DoD's $18.5M Yardi Systems Contract for ADP & Telecom Services Lacked Competition

Contract Overview

Contract Amount: $18,513,002 ($18.5M)

Contractor: Yardi Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-09-30

End Date: 2009-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 200412!009544!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !GS35F0731P !C!N! !Y!W15P7T04F0104! !20040930!20090930!120975172!120975172!120975172!N!YARDI SYSTEMS, INC !430 S FAIRVIEW AVENUE !GOLETA !CA!93117!69070!083!06!SANTA BARBARA !SANTA BARBARA !CALIFORNIA!+000001900000!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !99990909!B!A!Y! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: GOLETA, SANTA BARBARA County, CALIFORNIA, 93117

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to YARDI SYSTEMS, INC. for work described as: 200412!009544!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !GS35F0731P !C!N! !Y!W15P7T04F0104! !20040930!20090930!120975172!120975172!120975172!N!YARDI SYSTEMS, INC !430 S FAIRVIEW AVENUE !GOLETA !CA!93117!69070!083!06!SANTA BARBARA !SANT… Key points: 1. The contract awarded to Yardi Systems, Inc. for ADP and telecommunication services totaled $18,513,001.57. 2. Awarded under full and open competition, the contract's effectiveness in achieving competitive pricing is questionable. 3. The primary risk lies in the potential for inflated costs due to a lack of demonstrated price discovery. 4. The sector is IT, specifically Other ADP & Telecommunication Services, with a PSC code of D399.

Value Assessment

Rating: questionable

The contract's value is $18.5 million over five years. Without clear benchmarks or competitive pricing data, it's difficult to assess if this represents a fair market price compared to similar IT service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition. However, the lack of detailed pricing information and the duration of the contract raise questions about the effectiveness of the price discovery process.

Taxpayer Impact: Taxpayer funds may have been used inefficiently if the competitive process did not result in the best possible pricing for these essential IT services.

Public Impact

Defense agencies rely on IT and telecommunication services for critical operations. The significant contract value suggests a substantial impact on the IT services market. Ensuring competitive pricing in government contracts protects taxpayer money. Transparency in contract awards is crucial for public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clear price justification
Potential for overpayment
Limited transparency on competition effectiveness

Positive Signals

Awarded under full and open competition
Contract supports critical defense IT infrastructure

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on ADP and telecommunication services. Government spending in this area is substantial, with agencies constantly seeking efficient solutions for their technological needs.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or if this contract specifically targeted small business participation. Further analysis would be needed to determine the impact on small businesses.

Oversight & Accountability

The contract was awarded by the Department of Defense. Oversight would typically involve contract performance monitoring and financial audits to ensure compliance and value for money, though specific oversight details are not provided.

Related Government Programs

Software Publishers
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for overpayment due to lack of competitive pricing evidence
Limited transparency on the effectiveness of the competition
Contract duration may have allowed for price escalation
Lack of detailed service description

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to YARDI SYSTEMS, INC.. 200412!009544!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !GS35F0731P !C!N! !Y!W15P7T04F0104! !20040930!20090930!120975172!120975172!120975172!N!YARDI SYSTEMS, INC !430 S FAIRVIEW AVENUE !GOLETA !CA!93117!69070!083!06!SANTA BARBARA !SANTA BARBARA !CALIFORNIA!+000001900000!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is YARDI SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2004-09-30. End: 2009-09-29.

What specific services were provided under this contract, and how did they align with the agency's needs?

The contract was for 'OTHER ADP & TELECOMMUNICATION SERVICES' (PSC D399). While the specific services are not detailed, this category generally includes a wide range of IT support, network management, and communication solutions essential for defense operations. The alignment would depend on the agency's specific technological requirements at the time of award.

Were there any performance issues or contract modifications that impacted the final cost?

The provided data does not detail any performance issues or contract modifications. The contract duration was 1825 days (5 years), and the total value was $18,513,001.57. Without further information on modifications or performance reviews, it's impossible to assess their impact on the final cost.

How did the agency ensure that the 'full and open competition' resulted in the best value for taxpayers?

The data indicates 'full and open competition,' but lacks details on the bidding process, evaluation criteria, or the number of bids received. To ensure best value, the agency should have robust documentation demonstrating a thorough price analysis and a clear rationale for selecting Yardi Systems, Inc. based on technical merit and cost-effectiveness.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 430 S FAIRVIEW AVENUE, GOLETA, CA, 24

Business Categories: Category Business, Minority Owned Business, Not Designated a Small Business, Indian (Subcontinent) American Owned Business

Parent Contract

Parent Award PIID: GS35F0731P

IDV Type: FSS

Timeline