DCA awarded $14.6M contract for TRAVAX software to Shoreland Inc. without competition

Contract Overview

Contract Amount: $14,602,005 ($14.6M)

Contractor: Shoreland Inc

Awarding Agency: Department of Defense

Start Date: 2008-08-26

End Date: 2012-02-26

Contract Duration: 1,279 days

Daily Burn Rate: $11.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRAVAX SOFTWARE LICENSE INSTALLATION AND MAINTENANCE -

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $14.6 million to SHORELAND INC for work described as: TRAVAX SOFTWARE LICENSE INSTALLATION AND MAINTENANCE - Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined scope and cost. 2. The contract was not competed, raising questions about potential cost savings. 3. Duration of 1279 days suggests a long-term need for the TRAVAX software. 4. The contract value of $14.6M is significant for 'Other Scientific and Technical Consulting Services'. 5. Awarded by the Department of the Army, indicating a defense-related need. 6. The 'Other Scientific and Technical Consulting Services' NAICS code suggests a broad range of potential services.

Value Assessment

Rating: questionable

Benchmarking the value of this $14.6M contract is challenging without detailed service descriptions and performance metrics. The lack of competition prevents direct comparison with other potential vendors. However, the firm-fixed-price structure suggests cost certainty for the government, assuming the scope was well-defined. The duration of over three years implies a substantial investment, and the value should be assessed against the ongoing utility and necessity of the TRAVAX software.

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 among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition limits the government's ability to explore alternative solutions or secure potentially lower prices through a bidding process.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. Without a competitive process, it's difficult to ascertain if the government received the best possible value for its investment.

Public Impact

The Department of the Army benefits from the TRAVAX software, likely for operational or administrative purposes. Services delivered include installation and maintenance of the TRAVAX software. The geographic impact is likely within the Department of the Army's operational areas. Workforce implications are tied to the personnel required to manage and utilize the TRAVAX software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to higher costs for taxpayers.
Sole-source award raises concerns about potential vendor lock-in and limited future options.
Absence of performance metrics makes it difficult to assess the true value and effectiveness of the software and services.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long contract duration suggests a sustained need and potential for stable operations.
Awarded to a single vendor, potentially allowing for specialized expertise and streamlined support.

Sector Analysis

The 'Other Scientific and Technical Consulting Services' sector (NAICS 541690) is broad and encompasses a wide range of specialized expertise. This contract for TRAVAX software installation and maintenance falls within this category, suggesting a need for specific technical capabilities. The total federal spending in this sector can be substantial, and contracts like this represent a portion of that investment in specialized services and technology.

Small Business Impact

This contract was awarded to Shoreland Inc. and does not appear to have specific small business set-aside provisions. The absence of subcontracting information also makes it difficult to assess the impact on the small business ecosystem. Without a competitive process, opportunities for small businesses to participate as prime contractors or subcontractors are limited.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be tied to the terms of the firm-fixed-price contract, including delivery schedules and service level agreements. Transparency is limited due to the sole-source nature of the award, with fewer public details available compared to competed contracts.

Related Government Programs

Software Licensing and Support Services
Information Technology Consulting
Defense Department Software Procurement
Technical Services Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Potential for vendor lock-in due to specialized software.
Limited transparency on justification for sole-source award.
Absence of performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.6 million to SHORELAND INC. TRAVAX SOFTWARE LICENSE INSTALLATION AND MAINTENANCE -

Who is the contractor on this award?

The obligated recipient is SHORELAND INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $14.6 million.

What is the period of performance?

Start: 2008-08-26. End: 2012-02-26.

What is the specific function and criticality of the TRAVAX software within the Department of the Army?

The provided data does not specify the exact function or criticality of the TRAVAX software. However, given its installation and maintenance by the Department of the Army, it is likely a mission-critical or essential operational tool. Such software could range from logistics management, personnel tracking, intelligence analysis, or specialized operational support systems. The substantial contract value of $14.6 million over approximately four years suggests a significant role in the Army's operations, requiring ongoing support and updates to ensure its effectiveness and security. Further investigation into the specific software's purpose would be necessary to fully understand its impact.

Why was this contract awarded on a sole-source basis instead of being competed?

The data indicates this contract was awarded on a 'NOT COMPETED' basis, which is synonymous with a sole-source award. The specific justification for this sole-source award is not detailed in the provided information. Common reasons for sole-source procurements include situations where only one vendor possesses the necessary technical expertise, proprietary technology, or unique capabilities required for the service. Other justifications can include urgent and compelling needs where competition is not feasible, or if the contract is a follow-on to a previously competed effort where the original vendor is the only viable option. Without further documentation, the precise rationale remains unknown.

How does the $14.6 million contract value compare to similar software maintenance contracts within the federal government?

Comparing the $14.6 million contract value for TRAVAX software installation and maintenance requires context regarding the software's complexity, user base, and the scope of services (installation, ongoing maintenance, updates, support). For 'Other Scientific and Technical Consulting Services' (NAICS 541690), this is a significant award. Federal spending on software licenses and maintenance varies widely. For instance, large enterprise resource planning (ERP) systems or specialized defense software can command tens or hundreds of millions over their lifecycle. Without knowing if TRAVAX is a niche application or a widely deployed system, a direct comparison is difficult. However, the duration of over three years suggests a substantial, long-term investment, and the value should be benchmarked against similar specialized software solutions within the defense sector.

What is Shoreland Inc.'s track record with federal contracts, particularly with the Department of Defense?

The provided data indicates Shoreland Inc. was awarded this $14.6 million contract by the Department of the Army (part of the DoD). The contract spanned from August 2008 to February 2012. To assess their track record, one would need to examine other federal contracts awarded to Shoreland Inc., looking at contract types, values, agencies served, and performance history. A review of contract databases would reveal if they have a history of successful performance, timely delivery, and adherence to contract terms. Their experience with similar software installation and maintenance contracts, especially within the defense sector, would be a key indicator of their capability and reliability.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

Sole-source contracts of this magnitude ($14.6 million) and duration (over three years) carry several potential risks. Firstly, the lack of competition can lead to inflated pricing, as the vendor faces no pressure to offer the most cost-effective solution. Secondly, there's a risk of vendor lock-in, making it difficult and costly to switch to a different provider in the future, even if better alternatives emerge. Thirdly, without competitive benchmarking, it's harder to ensure the government is receiving optimal value for its investment. Finally, sole-source awards can sometimes indicate a lack of market research or planning, potentially missing opportunities for innovation or more efficient solutions that a competitive process might uncover.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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: 933 N MAYFAIR RD STE 208, MILWAUKEE, WI, 04

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

Financial Breakdown

Contract Ceiling: $14,602,005

Exercised Options: $14,602,005

Current Obligation: $14,602,005

Contract Characteristics

Cost or Pricing Data: NO

Timeline