 5. The specific NAICS code suggests a niche service area within IT. 6. Lack of competition is a key risk indicator for potential overpayment.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source renewals for similar software maintenance. The $2.89 million over four years, averaging $722,000 annually, appears substantial for software maintenance. Without competitive bids, it's difficult to ascertain if this price reflects fair market value or if there's an opportunity for cost savings through a more competitive procurement process. The firm fixed-price structure offers budget predictability but could lead to the government paying more than necessary if the contractor's costs are significantly lower.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. The Federal Trade Commission (FTC) likely justified this approach by citing the need for continued maintenance of the CASEMAP system, potentially due to vendor lock-in or specialized knowledge required. The absence of multiple bidders means there was no opportunity for price discovery through a competitive bidding process, which could lead to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competition. Without bids from other vendors, the FTC cannot be assured they are receiving the best possible price for this essential software maintenance.

Public Impact

The Federal Trade Commission benefits from uninterrupted access to and maintenance of the CASEMAP system, crucial for its operations. Services delivered include essential software maintenance and support for the CASEMAP platform. The contract's geographic impact is primarily within the District of Columbia, where the FTC is headquartered. Workforce implications are minimal, as this contract focuses on maintaining existing software rather than developing new capabilities or requiring significant new personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially leading to higher costs.
Long contract duration without re-competition may reduce incentive for contractor efficiency.
Lack of transparency in the justification for sole-source award.
Potential for vendor lock-in, making future transitions difficult and costly.

Positive Signals

Ensures continuity of critical CASEMAP system operations for the FTC.
Firm Fixed Price contract provides budget certainty for the agency.
Contract awarded to a known entity, potentially reducing initial onboarding risks.

Sector Analysis

This contract falls within the 'Other Computer Related Services' sector, specifically focusing on the maintenance and support of specialized software. The IT services market, particularly for enterprise software maintenance, is often characterized by long-term vendor relationships and specialized expertise. While specific market size data for CASEMAP maintenance is not readily available, the broader market for IT maintenance and support services is substantial, with significant government spending allocated annually. This contract represents a portion of that spending dedicated to ensuring the operational readiness of a key government IT system.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, RELX INC., is a large corporation. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, this contract is unlikely to directly benefit the small business ecosystem or promote subcontracting opportunities for them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Trade Commission's internal procurement and financial management offices. As a sole-source award, it may undergo heightened scrutiny to ensure the justification for non-competition is sound. Transparency regarding the specific justification for the sole-source award and the pricing structure would be key to assessing accountability. The contract does not explicitly mention Inspector General jurisdiction, but the FTC's Office of Inspector General would likely have oversight capabilities over federal spending.

Related Government Programs

Software Maintenance Contracts
IT Services for Federal Agencies
Sole-Source Procurements
Federal Trade Commission IT Spending

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for overpayment
Long-term contract duration without re-competition

Frequently Asked Questions

What is this federal contract paying for?

Federal Trade Commission awarded $288,800 to RELX INC.. CASEMAP MAINT RENEWAL 2023

Who is the contractor on this award?

The obligated recipient is RELX INC..

Which agency awarded this contract?

Awarding agency: Federal Trade Commission (Federal Trade Commission).

What is the total obligated amount?

The obligated amount is $288,800.

What is the period of performance?

Start: 2023-06-01. End: 2027-05-31.

What is the historical spending pattern for CASEMAP maintenance by the Federal Trade Commission?

Historical spending data for CASEMAP maintenance prior to this $2.89 million award is not provided in the current dataset. To conduct a thorough analysis, one would need to access historical contract databases (e.g., FPDS-NG) to identify previous awards for CASEMAP maintenance, their values, durations, and procurement methods. Understanding past spending would help determine if the current award represents an increase or decrease in cost, and whether previous procurements were also sole-source or competed. This context is crucial for assessing the value-for-money of the current contract and identifying any trends in spending or procurement strategy for this specific software.

What specific functionalities does the CASEMAP software provide to the FTC, and why is its maintenance critical?

The provided data does not detail the specific functionalities of the CASEMAP software. However, given its award to RELX INC. (a company with diverse information and analytics services) and the NAICS code '541519 - Other Computer Related Services,' it is likely a specialized software solution critical to the FTC's core mission. This could range from case management and legal research to data analysis and document management. The criticality of its maintenance stems from the need to ensure uninterrupted operation, security, and potentially access to updated features or bug fixes, which are essential for the agency's ability to perform its regulatory and enforcement duties effectively. Without this maintenance, the FTC could face operational disruptions, data integrity issues, or security vulnerabilities.

What is the typical cost range for similar software maintenance contracts in the federal government?

Determining a precise 'typical' cost range for similar software maintenance contracts is complex due to the wide variation in software complexity, vendor pricing, contract terms, and agency needs. However, for enterprise-level software maintenance, annual costs can range from 15% to 25% of the initial software license or development cost. For a contract valued at $2.89 million over four years ($722,000 annually), this suggests CASEMAP is a significant system. To benchmark effectively, one would need to compare it to contracts for similar types of software (e.g., case management, legal tech, data analytics platforms) procured by agencies of comparable size and mission. Sole-source contracts, like this one, often lack direct comparables and may inherently carry a higher price point than competitively bid agreements.

What are the risks associated with a sole-source award for software maintenance, particularly regarding vendor lock-in?

Sole-source awards for software maintenance carry several risks. Primarily, the lack of competition means the government cannot leverage market forces to secure the best possible price, potentially leading to overpayment. Vendor lock-in is a significant concern; once an agency becomes dependent on a specific vendor's proprietary software and maintenance services, switching to a different solution can be prohibitively expensive and complex due to data migration, retraining, and integration challenges. This dependence can reduce the vendor's incentive to offer competitive pricing or high-quality service in subsequent renewals. Furthermore, sole-source awards can sometimes be justified based on urgency or unique capabilities, but without robust justification and oversight, they can mask inefficiencies or a lack of strategic planning in IT procurement.

Does RELX INC. have a track record of performance issues or contract disputes with federal agencies?

Assessing RELX INC.'s specific track record for this particular contract or similar federal engagements requires accessing detailed contract performance databases and legal/dispute records, which are not included in the provided data snippet. RELX INC. is a large, multinational information and analytics company with a broad range of services. While large companies generally have extensive federal contracting histories, performance issues or disputes can arise. A comprehensive review would involve searching contract award histories, past performance evaluations (if publicly available), and any records of protests, claims, or litigation related to their federal contracts. Without this specific data, it's impossible to definitively state their performance history concerning federal software maintenance or similar IT services.

Industry Classification

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

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Relx PLC

Address: 9443 SPRINGBORO PIKE, MIAMISBURG, OH, 45342

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

Financial Breakdown

Contract Ceiling: $374,000

Exercised Options: $288,800

Current Obligation: $288,800

Actual Outlays: $209,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline