SSA Renews Broadcom VMware Subscription for $25M, Highlighting Software Publisher Sector Spending
Contract Overview
Contract Amount: $24,978,692 ($25.0M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Social Security Administration
Start Date: 2024-07-05
End Date: 2026-06-29
Contract Duration: 724 days
Daily Burn Rate: $34.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: BROADCOM VMWARE VCF AND SRM SUBSCRIPTION RENEWAL 12-MONTH BASE AND FOUR 12-MONTH OPTION YEARS.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Social Security Administration obligated $25.0 million to CARAHSOFT TECHNOLOGY CORP for work described as: BROADCOM VMWARE VCF AND SRM SUBSCRIPTION RENEWAL 12-MONTH BASE AND FOUR 12-MONTH OPTION YEARS. Key points: 1. The Social Security Administration (SSA) is renewing a significant subscription for Broadcom VMware software, indicating continued reliance on established enterprise solutions. 2. Carahsoft Technology Corp. is the contractor, suggesting a role for resellers in government IT procurement. 3. The contract's firm fixed-price structure aims to control costs, but the long-term commitment warrants scrutiny. 4. This renewal falls within the Software Publishers (NAICS 511210) sector, a common area for government IT investment.
Value Assessment
Rating: good
The $24.98 million price for a 724-day (2-year) subscription appears reasonable given the enterprise-level nature of VMware VCF and SRM. Benchmarking against similar large-scale software renewals would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific details of the bidding process and the number of competitors are not provided, limiting a full assessment of competitive pressure.
Taxpayer Impact: The firm fixed-price contract aims to provide cost certainty for taxpayers over the contract duration. The total value of $24.98 million represents a significant but potentially justified expenditure for essential software.
Public Impact
Citizens rely on SSA's IT infrastructure for critical services, making software reliability paramount. The renewal ensures continuity of operations for essential SSA systems. Government reliance on major software vendors like Broadcom can lead to vendor lock-in concerns. Taxpayer funds are allocated to maintain and update vital government technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term subscription renewal may limit flexibility for future technology adoption.
- Potential for price increases in subsequent option years.
- Dependence on a single vendor for critical software.
Positive Signals
- Full and open competition was utilized.
- Firm fixed-price contract provides cost certainty.
- Renewal ensures operational continuity.
Sector Analysis
This contract falls within the IT sector, specifically software publishing. Government spending in this area is substantial, driven by the need for modern infrastructure and digital services. Benchmarks for similar enterprise software subscriptions can vary widely based on vendor, scope, and duration.
Small Business Impact
The contract was awarded to Carahsoft Technology Corp., a large reseller. There is no explicit indication of small business participation in this specific delivery order, which is common for large enterprise software renewals.
Oversight & Accountability
The contract was awarded via a delivery order under a larger agreement, suggesting existing oversight mechanisms. Further review of the specific contract vehicle and any associated performance metrics would be needed to fully assess accountability.
Related Government Programs
- Software Publishers
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Long-term commitment to a single vendor.
- Potential for future price increases in option years.
- Lack of detailed performance metrics provided.
- Limited insight into the competitive landscape beyond 'full and open'.
Tags
software-publishers, social-security-administration, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $25.0 million to CARAHSOFT TECHNOLOGY CORP. BROADCOM VMWARE VCF AND SRM SUBSCRIPTION RENEWAL 12-MONTH BASE AND FOUR 12-MONTH 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 $25.0 million.
What is the period of performance?
Start: 2024-07-05. End: 2026-06-29.
What is the total cost of ownership over the full potential term, including all option years, and how does it compare to alternative solutions?
The current renewal is for approximately $25 million over two years. The full potential term, including all five option years, would extend the contract duration significantly. A comprehensive total cost of ownership analysis would require projecting costs across all option periods and comparing this to the potential costs of alternative software solutions or cloud-based services, considering implementation, training, and ongoing support.
What is the risk of vendor lock-in and potential future price escalations given the long-term nature of this subscription?
Renewing a subscription for critical software like VMware VCF and SRM for an extended period inherently carries a risk of vendor lock-in. This can limit the agency's flexibility to adopt newer technologies or negotiate favorable terms in the future. While the current contract is firm fixed-price, future option years could see price escalations, necessitating careful monitoring and market analysis during renewal discussions.
How effectively does this software support the SSA's mission-critical functions, and are there performance metrics tied to this renewal?
The renewal of VMware VCF and SRM subscriptions suggests these tools are integral to the SSA's operational infrastructure and mission-critical functions. However, the provided data does not detail specific performance metrics or Service Level Agreements (SLAs) associated with this renewal. Understanding how the software's performance directly impacts service delivery and citizen access is crucial for evaluating its effectiveness.
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: 28321324Q00000196
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: $75,901,818
Exercised Options: $24,978,692
Current Obligation: $24,978,692
Actual Outlays: $24,978,692
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QSWA18D008F
IDV Type: FSS
Timeline
Start Date: 2024-07-05
Current End Date: 2026-06-29
Potential End Date: 2029-06-29 00:00:00
Last Modified: 2025-09-15
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