GSA FSS DO awards Splunk licenses and support for $52.2M to Carahsoft Technology Corp

Contract Overview

Contract Amount: $52,233,850 ($52.2M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Social Security Administration

Start Date: 2022-07-30

End Date: 2026-10-31

Contract Duration: 1,554 days

Daily Burn Rate: $33.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GSA FSS DO: SPLUNK ENTERPRISE SOFTWARE LICENSES AND ASSOCIATED SUPPORTS. POP: BASE + 4 OPTION YEARS

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $52.2 million to CARAHSOFT TECHNOLOGY CORP for work described as: GSA FSS DO: SPLUNK ENTERPRISE SOFTWARE LICENSES AND ASSOCIATED SUPPORTS. POP: BASE + 4 OPTION YEARS Key points: 1. Contract value represents a significant investment in software licensing and ongoing support. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The duration of the contract, including option years, spans over four years. 5. This award falls within the Software Publishers industry sector. 6. The contract is a Delivery Order under a Federal Supply Schedule (FSS) vehicle.

Value Assessment

Rating: good

The contract value of $52.2 million for Splunk Enterprise licenses and support over approximately four years appears reasonable given the nature of enterprise software licensing and support agreements. Benchmarking against similar large-scale software procurements for enterprise solutions suggests that this price point is within expected ranges. The firm fixed-price structure provides cost certainty for the Social Security Administration. Without specific details on the exact quantity of licenses and support levels, a precise per-unit cost comparison is difficult, but the overall value seems aligned with market expectations for such comprehensive software solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it is a Delivery Order under a Federal Supply Schedule (FSS) implies that the underlying FSS contract itself was competitively awarded. While the number of bidders for this specific delivery order is not detailed, the 'full and open' designation suggests a robust competitive environment was available, which generally leads to better price discovery and value for the government.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovative solutions from multiple vendors.

Public Impact

The Social Security Administration (SSA) benefits from this contract by acquiring essential software licenses and support for its operations. The software is likely used for data management, analysis, security monitoring, and operational intelligence, supporting SSA's mission-critical functions. The geographic impact is national, as the SSA operates nationwide, and the software's benefits extend to all its users and beneficiaries. Workforce implications include enabling SSA IT personnel to effectively manage and utilize the Splunk platform, potentially requiring specialized skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized software like Splunk, requiring careful management of future renewals and transitions.
Reliance on a single vendor for both software licenses and associated support could create dependencies.
The ongoing cost of enterprise software licenses and support can escalate over time, requiring continuous budget allocation.
Ensuring adequate training and skill development for personnel managing the Splunk platform is crucial for maximizing its value.

Positive Signals

The use of Splunk Enterprise suggests a commitment to advanced data analytics and operational intelligence, which can improve efficiency and decision-making.
The firm fixed-price contract provides cost predictability for the agency over the contract period.
Awarding through a Federal Supply Schedule (FSS) streamlines the procurement process and leverages pre-negotiated terms and pricing.
The 'full and open' competition ensures a broad base of potential suppliers were considered, promoting competitive pricing.

Sector Analysis

This contract falls within the Software Publishers industry (NAICS 511210), a sector characterized by the development, distribution, and licensing of software. The market for data analytics and security information and event management (SIEM) software, where Splunk operates, is highly competitive and growing rapidly. Federal spending in this area is substantial, driven by the need for agencies to manage vast amounts of data, enhance cybersecurity, and improve operational efficiency. Comparable spending benchmarks for enterprise software licenses and support can vary widely based on the specific product, scale of deployment, and vendor, but multi-million dollar awards for comprehensive solutions are common.

Small Business Impact

This contract was awarded to Carahsoft Technology Corp., a large reseller known for its extensive government contracting experience. The data indicates that small business set-asides were not applicable ('sb': false) and the contract was not specifically designated for small businesses ('ss': false). While Carahsoft itself is a large business, it often works with various software manufacturers, some of whom may be small businesses. However, the primary awardee is a large entity. There is no explicit information provided regarding subcontracting plans to small businesses for this specific delivery order, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract is primarily managed by the Social Security Administration (SSA) contracting officers and program managers. As a Delivery Order under a GSA Federal Supply Schedule (FSS), the underlying FSS contract has undergone GSA's procurement oversight. Transparency is facilitated through public contract databases like FPDS. Accountability is maintained through the firm fixed-price terms and performance expectations. Inspector General jurisdiction would typically fall under the SSA's OIG for issues related to the performance and administration of this contract.

Related Government Programs

GSA Federal Supply Schedule (FSS) Contracts
Software Licensing and Support Services
Data Analytics Software
Security Information and Event Management (SIEM)
IT Modernization Programs

Risk Flags

Potential for escalating costs due to data volume growth.
Risk of vendor lock-in with specialized enterprise software.
Need for specialized personnel to manage and operate the platform effectively.

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $52.2 million to CARAHSOFT TECHNOLOGY CORP. GSA FSS DO: SPLUNK ENTERPRISE SOFTWARE LICENSES AND ASSOCIATED SUPPORTS. POP: BASE + 4 OPTION YEARS

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $52.2 million.

What is the period of performance?

Start: 2022-07-30. End: 2026-10-31.

What is the specific breakdown of the $52.2 million award between software licenses and ongoing support services?

The provided data does not specify the exact allocation of the $52.2 million between software licenses and associated support services. Typically, such contracts include both perpetual or subscription-based license fees and annual support and maintenance agreements. The duration of the contract (base year plus four option years) suggests a significant portion will be allocated to recurring support costs. To understand the value proposition fully, a detailed breakdown would be necessary to assess the cost of the software itself versus the cost of maintaining and updating it over the contract's life. This information is usually detailed in the contract's statement of work or pricing tables.

How does the per-unit cost of Splunk Enterprise licenses compare to other federal agencies or commercial entities?

A direct per-unit cost comparison is challenging without knowing the exact quantity and type of Splunk Enterprise licenses procured (e.g., per data ingest, per user, per core). However, the contract was awarded under a GSA FSS, which implies that pricing has been pre-negotiated and vetted for reasonableness. Carahsoft, as a reseller, often provides competitive pricing through these FSS vehicles. To benchmark accurately, one would need to compare the negotiated price per unit (or per gigabyte of data ingested, a common Splunk metric) against publicly available FSS pricing for Splunk or against pricing obtained by other agencies through similar competitive processes. Generally, large volume purchases through FSS can yield favorable rates compared to ad-hoc commercial purchases.

What are the key performance indicators (KPIs) used to measure the success of this Splunk Enterprise contract for the Social Security Administration?

The provided data does not specify the key performance indicators (KPIs) for this contract. However, for a contract involving Splunk Enterprise licenses and support, typical KPIs would likely focus on the availability and performance of the Splunk platform, the timeliness and effectiveness of support responses, and the achievement of specific operational or security objectives enabled by the software. Examples could include uptime percentages for the Splunk environment, average response times for critical support issues, the successful ingestion and analysis of required data volumes, and the ability of the platform to detect and alert on security threats or operational anomalies as defined in the agency's use cases. These KPIs would be detailed in the contract's Performance Work Statement (PWS).

What is Carahsoft Technology Corp.'s track record with providing Splunk solutions to the federal government?

Carahsoft Technology Corp. has a well-established track record as a leading government IT reseller, and they are a prominent partner for Splunk. They frequently win and fulfill contracts for Splunk software licenses and support across various federal agencies, often through GSA Schedules and other contract vehicles. Their business model relies heavily on partnering with software manufacturers like Splunk and navigating the complexities of federal procurement to deliver solutions. Given their extensive experience and market presence, it is highly probable that Carahsoft has successfully delivered numerous Splunk solutions to federal clients, demonstrating a strong understanding of government requirements and the Splunk product suite.

Are there any known risks associated with the long-term use of Splunk software by federal agencies, beyond standard software lifecycle concerns?

Beyond standard software lifecycle concerns like end-of-life support and the need for upgrades, a primary risk associated with Splunk for federal agencies can be the total cost of ownership (TCO). Splunk's pricing model, often based on data ingest volume, can become very expensive as data volumes grow, potentially exceeding initial budget projections if not carefully managed. Another risk is vendor lock-in; migrating away from a deeply integrated Splunk environment can be technically complex and costly. Furthermore, ensuring adequate staffing with specialized Splunk expertise is crucial for effective utilization and security, and a shortage of such talent can pose a risk. Finally, ensuring compliance with evolving data privacy and security regulations within the context of data processed by Splunk requires ongoing vigilance.

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

Solicitation ID: 28321322Q00000318

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: $52,233,850

Exercised Options: $52,233,850

Current Obligation: $52,233,850

Actual Outlays: $52,233,850

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA18D008F

IDV Type: FSS

Timeline