GSA Renews Micro Focus COBOL License for $194,909, Exercising Option Year 3

Contract Overview

Contract Amount: $194,909 ($194.9K)

Contractor: Enterprise Technology Solutions, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-30

End Date: 2027-04-29

Contract Duration: 364 days

Daily Burn Rate: $535/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: ADMINISTRATIVE CONTINUANCE MODIFICATION TO EXERCISE OPTION YEAR 3 FOR THE ETSI MICRO FOCUS COBOL LICENSE RENEWAL 73351023F0055

Place of Performance

Location: COLLEGE PARK, PRINCE GEORGES County, MARYLAND, 20740

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $194,909.28 to ENTERPRISE TECHNOLOGY SOLUTIONS, INC. for work described as: ADMINISTRATIVE CONTINUANCE MODIFICATION TO EXERCISE OPTION YEAR 3 FOR THE ETSI MICRO FOCUS COBOL LICENSE RENEWAL 73351023F0055 Key points: 1. This is a renewal of existing software licenses, indicating continued reliance on the technology. 2. The contract was awarded under Full and Open Competition after Exclusion of Sources, suggesting a specific justification for limiting initial bidders. 3. The primary risk is vendor lock-in and potential future price increases for this specialized software. 4. The sector is IT Services, specifically Other Computer Related Services.

Value Assessment

Rating: fair

The price of $194,909.28 for a one-year renewal of COBOL licenses appears reasonable for specialized enterprise software. Benchmarking is difficult without specific license counts and feature sets, but it's within expected ranges for such renewals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This implies that while competition was sought, certain sources were excluded, potentially limiting the competitive landscape and impacting price discovery.

Taxpayer Impact: Taxpayer funds are used for this renewal. The limited competition aspect warrants scrutiny to ensure the price remains fair and represents good value.

Public Impact

Ensures continued operation of systems reliant on COBOL, preventing disruption. Supports government IT infrastructure by maintaining essential software licenses. Potential for increased costs if competition remains limited in future renewals. Highlights reliance on specific vendors for legacy software systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition justification
Potential for vendor lock-in
Reliance on legacy software

Positive Signals

Maintains critical IT functionality
Exercised option year, indicating prior successful performance

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services.' Spending in this area often involves software licenses, maintenance, and support for government systems. Benchmarks vary widely based on software type and agency needs.

Small Business Impact

There is no indication that small businesses were involved in this specific contract action. The focus appears to be on a specialized software renewal with a specific vendor.

Oversight & Accountability

The General Services Administration (GSA) is responsible for this contract. Oversight would involve ensuring the renewal aligns with agency needs and that the pricing remains competitive within the constraints of the limited competition award.

Related Government Programs

Other Computer Related Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Limited competition justification unclear
Potential for price escalation in future renewals
Vendor lock-in risk
Reliance on legacy technology

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $194,909.28 to ENTERPRISE TECHNOLOGY SOLUTIONS, INC.. ADMINISTRATIVE CONTINUANCE MODIFICATION TO EXERCISE OPTION YEAR 3 FOR THE ETSI MICRO FOCUS COBOL LICENSE RENEWAL 73351023F0055

Who is the contractor on this award?

The obligated recipient is ENTERPRISE TECHNOLOGY SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $194,909.28.

What is the period of performance?

Start: 2026-04-30. End: 2027-04-29.

What is the specific justification for excluding sources in the 'Full and Open Competition after Exclusion of Sources' award?

The justification for excluding sources needs to be clearly documented and publicly accessible. Typically, this involves reasons such as unique capabilities, compatibility requirements, or prior investment protection. Without this documentation, it's difficult to assess if the limited competition truly served the government's best interest or if it unnecessarily restricted potential cost savings.

What is the long-term strategy for managing COBOL systems and licenses within the agency?

Understanding the agency's long-term IT modernization strategy is crucial. If COBOL systems are slated for decommissioning, this renewal might be a short-term bridge. However, if they are core to operations, the agency should explore options for more competitive licensing or migration strategies to mitigate future risks and costs associated with legacy software.

How does the per-unit cost of these licenses compare to industry benchmarks for similar COBOL maintenance and support?

A detailed comparison against industry benchmarks for Micro Focus COBOL licenses and support is necessary. This would involve analyzing factors like the number of users, features licensed, and support levels. Without this granular data, assessing the value for money is challenging, and the current price could be either a good deal or an area for potential savings.

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

Solicitation ID: 47QACA26Q0174

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9658 BALTIMORE AVE STE 300, COLLEGE PARK, MD, 20740

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $756,590

Exercised Options: $194,909

Current Obligation: $194,909

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD76B

IDV Type: GWAC

Timeline