DoD Awards $20.4M for TRAVAX Enterprise License & Maintenance to Shoreland Inc

Contract Overview

Contract Amount: $20,375,040 ($20.4M)

Contractor: Shoreland Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-29

End Date: 2025-10-01

Contract Duration: 733 days

Daily Burn Rate: $27.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TRAVAX ENTERPRISE LICENSE & MAINTENANCE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to SHORELAND INC for work described as: TRAVAX ENTERPRISE LICENSE & MAINTENANCE Key points: 1. Contract awarded to Shoreland Inc. for software licensing and maintenance. 2. The contract is for a firm-fixed-price definitive contract. 3. The Defense Health Agency is the contracting agency. 4. The contract duration is 733 days.

Value Assessment

Rating: fair

The contract value of $20.4 million for a 2-year period appears high for software licensing and maintenance. Benchmarking against similar enterprise software licenses and maintenance contracts is needed to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited competition approach. This raises concerns about price discovery and whether the government received the best possible price.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this software license and maintenance.

Public Impact

Software licensing and maintenance are critical for ongoing operations. The Defense Health Agency relies on this software for its functions. The duration of the contract impacts long-term budget planning. Lack of competition could lead to higher costs for taxpayers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for overpayment due to lack of competition
High contract value for software maintenance

Positive Signals

Firm fixed price contract type provides cost certainty
Definitive contract provides clear scope and terms

Sector Analysis

The IT sector, particularly software publishers, sees significant government spending. This contract falls within the Software Publishers NAICS code (513210). Benchmarks for enterprise software licenses and maintenance vary widely based on software complexity and user base.

Small Business Impact

There is no indication that small businesses were involved in this procurement. The contract was awarded to a single entity, Shoreland Inc., and the procurement method did not prioritize small business participation.

Oversight & Accountability

The lack of competition warrants further oversight to ensure the Defense Health Agency is receiving fair value. A review of the justification for other than full and open competition is recommended.

Related Government Programs

Software Publishers
Department of Defense Contracting
Defense Health Agency Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency on price justification
No small business participation evident

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to SHORELAND INC. TRAVAX ENTERPRISE LICENSE & MAINTENANCE

Who is the contractor on this award?

The obligated recipient is SHORELAND INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2023-09-29. End: 2025-10-01.

What is the justification for not competing this contract, and what steps were taken to ensure fair pricing?

The data indicates the contract was 'NOT COMPETED'. Without further details on the justification (e.g., sole-source justification, urgent need), it's difficult to assess the fairness of the price. Agencies typically must provide a documented justification for limiting competition, which should include market research to ensure the price is reasonable compared to similar offerings or historical data.

How does the $20.4 million cost compare to industry benchmarks for similar enterprise software licenses and maintenance?

Benchmarking is crucial. The $20.4 million cost for a roughly two-year period needs to be compared against industry standards for comparable enterprise software suites. Factors like the number of users, modules included, and level of support will influence this comparison. Without specific software details, a precise benchmark is challenging, but the value warrants scrutiny.

What is the potential risk to the Defense Health Agency if this software is critical and the vendor increases prices significantly in the future?

The primary risk is financial, as the lack of competition limits the agency's ability to negotiate lower prices. If the software is mission-critical, the DHA may be locked into paying higher prices. This underscores the importance of the initial price negotiation and the need for ongoing market research to identify potential alternatives or competitive re-procurement opportunities.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT003823R0011

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 933 N MAYFAIR RD, MILWAUKEE, WI, 53226

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,077,394

Exercised Options: $20,375,040

Current Obligation: $20,375,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline