DoD's $26.6M CCE Software Maintenance Contract Awarded to 3M Company Shows Fair Value
Contract Overview
Contract Amount: $26,577,421 ($26.6M)
Contractor: 3M Company
Awarding Agency: Department of Defense
Start Date: 2011-09-20
End Date: 2016-09-30
Contract Duration: 1,837 days
Daily Burn Rate: $14.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BASE PERIOD CCE SOFTWARE MAINTENANCE
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $26.6 million to 3M COMPANY for work described as: BASE PERIOD CCE SOFTWARE MAINTENANCE Key points: 1. The contract demonstrates a commitment to maintaining essential software, ensuring operational continuity for the Department of Defense. 2. Competition dynamics indicate a full and open process, suggesting a robust market for this type of software maintenance. 3. Risk indicators appear low, given the firm-fixed-price structure and the established nature of the software. 4. Performance context suggests a long-term need for software support, aligning with typical defense IT lifecycle management. 5. Sector positioning places this contract within the broader defense IT spending, specifically for CCE software maintenance.
Value Assessment
Rating: good
The base period cost of approximately $26.6 million for CCE software maintenance appears reasonable when benchmarked against similar long-term IT support contracts within the federal government. The firm-fixed-price structure provides cost certainty for the government, mitigating risks associated with cost overruns. While specific per-unit cost data is not readily available, the overall value proposition seems sound given the critical nature of the software and the duration of the contract.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award suggests that 3M Company was the most advantageous offer based on the evaluation criteria. The competitive nature of the bidding process likely contributed to achieving a fair market price for the software maintenance services.
Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.
Public Impact
The Department of Defense benefits from uninterrupted access to critical CCE software, supporting its operational readiness. Essential software maintenance services are delivered, ensuring the functionality and security of the CCE system. The geographic impact is primarily within the Department of Defense's operational footprint, supporting its nationwide and potentially global activities. Workforce implications include the continued employment of personnel skilled in maintaining and supporting the CCE software, both within the contractor's organization and potentially within the DoD IT support structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if CCE software becomes proprietary and difficult to replace.
- Reliance on a single vendor for maintenance could lead to price increases in future contract renewals.
- Ensuring adequate performance metrics are in place to guarantee the quality of maintenance services.
Positive Signals
- Firm-fixed-price contract provides cost predictability for the government.
- Full and open competition suggests a healthy market and potential for competitive pricing.
- Long-term contract duration indicates a stable and ongoing need for the service, allowing for efficient resource planning.
Sector Analysis
This contract falls within the broader Information Technology sector, specifically focusing on software maintenance and support for a critical defense system. The market for specialized software maintenance can be competitive, with established players offering long-term support solutions. Comparable spending benchmarks for similar enterprise software maintenance contracts within the federal government often range from several million to tens of millions of dollars annually, depending on the complexity and criticality of the software.
Small Business Impact
The contract details do not indicate any specific small business set-aside provisions. Given the nature of specialized software maintenance for defense systems, it is common for larger, established companies to hold such contracts. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the award information. The impact on the small business ecosystem would likely be indirect, through potential subcontracting roles rather than direct prime contract awards.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army, ensuring adherence to contract terms and performance standards. Accountability measures are embedded in the firm-fixed-price structure, which incentivizes the contractor to meet deliverables within the agreed-upon budget. Transparency is facilitated through contract award databases, though detailed performance reports may be internal to the agency.
Related Government Programs
- Defense Information Systems Agency (DISA) IT Support Contracts
- Army Enterprise Software Licensing
- Department of Defense Cloud Computing Services
- Federal Civilian Agency Software Maintenance Agreements
Risk Flags
- Potential for vendor lock-in
- Reliance on single vendor for critical software maintenance
- Need for ongoing performance monitoring
Tags
it, defense, department-of-defense, department-of-the-army, software-maintenance, firm-fixed-price, full-and-open-competition, cce-software, 3m-company, virginia, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.6 million to 3M COMPANY. BASE PERIOD CCE SOFTWARE MAINTENANCE
Who is the contractor on this award?
The obligated recipient is 3M COMPANY.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $26.6 million.
What is the period of performance?
Start: 2011-09-20. End: 2016-09-30.
What is the track record of 3M Company in providing software maintenance services to the Department of Defense?
3M Company has a long history of providing a wide range of products and services to the federal government, including the Department of Defense. Their involvement in IT services, including software maintenance and support, is extensive. While specific details on past performance for this particular CCE software are not provided in the award data, 3M's general experience suggests a capability to manage complex IT contracts. Federal procurement databases often contain past performance information that can be reviewed for specific contract vehicles. Agencies typically evaluate a contractor's past performance as a key factor in award decisions, looking for evidence of successful delivery, adherence to schedules, and quality of service.
How does the $26.6 million base period cost compare to similar CCE software maintenance contracts?
Benchmarking the $26.6 million base period cost requires comparison with contracts for similar Computer and Electronic Equipment (CCE) software maintenance, particularly those supporting defense or large federal agencies. Without specific details on the CCE software's complexity, user base, and criticality, a precise comparison is challenging. However, for enterprise-level software maintenance agreements that span multiple years (this contract's base period is approximately 5 years), costs in the tens of millions of dollars are not uncommon. Factors influencing cost include the number of licenses supported, the level of support required (e.g., 24/7 support, response times), and the inclusion of software updates and upgrades. The firm-fixed-price nature of this award suggests that the government has negotiated a set price, aiming for value within the competitive landscape.
What are the primary risks associated with this software maintenance contract?
The primary risks associated with this software maintenance contract include potential vendor lock-in, where the government becomes heavily reliant on 3M Company for the continued operation and updates of the CCE software, making future transitions difficult or costly. Another risk is the potential for price escalation in future option periods or follow-on contracts if competition diminishes or if the software's proprietary nature limits alternatives. Performance risk, though mitigated by the firm-fixed-price structure, still exists if the contractor fails to deliver adequate maintenance, leading to system downtime or security vulnerabilities. Ensuring robust contract oversight and performance monitoring is crucial to mitigate these risks.
How effective is a full and open competition in ensuring value for taxpayer money in software maintenance contracts?
A full and open competition is generally considered the most effective method for ensuring value for taxpayer money in software maintenance contracts. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. This process allows the government to solicit proposals based on clearly defined requirements and evaluation criteria, enabling the selection of the offer that represents the best overall value, not just the lowest price. The presence of multiple bidders increases the likelihood that the government will receive competitive pricing and high-quality services. In this specific case, the award to 3M Company under full and open competition suggests that their offer was deemed the most advantageous.
What are the historical spending patterns for CCE software maintenance within the Department of the Army?
Historical spending patterns for CCE software maintenance within the Department of the Army, and the broader Department of Defense, typically show consistent investment in maintaining critical operational software. These patterns are influenced by the lifecycle of defense systems, the introduction of new technologies, and the need for ongoing support of legacy systems. Spending can fluctuate based on major system upgrades, cybersecurity requirements, and the number of software licenses deployed across various units. Analyzing historical data for similar contracts can reveal trends in pricing, contract duration, and the prevalence of different contract types (e.g., firm-fixed-price vs. cost-plus). This specific contract, awarded in 2011 with a base period ending in 2016, reflects a period of sustained investment in essential IT infrastructure.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3M CENTER BLDG 220 11W 02, SAINT PAUL, MN, 55144
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,577,421
Exercised Options: $26,577,421
Current Obligation: $26,577,421
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F4002G
IDV Type: FSS
Timeline
Start Date: 2011-09-20
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2021-12-09
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