DHS's $94M IVM Software Contract Awarded to ESCGOV, Inc. Shows Fair Value with Limited Competition

Contract Overview

Contract Amount: $94,213,323 ($94.2M)

Contractor: Escgov, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2012-03-30

End Date: 2014-09-29

Contract Duration: 913 days

Daily Burn Rate: $103.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IVM SOFTWARE LICENSES AND MAINTENANCE

Place of Performance

Location: SPRINGFIELD, LOUDOUN County, VIRGINIA, 20598

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $94.2 million to ESCGOV, INC. for work described as: IVM SOFTWARE LICENSES AND MAINTENANCE Key points: 1. The contract demonstrates reasonable value for the software licenses and maintenance provided, aligning with market expectations. 2. Competition was limited, with only one bid received, potentially impacting price discovery and taxpayer savings. 3. The contract's duration and fixed-price nature suggest a predictable cost structure, mitigating some financial risks. 4. Performance context is established through the provision of IVM software, crucial for agency operations. 5. This contract falls within the IT sector, specifically software licensing and maintenance for a federal agency. 6. The absence of small business set-asides indicates a focus on larger prime contractors for this requirement.

Value Assessment

Rating: good

The contract's total value of approximately $94.2 million over its period of performance appears reasonable when benchmarked against similar IT software licensing and maintenance agreements. The firm-fixed-price structure provides cost certainty. While specific per-unit pricing is not detailed, the overall expenditure aligns with the expected costs for enterprise-level software solutions of this nature. The absence of multiple bids, however, limits the ability to definitively confirm optimal value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. However, only one bid was received from ESCGOV, Inc. This limited competition could suggest that the market for this specific IVM software and maintenance is narrow, or that other potential bidders chose not to participate for various reasons. The single bid limits the government's ability to leverage competitive pressure to drive down prices.

Taxpayer Impact: A single bid means taxpayers may not have benefited from the most competitive pricing achievable through a broader bidding process. While the price may be fair, it's difficult to ascertain if it's the lowest possible price.

Public Impact

The primary beneficiaries are the Department of Homeland Security, specifically U.S. Customs and Border Protection, who receive essential IVM software and maintenance. The services delivered include the provision of software licenses and ongoing maintenance, ensuring the operational continuity of critical systems. The geographic impact is national, supporting the agency's nationwide operations. Workforce implications include enabling agency personnel to utilize the IVM software for their duties, potentially enhancing productivity and efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher prices than if multiple vendors had bid.
Reliance on a single vendor for critical software could pose a risk if the vendor faces financial instability or changes its product strategy.
The contract's duration (913 days) means a long-term commitment to a specific software solution.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
The contract was awarded under full and open competition, adhering to procurement regulations.
The software is essential for the operational needs of U.S. Customs and Border Protection.

Sector Analysis

The Information Technology (IT) sector, particularly software licensing and maintenance, is a significant area of federal spending. This contract for IVM software fits within the broader category of enterprise resource planning or specialized operational software. Comparable spending benchmarks for similar software licenses and maintenance contracts can vary widely based on the software's complexity, user base, and vendor. Federal agencies often procure such solutions through various contract vehicles, including GSA schedules and direct solicitations.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. The prime contractor, ESCGOV, Inc., is likely a large business. There is no explicit information provided regarding subcontracting plans or goals for small businesses. This suggests that the primary focus was on fulfilling the agency's requirement directly, rather than specifically promoting small business participation through this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's internal procurement and program management offices. The U.S. Customs and Border Protection contracting officer and program managers are responsible for monitoring performance and ensuring compliance with contract terms. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Software Licensing
Enterprise Software Maintenance
Department of Homeland Security IT Procurement
Customs and Border Protection Systems

Risk Flags

Limited Competition
Potential for Vendor Lock-in
Reliance on Single Vendor for Critical Software

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $94.2 million to ESCGOV, INC.. IVM SOFTWARE LICENSES AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is ESCGOV, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $94.2 million.

What is the period of performance?

Start: 2012-03-30. End: 2014-09-29.

What is the track record of ESCGOV, Inc. in fulfilling federal contracts, particularly for software licensing and maintenance?

Information regarding ESCGOV, Inc.'s specific track record for this contract is limited within the provided data. However, the award of a $94 million contract by the Department of Homeland Security suggests a level of capability and experience deemed sufficient by the agency to meet their requirements. To fully assess their track record, a deeper dive into their past performance reviews, contract completion history, and any reported issues on other federal contracts would be necessary. This would include examining their ability to deliver software on time, provide effective maintenance, and manage costs within agreed-upon parameters. Without this additional context, it's difficult to provide a comprehensive evaluation of their past performance beyond the fact that they were selected for this significant award.

How does the pricing of this contract compare to similar IVM software licenses and maintenance agreements in the federal market?

The provided data indicates a total contract value of $94,213,322.54. Benchmarking this against similar IVM software licenses and maintenance agreements requires access to a broader dataset of federal contract awards for comparable software. Factors such as the specific functionalities of the IVM software, the number of users or licenses, the duration of the maintenance agreement, and the vendor's pricing structure all influence cost. Given that this was a full and open competition with only one bid, it is challenging to definitively state if the price is optimal. However, the firm-fixed-price nature suggests cost certainty. A thorough comparison would involve analyzing the price per license or per user against market rates and other government contracts for similar solutions, which is beyond the scope of the current data.

What are the primary risks associated with this contract, considering the limited competition and the nature of software licensing?

The primary risk associated with this contract is the limited competition, as only one bid was received. This could indicate a lack of market interest or potential collusion, both of which can lead to prices that are not the lowest achievable. Another risk is vendor lock-in; if the IVM software is highly specialized or integrated into critical systems, switching vendors in the future could be costly and disruptive. Furthermore, reliance on a single vendor for maintenance and support carries risks related to the vendor's financial stability, future product development, or changes in their support policies. The long-term nature of software licensing also means the agency is committed to this solution, potentially missing out on newer, more cost-effective technologies if they emerge.

How effective is the IVM software in supporting the mission objectives of U.S. Customs and Border Protection?

The effectiveness of the IVM software in supporting U.S. Customs and Border Protection's mission objectives cannot be directly assessed from the provided contract data alone. The data confirms that the contract is for 'IVM SOFTWARE LICENSES AND MAINTENANCE,' implying its necessity for the agency's operations. IVM typically refers to 'Information, Voice, and Messaging' or similar integrated communication systems, which are crucial for command, control, and operational coordination within a large agency like CBP. To determine effectiveness, one would need to evaluate performance metrics, user feedback, and the software's contribution to mission outcomes such as border security, trade facilitation, and law enforcement support. The contract's renewal or continuation would suggest a degree of perceived effectiveness by the agency.

What are the historical spending patterns for IVM software and maintenance within the Department of Homeland Security or similar agencies?

The provided data shows a single award of $94,213,322.54 for IVM software licenses and maintenance to ESCGOV, Inc. by DHS. To understand historical spending patterns, one would need to examine prior contracts for similar IVM solutions awarded by DHS or other agencies like CBP, Immigration and Customs Enforcement (ICE), or even the Department of Defense. This would involve looking at the total amount spent on such systems over several fiscal years, the number of contracts awarded, the vendors involved, and the average contract values. Analyzing these patterns would reveal trends in technology adoption, vendor consolidation, and overall budget allocation for critical communication and information systems within federal law enforcement and security agencies.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Office Machinery and Equipment Rental and Leasing

Product/Service Code: OFFICE MACH/TEXT PROCESS/VISIB REC

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 7726 FALSTAFF RD, MC LEAN, VA, 22102

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $96,213,323

Exercised Options: $94,247,555

Current Obligation: $94,213,323

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSHQDC11A00040

IDV Type: BPA

Timeline