DoD's $85.6M Software Deployment Contract with Segue Technologies Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $85,642,490 ($85.6M)
Contractor: Segue Technologies, Inc
Awarding Agency: Department of Defense
Start Date: 2019-03-06
End Date: 2023-11-14
Contract Duration: 1,714 days
Daily Burn Rate: $50.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE CONTRACTOR SHALL EXECUTE, DELIVER, AND DEPLOY SCHEDULED SOFTWARE BUILDS AND RELEASES, ALONG WITH NECESSARY SERVICE PACKS REQUIRED TO MAINTAIN MISSION AND SERVICE DELIVERY OPERATIONAL SUITABILITY.
Place of Performance
Location: RANDOLPH AFB, BEXAR County, TEXAS, 78150
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $85.6 million to SEGUE TECHNOLOGIES, INC for work described as: THE CONTRACTOR SHALL EXECUTE, DELIVER, AND DEPLOY SCHEDULED SOFTWARE BUILDS AND RELEASES, ALONG WITH NECESSARY SERVICE PACKS REQUIRED TO MAINTAIN MISSION AND SERVICE DELIVERY OPERATIONAL SUITABILITY. Key points: 1. The contract's substantial value raises questions about cost-effectiveness for software builds and releases. 2. Competition method is 'Full and Open,' but price discovery effectiveness needs further examination. 3. Potential risks include mission-critical software maintenance and operational suitability. 4. The IT sector, specifically computer systems design services, is the focus of this spending.
Value Assessment
Rating: questionable
The contract value of $85.6M for software builds and releases appears high without clear benchmarks for similar services. Further analysis is needed to determine if this represents a fair market price for the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the effectiveness of this competition in achieving optimal pricing for ongoing software deployments requires deeper investigation.
Taxpayer Impact: Taxpayer funds are being utilized for software maintenance and deployment. Ensuring competitive pricing and efficient service delivery is crucial for maximizing the value of this investment.
Public Impact
Ensures operational suitability of critical software for the Air Force. Supports ongoing mission and service delivery through scheduled software updates. Potential impact on Air Force readiness if software maintenance is not cost-effective.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value without clear cost-benefit analysis.
- Potential for cost overruns in software maintenance.
- Limited transparency on specific deliverables and performance metrics.
Positive Signals
- Awarded through full and open competition.
- Aims to maintain operational suitability of critical systems.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending benchmarks for similar software development and maintenance contracts are essential for evaluating the $85.6M award.
Small Business Impact
The data indicates that Segue Technologies, Inc. is the sole awardee. There is no explicit information regarding small business participation or subcontracting opportunities within this contract.
Oversight & Accountability
Oversight is crucial to ensure that the Department of the Air Force is receiving value for money and that Segue Technologies is meeting all performance requirements. Regular performance reviews and audits are recommended.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- High contract value.
- Lack of detailed performance metrics.
- Potential for scope creep.
- Dependency on a single contractor for critical software updates.
Tags
computer-systems-design-services, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $85.6 million to SEGUE TECHNOLOGIES, INC. THE CONTRACTOR SHALL EXECUTE, DELIVER, AND DEPLOY SCHEDULED SOFTWARE BUILDS AND RELEASES, ALONG WITH NECESSARY SERVICE PACKS REQUIRED TO MAINTAIN MISSION AND SERVICE DELIVERY OPERATIONAL SUITABILITY.
Who is the contractor on this award?
The obligated recipient is SEGUE TECHNOLOGIES, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $85.6 million.
What is the period of performance?
Start: 2019-03-06. End: 2023-11-14.
What specific software builds and releases are covered under this contract, and what are the key performance indicators for operational suitability?
The contract specifies 'scheduled software builds and releases' and 'necessary service packs' to maintain 'mission and service delivery operational suitability.' However, detailed specifics on the software systems, release schedules, and quantifiable performance metrics (KPIs) for suitability are not provided in the summary. Further documentation is needed to assess the scope and expected outcomes.
How does the $85.6M contract value compare to industry benchmarks for similar software deployment and maintenance services, considering the duration and scope?
Without detailed scope of work and specific service level agreements, a direct comparison to industry benchmarks is challenging. However, $85.6M over approximately 4.7 years (March 2019 - Nov 2023) suggests a significant annual expenditure. A thorough cost analysis against comparable government and commercial contracts for similar IT services is necessary to ascertain value for money.
What mechanisms are in place to ensure the ongoing effectiveness and efficiency of software maintenance and deployment services provided by Segue Technologies?
The contract is firm fixed price, which provides cost certainty. However, effectiveness and efficiency rely on robust performance monitoring, regular reviews of deliverables against requirements, and clear communication channels between the DoD and Segue Technologies. The existence and rigor of these oversight mechanisms are critical for ensuring continued value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Tetra Tech, Inc.
Address: 104A S COLUMBUS ST, ALEXANDRIA, VA, 22314
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $86,962,640
Exercised Options: $85,741,194
Current Obligation: $85,642,490
Actual Outlays: $47,785,475
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0246K
IDV Type: FSS
Timeline
Start Date: 2019-03-06
Current End Date: 2023-11-14
Potential End Date: 2023-11-14 00:00:00
Last Modified: 2025-04-07
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