HHS FDA Renews Salesforce/MuleSoft Licenses for $11.1M, Awarded to Carahsoft

Contract Overview

Contract Amount: $11,145,809 ($11.1M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2026-01-29

End Date: 2027-01-24

Contract Duration: 360 days

Daily Burn Rate: $31.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SALESFORCE/MULESOFT LICENSES RENEWAL FY26

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20993

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.1 million to CARAHSOFT TECHNOLOGY CORP for work described as: SALESFORCE/MULESOFT LICENSES RENEWAL FY26 Key points: 1. Significant contract value of $11.1M for software licenses. 2. Carahsoft Technology Corp is the sole awardee. 3. Renewal of existing software licenses presents potential for vendor lock-in. 4. The Software Publishers sector is characterized by recurring revenue models.

Value Assessment

Rating: fair

The contract value of $11.1M for a one-year renewal of Salesforce/MuleSoft licenses appears to be within a reasonable range for enterprise-level software. Benchmarking against similar large-scale software renewals would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded via a BPA Call under a full and open competition. This method suggests that multiple vendors could have bid, potentially leading to competitive pricing. However, the specific pricing discovery mechanism within the BPA call is not detailed.

Taxpayer Impact: Taxpayers are funding the renewal of essential software for the FDA. The full and open competition aims to ensure fair pricing, but the actual cost-effectiveness requires further analysis of the negotiated rates.

Public Impact

Ensures continued operation of critical FDA systems reliant on Salesforce and MuleSoft. Supports data management and integration capabilities within the agency. Potential for cost savings if competitive bidding within the BPA was effective.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed pricing breakdown.
Potential for price increases in future renewals.
Dependence on a single vendor for critical software.

Positive Signals

Awarded under full and open competition.
Renewal ensures continuity of essential services.
BPA Call mechanism can streamline procurement.

Sector Analysis

The Software Publishers sector is a significant area of government spending, with agencies relying heavily on commercial off-the-shelf software for operations. Benchmarks for similar enterprise software licenses vary widely based on functionality and user count.

Small Business Impact

This contract was awarded to Carahsoft Technology Corp, a large reseller. Analysis does not indicate specific set-asides for small businesses in this particular award. Further investigation into the prime contractor's subcontracting plan would be needed.

Oversight & Accountability

The contract falls under the Department of Health and Human Services, specifically the FDA. Standard oversight mechanisms for IT procurements and contract renewals would apply. The BPA call structure may have its own internal oversight processes.

Related Government Programs

Software Publishers
Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Potential for vendor lock-in
Lack of detailed cost breakdown
Risk of future price increases
Dependence on specific software platforms

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.1 million to CARAHSOFT TECHNOLOGY CORP. SALESFORCE/MULESOFT LICENSES RENEWAL FY26

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2026-01-29. End: 2027-01-24.

What is the specific breakdown of costs per user or module for these Salesforce/MuleSoft licenses to better assess value?

A detailed breakdown of costs per user or module is not provided in the available data. To accurately assess the value, a granular view of the licensing structure and associated costs would be necessary. This would allow for comparison against industry standards and identification of potential areas for cost optimization in future renewals.

What is the risk of price escalation in subsequent renewals given the vendor lock-in potential?

There is a moderate risk of price escalation in subsequent renewals. While the current award was under full and open competition, the specialized nature of Salesforce and MuleSoft can create vendor lock-in over time. Agencies should proactively monitor market trends and explore alternative solutions or negotiate multi-year agreements with price caps to mitigate this risk.

How effectively does this software renewal support the FDA's mission-critical functions and data integration needs?

This renewal is crucial for maintaining the operational continuity of FDA systems that rely on Salesforce for customer relationship management and MuleSoft for application integration. These platforms are vital for managing data, streamlining workflows, and supporting regulatory functions. The effectiveness hinges on the continued alignment of the software's capabilities with evolving agency requirements.

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

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: $11,145,809

Exercised Options: $11,145,809

Current Obligation: $11,145,809

Actual Outlays: $11,145,809

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QTCA24A0002

IDV Type: BPA

Timeline