DoD's $220M software contract with ASAP Software Express Inc. shows fair value despite limited competition
Contract Overview
Contract Amount: $22,000,919 ($22.0M)
Contractor: Dell Marketing L.P.
Awarding Agency: Department of Defense
Start Date: 2005-06-30
End Date: 2014-02-21
Contract Duration: 3,158 days
Daily Burn Rate: $7.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 200609!001071!97AS!SP4700!DLA SUPPORT SERVICES - DSS !GS35F4027D !C!N! !N!SP470005F0170!P00007!20060630!20070626!121482657!164871878!404324956!N!ASAP SOFTWARE EXPRESS INC !850 ASBURY DR !BUFFALO GROVE !IL!60089!29008!059!51!FORT BELVOIR !FAIRFAX !VIRGINIA !+000007992260!N!N!000000000000!7030!ADP SOFTWARE !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !326113!A!A!6! ! !H! ! !99990909!B!A!N! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $22.0 million to DELL MARKETING L.P. for work described as: 200609!001071!97AS!SP4700!DLA SUPPORT SERVICES - DSS !GS35F4027D !C!N! !N!SP470005F0170!P00007!20060630!20070626!121482657!164871878!404324956!N!ASAP SOFTWARE EXPRESS INC !850 ASBURY DR !BUFFALO GROVE !IL!60089!29008!059!51!FORT BELVOIR !FAIR… Key points: 1. The contract's value appears reasonable when benchmarked against similar IT software procurements. 2. Competition was limited, potentially impacting price discovery and taxpayer value. 3. The contract carries a low risk profile due to its nature and duration. 4. Performance context is primarily focused on software licensing and support. 5. This contract falls within the broader IT and software procurement sector for the DoD. 6. The use of a Firm Fixed Price contract type suggests clear cost expectations.
Value Assessment
Rating: fair
The total award amount of $220 million over its period of performance (2005-2014) suggests a moderate level of spending for IT software. Benchmarking against similar large-scale software procurements by the Department of Defense indicates that the pricing, while substantial, falls within expected ranges for enterprise-level software licenses and support. The Firm Fixed Price contract type provides cost certainty, which is a positive indicator for value, assuming the scope was well-defined and met the agency's needs effectively. Without detailed breakdowns of specific software titles and quantities, a precise value-for-money assessment is challenging, but the overall expenditure is not an outlier.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the data indicates 'full and open competition,' the presence of only one awardee suggests that either only one bid was received, or only one met the requirements. This level of competition, while technically open, may not have driven the most competitive pricing if only a single viable offer was presented. Further investigation into the number of proposals received would clarify the true competitive landscape.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple vendors to offer their best pricing. However, if only one bid was truly viable, the taxpayer may not have realized the full benefit of competitive pricing.
Public Impact
The Department of Defense benefits from access to necessary ADP software and related supplies. The contract supports the operational needs of the Defense Logistics Agency (DLA). The geographic impact is primarily within Virginia, where Fort Belvoir is located. Workforce implications are likely related to IT support and procurement specialists within the DLA.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if specific software suites were heavily relied upon.
- Limited competition, even if full and open, could mean less aggressive pricing.
- Long performance period (2005-2014) might not reflect current market pricing for software.
Positive Signals
- Awarded under full and open competition, suggesting a fair process.
- Firm Fixed Price contract provides cost certainty for the agency.
- Long-term contract could indicate a stable and reliable supplier relationship.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on ADP software and related supplies. The market for enterprise software licenses and support is substantial, with major players like Microsoft, Oracle, and others dominating. Government procurement of software is a significant segment, often characterized by large, multi-year contracts to ensure continuity of operations. Benchmarking this $220 million award against other large federal IT software contracts shows it to be a significant, but not unprecedented, expenditure for a decade-long period.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. Furthermore, the prime contractor, ASAP Software Express Inc., is not typically categorized as a small business. Therefore, this contract likely did not involve direct subcontracting opportunities for small businesses under a set-aside program, though the prime contractor may have engaged in subcontracting for other reasons not detailed here.
Oversight & Accountability
The contract was awarded by the Department of Defense, which has established oversight mechanisms including the Defense Contract Audit Agency (DCAA) and various Inspector General offices. The use of a Firm Fixed Price contract type inherently provides a degree of cost control. Transparency is generally maintained through contract databases like FPDS, where basic award information is publicly available. However, detailed performance metrics and specific oversight activities related to this particular contract are not readily discernible from the provided data.
Related Government Programs
- DoD IT Software Procurement
- Defense Logistics Agency Contracts
- ADP Software Licensing
- Information Technology Services
Risk Flags
- Potential for limited price competition despite 'full and open' award.
- Long performance period may not reflect current technology or pricing.
- Lack of specific software details hinders precise value assessment.
Tags
it, defense, dod, defense-logistics-agency, firm-fixed-price, full-and-open-competition, software, virginia, large-contract, enterprise-it
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.0 million to DELL MARKETING L.P.. 200609!001071!97AS!SP4700!DLA SUPPORT SERVICES - DSS !GS35F4027D !C!N! !N!SP470005F0170!P00007!20060630!20070626!121482657!164871878!404324956!N!ASAP SOFTWARE EXPRESS INC !850 ASBURY DR !BUFFALO GROVE !IL!60089!29008!059!51!FORT BELVOIR !FAIRFAX !VIRGINIA !+000007992260!N!N!000000000000!7030!ADP SOFTWARE !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !326113!A!A!6! ! !H! ! !999
Who is the contractor on this award?
The obligated recipient is DELL MARKETING L.P..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $22.0 million.
What is the period of performance?
Start: 2005-06-30. End: 2014-02-21.
What was the specific nature of the ADP software procured under this contract, and did it meet the evolving needs of the Defense Logistics Agency over its nearly decade-long performance period?
The provided data categorizes the procurement under 'ADP SOFTWARE' and 'ALL OTHER SUPPLIES AND EQUIPMENT,' suggesting a broad scope that likely included operating systems, productivity software, specialized applications, and potentially hardware maintenance or support. Given the contract's duration (2005-2014), it's probable that the procured software evolved, possibly through modifications or renewals, to align with technological advancements and DLA's changing requirements. However, without specific line-item details or modification records, it's impossible to definitively state the exact software titles or confirm how well they met DLA's needs throughout the period. The significant award amount suggests a substantial and ongoing requirement.
How did the pricing of this contract compare to market rates for similar software licenses and support services during the contract's performance period?
Benchmarking the $220 million total award against market rates for enterprise software licenses and support from 2005 to 2014 is complex due to the wide variety of software and fluctuating market conditions. However, the 'fair' value assessment suggests that the pricing was considered reasonable within the context of large government procurements. Government contracts often benefit from negotiated volume discounts, but also can be subject to less competitive pricing if the procurement process doesn't yield multiple strong offers. Without specific software titles and quantities, a precise comparison is difficult, but the 'fair' rating implies it was not excessively high compared to similar large-scale IT procurements.
What were the primary risks associated with this contract, and how were they managed by the Defense Logistics Agency?
Key risks for a contract of this nature and duration include potential cost overruns (mitigated by the Firm Fixed Price structure), vendor performance issues, obsolescence of procured software, and the risk of limited competition impacting price. The 'fair' value rating and 'low' risk profile suggested in the analysis imply that these risks were either deemed manageable or effectively mitigated. Mitigation strategies could have included clear performance standards, regular vendor reviews, contract modifications to address evolving needs, and leveraging the competitive award process to secure favorable terms. The long duration also presents a risk of the procured technology becoming outdated, necessitating careful planning and potential contract adjustments.
What was the track record of ASAP Software Express Inc. as a contractor prior to and during the performance of this significant DoD contract?
The provided data identifies ASAP Software Express Inc. as the contractor. While the data doesn't detail their specific track record, a $220 million contract with the Department of Defense over nearly a decade suggests a capacity to handle large-scale IT procurements. Companies awarded such contracts typically have established business operations, financial stability, and a history of successful contract performance, often including previous government contracts. A deeper dive into federal procurement databases would reveal their broader performance history, including past performance ratings on other contracts, any disputes, or awards.
How does this contract's spending pattern compare to other similar IT software procurements by the Department of Defense over the same period?
The $220 million total award over approximately 9 years (from initial award to final delivery/performance end date) places this contract within the significant spending category for IT software within the DoD. Many DoD IT procurements involve substantial sums, especially for enterprise-wide solutions, operating systems, and cybersecurity software. This contract's spending level is comparable to other large-scale software licensing and support agreements awarded to major IT vendors. The 'fair' value assessment suggests it was not an outlier in terms of cost relative to the scope and duration when compared to similar large federal IT contracts.
Industry Classification
NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: ONE DELL WAY, ROUND ROCK, TX, 90
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership
Financial Breakdown
Contract Ceiling: $5,864,820
Exercised Options: $5,864,820
Current Obligation: $22,000,919
Parent Contract
Parent Award PIID: GS35F4027D
IDV Type: FSS
Timeline
Start Date: 2005-06-30
Current End Date: 2014-02-21
Potential End Date: 2014-02-21 00:00:00
Last Modified: 2014-12-12
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