USDA awards $52.3M Salesforce ELA, a significant investment in enterprise software for the agency

Contract Overview

Contract Amount: $52,318,879 ($52.3M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Agriculture

Start Date: 2025-05-28

End Date: 2026-05-27

Contract Duration: 364 days

Daily Burn Rate: $143.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SALESFORCE ENTERPRISE LICENSE AGREEMENT (ELA) FOR ALL OF USDA.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $52.3 million to CARAHSOFT TECHNOLOGY CORP for work described as: SALESFORCE ENTERPRISE LICENSE AGREEMENT (ELA) FOR ALL OF USDA. Key points: 1. The contract represents a substantial commitment to a single software vendor, indicating a strategic reliance on Salesforce's platform. 2. Competition dynamics for this type of enterprise license agreement can be limited due to vendor-specific technology and integration requirements. 3. Performance risk is moderate, contingent on Salesforce's ability to deliver ongoing support and updates for the enterprise-wide deployment. 4. The contract's value, over $52 million, positions it as a major IT expenditure within the Department of Agriculture. 5. This ELA likely supports a wide range of departmental functions, from financial management to program delivery, across the USDA. 6. The fixed-price nature of the contract provides cost certainty for the agency, though it may limit flexibility for scope changes.

Value Assessment

Rating: good

The $52.3 million award for a one-year Salesforce Enterprise License Agreement (ELA) appears to be a significant but potentially value-driven investment for the Department of Agriculture. While direct comparisons for agency-wide ELAs are difficult without more granular data, the price per user or per function would be a key benchmark. Given the breadth of potential users across USDA, the cost per user is likely competitive for enterprise-level software. The fixed-price nature offers predictability, but ongoing value will depend on the utilization and effectiveness of the Salesforce platform across the department.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was competed under SAP (Simplified Acquisition Procedures), suggesting a streamlined procurement process. While the specific number of bidders is not detailed, SAP is typically used for procurements below certain thresholds, often involving a limited number of qualified vendors. The fact that it was competed, even under SAP, indicates an effort to secure competitive pricing and terms for the Salesforce ELA.

Taxpayer Impact: Competing the contract, even under SAP, helps ensure that taxpayer funds are used efficiently by obtaining the best possible pricing for this critical enterprise software.

Public Impact

Federal employees across the Department of Agriculture will benefit from access to the Salesforce platform for their daily operations. The contract enables the delivery of enhanced IT services and support for various USDA programs and administrative functions. The geographic impact is nationwide, as USDA operates across all states and territories, utilizing this software for its distributed workforce. Workforce implications include the need for training and adoption of the Salesforce platform by USDA personnel to maximize its utility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the enterprise-wide nature of the license.
Risk of underutilization if not effectively deployed and adopted across all relevant USDA divisions.
Dependence on Carahsoft Technology Corp for delivery and support, requiring strong vendor management.
The fixed-price contract may not accommodate unforeseen scope changes or additional feature requirements without re-negotiation.

Positive Signals

Consolidates software licensing under a single, comprehensive agreement, potentially simplifying management and procurement.
Provides access to a widely adopted and robust CRM and enterprise platform, supporting modernization efforts.
The competitive bidding process, even under SAP, suggests an effort to achieve favorable terms and pricing.
A clear contract duration (one year) allows for periodic re-evaluation of needs and market conditions.

Sector Analysis

The market for enterprise software, particularly Customer Relationship Management (CRM) and platform solutions like Salesforce, is highly competitive and dominated by a few major players. This contract falls within the broader Information Technology (IT) services sector, specifically software licensing and support. The total addressable market for enterprise software globally is in the hundreds of billions of dollars annually. Within the federal government, agencies increasingly rely on such platforms for digital transformation, data management, and citizen engagement, making these types of ELAs significant components of IT spending.

Small Business Impact

The data indicates this contract was awarded to CARAHSOFT TECHNOLOGY CORP, which is known for its role in reselling software to government agencies. While the contract itself is not a small business set-aside, Carahsoft often works with prime contractors and may have subcontracting opportunities with small businesses for implementation, training, or specialized support services related to the Salesforce platform. The impact on the small business ecosystem would depend on Carahsoft's specific subcontracting plans and the availability of qualified small business partners for Salesforce-related services.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Agriculture's contracting officers and program managers responsible for IT investments. Accountability measures are embedded in the contract terms, including performance expectations and delivery schedules. Transparency is facilitated through public contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or identified.

Related Government Programs

Salesforce Enterprise License Agreements
Federal Civilian IT Modernization Programs
Department of Agriculture IT Procurement
Cloud Computing Services for Government
Software Licensing and Maintenance Contracts

Risk Flags

Potential for scope creep if not managed tightly.
Dependence on vendor for critical IT infrastructure.
Risk of underutilization of licensed features.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $52.3 million to CARAHSOFT TECHNOLOGY CORP. SALESFORCE ENTERPRISE LICENSE AGREEMENT (ELA) FOR ALL OF USDA.

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 $52.3 million.

What is the period of performance?

Start: 2025-05-28. End: 2026-05-27.

What is the historical spending pattern for Salesforce or similar enterprise software licenses within the Department of Agriculture?

Analyzing historical spending on Salesforce or comparable enterprise software within the USDA is crucial for context. Without specific historical data for this exact ELA, we can infer trends. Agencies often move towards consolidating software licenses to achieve economies of scale and simplify management. If USDA has previously used Salesforce or similar platforms across different offices or programs, this $52.3 million award might represent a consolidation or expansion of existing usage. Previous awards would indicate whether this spending level is an increase, decrease, or consistent with past investments in enterprise software. Understanding the trajectory of such spending helps assess if the current investment aligns with long-term IT strategy and budget planning, and whether previous investments yielded expected returns.

How does the per-user cost of this Salesforce ELA compare to other federal agencies or commercial benchmarks?

Benchmarking the per-user cost of this Salesforce ELA against similar contracts in other federal agencies or against commercial market rates is essential for evaluating value for money. While the total award is $52.3 million, the actual per-user cost depends on the number of licensed users within USDA. If USDA has a large user base, the per-user cost might be significantly lower due to volume discounts. Conversely, if the user base is smaller, the per-user cost could be higher. Comparing this metric to publicly available data for other agencies' Salesforce ELAs or to Salesforce's published enterprise pricing (adjusted for government discounts) would reveal if USDA is securing a competitive rate. A higher-than-average per-user cost could indicate potential overspending or a need for better negotiation, while a lower cost suggests efficient procurement.

What specific Salesforce products and modules are included in this Enterprise License Agreement?

The specific Salesforce products and modules included in this Enterprise License Agreement (ELA) are critical for understanding the scope and intended use of the $52.3 million award. An ELA typically covers a suite of services, which could range from core CRM functionalities (Sales Cloud, Service Cloud) to marketing automation (Marketing Cloud), analytics (Tableau), or industry-specific solutions. Knowing the included modules allows for an assessment of whether the selected tools align with USDA's strategic objectives and operational needs across its various departments. It also helps in evaluating if the agency is licensing capabilities it will actually utilize, thereby impacting the overall value for money. Without this detail, it's difficult to assess if the investment is optimized for maximum benefit.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this Salesforce ELA?

Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are fundamental to ensuring the successful delivery and value realization of this $52.3 million Salesforce ELA. These metrics define the expected performance standards for Salesforce's services, such as system uptime, response times for technical support, and resolution times for critical issues. Robust KPIs and SLAs allow the USDA to monitor vendor performance objectively and hold Carahsoft Technology Corp accountable for meeting contractual obligations. Without clearly defined and measurable KPIs/SLAs, it becomes challenging to assess whether the agency is receiving the expected level of service and support, potentially leading to dissatisfaction or unmet operational needs. Their presence is a strong indicator of effective contract management.

What is the track record of Carahsoft Technology Corp in delivering similar large-scale enterprise software solutions to federal agencies?

Carahsoft Technology Corp has a well-established track record as a major reseller of software and IT solutions to the U.S. federal government. They are known for their extensive contract vehicles and ability to provide a wide range of products from various technology manufacturers, including Salesforce. For large-scale enterprise software solutions, Carahsoft typically acts as the prime contractor, facilitating the procurement and licensing process, while the underlying technology and support often come directly from the software vendor (in this case, Salesforce). Their experience in navigating federal procurement regulations and managing complex licensing agreements is generally considered strong. However, the ultimate success of the implementation and ongoing support relies heavily on the direct capabilities of the software vendor and any third-party integrators involved.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12314425Q0052

Offers Received: 3

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: $276,840,161

Exercised Options: $52,318,879

Current Obligation: $52,318,879

Actual Outlays: $51,335,721

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12314424G0013

IDV Type: BOA

Timeline