IRS Renews Akamai CDN License for $2.68M, Awarded to Carahsoft via Full and Open Competition
Contract Overview
Contract Amount: $2,676,568 ($2.7M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of the Treasury
Start Date: 2023-09-07
End Date: 2026-03-31
Contract Duration: 936 days
Daily Burn Rate: $2.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THIS IS A DELIVERY ORDER TO RENEW AKAMAI CONTENT DELIVERY NETWORK (CDN) SOFTWARE LICENSE SUBSCRIPTIONS.
Place of Performance
Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $2.7 million to CARAHSOFT TECHNOLOGY CORP for work described as: THIS IS A DELIVERY ORDER TO RENEW AKAMAI CONTENT DELIVERY NETWORK (CDN) SOFTWARE LICENSE SUBSCRIPTIONS. Key points: 1. Akamai's CDN software license renewal represents a significant investment in critical infrastructure for the IRS. 2. Carahsoft Technology Corp secured the contract, indicating a competitive landscape for CDN services. 3. The firm fixed price contract structure helps mitigate cost overruns, but ongoing subscription costs are a key consideration. 4. This spending falls under 'Other Computer Related Services', a broad category with varying market dynamics.
Value Assessment
Rating: good
The $2.68 million contract for Akamai CDN software licenses appears reasonable given the specialized nature of content delivery networks and the duration of the subscription. Benchmarking against similar enterprise-level CDN contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is expected to drive fair pricing and ensure the government receives value for its investment.
Taxpayer Impact: Taxpayers benefit from competitive procurement processes that aim to secure essential services at optimal prices.
Public Impact
Ensures continued reliable and fast delivery of online services and data for the IRS. Supports the IRS's digital transformation and ability to serve taxpayers effectively online. Maintains the security and performance of critical IRS web applications and portals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized software.
- Reliance on a single vendor for critical CDN services.
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract limits cost escalation.
- Long-term subscription provides budget predictability.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending on CDN services is crucial for government agencies to ensure efficient and secure delivery of online information and applications to the public.
Small Business Impact
The contract was awarded to Carahsoft Technology Corp, which often acts as a reseller for various technology products. Analysis is needed to determine the extent of small business participation in the fulfillment of this delivery order.
Oversight & Accountability
The award process under full and open competition suggests a degree of oversight. However, ongoing monitoring of service delivery and cost-effectiveness is essential to ensure accountability.
Related Government Programs
- Other Computer Related Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for price increases upon renewal.
- Dependence on a single vendor for critical infrastructure.
- Need for ongoing performance monitoring against SLAs.
- Limited visibility into direct small business subcontracting.
Tags
other-computer-related-services, department-of-the-treasury, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $2.7 million to CARAHSOFT TECHNOLOGY CORP. THIS IS A DELIVERY ORDER TO RENEW AKAMAI CONTENT DELIVERY NETWORK (CDN) SOFTWARE LICENSE SUBSCRIPTIONS.
Who is the contractor on this award?
The obligated recipient is CARAHSOFT TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $2.7 million.
What is the period of performance?
Start: 2023-09-07. End: 2026-03-31.
What is the total cost of ownership for this CDN service over its lifecycle, considering potential future price increases?
The current contract value is $2.68 million over approximately 2.5 years. Future cost of ownership will depend on renewal terms, potential price escalations by Akamai, and the evolving competitive landscape for CDN services. Agencies should budget for potential increases and continuously evaluate alternative solutions to manage long-term costs effectively.
What are the specific performance metrics and Service Level Agreements (SLAs) associated with this Akamai CDN contract?
While not detailed in the provided data, typical CDN contracts include SLAs for uptime, latency, packet loss, and support response times. The IRS should have these defined in the contract to ensure Akamai meets performance expectations. Regular performance reviews against these metrics are crucial for accountability and value assessment.
How does the cost of this Akamai CDN subscription compare to alternative CDN providers or in-house solutions?
The provided data indicates a firm fixed price award to Carahsoft for Akamai CDN. A comprehensive comparison against other major CDN providers (e.g., Cloudflare, AWS CloudFront) and the feasibility/cost of an in-house solution would be necessary for a complete value assessment. The 'full and open competition' aspect suggests some market comparison occurred during the bidding process.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - PLATFORM
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
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: $6,875,399
Exercised Options: $2,676,568
Current Obligation: $2,676,568
Actual Outlays: $1,704,016
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC27B
IDV Type: GWAC
Timeline
Start Date: 2023-09-07
Current End Date: 2026-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2026-03-30
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