Agriculture Renews Salesforce Licenses for $30.7M, Awarded via BPA Call

Contract Overview

Contract Amount: $30,706,229 ($30.7M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Agriculture

Start Date: 2019-08-01

End Date: 2020-07-31

Contract Duration: 365 days

Daily Burn Rate: $84.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SALESFORCE LICENSE AND ARCHITECT SUPPORT RENEWAL

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94105

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $30.7 million to CARAHSOFT TECHNOLOGY CORP for work described as: SALESFORCE LICENSE AND ARCHITECT SUPPORT RENEWAL Key points: 1. Significant spending on software licenses and support. 2. Competition method is 'Full and Open', but awarded via BPA Call. 3. Risk of vendor lock-in and potential for price creep over time. 4. IT sector spending, specifically on Software Publishers.

Value Assessment

Rating: fair

The contract value of $30.7M for Salesforce licenses and architect support appears high for a one-year renewal. Benchmarking against similar government contracts for enterprise software licenses and support is crucial to assess if this price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a BPA Call, which implies a pre-competed agreement. While the initial BPA may have had full and open competition, the call itself might limit direct comparison to other vendors not on the BPA, potentially impacting price discovery.

Taxpayer Impact: Taxpayers are funding a substantial renewal for essential software and support services. Ensuring the price reflects fair market value is key to responsible fiscal management.

Public Impact

Ensures continued access to critical Salesforce CRM functionalities for the Department of Agriculture. Supports the Office of the Chief Financial Officer's operations. Potential for data migration or integration challenges if switching vendors in the future. Impacts IT budget allocation within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a single vendor.
Reliance on a specific software platform.
Potential for price increases in future renewals.

Positive Signals

Awarded under a competitive BPA Call.
Firm Fixed Price contract type limits cost overruns.
Supports essential agency functions.

Sector Analysis

This contract falls within the Information Technology sector, specifically Software Publishers. Government spending on enterprise software like Salesforce is substantial, with benchmarks varying widely based on user count, modules, and support levels. This renewal represents a significant portion of the agency's IT software budget.

Small Business Impact

The data indicates the award went to CARAHSOFT TECHNOLOGY CORP, which is a reseller. Analysis is needed to determine if small businesses were involved in the subcontracting or if the primary software publisher is a large entity, impacting small business participation goals.

Oversight & Accountability

The award was made via a BPA Call, suggesting oversight was applied during the initial BPA competition. However, ongoing oversight of license utilization and support effectiveness is necessary to ensure value for money throughout the contract period.

Related Government Programs

Software Publishers
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

High contract value.
Potential for vendor lock-in.
Lack of detailed cost breakdown.
Reliance on a single software provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $30.7 million to CARAHSOFT TECHNOLOGY CORP. SALESFORCE LICENSE AND ARCHITECT SUPPORT RENEWAL

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $30.7 million.

What is the period of performance?

Start: 2019-08-01. End: 2020-07-31.

What is the specific breakdown of costs between Salesforce licenses and architect support services?

The provided data does not detail the cost breakdown between Salesforce licenses and architect support. A more granular analysis would require access to the contract's line-item details. Understanding this split is crucial for assessing the value of each component and identifying potential areas for cost optimization or negotiation in future renewals.

How does the per-user cost of these Salesforce licenses compare to other federal agencies or commercial entities?

Benchmarking the per-user cost is essential for evaluating value. Without specific user counts and license types (e.g., Sales Cloud, Service Cloud, specific editions), a direct comparison is difficult. However, the total value suggests a large deployment, and comparing the effective per-user rate against GSA schedules or industry reports would reveal potential overspending or cost-effectiveness.

What is the agency's strategy for managing vendor lock-in and ensuring future flexibility with Salesforce?

The agency's long-term strategy regarding vendor lock-in with Salesforce is unclear from this data. Proactive measures like regular market research, exploring alternative solutions, and negotiating favorable terms for data portability and exit clauses in future contracts are vital. This ensures the agency isn't unduly constrained by its current platform choice.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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: 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: $30,706,229

Exercised Options: $30,706,229

Current Obligation: $30,706,229

Actual Outlays: $30,706,229

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: AG3144B150010

IDV Type: BPA

Timeline