Education Dept. Spends $47.5M on Software Maintenance with Applied Enterprise Management Corp
Contract Overview
Contract Amount: $47,472,575 ($47.5M)
Contractor: Applied Enterprise Management Corporation
Awarding Agency: Department of Education
Start Date: 2004-01-14
End Date: 2006-09-30
Contract Duration: 990 days
Daily Burn Rate: $48.0K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: OTHER (NONE OF THE ABOVE)
Sector: IT
Official Description: SOFTWARE MAINTENANCE AND OPERATIONS
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Education obligated $47.5 million to APPLIED ENTERPRISE MANAGEMENT CORPORATION for work described as: SOFTWARE MAINTENANCE AND OPERATIONS Key points: 1. Significant spending on software maintenance and operations. 2. Contract awarded to Applied Enterprise Management Corporation. 3. Potential risk associated with non-competitive contract award. 4. Spending falls within the IT sector, specifically data processing and hosting.
Value Assessment
Rating: questionable
The contract value of $47.5M over approximately 2.5 years suggests a high per-year cost. Without specific deliverables or performance metrics, it's difficult to assess value for money against industry benchmarks.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This contract was awarded as a non-competitive delivery order. This limits price discovery and may lead to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive bidding process, impacting taxpayer funds.
Public Impact
Taxpayers may be overpaying for software maintenance due to the lack of competition. The Department of Education relies on a single vendor for critical IT infrastructure services. Lack of transparency in pricing and service delivery could obscure inefficiencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- High contract value
- Lack of clear performance metrics
- Potential for cost overruns
Positive Signals
- Contract supports essential IT services
- Long-term relationship with vendor
Sector Analysis
This contract falls under the IT sector, specifically data processing and hosting services. The average contract value for similar services can vary widely based on scope and duration, but $47.5M over 2.5 years is substantial.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. The non-competitive nature suggests limited opportunity for small business participation.
Oversight & Accountability
Oversight is crucial for non-competitive contracts to ensure fair pricing and adequate service delivery. The Department of Education should have robust internal controls and regular performance reviews in place.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Potential for vendor lock-in.
- Insufficient information on performance metrics.
- High contract value warrants close scrutiny.
- Limited transparency in procurement process.
Tags
computing-infrastructure-providers-data-, department-of-education, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $47.5 million to APPLIED ENTERPRISE MANAGEMENT CORPORATION. SOFTWARE MAINTENANCE AND OPERATIONS
Who is the contractor on this award?
The obligated recipient is APPLIED ENTERPRISE MANAGEMENT CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $47.5 million.
What is the period of performance?
Start: 2004-01-14. End: 2006-09-30.
What specific software maintenance and operations services are being provided under this contract, and how do they align with the Department of Education's mission?
The contract is for 'SOFTWARE MAINTENANCE AND OPERATIONS' under NAICS code 518210 (Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services). While essential for IT infrastructure, the specific services and their direct alignment with educational missions require further detail. Understanding the criticality of these services to the department's operations is key to assessing value.
What is the justification for awarding this contract on a non-competitive basis, and what steps were taken to ensure fair pricing?
The justification for a non-competitive award is not provided in the data. Typically, such awards are made under specific circumstances like urgent needs or sole-source capabilities. Without this justification, it's impossible to assess if fair pricing was achieved or if taxpayer funds were used efficiently. A thorough review of the procurement file is necessary.
How is the effectiveness and efficiency of the services provided by Applied Enterprise Management Corporation being measured and evaluated?
The provided data does not include information on performance metrics or evaluation methods for this contract. Effective oversight requires clear performance standards and regular assessments to ensure the vendor is delivering services as expected and at a reasonable cost. The absence of this data raises concerns about accountability and value for money.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: OTHER (NONE OF THE ABOVE) (3)
Evaluated Preference: NONE
Contractor Details
Address: 14030 THUNDERBOLT PL STE 900, CHANTILLY, VA, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $52,583,074
Exercised Options: $47,472,575
Current Obligation: $47,472,575
Parent Contract
Parent Award PIID: GS35F0412J
IDV Type: FSS
Timeline
Start Date: 2004-01-14
Current End Date: 2006-09-30
Potential End Date: 2010-01-28 00:00:00
Last Modified: 2011-03-24
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