GAO awards $3.6M SaaS contract for web conferencing to Carahsoft Technology Corp

Contract Overview

Contract Amount: $3,611,716 ($3.6M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Government Accountability Office

Start Date: 2021-05-03

End Date: 2026-05-02

Contract Duration: 1,825 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WEB/VIDEO CONFERENCE LICENSES AS A SOFTWARE-AS-A-SERVICE (SAAS), COMMERCIAL-OFF-THE SHELF (COTS) PRODUCT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Government Accountability Office obligated $3.6 million to CARAHSOFT TECHNOLOGY CORP for work described as: WEB/VIDEO CONFERENCE LICENSES AS A SOFTWARE-AS-A-SERVICE (SAAS), COMMERCIAL-OFF-THE SHELF (COTS) PRODUCT Key points: 1. Contract awarded via full and open competition, suggesting a competitive marketplace. 2. Software-as-a-Service (SaaS) model for web conferencing offers flexibility and scalability. 3. Firm Fixed Price contract type provides cost certainty for the government. 4. Contract duration of five years allows for sustained service delivery. 5. Small business participation is not explicitly detailed, warranting further investigation. 6. The award to Carahsoft Technology Corp. indicates a focus on established commercial off-the-shelf solutions.

Value Assessment

Rating: good

The contract value of $3.6 million over five years for web conferencing SaaS appears reasonable, especially considering it is for a commercial off-the-shelf product. Benchmarking against similar government-wide acquisition contracts (GWACs) or agency-specific software licenses would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost risks. However, without specific details on the features and user volume, a definitive value comparison is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This suggests a healthy competitive environment for web conferencing solutions within the federal market. The specific number of bidders is not provided, but the open competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from the most competitive pricing and innovative solutions available in the market, as vendors vie to win the contract.

Public Impact

Government Accountability Office (GAO) personnel will benefit from enhanced web conferencing capabilities for internal and external communications. The contract supports the delivery of essential digital collaboration services, crucial for modern government operations. Services are likely to be utilized across GAO's operations, with potential geographic impact depending on remote work policies. The contract supports the software publisher industry and the reseller channel, contributing to the tech workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on user licenses and feature sets makes it difficult to assess if the full value of the contract is being utilized.
Potential for vendor lock-in if the chosen platform becomes deeply integrated into GAO's workflows.
Dependence on a single SaaS provider for critical communication infrastructure.

Positive Signals

Award through full and open competition suggests a competitive selection process.
Firm fixed-price contract provides budget predictability.
SaaS model offers scalability and potentially lower upfront infrastructure costs.
Longer contract duration allows for stable service provision.

Sector Analysis

This contract falls within the Software Publishers industry (NAICS 511210), specifically for Software-as-a-Service (SaaS) solutions. The federal market for collaboration and communication software is substantial, with agencies increasingly adopting cloud-based solutions for efficiency and flexibility. Comparable spending benchmarks would involve analyzing other federal contracts for similar web conferencing or unified communications platforms, often procured through GWACs like GSA Schedule 70.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and the contract is not a small business set-aside. This suggests that the primary awardee, Carahsoft Technology Corp., is likely a large business or a reseller that primarily works with large business manufacturers. There is no explicit mention of subcontracting requirements for small businesses, which could limit opportunities for smaller firms in this specific contract's execution.

Oversight & Accountability

The Government Accountability Office (GAO) itself is the contracting agency, which implies a high level of internal oversight. As a component of the legislative branch, GAO is subject to congressional oversight and its own internal audit functions. Transparency is generally high for GAO contracts, and any concerns would likely be addressed through GAO's internal processes or public reports.

Related Government Programs

General Services Administration (GSA) Schedules
Cloud Computing Services
Software Licenses
Unified Communications

Risk Flags

Potential for vendor lock-in
Security risks associated with cloud-based SaaS
Dependence on vendor for updates and support

Frequently Asked Questions

What is this federal contract paying for?

Government Accountability Office awarded $3.6 million to CARAHSOFT TECHNOLOGY CORP. WEB/VIDEO CONFERENCE LICENSES AS A SOFTWARE-AS-A-SERVICE (SAAS), COMMERCIAL-OFF-THE SHELF (COTS) PRODUCT

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Government Accountability Office (GAO, Except Comptroller General).

What is the total obligated amount?

The obligated amount is $3.6 million.

What is the period of performance?

Start: 2021-05-03. End: 2026-05-02.

What specific web conferencing features are included in this SaaS contract, and how do they align with GAO's operational needs?

The provided data does not specify the exact features included in the SaaS web conferencing solution. However, as a commercial off-the-shelf (COTS) product, it is expected to include standard functionalities such as video and audio conferencing, screen sharing, chat, recording capabilities, and potentially virtual whiteboards or breakout rooms. To assess alignment with GAO's needs, one would need to review the Performance Work Statement (PWS) or the contract's statement of objectives. This would detail requirements for user capacity, security protocols (e.g., FedRAMP authorization), integration with existing systems, and specific collaboration tools necessary for GAO's auditing and investigative functions.

How does the $3.6 million contract value compare to similar web conferencing SaaS contracts awarded by other federal agencies?

Benchmarking this $3.6 million contract requires comparing it to similar web conferencing SaaS agreements across the federal government. Agencies like the Department of Defense, NASA, or the Department of Justice often procure similar services. Factors influencing price include the number of users, the level of service (e.g., basic vs. premium features), contract duration, and the specific vendor. For instance, a contract for 10,000 users might cost significantly more than one for 1,000 users. Without knowing the user count and feature set for this GAO contract, a precise comparison is difficult. However, $3.6 million over five years averages to $720,000 annually, which is within the expected range for enterprise-level SaaS solutions supporting a significant user base.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure service quality?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for SaaS web conferencing solutions, SLAs would cover aspects such as system uptime (e.g., 99.9% availability), response times for technical support, resolution times for reported issues, and performance metrics like call quality and connection stability. GAO, as the contracting agency, would have established these KPIs in the Performance Work Statement (PWS) to ensure the vendor, Carahsoft Technology Corp., meets defined service standards. Failure to meet these SLAs could result in financial penalties or other contractual remedies.

What is Carahsoft Technology Corp.'s track record in delivering similar SaaS solutions to federal agencies?

Carahsoft Technology Corp. is a well-established government IT solutions provider and reseller, known for partnering with numerous software manufacturers to offer their products to federal, state, and local governments. They have a significant track record in delivering a wide range of software and cloud solutions, including collaboration tools, through various contract vehicles like GSA Schedules. While Carahsoft primarily acts as a reseller, their experience in navigating government procurement processes and managing complex software deployments is extensive. Their ability to secure this contract with GAO, an agency known for its rigorous procurement standards, suggests a positive track record in supporting government IT needs.

Are there any identified risks associated with using a commercial off-the-shelf (COTS) SaaS product for web conferencing, and how are they mitigated?

Using a COTS SaaS product for web conferencing presents several potential risks. These include security vulnerabilities inherent in shared cloud environments, potential vendor lock-in due to platform integration, reliance on the vendor for updates and maintenance, and the possibility that the COTS solution may not perfectly meet all unique agency requirements. Mitigation strategies typically involve rigorous security assessments (like FedRAMP authorization), clearly defined SLAs and exit strategies in the contract, ensuring the COTS product meets a high percentage of functional requirements, and maintaining strong vendor oversight. GAO's selection of a COTS product likely indicates that the benefits of cost-effectiveness, rapid deployment, and readily available features outweighed the potential risks, which are managed through contractual terms and security protocols.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

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: 11493 SUNSET HILLS RD, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $3,611,716

Exercised Options: $3,611,716

Current Obligation: $3,611,716

Actual Outlays: $792,740

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0119Y

IDV Type: FSS

Timeline