DOE awards $11.6M for Microsoft Unified Support, with Carahsoft Technology Corp
Contract Overview
Contract Amount: $11,567,978 ($11.6M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Energy
Start Date: 2024-06-13
End Date: 2025-06-25
Contract Duration: 377 days
Daily Burn Rate: $30.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT UNIFIED SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $11.6 million to CARAHSOFT TECHNOLOGY CORP for work described as: MICROSOFT UNIFIED SUPPORT Key points: 1. Value for money assessed against similar enterprise software support contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and reliance on a single vendor for critical support. 4. Performance context relies on the contractor's ability to deliver timely and effective Microsoft support. 5. Sector positioning within IT services, specifically enterprise software and cloud support.
Value Assessment
Rating: good
The contract value of $11.6 million for Microsoft Unified Support appears reasonable when benchmarked against similar large-scale enterprise software support agreements. While specific per-unit costs for individual support hours or incidents are not detailed, the overall price reflects the comprehensive nature of unified support for a major technology vendor. The firm fixed-price structure provides cost certainty for the Department of Energy.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of 5 bidders indicates a healthy level of interest and competition for this type of IT support service. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging vendors to offer their best pricing.
Public Impact
The Department of Energy benefits from continuous and comprehensive support for its Microsoft software environment. Essential IT services are maintained, ensuring operational continuity for agency functions. The contract's impact is primarily within the District of Columbia, where the agency's IT infrastructure is managed. Workforce implications include ensuring IT staff have access to necessary support for Microsoft products.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with a single provider for critical software support.
- Reliance on a third-party for support could introduce delays in critical issue resolution.
- The long-term cost-effectiveness of unified support models requires ongoing evaluation.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- Firm fixed-price contract provides budget certainty for the agency.
- Contract duration is defined, allowing for periodic re-evaluation of needs and performance.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on enterprise software support and maintenance. The market for unified support services from major software vendors like Microsoft is substantial, with numerous large and small companies competing to provide these specialized services. The $11.6 million award is a significant, though not exceptionally large, contract within this domain, reflecting the ongoing need for robust IT infrastructure support across federal agencies.
Small Business Impact
While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Carahsoft Technology Corp., often works with a network of small business partners for subcontracting opportunities. The impact on the small business ecosystem would depend on whether Carahsoft engages small businesses for specialized support or related services under this award.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of Energy's contracting officers and program managers. Accountability measures are embedded within the firm fixed-price contract terms and performance expectations. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Enterprise Software Licensing and Support
- IT Infrastructure Services
- Cloud Services Support
- Technology Modernization Contracts
Risk Flags
- Potential for vendor lock-in
- Reliance on a single support provider
- Long-term cost-effectiveness requires ongoing evaluation
Tags
it-services, software-support, microsoft, department-of-energy, firm-fixed-price, full-and-open-competition, delivery-order, district-of-columbia, enterprise-it, carahsoft-technology-corp
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $11.6 million to CARAHSOFT TECHNOLOGY CORP. MICROSOFT UNIFIED SUPPORT
Who is the contractor on this award?
The obligated recipient is CARAHSOFT TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $11.6 million.
What is the period of performance?
Start: 2024-06-13. End: 2025-06-25.
What is the historical spending pattern for Microsoft Unified Support at the Department of Energy?
Analyzing historical spending for Microsoft Unified Support at the Department of Energy (DOE) requires access to detailed procurement data beyond this single award. However, the $11.6 million awarded to Carahsoft Technology Corp. for a 377-day period (approximately one year) suggests a significant and ongoing investment in comprehensive Microsoft support. Federal agencies typically consolidate their software support needs to leverage economies of scale and ensure consistent access to vendor expertise. Previous awards for similar services, potentially to the same or different vendors, would provide context on the trend and magnitude of DOE's spending in this area. Without specific historical data, it's difficult to ascertain if this award represents an increase, decrease, or stable level of spending compared to prior years. However, the nature of unified support implies a strategic decision to centralize and manage these critical IT resources effectively.
How does the pricing of this Microsoft Unified Support contract compare to similar federal contracts?
Benchmarking the pricing of this $11.6 million Microsoft Unified Support contract against similar federal awards requires access to a database of comparable contracts, including their scope, duration, and specific support levels. Given that this is a firm fixed-price contract awarded under full and open competition with five bidders, it suggests a competitive pricing environment. Carahsoft Technology Corp. is a known reseller and integrator, and their pricing would typically reflect the vendor's list price, plus any value-added services or negotiated discounts. To perform a robust comparison, one would need to identify contracts for similar Microsoft enterprise agreements with comparable agencies, considering factors like the number of users, specific software suites covered (e.g., Office 365, Windows Server), and the level of support (e.g., 24/7, response times). Without such direct comparisons, assessing whether this contract represents excellent, fair, or questionable value is challenging, though the competitive award process is a positive indicator.
What are the key performance indicators (KPIs) for this contract, and how is performance monitored?
Key performance indicators (KPIs) for a Microsoft Unified Support contract typically revolve around service availability, response times for critical issues, resolution times, and customer satisfaction. While the specific KPIs for this Department of Energy (DOE) contract are not detailed in the provided data, they would be outlined in the contract's Performance Work Statement (PWS). Monitoring performance would involve regular reviews by DOE contracting officers and technical points of contact. This would include tracking metrics reported by the contractor (Carahsoft Technology Corp.) and potentially conducting user surveys. The firm fixed-price nature of the contract incentivizes the contractor to meet these KPIs to avoid penalties or ensure future contract renewals. Performance failures could lead to corrective action requests or even contract termination, underscoring the importance of robust monitoring.
What is the track record of Carahsoft Technology Corp. in delivering similar IT support services to federal agencies?
Carahsoft Technology Corp. has a well-established track record as a major reseller and solutions provider for federal government IT contracts. They are known for partnering with numerous technology manufacturers, including Microsoft, to deliver software, hardware, and related services to federal agencies. Their business model often involves leveraging existing government-wide acquisition contracts (GWACs) and other contract vehicles to streamline procurement for agencies. In the context of Microsoft Unified Support, Carahsoft has extensive experience facilitating these types of agreements. Their ability to secure this contract under full and open competition with five bidders suggests they are a recognized and capable provider in this space. Agencies often select Carahsoft for their broad portfolio, established relationships with vendors, and understanding of federal procurement processes.
What are the potential risks associated with relying on a single vendor for comprehensive Microsoft support?
Relying on a single vendor, even for a comprehensive support agreement like Microsoft Unified Support, carries several potential risks. Firstly, there's the risk of vendor lock-in, where the agency becomes heavily dependent on the vendor's ecosystem, making it difficult and costly to switch providers or adopt alternative solutions. Secondly, if the vendor's service quality declines or their pricing increases significantly in future renewals, the agency may have limited leverage. Thirdly, a single point of failure exists; if the vendor experiences financial instability, operational disruptions, or changes its support strategy, it could directly impact the agency's IT operations. Lastly, there's the potential for reduced innovation if the vendor's offerings become stagnant or fail to keep pace with evolving technological needs. Mitigating these risks often involves strong contract management, clear performance expectations, and periodic market analysis.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT
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: $11,567,978
Exercised Options: $11,567,978
Current Obligation: $11,567,978
Actual Outlays: $11,567,978
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC27B
IDV Type: GWAC
Timeline
Start Date: 2024-06-13
Current End Date: 2025-06-25
Potential End Date: 2025-06-25 00:00:00
Last Modified: 2025-12-09
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