EPA Spends $10.5M on Documentum Licenses with Merlin International, Inc. over 8 Years
Contract Overview
Contract Amount: $10,563,283 ($10.6M)
Contractor: Merlin International, Inc.
Awarding Agency: Environmental Protection Agency
Start Date: 2004-09-30
End Date: 2012-10-31
Contract Duration: 2,953 days
Daily Burn Rate: $3.6K/day
Number of Offers Received: 3
Pricing Type: COST SHARING
Sector: IT
Official Description: DOCUMENTUM LICENSES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004
Plain-Language Summary
Environmental Protection Agency obligated $10.6 million to MERLIN INTERNATIONAL, INC. for work described as: DOCUMENTUM LICENSES Key points: 1. Significant expenditure on software licensing over an extended period. 2. Merlin International, Inc. is the sole provider for these Documentum licenses. 3. Potential risk associated with long-term reliance on a single vendor. 4. The sector is Information Technology, specifically software licensing and support.
Value Assessment
Rating: fair
The total award of $10.5M over nearly 8 years averages to approximately $1.3M annually. Without specific per-unit pricing or comparison data for Documentum licenses during this period, it's difficult to definitively assess value. However, the duration suggests a sustained need and potentially negotiated rates over time.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded sole-source, indicating a lack of competition. This method limits price discovery and negotiation leverage for the agency, potentially leading to higher costs than if competitive bids were solicited.
Taxpayer Impact: Taxpayer funds were used for this sole-source procurement, and the absence of competition may have resulted in a less cost-effective outcome.
Public Impact
Government reliance on specific software platforms can create long-term vendor lock-in. Sole-source contracts raise concerns about fair pricing and efficient use of taxpayer money. The extended duration of the contract suggests a critical need for the software within the EPA.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Extended contract duration
Positive Signals
- Sustained software availability for EPA operations
Sector Analysis
This contract falls within the Information Technology sector, specifically software licensing. Spending benchmarks for enterprise content management software like Documentum can vary widely based on features, user count, and support levels. The $10.5M over 8 years represents a substantial investment.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract. The award went to a single, likely larger, vendor, potentially bypassing opportunities for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification for not seeking competitive bids. Oversight should ensure the EPA received fair market value despite the lack of competition.
Related Government Programs
- Environmental Protection Agency Contracting
- Environmental Protection Agency Programs
Risk Flags
- Sole-source award limits competition and price discovery.
- Potential for vendor lock-in due to long-term reliance.
- Lack of transparency regarding the justification for sole-sourcing.
- No indication of small business participation.
Tags
environmental-protection-agency, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Environmental Protection Agency awarded $10.6 million to MERLIN INTERNATIONAL, INC.. DOCUMENTUM LICENSES
Who is the contractor on this award?
The obligated recipient is MERLIN INTERNATIONAL, INC..
Which agency awarded this contract?
Awarding agency: Environmental Protection Agency (Environmental Protection Agency).
What is the total obligated amount?
The obligated amount is $10.6 million.
What is the period of performance?
Start: 2004-09-30. End: 2012-10-31.
Was a competitive procurement process explored before determining a sole-source award was necessary for Documentum licenses?
The data indicates a sole-source award, suggesting that a competitive process was either not conducted or deemed not feasible. Agencies typically must justify sole-source procurements, often due to unique capabilities, urgent needs, or compatibility issues. Further documentation would be required to understand the specific rationale behind this decision and whether alternatives were considered.
What was the justification for the extended contract duration of nearly 8 years for Documentum licenses?
Extended contract durations for software licenses are often driven by the need for stability, integration with existing systems, and the costs associated with migrating to new platforms. For enterprise software like Documentum, long-term use is common. However, such durations can also indicate potential vendor lock-in and may warrant periodic re-evaluation of market alternatives.
How does the $10.5M expenditure compare to industry benchmarks for similar Documentum licensing agreements over the same period?
Directly comparing this $10.5M expenditure to industry benchmarks is challenging without detailed information on the specific Documentum modules, user counts, support levels, and the exact timeframe of the licensing agreement. However, for enterprise-level deployments over nearly eight years, this figure represents a significant investment, and its cost-effectiveness would depend heavily on the value derived by the EPA.
Contractor Details
Address: 7730 E BELLEVIEW AVE, ENGLEWOOD, CO, 06
Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $12,563,283
Exercised Options: $12,563,283
Current Obligation: $10,563,283
Parent Contract
Parent Award PIID: GS35F0783M
IDV Type: FSS
Timeline
Start Date: 2004-09-30
Current End Date: 2012-10-31
Potential End Date: 2012-10-31 00:00:00
Last Modified: 2011-12-20
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