DHS renews Blackberry Enterprise support for $3.18M, raising questions on value and competition

Contract Overview

Contract Amount: $3,181,373 ($3.2M)

Contractor: Anacapa Micro Products, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-09-29

End Date: 2025-09-28

Contract Duration: 364 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ANNUAL SOFTWARE LICENSES AND SUPPORT MAINTENANCE RENEWAL FOR BLACKBERRY ENTERPRISE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.2 million to ANACAPA MICRO PRODUCTS, INC. for work described as: ANNUAL SOFTWARE LICENSES AND SUPPORT MAINTENANCE RENEWAL FOR BLACKBERRY ENTERPRISE Key points: 1. Annual software license and support renewal for Blackberry Enterprise. 2. Contract awarded to ANACAPA MICRO PRODUCTS, INC. 3. Contract duration is 364 days. 4. This is a renewal of existing services. 5. The contract was awarded under Full and Open Competition after Exclusion of Sources. 6. The total award amount is $3,181,372.72. 7. The contract is Firm Fixed Price.

Value Assessment

Rating: fair

The annual cost of $3.18 million for Blackberry Enterprise software licenses and support maintenance appears high for a single vendor renewal. Without comparative data on similar enterprise mobility management solutions or specific feature sets included in this renewal, it is difficult to definitively benchmark value. The firm fixed price structure provides cost certainty, but the lack of competitive bidding history makes it challenging to assess if this price reflects market rates or potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' which suggests that while competition was sought, specific sources may have been excluded for reasons not detailed in the provided data. The 'no' field indicating '2' might refer to the number of bids received or the number of excluded sources, but without clarification, the level of competition remains unclear. This limited competition could potentially lead to less favorable pricing for the government.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the limited nature of the competition, as the government may not have benefited from a wider range of bids.

Public Impact

This contract ensures the continued operation of Blackberry Enterprise services for U.S. Immigration and Customs Enforcement (ICE). ICE personnel will maintain access to secure mobile communication and data management capabilities. The services are delivered within the District of Columbia. The contract supports the technology infrastructure necessary for ICE's law enforcement and national security missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpricing.
Lack of detailed justification for excluding sources hinders transparency.
Reliance on a single vendor for critical enterprise software can create lock-in.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Renewal ensures continuity of essential services for a key agency.
Awarding to a known entity may indicate a stable, albeit potentially less competitive, relationship.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on enterprise software licensing and support. The market for enterprise mobility management (EMM) and secure communication platforms is mature, with various established vendors. However, specialized legacy systems like Blackberry Enterprise can sometimes operate in niche markets with limited vendor alternatives, potentially impacting competition and pricing.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it mention subcontracting requirements. Given the nature of enterprise software licensing and support for a large federal agency, it is unlikely that small businesses would be primary awardees unless they are specialized resellers or support partners. Further analysis would be needed to determine if any subcontracting opportunities exist.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. The firm fixed price nature of the contract provides a degree of financial oversight. Transparency regarding the 'Exclusion of Sources' justification would be crucial for a thorough assessment of accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Blackberry Enterprise Services
Mobile Device Management Software
Software Licensing and Maintenance
Department of Homeland Security IT Contracts
Immigration and Customs Enforcement Technology

Risk Flags

Limited competition
Potential for overpricing
Legacy system reliance
Lack of transparency in source exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.2 million to ANACAPA MICRO PRODUCTS, INC.. ANNUAL SOFTWARE LICENSES AND SUPPORT MAINTENANCE RENEWAL FOR BLACKBERRY ENTERPRISE

Who is the contractor on this award?

The obligated recipient is ANACAPA MICRO PRODUCTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2024-09-29. End: 2025-09-28.

What is the historical spending trend for Blackberry Enterprise support at ICE?

To assess the historical spending trend, one would need to examine previous contract awards for Blackberry Enterprise software licenses and support maintenance by U.S. Immigration and Customs Enforcement (ICE) over several fiscal years. This analysis would involve identifying all relevant contract vehicles, their award amounts, durations, and the contractors involved. By comparing the current $3.18 million award to previous expenditures, trends such as increasing, decreasing, or stable costs can be identified. For instance, if previous renewals were significantly lower, it might indicate price escalation or increased scope. Conversely, if costs have remained consistent or decreased, it could suggest stable pricing or effective negotiation. Understanding these historical patterns is crucial for evaluating whether the current expenditure represents a fair market value and for identifying any anomalies that warrant further investigation into the contract's pricing and justification.

How does the cost of this Blackberry Enterprise support compare to similar enterprise mobility management solutions?

Benchmarking the cost of this Blackberry Enterprise support against similar enterprise mobility management (EMM) solutions requires access to market research data and pricing information for comparable services from other vendors. This would involve identifying alternative EMM platforms (e.g., Microsoft Intune, VMware Workspace ONE, MobileIron) and their associated annual licensing and support costs for an organization of ICE's size and user base. Factors such as the number of users, features included (e.g., security, application management, device provisioning), and service level agreements (SLAs) must be considered for a fair comparison. If this Blackberry renewal significantly exceeds the costs of comparable, potentially more modern, EMM solutions on a per-user or per-feature basis, it would indicate potential overspending or a lack of competitive pressure driving down prices. Conversely, if it aligns with or is lower than market rates for similar enterprise-grade security and management capabilities, it might represent a reasonable expenditure, albeit within a potentially limited competitive landscape.

What specific justification was provided for excluding other sources in this 'Full and Open Competition after Exclusion of Sources' award?

The justification for excluding other sources under a 'Full and Open Competition after Exclusion of Sources' award is critical for understanding the procurement's integrity and potential value for taxpayers. Typically, such exclusions are based on specific technical requirements, existing infrastructure compatibility, unique capabilities, or urgent needs that only a particular vendor or a limited set of vendors can meet. For this Blackberry Enterprise contract, the justification would likely revolve around the proprietary nature of the Blackberry Enterprise software and the need for specialized support and maintenance that only authorized providers, like ANACAPA MICRO PRODUCTS, INC., can offer. Without access to the official justification document (e.g., a Justification and Approval - J&A), it's impossible to definitively assess whether the exclusion was warranted or if it unnecessarily limited competition, potentially leading to higher costs. A thorough review would examine if less restrictive means could have achieved the same outcome or if the exclusion was based on sound technical and operational reasoning.

What is the track record of ANACAPA MICRO PRODUCTS, INC. in providing similar services to federal agencies?

Assessing the track record of ANACAPA MICRO PRODUCTS, INC. involves reviewing their past performance on federal contracts, particularly those involving software licensing, maintenance, and support for enterprise systems. This includes examining contract databases (like FPDS or SAM.gov) for previous awards, contract values, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or disputes. A history of successful, on-time, and within-budget contract completions, coupled with positive performance reviews, would indicate reliability and competence. Conversely, a record marred by performance failures, contract disputes, or significant cost overruns would raise concerns about their ability to deliver effectively on this current renewal. Understanding their experience specifically with Blackberry Enterprise systems would be particularly relevant.

What are the potential risks associated with renewing a contract for a legacy system like Blackberry Enterprise?

Renewing a contract for a legacy system like Blackberry Enterprise carries several potential risks. Firstly, there's the risk of technological obsolescence; Blackberry Enterprise, while once dominant, faces competition from more modern platforms, and its long-term viability or feature set might lag behind current industry standards. This could lead to security vulnerabilities or hinder integration with newer technologies. Secondly, vendor lock-in is a significant risk; reliance on a specific legacy system and its sole or limited support providers can make transitioning to alternative solutions difficult and costly. Thirdly, maintenance and support costs for legacy systems can sometimes increase disproportionately as the vendor shifts focus to newer products or as the user base shrinks. Finally, there's a risk associated with the availability of skilled personnel to support and manage the legacy system, both within the government agency and among support contractors.

Industry Classification

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

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Anacapa Micro Products Inc.

Address: 1901 SOLAR DR STE 150, OXNARD, CA, 93036

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

Financial Breakdown

Contract Ceiling: $3,181,373

Exercised Options: $3,181,373

Current Obligation: $3,181,373

Actual Outlays: $3,181,373

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC12D00014

IDV Type: IDC

Timeline