Dod's $7.8M IBM Tririga ELA for Nexgen IT Software Awarded to Four LLC

Contract Overview

Contract Amount: $7,837,320 ($7.8M)

Contractor: Four LLC

Awarding Agency: Department of Defense

Start Date: 2025-01-01

End Date: 2026-12-31

Contract Duration: 729 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE LICENSE AGREEMENT (ELA) FOR NEXT GENERATION INFORMATION TECHNOLOGY (NEXGEN IT) IBM TRIRIGA LICENSES AND SOFTWARE

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36114

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $7.8 million to FOUR LLC for work described as: ENTERPRISE LICENSE AGREEMENT (ELA) FOR NEXT GENERATION INFORMATION TECHNOLOGY (NEXGEN IT) IBM TRIRIGA LICENSES AND SOFTWARE Key points: 1. The contract is an Enterprise License Agreement (ELA) for IBM Tririga licenses and software, indicating a significant investment in IT infrastructure. 2. Awarded under full and open competition, suggesting a competitive bidding process that could lead to better pricing. 3. The contract duration is 729 days, with a start date of January 1, 2025, and an end date of December 31, 2026. 4. The primary agency is the Department of Defense, with the Department of the Air Force as the specific service. 5. The North American Industry Classification System (NAICS) code is 541519 (Other Computer Related Services), placing it within the IT services sector. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The base award amount is $7,837,320. 8. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

The contract value of $7.8 million for a two-year enterprise license agreement for IT software appears to be within a reasonable range for such procurements, especially considering it's for IBM Tririga, a specialized facility and real estate management software. Benchmarking against similar ELAs for enterprise software would provide a clearer picture of value for money. The firm-fixed-price structure helps control costs, but the absence of detailed performance metrics makes a definitive value assessment challenging without further context on usage and expected benefits.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which indicates that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The fact that there were two bidders suggests a moderate level of competition for this specialized IT software. While two bidders are better than one, a higher number of competitors could potentially drive prices down further and foster more innovation.

Taxpayer Impact: The full and open competition, even with two bidders, is generally favorable for taxpayers as it allows for a broader range of pricing and technical solutions to be considered, potentially leading to a more cost-effective outcome compared to sole-source or limited competition.

Public Impact

The Department of Defense, specifically the Air Force, will benefit from updated and licensed IT software for managing facilities and real estate. The software is expected to support next-generation IT initiatives within the Air Force. The geographic impact is likely nationwide within Air Force installations that utilize this system. Workforce implications may include IT personnel responsible for managing, maintaining, and utilizing the IBM Tririga software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a single software provider for critical IT functions.
Risk of underutilization of software licenses if deployment or adoption is slow.
Dependence on the contractor for ongoing support and updates, which could lead to future cost increases.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm Fixed Price contract type helps manage cost certainty.
Enterprise License Agreement suggests a strategic, long-term approach to IT asset management.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on software licensing and enterprise resource planning (ERP) solutions. IBM Tririga is a well-established platform for Integrated Workplace Management Systems (IWMS), often used by large organizations, including government agencies, for managing facilities, real estate, and environmental aspects. The market for such enterprise software is characterized by a few dominant players, and government procurements often involve complex licensing and support agreements. The total addressable market for IWMS solutions globally is in the billions of dollars, with significant government spending allocated to IT modernization and infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As an enterprise license agreement for specialized software, it is likely that the primary contractor, FOUR LLC, is not a small business, or if they are, the nature of the software and licensing may not lend itself to extensive small business subcontracting opportunities. Further analysis would be needed to determine if any subcontracting plans are in place or required.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver the specified licenses and software. Transparency is facilitated by the public nature of contract awards, though detailed usage and performance data may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Air Force Software Licensing Agreements
Enterprise Resource Planning (ERP) Systems Procurement
Facility and Real Estate Management Software

Risk Flags

Potential for vendor lock-in
Dependence on single software provider
Need for detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.8 million to FOUR LLC. ENTERPRISE LICENSE AGREEMENT (ELA) FOR NEXT GENERATION INFORMATION TECHNOLOGY (NEXGEN IT) IBM TRIRIGA LICENSES AND SOFTWARE

Who is the contractor on this award?

The obligated recipient is FOUR LLC.

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 $7.8 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-12-31.

What is the track record of FOUR LLC in delivering similar enterprise software licenses to the Department of Defense or other federal agencies?

Information regarding the specific track record of FOUR LLC in delivering similar enterprise software licenses to the Department of Defense or other federal agencies is not directly provided in the data. To assess their capability, a review of past performance evaluations, contract history, and any reported issues or successes on previous government contracts would be necessary. This would involve searching federal procurement databases like SAM.gov or FPDS for contracts awarded to FOUR LLC and examining their performance metrics and client feedback. Without this historical data, it's difficult to gauge their reliability and expertise in fulfilling this specific type of requirement.

How does the awarded price of $7.8 million compare to market rates for similar IBM Tririga Enterprise License Agreements?

The awarded price of $7.8 million for a two-year Enterprise License Agreement (ELA) for IBM Tririga needs to be benchmarked against current market rates for similar software licenses and support. IBM Tririga is a specialized solution, and pricing can vary significantly based on the number of users, modules included, support levels, and contract duration. A comprehensive comparison would involve obtaining quotes from IBM or authorized resellers for comparable ELAs, considering factors like user counts and feature sets. Without specific details on the scope of licenses and support included in this $7.8 million award, a precise value-for-money assessment is challenging. However, for large-scale enterprise deployments, such figures are not uncommon, but due diligence in price negotiation and comparison is crucial.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to measure contractor performance?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for software license agreements, SLAs might cover aspects like software availability, uptime, response times for technical support, and patch/update delivery schedules. KPIs could relate to the successful deployment of the software, user adoption rates, or the achievement of specific facility management objectives enabled by the software. The absence of this information in the summary suggests it would be detailed within the full contract documentation, which is essential for evaluating the contractor's performance and ensuring the government receives the expected value.

What is the historical spending pattern for IBM Tririga licenses or similar facility management software within the Department of Defense or Air Force?

Historical spending patterns for IBM Tririga licenses or similar facility management software within the Department of Defense or Air Force are not provided in the summary data. To establish this context, one would need to analyze past contract awards for facility and real estate management software over several fiscal years. This analysis would reveal trends in spending, identify key vendors, and indicate whether this $7.8 million award represents an increase, decrease, or stable level of investment in such technologies. Understanding historical spending helps in assessing the current award's significance and potential future budgetary needs.

What are the potential risks associated with relying on a single vendor (IBM) for critical IT infrastructure like facility management software?

Relying on a single vendor like IBM for critical IT infrastructure, such as facility management software, presents several potential risks. These include vendor lock-in, where switching to a different provider becomes prohibitively expensive or complex due to proprietary technology or data formats. There's also the risk of price increases upon contract renewal, as the vendor may have significant leverage. Furthermore, dependence on a single vendor can limit access to innovative solutions from competitors and potentially lead to service disruptions if the vendor experiences financial difficulties or strategic shifts. Ensuring robust contract terms, including exit strategies and data portability, is crucial to mitigate these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA877124Q0013

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2303 DULLES STATION BLVD STE 105, HERNDON, VA, 20171

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,829,110

Exercised Options: $7,837,320

Current Obligation: $7,837,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC73B

IDV Type: GWAC

Timeline