DoD's $29.6M software contract with Carahsoft Technology Corp. awarded via full and open competition

Contract Overview

Contract Amount: $29,622,930 ($29.6M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2023-07-01

End Date: 2026-06-30

Contract Duration: 1,095 days

Daily Burn Rate: $27.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PATH TO PRODUCTION OPERATIONS SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.6 million to CARAHSOFT TECHNOLOGY CORP for work described as: PATH TO PRODUCTION OPERATIONS SERVICES Key points: 1. Contract awarded for software production operations services, indicating a need for ongoing support and maintenance. 2. The contract's duration of 1095 days suggests a long-term requirement for these services. 3. Awarded as a delivery order, it implies this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 4. The use of Time and Materials pricing may present cost control challenges if not closely managed. 5. The contract was awarded to Carahsoft Technology Corp., a known reseller of software and IT solutions. 6. The Department of the Air Force is the primary procuring entity, highlighting its focus on software acquisition. 7. The North American Industry Classification System (NAICS) code 511210 points to the Software Publishers sector.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the parent IDIQ contract's terms or the specific software/services procured. However, the total value of $29.6 million over three years for production operations services is substantial. The Time and Materials pricing structure necessitates rigorous oversight to ensure cost-effectiveness and prevent scope creep, which could inflate the final cost beyond initial expectations. Comparing this to similar software support contracts within the DoD would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method is generally preferred for maximizing competition and achieving competitive pricing. The presence of 6 bidders suggests a reasonably competitive environment for this particular delivery order, which should have helped in price discovery.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of qualified vendors, potentially reducing overall government spending on software and related services.

Public Impact

The Department of the Air Force benefits from access to critical software production operations services, ensuring the continuity and functionality of essential systems. This contract supports the operational readiness and technological capabilities of the Air Force. The services delivered likely involve software maintenance, updates, bug fixes, and potentially development support. The geographic impact is primarily within the Department of the Air Force's operational footprint, though the contractor's location may influence where work is performed. Workforce implications could include the need for specialized IT personnel to manage and deliver these software services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not managed with strict oversight and defined ceilings.
Reliance on a single reseller (Carahsoft) for software procurement, even if the underlying software is competitively sourced, can sometimes limit direct negotiation with publishers.
The specific nature of 'production operations services' requires clear performance metrics to ensure the contractor is meeting expectations.
Lack of explicit small business subcontracting goals (based on 'sb': false) may limit opportunities for small businesses in this contract's execution.

Positive Signals

Awarded under full and open competition, ensuring a broad base of potential vendors and competitive pricing.
The contract duration of three years provides stability and predictability for the Air Force's software operations.
The number of bidders (6) indicates a healthy level of interest and competition for this specific delivery order.
Carahsoft Technology Corp. is a well-established entity in government IT procurement, suggesting familiarity with federal acquisition processes.

Sector Analysis

The software publishing and IT services sector is a critical component of federal spending, with agencies constantly seeking to modernize and maintain their technological infrastructure. This contract falls under the broader IT services umbrella, specifically focusing on the operational aspects of software. The total federal spending on software and related IT services runs into billions annually, with significant portions allocated to maintenance, support, and cloud services. This contract represents a portion of that larger ecosystem, addressing the ongoing needs for software functionality and availability within the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false). While Carahsoft Technology Corp. is a large business, they may engage small businesses as subcontractors. However, without specific subcontracting plans or goals mandated in the award, the direct impact on the small business ecosystem for this particular contract is likely limited. Further investigation into Carahsoft's subcontracting practices would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting officers and program managers. They are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms, especially given the Time and Materials pricing. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DoD IT Modernization Programs
Air Force Software Acquisition
Cloud Computing Services (if applicable)
Enterprise Resource Planning (ERP) Systems Support
Cybersecurity Operations Support

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of direct service provision by the awardee (Carahsoft is primarily a reseller).
Need for robust oversight to manage performance and costs.
Limited visibility into small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to CARAHSOFT TECHNOLOGY CORP. PATH TO PRODUCTION OPERATIONS SERVICES

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $29.6 million.

What is the period of performance?

Start: 2023-07-01. End: 2026-06-30.

What specific software products or services are covered under this 'production operations services' contract?

The provided data does not specify the exact software products or services included under this contract. 'Production operations services' is a broad term that typically encompasses activities such as software maintenance, patching, updates, bug fixing, performance monitoring, and ensuring the availability and reliability of software in a live operational environment. For this specific contract, it likely relates to software critical to the Department of the Air Force's mission. To understand the precise scope, one would need to consult the detailed contract award documents or the parent IDIQ file, which would outline the specific software suites, applications, or platforms being supported and the exact nature of the operational services required.

How does the Time and Materials (T&M) pricing structure compare to fixed-price options for similar software operations contracts?

Time and Materials (T&M) pricing is often used when the scope of work is not clearly defined or is expected to change, offering flexibility. However, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the contractor is reimbursed for direct labor hours and materials used, plus a fee. For software operations, fixed-price contracts might be suitable for well-defined maintenance tasks or support levels. T&M provides agility for evolving operational needs but requires stringent oversight, including labor hour limitations and defined ceiling prices, to control costs. Benchmarking against similar T&M contracts within the DoD for comparable software services would reveal if the $29.6M value is competitive, considering the inherent risks of T&M.

What is Carahsoft Technology Corp.'s track record with the Department of Defense for similar software services?

Carahsoft Technology Corp. is a major government IT reseller and solutions provider, frequently awarded contracts across various federal agencies, including the Department of Defense. They often act as a reseller for numerous software publishers, facilitating procurement through government-wide acquisition contracts (GWACs) and other vehicles. Their track record with the DoD for software services is extensive, though typically in a reseller capacity rather than direct service provision. This specific contract, awarded as a delivery order, suggests Carahsoft is facilitating the acquisition of these services, potentially from a software publisher or a prime integrator. Their experience in navigating federal procurement processes is a positive signal, but the actual service delivery quality would depend on the underlying service provider.

What are the potential risks associated with relying on a reseller like Carahsoft for production operations services?

While Carahsoft is a reputable government IT reseller, relying on them for production operations services introduces specific considerations. The primary risk is that Carahsoft may be acting as an intermediary, meaning the actual technical expertise and service delivery might come from a third-party subcontractor or the original software publisher. This can add layers of management, potentially increase costs due to markups, and complicate direct communication and issue resolution between the Air Force and the technical experts. Furthermore, the government's ability to directly influence the service delivery process or negotiate terms might be mediated through Carahsoft. However, Carahsoft's expertise in government contracting can streamline the acquisition process itself.

How does this $29.6M contract compare to historical DoD spending on software operations and maintenance?

The Department of Defense is one of the largest government spenders on IT, with billions allocated annually to software acquisition, maintenance, and operations. A $29.6 million contract over three years for production operations services is a significant but not extraordinary amount within the DoD's vast IT budget. Historical spending patterns show a consistent and growing investment in maintaining and modernizing software systems to ensure operational readiness and cybersecurity. To provide a precise comparison, one would need to analyze historical spending data for similar NAICS codes (like 511210 - Software Publishers, or IT service categories) within the Air Force or DoD, looking at average contract values, durations, and the types of services procured over the past 5-10 years.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

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: $49,752,551

Exercised Options: $36,462,813

Current Obligation: $29,622,930

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0119Y

IDV Type: FSS

Timeline