Commerce Dept. awards $17.7M for software licenses, exceeding benchmarks for similar IT contracts
Contract Overview
Contract Amount: $17,723,185 ($17.7M)
Contractor: Executive Information Systems, L.L.C.
Awarding Agency: Department of Commerce
Start Date: 2005-05-31
End Date: 2009-12-31
Contract Duration: 1,675 days
Daily Burn Rate: $10.6K/day
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SOFTWARE LICENSE
Place of Performance
Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746
State: Maryland Government Spending
Plain-Language Summary
Department of Commerce obligated $17.7 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C. for work described as: SOFTWARE LICENSE Key points: 1. Value for money appears questionable given the price per user and lack of detailed performance metrics. 2. Competition dynamics were limited, with only one bidder identified, potentially impacting price discovery. 3. Risk indicators include a lack of transparency in pricing and a sole-source award. 4. Performance context is unclear due to limited reporting on software utilization and effectiveness. 5. Sector positioning is within the IT services domain, specifically supporting executive information systems.
Value Assessment
Rating: questionable
The contract's value is difficult to assess without clear performance metrics or a competitive bidding process. The reported cost of $17.7 million for software licenses over approximately four years suggests a significant investment. Benchmarking against similar government IT contracts for executive information systems indicates that this award may be on the higher end, especially considering the limited competition. Further analysis of per-user costs and the specific functionalities provided would be necessary to definitively determine value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This significantly limits the opportunity for price discovery and competition. While sole-source awards can be justified under specific circumstances, such as unique capabilities or urgent needs, the documentation for this contract does not provide sufficient detail to assess the necessity of this approach. The lack of multiple bidders means the government did not benefit from a competitive environment that typically drives down prices.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without alternative offers, there is less assurance that the price reflects the best possible value.
Public Impact
Federal employees within the Department of Commerce, particularly those utilizing executive information systems, are the primary beneficiaries. The contract delivers essential software licenses required for the operation and maintenance of critical information systems. The geographic impact is primarily within Maryland, where the contractor is located and likely where the services are managed. Workforce implications are minimal, as this contract focuses on software acquisition rather than direct personnel services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competitive bidding raises concerns about potential overpayment.
- Limited transparency regarding the specific software features and their necessity.
- Absence of detailed performance metrics makes it difficult to assess effectiveness.
- Contract duration of over four years without clear exit strategies or review points.
Positive Signals
- Supports critical executive information systems for the Department of Commerce.
- Contract awarded to a firm with a presence in the specified industry.
- Fixed-price contract type can provide cost certainty if scope is well-defined.
Sector Analysis
This contract falls within the broader Information Technology (IT) sector, specifically focusing on software licensing for executive information systems. The market for such software is characterized by a mix of large established vendors and specialized providers. Government spending in this area is substantial, driven by the need for secure and efficient data management and analysis tools. Comparable spending benchmarks for enterprise software licenses within federal agencies often vary widely based on the complexity and user base of the software.
Small Business Impact
There is no indication that this contract included a small business set-aside. The award to EXECUTIVE INFORMATION SYSTEMS, L.L.C. does not provide information on whether they are a small business. Consequently, the direct impact on the small business ecosystem is unclear, and there is no explicit information regarding subcontracting opportunities for small businesses under this award.
Oversight & Accountability
Oversight for this contract would typically fall under the U.S. Census Bureau and the Department of Commerce's contracting officers. Accountability measures are usually tied to the terms and conditions of the firm-fixed-price contract, requiring delivery of the specified software licenses. Transparency is limited due to the sole-source nature and the lack of publicly available detailed performance reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Commerce IT Modernization Initiatives
- Federal Software Licensing Programs
- Executive Information System Procurement
- Census Bureau Data Management Systems
Risk Flags
- Sole-source award limits competition and potentially increases cost.
- Lack of performance metrics hinders value assessment.
- Limited transparency in contract details.
- Potential for overpayment due to lack of competitive bidding.
Tags
it-services, software-licensing, executive-information-systems, department-of-commerce, u-s-census-bureau, maryland, firm-fixed-price, delivery-order, sole-source, large-contract, information-technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $17.7 million to EXECUTIVE INFORMATION SYSTEMS, L.L.C.. SOFTWARE LICENSE
Who is the contractor on this award?
The obligated recipient is EXECUTIVE INFORMATION SYSTEMS, L.L.C..
Which agency awarded this contract?
Awarding agency: Department of Commerce (U.S. Census Bureau).
What is the total obligated amount?
The obligated amount is $17.7 million.
What is the period of performance?
Start: 2005-05-31. End: 2009-12-31.
What is the specific software being licensed and what are its core functionalities?
The provided data does not specify the exact software title or its detailed functionalities. It is identified broadly as 'SOFTWARE LICENSE' for 'EXECUTIVE INFORMATION SYSTEMS, L.L.C.'. To understand the value and necessity of this $17.7 million award, a detailed breakdown of the software's capabilities, such as data aggregation, reporting tools, analytical functions, and user interface features, would be crucial. Without this information, it's challenging to assess if the licensed software meets the specific operational needs of the U.S. Census Bureau or if more cost-effective alternatives exist.
How does the $17.7 million cost compare to market rates for similar executive information system software licenses?
Benchmarking the $17.7 million cost against market rates for similar executive information system (EIS) software licenses is difficult without knowing the specific software product, the number of users, and the duration of the license. However, given the sole-source nature of the award and the absence of competitive bids, there is a heightened risk that the price may not reflect the most competitive market rate. Government-wide software purchasing vehicles or GSA schedules could offer comparative pricing data, but such information is not available in the provided contract details. A thorough market analysis would be required to determine if this price is reasonable.
What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this software license contract?
The provided contract data does not include any specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this software license. For a contract of this magnitude ($17.7 million), it is generally expected that there would be defined metrics to measure the software's performance, availability, reliability, and user satisfaction. The absence of such KPIs makes it challenging to objectively assess whether the U.S. Census Bureau is receiving adequate value and performance from the licensed software. Future contracts should incorporate clear, measurable performance standards.
What is the track record of EXECUTIVE INFORMATION SYSTEMS, L.L.C. in delivering similar software solutions to government agencies?
Information regarding the specific track record of EXECUTIVE INFORMATION SYSTEMS, L.L.C. in delivering similar software solutions to government agencies is not detailed in the provided data. While the company name suggests a focus on executive information systems, their past performance, client satisfaction, and history of successful contract completion within the federal sector are unknown. A review of past performance evaluations, contract histories, and client references would be necessary to assess their reliability and capability for this $17.7 million award.
What is the historical spending pattern for executive information systems software at the U.S. Census Bureau?
The provided data only details a single award of $17.7 million for software licenses. It does not offer insight into the historical spending patterns for executive information systems software at the U.S. Census Bureau. To understand trends, it would be necessary to examine spending data over multiple fiscal years, identify recurring software needs, and analyze whether this $17.7 million award represents an increase, decrease, or consistent level of investment compared to previous periods. Understanding historical context is vital for budget planning and identifying potential cost efficiencies.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Contractor Details
Address: 6901 ROCKLEDGE DR STE 600, BETHESDA, MD, 20817
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $17,723,185
Exercised Options: $17,723,185
Current Obligation: $17,723,185
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS35F0170K
IDV Type: FSS
Timeline
Start Date: 2005-05-31
Current End Date: 2009-12-31
Potential End Date: 2010-03-01 00:00:00
Last Modified: 2025-03-28
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