DoD Spends $46M on ENS HOST SUITE License Maintenance with Federal Resources Corporation
Contract Overview
Contract Amount: $45,985,349 ($46.0M)
Contractor: Federal Resources Corporation
Awarding Agency: Department of Defense
Start Date: 2021-12-16
End Date: 2023-12-15
Contract Duration: 729 days
Daily Burn Rate: $63.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENS HOST SUITE LICENSE MAINTENANCE
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $46.0 million to FEDERAL RESOURCES CORPORATION for work described as: ENS HOST SUITE LICENSE MAINTENANCE Key points: 1. Significant spending on essential software maintenance. 2. Competition method is 'Full and Open', suggesting potential for competitive pricing. 3. Contract awarded via BPA Call, indicating a pre-competed framework. 4. Firm Fixed Price contract type helps manage cost certainty.
Value Assessment
Rating: fair
The contract value of $45.9M over two years for license maintenance appears high. Benchmarking against similar enterprise software maintenance contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the use of a BPA Call suggests the initial competition for the BPA itself might have been more limited.
Taxpayer Impact: Taxpayer funds are being used for essential software maintenance. Ensuring competitive pricing through the full and open process is crucial for maximizing value.
Public Impact
Ensures continued operation of critical Defense Information Systems Agency (DISA) software. Supports the technological infrastructure of the Department of Defense. Potential for cost savings if pricing is benchmarked effectively against market rates.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value warrants careful review.
- Need to confirm if the BPA itself was competitively awarded.
- Potential for vendor lock-in with specialized software maintenance.
Positive Signals
- Full and open competition is a positive signal.
- Firm Fixed Price contract provides cost predictability.
- Awarded to a single vendor, simplifying administration.
Sector Analysis
This spending falls within the IT sector, specifically software licensing and maintenance. Benchmarks for similar enterprise software maintenance contracts are typically in the millions of dollars annually, depending on the software's criticality and user base.
Small Business Impact
The data does not indicate if small businesses were involved in this specific BPA Call or the underlying BPA competition. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The use of a BPA Call under a larger BPA suggests that the initial BPA underwent some level of oversight. However, the specific oversight for this call and the ongoing contract performance needs verification.
Related Government Programs
- Computer and Software Stores
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- High dollar value
- Potential for price creep over contract duration
- Reliance on a single vendor for critical maintenance
- Need for detailed market research to confirm value
Tags
computer-and-software-stores, department-of-defense, md, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.0 million to FEDERAL RESOURCES CORPORATION. ENS HOST SUITE LICENSE MAINTENANCE
Who is the contractor on this award?
The obligated recipient is FEDERAL RESOURCES CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $46.0 million.
What is the period of performance?
Start: 2021-12-16. End: 2023-12-15.
Is the $46M price reasonable for two years of license maintenance for this specific ENS HOST SUITE?
Determining reasonableness requires comparing this price against industry benchmarks for similar enterprise software maintenance contracts, considering factors like the software's criticality, number of users, and vendor support levels. Without specific benchmark data for this particular suite, a definitive assessment of value is challenging.
What are the risks associated with relying on a single vendor for this critical software maintenance?
The primary risk is vendor lock-in, which can lead to escalating costs and limited negotiation power. There's also a risk of service disruption if the vendor experiences financial difficulties or decides to discontinue support. Dependence on a single vendor can hinder the adoption of newer, potentially more cost-effective solutions.
How effectively does the 'Full and Open Competition' for the BPA Call ensure optimal pricing compared to other contract types?
Full and open competition for the BPA Call aims to solicit offers from all responsible sources, theoretically driving down prices through market forces. However, the effectiveness is contingent on the clarity of the requirements and the competitiveness of the market for this specific software maintenance. The underlying BPA's competition is also a key factor.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
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: 440 W 8TH ST, ERIE, PA, 16502
Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $45,985,349
Exercised Options: $45,985,349
Current Obligation: $45,985,349
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600118A0007
IDV Type: BPA
Timeline
Start Date: 2021-12-16
Current End Date: 2023-12-15
Potential End Date: 2023-12-15 00:00:00
Last Modified: 2023-03-22
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