Commerce Dept. Paid $28.9M for Microsoft Software Assurance in 2009-2010
Contract Overview
Contract Amount: $28,911,523 ($28.9M)
Contractor: Countertrade Products, Inc.
Awarding Agency: Department of Commerce
Start Date: 2009-06-01
End Date: 2015-10-31
Contract Duration: 2,343 days
Daily Burn Rate: $12.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ENTERPRISE AGREEMENT SOFTWARE ASSURANCE. PERIOD OF COVERAGE: BASE YEAR - 6/1/09-5/31/10.
Place of Performance
Location: BOULDER, BOULDER County, COLORADO, 80301, UNITED STATES OF AMERICA
State: Colorado Government Spending
Plain-Language Summary
Department of Commerce obligated $28.9 million to COUNTERTRADE PRODUCTS, INC. for work described as: MICROSOFT ENTERPRISE AGREEMENT SOFTWARE ASSURANCE. PERIOD OF COVERAGE: BASE YEAR - 6/1/09-5/31/10. Key points: 1. Spending on software assurance for enterprise agreements can be a significant recurring cost. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Long-term software assurance can mitigate risks associated with outdated software and security vulnerabilities. 4. The IT sector sees substantial government spending on software licensing and maintenance.
Value Assessment
Rating: fair
The $28.9M cost for one year of software assurance is substantial. Benchmarking against similar enterprise agreements for Microsoft products would be necessary to assess value, as pricing can vary based on volume, negotiation, and specific product suites.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method should theoretically lead to competitive pricing. However, the specific nature of enterprise software agreements and vendor lock-in can sometimes limit true price discovery.
Taxpayer Impact: Taxpayers funded the $28.9M cost for software assurance, which is a significant expenditure for a single year of maintenance and support.
Public Impact
Ensures access to software updates, patches, and technical support for critical government systems. Supports the U.S. Patent and Trademark Office's operational needs through licensed software. Long-term coverage can prevent costly emergency upgrades or security breaches due to unsupported software.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for vendor lock-in with Microsoft enterprise agreements.
- Risk of overpaying if not actively managed and benchmarked against market rates.
- Need to ensure software is fully utilized to justify the assurance cost.
Positive Signals
- Awarded through full and open competition.
- Provides essential software assurance for operational continuity.
- Long-term coverage (base year + options) offers predictable budgeting.
Sector Analysis
This spending falls within the Information Technology sector, specifically on software licensing and maintenance. Government spending on IT, including software, is consistently high, driven by the need for modern and secure digital infrastructure.
Small Business Impact
This contract does not appear to directly involve small businesses as prime contractors. Large enterprise software agreements are typically negotiated with major software vendors.
Oversight & Accountability
The contract was awarded by the Department of Commerce for the U.S. Patent and Trademark Office. Oversight would involve ensuring the terms of the agreement are met and the software is utilized effectively.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Commerce Contracting
- U.S. Patent and Trademark Office Programs
Risk Flags
- High annual cost for software assurance.
- Potential for vendor lock-in.
- Need for ongoing cost-benefit analysis.
- Long contract duration (base + options).
Tags
electronic-computer-manufacturing, department-of-commerce, co, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $28.9 million to COUNTERTRADE PRODUCTS, INC.. MICROSOFT ENTERPRISE AGREEMENT SOFTWARE ASSURANCE. PERIOD OF COVERAGE: BASE YEAR - 6/1/09-5/31/10.
Who is the contractor on this award?
The obligated recipient is COUNTERTRADE PRODUCTS, INC..
Which agency awarded this contract?
Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).
What is the total obligated amount?
The obligated amount is $28.9 million.
What is the period of performance?
Start: 2009-06-01. End: 2015-10-31.
What was the total value of the contract including all option periods?
The provided data only specifies the base year cost of $28,911,523.10. The contract had an end date of 2015-10-31, suggesting multiple option periods beyond the base year ending 5/31/10. To determine the total value, data for all exercised option periods would need to be aggregated.
Were there any performance issues or disputes during the contract period?
The provided data does not contain information regarding performance issues or disputes. A thorough review of contract performance reports, modification history, and any associated documentation would be required to assess this aspect.
How did the pricing compare to commercial market rates at the time of award?
The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION,' which implies a competitive process. However, without specific details on the negotiated discounts, volume, and exact software suite, a direct comparison to commercial market rates is difficult.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5145 IDYLWILD TRL, BOULDER, CO, 80301
Business Categories: 8(a) Program Participant, Category Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $28,913,081
Exercised Options: $28,911,523
Current Obligation: $28,911,523
Parent Contract
Parent Award PIID: DOC45PAPT0903000
IDV Type: BPA
Timeline
Start Date: 2009-06-01
Current End Date: 2015-10-31
Potential End Date: 2015-10-31 00:00:00
Last Modified: 2015-09-15
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