DOT's $1.76M software agreement with Software Spectrum Inc. awarded in 2007, spanning over six years

Contract Overview

Contract Amount: $53,201,252 ($53.2M)

Contractor: Software Spectrum, Inc.

Awarding Agency: Department of Transportation

Start Date: 2007-06-28

End Date: 2013-06-30

Contract Duration: 2,194 days

Daily Burn Rate: $24.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AVS IT MICROSOFT AGREEMENT SOFTWARE SPECTRUM QUOTE DATE 06/19/2007 IN THE AMOUNT OF $1,762,251.16 (SEE ATTACHED QUOTE ON PAGES 7-9).

Place of Performance

Location: LIBERTY LAKE, SPOKANE County, WASHINGTON, 99019

State: Washington Government Spending

Plain-Language Summary

Department of Transportation obligated $53.2 million to SOFTWARE SPECTRUM, INC. for work described as: AVS IT MICROSOFT AGREEMENT SOFTWARE SPECTRUM QUOTE DATE 06/19/2007 IN THE AMOUNT OF $1,762,251.16 (SEE ATTACHED QUOTE ON PAGES 7-9). Key points: 1. The contract's long duration suggests a need for sustained software support and licensing. 2. Awarded in 2007, the contract predates many modern procurement practices and cloud-based solutions. 3. The fixed-price nature of the contract provides cost certainty for the government. 4. The specific software covered by this agreement is not detailed, limiting a precise value assessment. 5. The absence of competition raises questions about potential overpayment and market responsiveness. 6. The contract's value of $1.76M over six years averages to approximately $293,000 annually. 7. This spending falls under IT services, specifically 'All Other Information Services'.

Value Assessment

Rating: questionable

Benchmarking the value of this 2007 software agreement is challenging due to the lack of specific software details and the age of the contract. Without comparable contracts or market data from that period, it's difficult to definitively assess if the $1.76 million price was competitive or represented good value. The 'NOT COMPETED' status further complicates a fair value assessment, as it suggests a lack of market price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was explicitly marked as 'NOT COMPETED,' indicating a sole-source award. This means the Department of Transportation did not solicit bids from multiple vendors. The reasons for this sole-source determination are not provided, but it typically occurs when only one vendor can provide the required goods or services, or in specific emergency situations. The lack of competition limits the government's ability to secure the best possible pricing through market forces.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. Without a competitive process, the government may not be obtaining the most cost-effective solution available in the market.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary of this software agreement. The contract provides essential software licenses and potentially support services for FAA operations. The geographic impact is likely concentrated within FAA facilities and operational centers. The workforce implications are tied to the IT infrastructure supporting FAA's mission-critical functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in inflated pricing.
The age of the contract raises concerns about the relevance and security of the software.
Absence of detailed justification for sole-source award.
Limited transparency into the specific software and services procured.

Positive Signals

The contract provided necessary software for a significant period.
Firm fixed-price contract offers budget predictability.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically under 'All Other Information Services.' The IT services market is vast and dynamic, with software licensing and support being a significant component. Contracts of this nature are common across federal agencies to maintain their technological infrastructure. However, the market has evolved considerably since 2007, with increased emphasis on cloud solutions and more agile procurement methods.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The 'NOT COMPETED' status and the nature of software licensing agreements often do not lend themselves to small business participation unless the primary contractor specifically engages them. Further analysis would be needed to determine if any small business goals were pursued.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve contract officers and program managers within the FAA. However, given the age and sole-source nature of the award, the extent of ongoing oversight and performance monitoring is unclear. Transparency is limited by the lack of detailed public information regarding the specific software and justification for the non-competitive award.

Related Government Programs

Software Licensing Agreements
IT Services Procurement
Federal Aviation Administration IT Spending
Sole-Source IT Contracts

Risk Flags

Sole-source award without clear justification.
Contract awarded over 15 years ago, potentially outdated.
Lack of specific software details hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $53.2 million to SOFTWARE SPECTRUM, INC.. AVS IT MICROSOFT AGREEMENT SOFTWARE SPECTRUM QUOTE DATE 06/19/2007 IN THE AMOUNT OF $1,762,251.16 (SEE ATTACHED QUOTE ON PAGES 7-9).

Who is the contractor on this award?

The obligated recipient is SOFTWARE SPECTRUM, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $53.2 million.

What is the period of performance?

Start: 2007-06-28. End: 2013-06-30.

What specific software was procured under this agreement, and what was its criticality to the FAA's operations?

The provided data does not specify the exact software procured under the "AVS IT MICROSOFT AGREEMENT SOFTWARE SPECTRUM QUOTE DATE 06/19/2007". It is identified broadly under NAICS code 519190 ('All Other Information Services'). Given the contracting agency is the Federal Aviation Administration (FAA), it is plausible the software related to air traffic control systems, data management, or administrative functions. However, without explicit details, its criticality remains speculative. The 'MICROSOFT AGREEMENT' in the title suggests Microsoft products, but the scope could range from operating systems to specialized applications. The lack of specificity hinders a thorough assessment of its operational importance and the justification for a sole-source award.

What was the justification for awarding this contract on a sole-source basis?

The provided data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. However, the specific justification for this determination is not included in the data. Common reasons for sole-source awards include the unavailability of the product or service from any other source, a critical need that cannot be met through competition, or when only one responsible source can provide the required performance. Without the official justification document, it is impossible to verify the validity of the sole-source claim and assess whether competition was genuinely not feasible or if it was simply bypassed.

How does the average annual cost of this contract compare to similar software agreements from the same period?

The contract's total value was $1,762,251.16 over a duration of 2194 days (approximately 6 years), from June 28, 2007, to June 30, 2013. This averages to roughly $293,000 per year. Comparing this to similar software agreements from 2007 is challenging without knowing the specific software and its intended use. The IT market in 2007 was different from today, with different pricing models and vendor landscapes. If this was for enterprise-level operating systems or specialized FAA software, the price might have been within a reasonable range for the time. However, the lack of competition makes it difficult to ascertain if this represented a competitive market price or an inflated cost due to the absence of bidding.

What is the track record of Software Spectrum, Inc. as a federal contractor, particularly concerning sole-source awards?

Software Spectrum, Inc. has a history of federal contracting. However, the provided data focuses on this specific $1.76 million agreement. To assess their track record concerning sole-source awards, a broader analysis of their contract history with the government would be necessary. This would involve examining the number of sole-source versus competitively awarded contracts, the value of those contracts, and any performance issues or disputes. Without this broader context, it's difficult to draw conclusions about their general practices or whether this specific sole-source award was an anomaly or part of a pattern.

Were there any performance issues or contract modifications associated with this agreement?

The provided data does not contain information regarding contract modifications, performance issues, or disputes related to this specific agreement. The data includes the original award amount, start and end dates, and contract type (Firm Fixed Price). To determine if there were performance issues or modifications, one would need to access the contract's official file, which might contain amendments, performance reviews, or related correspondence. The absence of such information in the summary data suggests either a smooth execution or a lack of publicly available details on these aspects.

How does this spending compare to the FAA's overall IT budget during the contract period (2007-2013)?

The $1.76 million spent on this specific software agreement represents a small fraction of the Federal Aviation Administration's (FAA) overall IT budget during the 2007-2013 period. The FAA manages complex and extensive IT systems for air traffic control, safety, and operations, requiring substantial investments. While the exact annual IT budgets for the FAA during those years are not provided here, it's reasonable to assume their total IT spending was in the hundreds of millions, if not billions, of dollars annually. Therefore, this single contract, while significant in its own right, likely constituted a minor portion of the agency's total technology expenditure.

Industry Classification

NAICS: Information › Other Information Services › All Other Information Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Insight, Inc (UEI: 876383589)

Address: 3480 LOTUS DRIVE, PLANO, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $229,953,186

Exercised Options: $53,201,252

Current Obligation: $53,201,252

Parent Contract

Parent Award PIID: DTOS5907A00019

IDV Type: BPA

Timeline