Agriculture's $10.2M SAP Support Contract Awarded to Carahsoft Technology Corp

Contract Overview

Contract Amount: $10,244,734 ($10.2M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Agriculture

Start Date: 2026-01-01

End Date: 2026-12-31

Contract Duration: 364 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PRINCIPAL OBJECTIVE FOR THIS PROCUREMENT IS TO SECURE ONGOING SECURE PRODUCT SUPPORT FOR LARGE ENTERPRISES (SPSLE) FOR THE DEPARTMENT'S SAP BASED SOLUTIONS.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $10.2 million to CARAHSOFT TECHNOLOGY CORP for work described as: THE PRINCIPAL OBJECTIVE FOR THIS PROCUREMENT IS TO SECURE ONGOING SECURE PRODUCT SUPPORT FOR LARGE ENTERPRISES (SPSLE) FOR THE DEPARTMENT'S SAP BASED SOLUTIONS. Key points: 1. Contract focuses on ongoing secure product support for large enterprises using SAP solutions. 2. Carahsoft Technology Corp. is the sole awardee. 3. The contract is for Firm Fixed Price, with a duration of 364 days. 4. This procurement falls under 'Other Computer Related Services' (NAICS 541519).

Value Assessment

Rating: fair

The contract value of $10.2M for one year of support appears reasonable for enterprise-level SAP solutions. Benchmarking against similar large-scale SAP support contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the awardee is Carahsoft Technology Corp., which may act as a reseller, potentially impacting direct price discovery from the original software vendor.

Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure support. The competitive award process aims to ensure reasonable pricing, but the specific reseller model warrants attention.

Public Impact

Ensures continued operation of critical SAP systems for the Department of Agriculture. Supports large enterprises within the department, indicating a significant user base. The contract's focus on security is vital for protecting sensitive government data. Potential for cost savings if competition effectively drove down prices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reseller model may obscure true software costs.
Limited duration (1 year) may lead to frequent re-procurement efforts.
No explicit mention of small business participation.

Positive Signals

Awarded under full and open competition.
Focus on secure product support for critical systems.
Clear objective for ongoing support.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on enterprise software support. Spending benchmarks for similar SAP support contracts can vary widely based on the scale of the deployment and the specific modules in use.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the requirement precluded their involvement.

Oversight & Accountability

The award was made via a delivery order under a larger contract vehicle. Oversight would involve monitoring performance against the contract terms and ensuring the pricing remains competitive throughout the period of performance.

Related Government Programs

Other Computer Related Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Potential lack of transparency in pricing due to reseller.
Limited contract duration may lead to recurring administrative burden.
No clear indication of small business utilization.
Specific security protocols and performance metrics are not detailed.
Dependence on a single vendor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $10.2 million to CARAHSOFT TECHNOLOGY CORP. THE PRINCIPAL OBJECTIVE FOR THIS PROCUREMENT IS TO SECURE ONGOING SECURE PRODUCT SUPPORT FOR LARGE ENTERPRISES (SPSLE) FOR THE DEPARTMENT'S SAP BASED SOLUTIONS.

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 $10.2 million.

What is the period of performance?

Start: 2026-01-01. End: 2026-12-31.

What is the specific SAP solution being supported, and what is the criticality of this support to the Department of Agriculture's mission?

The data specifies 'SAP Based Solutions' for large enterprises. The criticality is implied by the need for 'ongoing secure product support,' suggesting these systems are vital for core departmental functions. Without more detail on the specific SAP modules (e.g., financial, HR, logistics), a precise mission criticality assessment is difficult, but any disruption to enterprise resource planning systems can have significant operational and financial impacts.

How does Carahsoft Technology Corp.'s role as a reseller impact the overall cost-effectiveness and transparency of this contract?

As a reseller, Carahsoft adds a layer to the procurement process. While they may offer consolidated purchasing benefits, their markup can increase the final price compared to direct procurement from the software vendor. Transparency is reduced as the original vendor's pricing is not directly visible. The effectiveness hinges on whether Carahsoft secured favorable terms that offset their margin and provide value beyond simple distribution.

What mechanisms are in place to ensure the 'secure product support' meets evolving cybersecurity threats and compliance requirements?

The contract specifies 'secure product support,' implying adherence to security protocols. However, the data does not detail specific security requirements, compliance standards (e.g., NIST, FISMA), or the process for updating support to counter emerging threats. Effective oversight would require clear performance metrics related to security incident response, vulnerability patching, and proactive threat mitigation to ensure the support remains adequate.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: RFQ1790530

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: $10,244,734

Exercised Options: $10,244,734

Current Obligation: $10,244,734

Actual Outlays: $10,244,734

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC27B

IDV Type: GWAC

Timeline