USDA awards $464K for AEM Forms software to Carahsoft Technology Corp under full and open competition

Contract Overview

Contract Amount: $464,436 ($464.4K)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Agriculture

Start Date: 2024-08-15

End Date: 2027-08-14

Contract Duration: 1,094 days

Daily Burn Rate: $425/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AEM FORMS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $464,436.15 to CARAHSOFT TECHNOLOGY CORP for work described as: AEM FORMS Key points: 1. The contract value represents a modest investment in essential software for the Food Safety and Inspection Service. 2. Competition dynamics suggest a potentially competitive bidding process, which can lead to favorable pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is benchmarked against similar software licensing agreements. 5. This contract falls within the broader IT sector, specifically software publishers. 6. The duration of the contract is approximately three years, allowing for sustained support and updates.

Value Assessment

Rating: good

The contract value of $464,436.15 for AEM Forms software appears reasonable given the typical costs associated with enterprise-level software licenses and support. Benchmarking against similar software procurement vehicles, such as enterprise-wide agreements for content management systems or digital workflow tools, suggests this award is within expected ranges. The firm fixed-price nature of the contract provides cost certainty, which is a positive indicator of value for money. Without specific details on the scope of services or user licenses, a precise per-unit cost comparison is difficult, but the overall award seems to align with market expectations for specialized software.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a healthy level of competition for this requirement. A competitive bidding process generally allows for price discovery and encourages vendors to offer their best pricing and terms to secure the award. The number of bidders provides a good indication that the government explored a range of options and likely received competitive proposals.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation from multiple vendors.

Public Impact

The Food Safety and Inspection Service (FSIS) will benefit from enhanced capabilities in managing and distributing forms. This contract supports the delivery of critical administrative and operational services within the USDA. The primary geographic impact is within the agency's operational footprint, likely nationwide. The contract supports the IT workforce involved in software management and implementation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software becomes deeply integrated without clear exit strategies.
Reliance on a single software solution may create dependencies that are difficult to change later.
Ensuring adequate training and user adoption across the agency will be crucial for realizing full value.

Positive Signals

Firm fixed-price contract provides cost certainty and reduces financial risk.
Full and open competition suggests a robust market evaluation and potential for competitive pricing.
The award to a known entity like Carahsoft Technology Corp, often a reseller for various software solutions, may streamline procurement and support.

Sector Analysis

The Information Technology sector, specifically the Software Publishers sub-sector (NAICS 511210), is characterized by rapid innovation and diverse offerings. This contract for AEM Forms software fits within the broader market for digital workflow and content management solutions, which are increasingly critical for government agencies to improve efficiency and service delivery. The total federal spending on software publishers is substantial, with agencies continually investing in modernizing their IT infrastructure. This specific award represents a small but important component of that overall spending, enabling a key function within the USDA.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Carahsoft Technology Corp, which often acts as a reseller, means that the ultimate software provider might be a different entity, potentially including small businesses in their supply chain. However, without explicit set-aside provisions or subcontracting goals, the direct impact on the small business ecosystem for this specific award is likely limited.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Agriculture's Food Safety and Inspection Service, likely through contract officers and program managers. Accountability measures are inherent in the firm fixed-price structure, requiring delivery of specified software and services. Transparency is facilitated by the contract award being publicly available. While specific Inspector General jurisdiction is not detailed, the USDA OIG would have oversight over potential fraud, waste, or abuse related to federal contracts.

Related Government Programs

USDA IT Modernization Initiatives
Government Software Licensing Agreements
Digital Workflow Solutions Procurement
Content Management Systems Contracts

Risk Flags

Potential for vendor lock-in
Adequacy of user training and adoption
Long-term software lifecycle management

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $464,436.15 to CARAHSOFT TECHNOLOGY CORP. AEM FORMS

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Food Safety and Inspection Service).

What is the total obligated amount?

The obligated amount is $464,436.15.

What is the period of performance?

Start: 2024-08-15. End: 2027-08-14.

What is Carahsoft Technology Corp's track record with federal contracts, particularly for software solutions?

Carahsoft Technology Corp is a prominent government IT solutions provider and reseller, holding numerous federal contracts across various agencies. They specialize in offering a wide range of software and hardware products through various contract vehicles, often acting as a reseller for major technology manufacturers. Their track record includes significant awards for enterprise software, cybersecurity solutions, and cloud services. For the Department of Agriculture, Carahsoft has previously secured contracts for IT products and services, indicating familiarity with the agency's procurement processes and needs. Their business model focuses on simplifying the procurement process for government agencies by consolidating offerings from multiple vendors under established contract vehicles, which can lead to efficiencies and competitive pricing.

How does the $464,436.15 award compare to other federal spending on similar software solutions?

The $464,436.15 award for AEM Forms software is a relatively modest sum in the context of large federal IT procurements. Federal agencies frequently spend millions, and sometimes tens or hundreds of millions, on enterprise-wide software licenses, custom development, and comprehensive support services. For instance, major enterprise resource planning (ERP) systems, cloud migration projects, or large-scale cybersecurity suites can easily exceed this amount for a single contract. However, for a specific application like AEM Forms, which likely serves a defined purpose within the Food Safety and Inspection Service, this value appears reasonable. It suggests a focused procurement for a particular capability rather than a broad, agency-wide IT overhaul. Benchmarking against similar niche software procurements would provide a more precise comparison, but this figure does not immediately suggest overspending.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential vendor lock-in, where the agency becomes heavily reliant on AEM Forms and its provider, making future transitions costly or difficult. Another risk is inadequate user adoption or training, which could diminish the software's effectiveness and return on investment. Mitigation strategies are embedded within the contract structure and procurement process. The firm fixed-price nature mitigates financial risks by capping costs. The full and open competition process helps ensure that the selected solution meets requirements at a competitive price. Furthermore, the contract duration (approximately three years) allows for sustained support but also provides periodic opportunities to reassess needs and explore alternatives. Effective change management, comprehensive training programs, and clear performance metrics will be crucial for successful implementation and risk mitigation.

How effective is the 'full and open competition' approach for procuring specialized software like AEM Forms?

The 'full and open competition' approach is generally considered the most effective method for procuring specialized software like AEM Forms, as it maximizes the potential for obtaining the best value for taxpayer dollars. By allowing all responsible sources to compete, the government broadens its options, potentially uncovering innovative solutions and driving down prices through competitive bidding. The fact that seven bidders participated indicates a robust market response, suggesting that the requirement was well-defined and attractive to multiple vendors. This level of competition increases the likelihood that the chosen solution is not only cost-effective but also technically superior and best suited to the agency's specific needs. While it requires more upfront effort in terms of solicitation and evaluation, the long-term benefits in terms of price, quality, and innovation typically outweigh the initial investment.

What are the historical spending patterns for software publishers (NAICS 511210) within the Department of Agriculture?

Historical spending patterns for software publishers within the Department of Agriculture (USDA) generally show a consistent and significant investment in IT solutions to support its diverse mission areas, including food safety, rural development, and agricultural research. Agencies within the USDA procure a wide array of software, from specialized scientific and data analysis tools to enterprise resource planning (ERP) systems, cloud services, and standard office productivity suites. Spending in the software publishers category (NAICS 511210) typically fluctuates based on major IT modernization initiatives, contract renewals, and the introduction of new technologies. While specific historical figures for the Food Safety and Inspection Service (FSIS) related to AEM Forms are not detailed here, the overall USDA IT budget reflects a continuous need for software to enhance operational efficiency, data management, and regulatory compliance. Trends often show an increasing allocation towards cloud-based solutions and cybersecurity software.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

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: $828,180

Exercised Options: $464,436

Current Obligation: $464,436

Actual Outlays: $299,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA18D008F

IDV Type: FSS

Timeline