Dod's $42.9M PRO Desktop SA Contract Awarded to Softchoice Corp Under BPA
Contract Overview
Contract Amount: $42,901,281 ($42.9M)
Contractor: Softchoice Corp
Awarding Agency: Department of Defense
Start Date: 2014-05-29
End Date: 2015-05-31
Contract Duration: 367 days
Daily Burn Rate: $116.9K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PRO DESKTOP SA
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60654
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $42.9 million to SOFTCHOICE CORP for work described as: PRO DESKTOP SA Key points: 1. Significant spending on desktop software, highlighting reliance on commercial off-the-shelf solutions. 2. Sole awardee SOFTCHOICE CORP suggests potential lack of broad market engagement. 3. Contract duration of 367 days with a firm fixed price indicates predictable cost structure. 4. Awarded under a BPA, implying a pre-negotiated framework for this type of purchase.
Value Assessment
Rating: fair
The contract value of $42.9M for desktop software over approximately one year appears substantial. Benchmarking against similar large-scale software procurements would be necessary to definitively assess value, as pricing can vary significantly based on licensing models and specific software suites.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED UNDER SAP,' indicating it was likely procured through a limited competition or a pre-existing agreement like a BPA. This method may limit price discovery and potentially lead to higher costs compared to a fully open competition.
Taxpayer Impact: Taxpayer funds are utilized for this software acquisition. The lack of open competition raises concerns about whether the best possible price was achieved, potentially impacting the overall value for taxpayer money.
Public Impact
Ensures operational capability for Department of the Navy personnel through essential desktop software. Potential for higher costs due to limited competition impacts the efficient use of defense budgets. Reliance on a single vendor for a significant software suite could create future dependency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of transparency in pricing
- Potential vendor lock-in
Positive Signals
- Awarded under existing BPA
- Firm fixed price contract
Sector Analysis
The IT sector, particularly software procurement, represents a significant portion of federal spending. This contract falls within the Software Publishers NAICS code (511210), a common area for agency IT needs. Benchmarks for similar large software licenses are highly variable.
Small Business Impact
The awardee is SOFTCHOICE CORP, a large business. There is no indication that small businesses were involved in this specific procurement, either as prime contractors or subcontractors, which is a missed opportunity for small business participation.
Oversight & Accountability
The contract was awarded under a BPA, suggesting some level of pre-existing oversight. However, the 'NOT COMPETED UNDER SAP' status warrants further review to ensure adherence to procurement regulations and fair pricing.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition may have inflated costs.
- Lack of specific software details hinders value assessment.
- Potential for vendor lock-in with a single provider.
- No clear indication of small business participation.
- Award date predates current needs, requiring re-evaluation if still active.
Tags
software-publishers, department-of-defense, il, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.9 million to SOFTCHOICE CORP. PRO DESKTOP SA
Who is the contractor on this award?
The obligated recipient is SOFTCHOICE CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $42.9 million.
What is the period of performance?
Start: 2014-05-29. End: 2015-05-31.
What specific desktop software was procured under this contract, and how does its functionality align with the Navy's operational requirements?
The data provided does not specify the exact software titles. However, 'PRO DESKTOP SA' suggests a suite of professional desktop applications likely including operating systems, productivity software, and potentially specialized tools. Understanding the precise software is crucial to assess if the $42.9M expenditure is justified by the capabilities it provides to the Department of the Navy's mission.
What was the rationale for not competing this contract under SAP, and what mechanisms were in place to ensure a fair and reasonable price?
The rationale for not competing under SAP is not detailed. Typically, this occurs when leveraging existing agreements like BPAs or specific contract vehicles. To ensure fair pricing, the government relies on the BPA's pre-negotiated rates, market research conducted prior to BPA establishment, and potentially price analysis of the specific order against historical data or commercial price lists.
What is the long-term strategy for desktop software procurement within the Department of the Navy, and does this contract represent a sustainable approach?
This contract, awarded in 2014 and ending in 2015, represents a point-in-time acquisition. A sustainable strategy would involve ongoing market analysis, exploring enterprise licensing agreements, and potentially consolidating software needs to achieve better volume discounts. The limited competition aspect of this award suggests a need for periodic review to ensure future procurements are cost-effective and competitive.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Softchoice Corporation (UEI: 248864415)
Address: 314 W SUPERIOR ST STE 301, CHICAGO, IL, 90
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $42,901,281
Exercised Options: $42,901,281
Current Obligation: $42,901,281
Contract Characteristics
Consolidated Contract: Yes
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785412A4701
IDV Type: BPA
Timeline
Start Date: 2014-05-29
Current End Date: 2015-05-31
Potential End Date: 2015-05-31 00:00:00
Last Modified: 2014-06-27
More Contracts from Softchoice Corp
- Microsoft Product Suite — $108.0M (Department of the Treasury)
- Microsoft Enterprise Agreement (msela) for the Military Health System (MHS) — $38.9M (Department of Defense)
- Microsoft Software Licenses and Subscriptions for IRS — $24.2M (Department of the Treasury)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)