FEMA awards $1.13M software renewal to Blue Tech Inc., raising questions about value and competition

Contract Overview

Contract Amount: $113,094 ($113.1K)

Contractor: Blue Tech Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-06-29

End Date: 2022-06-28

Contract Duration: 364 days

Daily Burn Rate: $311/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: ARCSERVE ANNUAL SOFTWARE RENEWAL.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $113,094 to BLUE TECH INC. for work described as: ARCSERVE ANNUAL SOFTWARE RENEWAL. Key points: 1. The contract's value appears reasonable for a one-year software renewal, but detailed benchmarking is needed. 2. Competition was limited, with only two bidders, potentially impacting price discovery. 3. The contract type (Firm Fixed Price) offers cost certainty but may limit flexibility. 4. Performance context is minimal, lacking details on service levels or outcomes. 5. This contract falls within the IT services sector, specifically computer-related services. 6. The renewal suggests ongoing reliance on the awarded software solution.

Value Assessment

Rating: fair

The $1.13 million award for a one-year software renewal represents a significant investment. Without specific details on the software's criticality and market alternatives, a precise value-for-money assessment is challenging. Benchmarking against similar software renewals within government or the private sector for comparable functionalities would be necessary to determine if the pricing is competitive. The firm fixed-price structure provides cost predictability, but the absence of performance metrics makes it difficult to gauge the efficiency of the expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while competition was sought, certain sources may have been excluded prior to the solicitation. With only two bidders, the level of competition was limited. This suggests that the agency may have had specific requirements or constraints that narrowed the field of potential offerors. A limited competition can sometimes lead to higher prices compared to a broad, open competition with numerous bidders.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the most aggressive pricing that could have been achieved with a wider pool of interested vendors.

Public Impact

Federal Emergency Management Agency (FEMA) personnel benefit from continued access to essential software. The software supports critical functions within FEMA, likely related to emergency management or data processing. The geographic impact is primarily within the District of Columbia, where the agency is headquartered. Workforce implications are minimal, as this is a software renewal rather than a new service requiring significant personnel changes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully open bid.
Lack of detailed performance metrics makes it difficult to assess the true value delivered.
The 'Exclusion of Sources' clause warrants further investigation into the reasons for limiting the bidder pool.

Positive Signals

The contract was awarded under a competitive process, albeit limited.
Firm Fixed Price contract provides cost certainty for the agency.
The renewal indicates the software is meeting FEMA's ongoing needs.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under Other Computer Related Services (NAICS 541519). The IT services market is vast and highly competitive, with numerous vendors offering software solutions and related support. Annual software renewals are a common expenditure for government agencies, reflecting the ongoing need for updated and maintained technology. Benchmarking this contract against similar software renewals for agencies of FEMA's size and mission would provide further context on its market positioning.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award to Blue Tech Inc., a company whose size is not specified here, does not explicitly suggest a focus on small business participation. Further analysis would be needed to determine if any small business subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Emergency Management Agency's contracting officers and program managers. The Department of Homeland Security's Office of Inspector General may also conduct audits or investigations into contract performance and spending if concerns arise. Transparency is facilitated through contract databases like FPDS, but detailed performance reports are not always publicly available.

Related Government Programs

FEMA IT Modernization Efforts
Department of Homeland Security Software Procurement
Federal Emergency Management Agency Operations Support
Government-wide IT Services Contracts

Risk Flags

Limited Competition
Lack of Performance Metrics
Unclear Justification for Source Exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $113,094 to BLUE TECH INC.. ARCSERVE ANNUAL SOFTWARE RENEWAL.

Who is the contractor on this award?

The obligated recipient is BLUE TECH INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $113,094.

What is the period of performance?

Start: 2021-06-29. End: 2022-06-28.

What specific software is being renewed, and what are its critical functions for FEMA?

The provided data does not specify the exact software being renewed, only that it falls under 'Other Computer Related Services.' However, given FEMA's mission, the software likely supports critical functions such as disaster response coordination, resource management, data analysis for risk assessment, or communication systems. Understanding the software's specific role is crucial for evaluating its necessity and the value of the renewal. Without this information, it's difficult to ascertain if the $1.13 million expenditure is justified by the criticality of the services provided. Further inquiry with FEMA program officials would be required to identify the software and its operational importance.

How does the $1.13 million annual cost compare to similar software renewals within FEMA or other federal agencies?

Benchmarking the $1.13 million annual cost against similar software renewals is essential for assessing value for money. Without access to detailed comparative data on software licenses, maintenance, and support costs for comparable systems across federal agencies, it is difficult to make a definitive judgment. Factors such as the software's complexity, user base, vendor support levels, and the specific contract terms (e.g., included services, duration) significantly influence pricing. A comprehensive analysis would involve querying contract databases for similar procurements, considering the specific functionalities offered, and potentially consulting industry pricing guides if available. The limited competition (two bidders) also suggests that the price might not reflect the most competitive market rate.

What were the specific reasons for excluding other potential sources in this 'Full and Open Competition After Exclusion of Sources' award?

The designation 'Full and Open Competition After Exclusion of Sources' implies that while the solicitation was intended to be open, certain potential sources were deliberately excluded before the solicitation was issued. The reasons for such exclusions can vary. They might include specific technical requirements that only a limited number of vendors could meet, prior performance issues with certain contractors, or unique capabilities possessed by the selected vendor that are deemed essential. Without further documentation or clarification from FEMA, the precise rationale for excluding other sources remains unknown. Understanding these reasons is critical to assessing whether the exclusion was justified and if it potentially limited competition unfairly, impacting the final price and value.

What performance metrics or service level agreements (SLAs) are associated with this software renewal?

The provided data does not include information on performance metrics or Service Level Agreements (SLAs) for this contract. For a software renewal, especially one costing over a million dollars, it is crucial to have defined performance standards to ensure the agency receives the expected value and functionality. SLAs typically cover aspects like software uptime, response times for technical support, bug resolution timelines, and availability of updates. The absence of this information in the contract summary makes it challenging to objectively evaluate the contractor's performance and the overall effectiveness of the expenditure. A review of the full contract document would be necessary to ascertain if such metrics are included.

What is the track record of Blue Tech Inc. in fulfilling similar government contracts, particularly for FEMA?

The provided data indicates that Blue Tech Inc. is the contractor for this specific award. However, it does not offer details on their broader track record with the government or FEMA. To assess their reliability and past performance, one would need to examine their contract history, including the types of services provided, contract values, duration, and any reported performance issues or successes. Federal procurement databases (like FPDS) can offer insights into a contractor's past performance on other awards. A positive track record with similar contracts would increase confidence in the current award, while a history of issues might raise concerns about Blue Tech Inc.'s ability to deliver effectively for FEMA.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

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

Address: 2251 SAN DIEGO AVE STE B155, SAN DIEGO, CA, 92110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, HUBZone Firm, Manufacturer of Goods, Minority Owned Business, Other Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $113,094

Exercised Options: $113,094

Current Obligation: $113,094

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC12D00012

IDV Type: IDC

Timeline