DoD awards $33.8M Cisco software subscription to World Wide Technology, highlighting IT infrastructure needs

Contract Overview

Contract Amount: $33,878,240 ($33.9M)

Contractor: World Wide Technology LLC

Awarding Agency: Department of Defense

Start Date: 2020-02-05

End Date: 2025-02-04

Contract Duration: 1,826 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO SOFTWARE SUBSCRIPTION SUTIE

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63146

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $33.9 million to WORLD WIDE TECHNOLOGY LLC for work described as: CISCO SOFTWARE SUBSCRIPTION SUTIE Key points: 1. Contract value represents a significant investment in essential IT infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment for similar IT solutions. 3. Risk indicators are moderate, given the reliance on a single vendor for software. 4. Performance context is tied to ongoing IT modernization efforts within the Defense Information Systems Agency. 5. Sector positioning places this contract within the broader IT services and software procurement landscape.

Value Assessment

Rating: good

The contract value of $33.8 million for Cisco software subscriptions appears reasonable within the context of large-scale IT procurements for federal agencies. Benchmarking against similar enterprise software agreements for defense entities suggests that pricing is generally in line with market rates, especially considering the volume and duration. The firm-fixed-price structure provides cost certainty for the government, mitigating risks associated with price fluctuations. However, a detailed cost-benefit analysis would be needed to fully assess the value-for-money proposition over the contract's lifespan.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. The presence of two bidders suggests a degree of competition, though the specific details of the bidding process and the number of proposals received are not fully detailed here. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market-driven price. This approach maximizes the opportunity to secure the best possible value for the government.

Public Impact

The Department of Defense benefits from enhanced cybersecurity and operational efficiency through updated Cisco software. Essential IT services and network infrastructure support are delivered to military and civilian personnel. The primary geographic impact is within the operational domains of the Defense Information Systems Agency, likely supporting global missions. Workforce implications include ensuring IT personnel have the necessary tools and updated software to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a single software provider.
Reliance on a specific vendor could create challenges if alternative solutions emerge.
Ensuring ongoing technical support and timely updates from the vendor is crucial.

Positive Signals

Awarded through full and open competition, indicating a fair market process.
Firm-fixed-price contract provides budget predictability.
Long-term subscription supports sustained IT infrastructure modernization.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software subscriptions and related services. The IT services market for the federal government is substantial, with agencies consistently investing in hardware, software, and network infrastructure to maintain operational readiness and modernize capabilities. Comparable spending benchmarks for enterprise software licenses and support within defense agencies often run into tens or hundreds of millions of dollars annually, making this $33.8 million award a significant, but not outlier, investment.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, World Wide Technology LLC, is a large business. The contract does not explicitly mention subcontracting plans for small businesses. However, large IT procurements often involve a complex ecosystem of suppliers, and it is possible that small businesses could be involved in providing ancillary services or components, though this is not detailed in the provided data.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Defense and the Defense Information Systems Agency are responsible for monitoring contract performance and ensuring compliance with terms and conditions. The firm-fixed-price nature of the contract simplifies financial oversight. Transparency is generally maintained through contract databases like FPDS. The Inspector General of the Department of Defense may conduct audits or investigations if performance or financial irregularities are suspected.

Related Government Programs

Defense Information Systems Agency IT Modernization Programs
Cisco Software Licensing and Support Contracts
Federal Enterprise Software Procurement
Department of Defense Network Infrastructure Upgrades

Risk Flags

Long-term reliance on a single vendor for critical software.
Potential for technology obsolescence over the contract duration.
Need for robust vendor performance management to ensure service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.9 million to WORLD WIDE TECHNOLOGY LLC. CISCO SOFTWARE SUBSCRIPTION SUTIE

Who is the contractor on this award?

The obligated recipient is WORLD WIDE TECHNOLOGY LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $33.9 million.

What is the period of performance?

Start: 2020-02-05. End: 2025-02-04.

What is the track record of World Wide Technology LLC in fulfilling federal IT contracts, particularly those involving large software subscriptions?

World Wide Technology LLC has a substantial track record of winning and performing federal IT contracts. They are a major systems integrator and value-added reseller for a wide range of technology products and services, including those from Cisco. Their federal contract history indicates experience with large-scale procurements across various agencies, including the Department of Defense. While specific performance metrics for this particular contract are not detailed here, their consistent presence in federal IT spending suggests a capacity to manage complex projects and deliver on contractual obligations. Past performance reviews and contract close-out data would provide a more granular assessment of their reliability and effectiveness in similar engagements.

How does the $33.8 million value compare to historical spending on similar Cisco software subscriptions by the Department of Defense or DISA?

The $33.8 million award for Cisco software subscriptions is a significant sum, indicative of enterprise-level licensing. To benchmark this effectively, one would need to compare it against DISA's or DoD's historical spending patterns for similar Cisco products (e.g., network infrastructure software, collaboration tools, security suites) over comparable periods. Agencies often consolidate software licenses to achieve economies of scale. If DISA has previously procured similar volumes or types of Cisco software through multiple smaller contracts or less advantageous terms, this consolidated award could represent improved value. Conversely, if similar or greater capabilities were acquired for less in the past, it might suggest a need for re-evaluation of pricing or negotiation strategies.

What are the primary risks associated with a long-term (5-year) software subscription contract of this magnitude?

The primary risks associated with a long-term, high-value software subscription contract include technological obsolescence, vendor lock-in, and potential cost escalations if not managed properly. Technology evolves rapidly; the software procured today might be superseded by newer versions or alternative solutions within the 5-year period, potentially diminishing its value. Vendor lock-in is a significant concern, as switching providers for complex enterprise software can be costly and disruptive. Furthermore, while this is a firm-fixed-price contract, future renewals or the need for additional licenses/support could be subject to price increases. Ensuring the contract includes favorable terms for upgrades, support, and potential exit strategies is crucial to mitigate these risks.

What specific Cisco software products or suites are covered under this $33.8 million contract, and how do they support DISA's mission?

The provided data does not specify the exact Cisco software products or suites covered under this $33.8 million contract. However, given the context of the Defense Information Systems Agency (DISA), it is highly probable that these subscriptions relate to core IT infrastructure components. This could include software for network management and routing (e.g., Cisco IOS/NX-OS features), cybersecurity solutions (e.g., firewalls, intrusion detection/prevention systems, endpoint security), collaboration tools (e.g., Webex), or data center technologies. These software capabilities are critical for DISA's mission of providing, operating, and defending U.S. military information networks, ensuring secure and reliable communication and data services for warfighters and national leadership.

How does the 'Other Computer Related Services' NAICS code (541519) align with the description 'CISCO SOFTWARE SUBSCRIPTION SUTIE'?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not specifically classified elsewhere. This includes services like computer systems integration design consulting, computer facilities management, computer disaster recovery services, and software installation services. While 'CISCO SOFTWARE SUBSCRIPTION SUITE' primarily denotes the licensing of software, the contract likely includes associated services such as installation, configuration, integration, maintenance, and technical support, which fall under the umbrella of 'Computer Related Services.' Therefore, 541519 serves as an appropriate, albeit general, classification for a contract involving significant software procurement coupled with necessary implementation and support.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 WORLD WIDE WAY, SAINT LOUIS, MO, 63146

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,878,240

Exercised Options: $33,878,240

Current Obligation: $33,878,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC55B

IDV Type: GWAC

Timeline