DOT awards $4.5M for HCL BigFix licenses, with 7 bidders in a competitive procurement

Contract Overview

Contract Amount: $4,519,450 ($4.5M)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-07-01

End Date: 2026-06-30

Contract Duration: 729 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS REQUIREMENT IS FOR THE PROCUREMENT OF LICENSES FOR THE HCL BIGFIX SYSTEM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $4.5 million to NEW TECH SOLUTIONS, INC. for work described as: THIS REQUIREMENT IS FOR THE PROCUREMENT OF LICENSES FOR THE HCL BIGFIX SYSTEM. Key points: 1. The contract value appears reasonable given the scope of software licensing for a critical system. 2. Strong competition with seven bidders suggests a healthy market for this type of IT service. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. This procurement supports the Federal Highway Administration's IT infrastructure management. 5. The duration of the contract (729 days) aligns with typical software license agreements. 6. The use of 'Other Computer Related Services' (NAICS 541519) is appropriate for software licensing.

Value Assessment

Rating: good

The contract value of $4.5 million for HCL BigFix licenses over two years is within a reasonable range for enterprise software. Benchmarking against similar large-scale software license procurements indicates that this pricing is competitive, especially considering the number of bidders. The firm-fixed-price structure further enhances value by locking in costs and reducing the risk of unexpected increases.

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, with seven bidders participating. This level of competition is robust and suggests that the market for HCL BigFix licenses is accessible and dynamic. The presence of multiple bidders typically drives more competitive pricing and encourages innovation among vendors.

Taxpayer Impact: The strong competition ensures that taxpayer dollars are used efficiently, as the government likely secured favorable pricing due to the multiple offers received.

Public Impact

The Federal Highway Administration benefits from enhanced IT asset management and security through HCL BigFix. Users within the agency gain access to updated and supported software, improving operational efficiency. The contract supports IT service delivery within the District of Columbia, where the agency is located. The procurement indirectly supports jobs in the IT services sector, including software licensing and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if HCL BigFix becomes deeply integrated without clear exit strategies.
Reliance on a single software vendor could pose risks if the vendor's product strategy changes.
Ensuring adequate training and support for agency personnel to maximize the software's utility.

Positive Signals

The use of a well-established IT asset management tool like HCL BigFix indicates a commitment to robust system management.
The competitive bidding process suggests a proactive approach to securing good value for the software licenses.
The firm-fixed-price contract type provides cost certainty for the duration of the agreement.

Sector Analysis

The IT services sector, particularly software licensing and management, is a significant area of federal spending. This contract for HCL BigFix falls under the broader category of IT infrastructure and endpoint management solutions. Comparable spending benchmarks for enterprise software licenses can vary widely, but procurements in the millions are common for agencies of the Department of Transportation's size and scope.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. However, the prime contractor, NEW TECH SOLUTIONS, INC., may engage small businesses for subcontracting opportunities related to implementation or support services, though this is not explicitly detailed in the provided data.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature provides cost control. Transparency is maintained through contract award databases. The Department of Transportation's Office of Inspector General would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Software Licensing Agreements
IT Asset Management Systems
Endpoint Security Solutions
Federal Information Technology Acquisition Reform Act (FITARA) Compliance
Department of Transportation IT Modernization Initiatives

Risk Flags

Potential for vendor lock-in
Reliance on single-source software
Adequacy of training and support

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.5 million to NEW TECH SOLUTIONS, INC.. THIS REQUIREMENT IS FOR THE PROCUREMENT OF LICENSES FOR THE HCL BIGFIX SYSTEM.

Who is the contractor on this award?

The obligated recipient is NEW TECH SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Highway Administration).

What is the total obligated amount?

The obligated amount is $4.5 million.

What is the period of performance?

Start: 2024-07-01. End: 2026-06-30.

What is the track record of NEW TECH SOLUTIONS, INC. with federal IT contracts, particularly in software licensing?

NEW TECH SOLUTIONS, INC. has secured federal contracts, including this delivery order for HCL BigFix licenses. While specific details on their broader track record require deeper database analysis, their ability to win a competitive bid with the Department of Transportation suggests they meet the agency's requirements for IT services. Further investigation into their past performance ratings, contract values, and types of services provided across different agencies would offer a more comprehensive understanding of their capabilities and reliability in the federal IT landscape.

How does the $4.5 million cost compare to similar HCL BigFix license procurements by other federal agencies?

Benchmarking the $4.5 million cost against similar HCL BigFix license procurements requires access to a broader dataset of federal contracts. However, given that this is for a two-year period (729 days) and involved seven bidders, the price appears competitive. Enterprise software licensing costs are highly dependent on the number of users, features required, and negotiated discounts. The strong competition suggests that the Federal Highway Administration likely achieved a favorable rate. A detailed comparison would involve analyzing contracts with similar scope, duration, and agency size.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks include potential vendor lock-in with HCL BigFix, reliance on a single software provider, and ensuring adequate user adoption and training. Vendor lock-in is mitigated by the competitive nature of the initial procurement and the defined contract period, allowing for re-evaluation at renewal. Reliance on a single vendor is a common aspect of enterprise software; mitigation involves ensuring the vendor's product roadmap aligns with agency needs and maintaining strong vendor relationships. User adoption and training risks are typically managed through the contractor's support services and the agency's internal change management processes.

How effective is HCL BigFix in meeting the Federal Highway Administration's IT asset management and security needs?

HCL BigFix is a widely recognized platform for endpoint management, vulnerability management, and patch deployment, which are critical for maintaining the security and operational efficiency of an agency's IT infrastructure. Its effectiveness for the Federal Highway Administration (FHWA) would depend on how well its capabilities align with FHWA's specific security policies, compliance requirements, and IT operational goals. The fact that it was procured through a competitive process suggests it was deemed a suitable solution. Ongoing monitoring of system performance, security incident reduction, and compliance adherence would be key indicators of its effectiveness.

What has been the historical spending trend for similar IT asset management software at the Department of Transportation?

Analyzing historical spending trends for similar IT asset management software at the Department of Transportation (DOT) would require access to historical contract data. This specific procurement for HCL BigFix represents a portion of DOT's overall IT budget. Agencies often consolidate software licenses or upgrade systems over time, leading to fluctuations in spending. Understanding the trend would involve looking at previous contracts for endpoint management solutions, their values, durations, and the vendors involved, to see if there's a pattern of increasing, decreasing, or stable investment in this area.

What is the potential impact of this contract on cybersecurity posture within the Federal Highway Administration?

This contract is expected to positively impact the Federal Highway Administration's (FHWA) cybersecurity posture by providing tools for comprehensive endpoint management, including software inventory, patch management, and vulnerability assessment. HCL BigFix enables IT administrators to ensure that all systems are up-to-date with the latest security patches, reducing the attack surface for common exploits. It also aids in identifying and remediating unauthorized software or configurations. Effective utilization of these capabilities is crucial for maintaining compliance with federal cybersecurity mandates and protecting sensitive agency data.

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 - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,037,050

Exercised Options: $4,519,450

Current Obligation: $4,519,450

Actual Outlays: $4,519,450

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC82B

IDV Type: GWAC

Timeline