HUD's $32.1M software contract for business service provider case management awarded to Yardi Systems, Inc. without competition
Contract Overview
Contract Amount: $32,107,018 ($32.1M)
Contractor: Yardi Systems, Inc.
Awarding Agency: Department of Housing and Urban Development
Start Date: 2011-09-29
End Date: 2015-06-30
Contract Duration: 1,370 days
Daily Burn Rate: $23.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BUSINESS SERVICE PROVIDER CASE MANAGEMENT
Place of Performance
Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Housing and Urban Development obligated $32.1 million to YARDI SYSTEMS, INC. for work described as: BUSINESS SERVICE PROVIDER CASE MANAGEMENT Key points: 1. The contract's value of over $32 million raises questions about cost-effectiveness given the lack of competitive bidding. 2. Sole-source awards can limit opportunities for innovation and potentially lead to higher prices. 3. The duration of the contract (over 3 years) suggests a long-term need for the software, but the absence of competition hinders price discovery. 4. Performance context is limited due to the lack of comparative data from other bids. 5. The software publishing sector is dynamic; a non-competed award may not reflect current market value. 6. The contract's significant value warrants scrutiny regarding its necessity and the justification for a sole-source award.
Value Assessment
Rating: questionable
Benchmarking the value of this $32.1 million contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to ascertain if the price reflects fair market value or if alternative solutions could have been procured at a lower cost. The absence of comparison data makes it hard to assess if Yardi Systems, Inc. provided optimal value for the government's investment. The fixed-price nature of the contract shifts some risk to the contractor, but the overall value proposition is obscured by the lack of competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This indicates that only one vendor, Yardi Systems, Inc., was considered capable of meeting the government's needs. The lack of competition means there was no opportunity for multiple vendors to bid, which typically drives down prices and encourages innovation. This approach can be justified if a unique capability is required, but it bypasses the standard procurement processes designed to ensure the best value for taxpayers.
Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to secure the lowest possible prices. Taxpayers may be paying a premium for the software and services because alternative, potentially more cost-effective, solutions were not explored through a competitive process.
Public Impact
The Department of Housing and Urban Development (HUD) benefits by acquiring a case management system for business service providers. The software likely supports the administration and tracking of services provided to businesses, potentially related to HUD programs. The geographic impact is national, as HUD operates across the United States, though specific deployment details are not provided. Workforce implications could include HUD staff who will utilize the software for their daily operations and case management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition raises concerns about potential overpricing and missed opportunities for better value.
- The sole-source nature limits transparency into the procurement process and justification for vendor selection.
- Long-term reliance on a single vendor without competition can create vendor lock-in and reduce future flexibility.
- Absence of performance metrics or comparative data makes it difficult to assess the true effectiveness and value delivered.
Positive Signals
- The contract addresses a specific need for business service provider case management within HUD.
- The firm fixed-price contract type helps to control costs by establishing a set price for the work.
- The award was made to Yardi Systems, Inc., a known entity in software publishing, suggesting some level of established capability.
Sector Analysis
The software publishing industry is a significant sector within the broader IT market, characterized by rapid innovation and diverse offerings. Contracts for specialized software, such as case management systems, are common across federal agencies. The value of this contract, over $32 million, places it in the mid-to-large tier for software procurements. Comparable spending benchmarks would typically involve analyzing other federal contracts for similar case management solutions, ideally those awarded through competitive processes to gauge market rates.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, there is no explicit information regarding subcontracting plans with small businesses. The sole-source nature of the award further limits the likelihood of small business participation unless Yardi Systems, Inc. voluntarily includes them in their supply chain. This contract does not seem to directly benefit the small business ecosystem through set-asides or mandated subcontracting.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Housing and Urban Development's contracting officers and program managers. Transparency is limited due to the sole-source award, making it difficult to assess the full extent of oversight. There is no specific mention of an Inspector General's involvement in this particular award, though the HUD OIG generally oversees agency programs and contracts for waste, fraud, and abuse.
Related Government Programs
- Federal Case Management Software
- HUD IT Modernization Efforts
- Software Publishers Contracts
- Business Process Management Software
Risk Flags
- Sole-source award without clear justification
- Potential lack of competitive pricing
- Limited transparency in procurement process
- Absence of comparative performance data
Tags
software-publishing, case-management, hud, department-of-housing-and-urban-development, sole-source, firm-fixed-price, it-services, business-services, federal-contract, software-development, procurement-analysis
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $32.1 million to YARDI SYSTEMS, INC.. BUSINESS SERVICE PROVIDER CASE MANAGEMENT
Who is the contractor on this award?
The obligated recipient is YARDI SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).
What is the total obligated amount?
The obligated amount is $32.1 million.
What is the period of performance?
Start: 2011-09-29. End: 2015-06-30.
What specific business services does this case management software support for HUD?
The provided data indicates the contract is for 'BUSINESS SERVICE PROVIDER CASE MANAGEMENT'. While the exact nature of these business services is not detailed, it likely pertains to managing relationships, tracking activities, and overseeing the delivery of services provided by external businesses to HUD or its beneficiaries. This could encompass a wide range of functions, such as vendor management, grant administration support, program compliance tracking, or client service delivery coordination. The software aims to streamline these processes, improve data accuracy, and enhance operational efficiency within HUD's business dealings.
Why was this contract awarded on a sole-source basis instead of being competed?
The data explicitly states the contract was 'NOT COMPETED' and has a contract type of 'SOLE SOURCE'. Federal agencies typically award contracts on a sole-source basis when only one responsible source is available or qualified to provide the required goods or services. This can occur due to unique capabilities, proprietary technology, urgent needs where competition is not feasible, or if a previous competitive process failed to yield adequate results. Without further documentation from HUD, the specific justification for this sole-source award remains undisclosed, but it implies that HUD determined Yardi Systems, Inc. was the only viable option at the time of award.
What is the historical spending pattern for this type of software at HUD?
The provided data only details this specific contract awarded on September 29, 2011, with an end date of June 30, 2015, for approximately $32.1 million. It does not provide historical spending patterns for similar software at HUD. To understand historical spending, one would need to analyze procurement data for prior contracts related to case management systems or business service provider software within HUD, looking at award dates, values, contractors, and competition levels over several fiscal years.
How does the $32.1 million contract value compare to similar software solutions in the market?
Directly comparing the $32.1 million value is difficult without knowing the specific modules, user licenses, support levels, and duration covered by this contract. However, given it was a sole-source award, it's plausible that the price may not reflect the most competitive market rate. Industry benchmarks for enterprise-level case management software can vary widely, from hundreds of thousands to millions of dollars annually, depending on complexity and scale. A competitive procurement would have provided a clearer market benchmark by soliciting bids from multiple vendors, allowing for a direct comparison of proposed costs and features.
What are the potential risks associated with a sole-source award of this magnitude?
Sole-source awards of this magnitude carry several risks. Firstly, the lack of competition can lead to inflated prices, meaning taxpayers may pay more than necessary. Secondly, it limits the government's access to potentially innovative solutions or better-performing products that other vendors might offer. Thirdly, it can create vendor lock-in, making it difficult and costly to switch to a different provider in the future. Lastly, the justification for a sole-source award needs to be robust; if not properly documented or if alternatives were overlooked, it raises concerns about procurement integrity and efficient use of public funds.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 430 S FAIRVIEW AVE, SANTA BARBARA, CA, 93117
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,807,018
Exercised Options: $32,107,018
Current Obligation: $32,107,018
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2011-09-29
Current End Date: 2015-06-30
Potential End Date: 2015-09-25 00:00:00
Last Modified: 2015-09-25
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