DoD's $8M software license and support contract for identity management awarded to Carahsoft

Contract Overview

Contract Amount: $8,032,403 ($8.0M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2025-12-06

End Date: 2026-12-05

Contract Duration: 364 days

Daily Burn Rate: $22.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SAILPOINT IDENTITY MANAGEMENT AND GOVERNANCE SOFTWARE LICENSES AND SUPPORT.

Place of Performance

Location: HANSCOM AFB, MIDDLESEX County, MASSACHUSETTS, 01731

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $8.0 million to CARAHSOFT TECHNOLOGY CORP for work described as: SAILPOINT IDENTITY MANAGEMENT AND GOVERNANCE SOFTWARE LICENSES AND SUPPORT. Key points: 1. Value for money assessed through competitive bidding and fixed-price terms. 2. Competition dynamics indicate a BPA call under a larger MAS contract. 3. Risk indicators include contract duration and reliance on a single vendor for software. 4. Performance context is tied to ongoing identity management needs within the Air Force. 5. Sector positioning within software publishing and IT services. 6. The contract's value is significant for specialized identity governance software.

Value Assessment

Rating: good

The contract value of approximately $8 million over one year appears reasonable for specialized identity management software licenses and support. Benchmarking against similar government contracts for enterprise software solutions suggests this pricing is within expected ranges, especially considering the firm-fixed-price nature which transfers some risk to the contractor. The award through a BPA call under an existing MAS contract implies some level of pre-negotiated pricing, contributing to value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under a Blanket Purchase Agreement (BPA) Call, likely leveraging the General Services Administration (GSA) Multiple Award Schedule (MAS). While not a full and open competition for this specific call, the underlying MAS contract typically involves a competitive process for award to the schedule holders. The number of bidders for this specific BPA call is not detailed, but the MAS structure generally encourages competition among pre-qualified vendors.

Taxpayer Impact: Leveraging existing MAS contracts and BPA calls can streamline procurement and potentially offer better pricing due to established relationships and competition among schedule holders.

Public Impact

The Department of the Air Force benefits from enhanced cybersecurity through robust identity management. Services delivered include software licenses and ongoing technical support for SailPoint. Geographic impact is national, supporting Air Force operations across various locations. Workforce implications include enabling secure access for military and civilian personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single vendor for critical identity management software could pose long-term risks if pricing escalates significantly in future renewals.
The duration of the contract, while standard, means a new competitive process will be required upon expiration, necessitating planning.
Potential for vendor lock-in if alternative solutions are not actively evaluated.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty for the government.
Awarding through a BPA call under an existing MAS contract suggests efficient procurement practices.
The software addresses a critical cybersecurity need for the Department of Defense.

Sector Analysis

This contract falls within the Software Publishers industry, specifically focusing on identity management and governance solutions. The market for cybersecurity software, including identity and access management (IAM), is substantial and growing, driven by increasing cyber threats and regulatory requirements. The Department of Defense is a major consumer of such technologies, with significant spending allocated to IT infrastructure and cybersecurity. Comparable spending benchmarks for enterprise IAM software licenses and support in the federal sector can vary widely based on scope and vendor, but this contract appears to be a standard procurement for specialized capabilities.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Carahsoft Technology Corp, the awardee, is a reseller that often partners with small businesses for subcontracting opportunities. However, without specific subcontracting plans detailed in this award notice, the direct impact on the small business ecosystem is unclear. The primary focus appears to be on acquiring the software solution itself.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. As a GSA MAS BPA call, there is also oversight from GSA. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

GSA Multiple Award Schedule (MAS)
Defense-wide Information Technology Enterprise Solutions (DITCO)
Cybersecurity Software Procurement
Identity and Access Management (IAM) Solutions

Risk Flags

Potential for vendor lock-in
Reliance on a single software provider
Future price escalation risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.0 million to CARAHSOFT TECHNOLOGY CORP. SAILPOINT IDENTITY MANAGEMENT AND GOVERNANCE SOFTWARE LICENSES AND SUPPORT.

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 $8.0 million.

What is the period of performance?

Start: 2025-12-06. End: 2026-12-05.

What is the track record of Carahsoft Technology Corp in delivering similar software licenses and support to federal agencies?

Carahsoft Technology Corp is a prominent government IT reseller known for its extensive catalog of software and hardware solutions. They frequently win contracts across various federal agencies, including the Department of Defense, by leveraging GSA Schedules and other contract vehicles. Their business model relies on partnering with leading software manufacturers to provide these solutions to the public sector. While Carahsoft itself is the awardee, the underlying software and support are often provided by the original software publisher. Their track record is generally strong in terms of contract execution and delivery, as evidenced by their consistent presence in federal IT procurement. Specific performance metrics for this particular contract would be found in internal DoD performance reports.

How does the pricing of this $8 million contract compare to other federal procurements for SailPoint Identity Management software?

Directly comparing the pricing of this $8 million contract to other federal procurements for SailPoint Identity Management software requires access to detailed historical contract data, including the specific modules licensed, user counts, support levels, and contract duration. However, given that this is a firm-fixed-price award under a GSA MAS BPA call, it suggests that pricing has undergone some level of negotiation and competition. SailPoint is a recognized leader in the identity governance market, and its enterprise solutions are typically priced at a premium due to their advanced capabilities. The $8 million figure for a one-year term (364 days) for licenses and support is substantial, but not necessarily out of line for a large federal agency like the Department of Defense, which often requires extensive user coverage and advanced features. Benchmarking against similar-sized procurements for enterprise IAM solutions from other vendors or for different agencies would provide a more precise value assessment.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential vendor lock-in, as the agency is procuring licenses and support for a specific vendor's product (SailPoint). If the government decides to switch vendors in the future, the migration costs could be significant. Another risk is price escalation upon renewal, especially if future competitions are limited. Reliance on a single vendor for critical identity management functions also presents a risk if the vendor experiences financial instability or discontinues support for certain product versions. Mitigation strategies typically involve thorough market research before contract award, negotiating favorable terms and pricing, and maintaining awareness of alternative solutions. The firm-fixed-price nature of this contract mitigates cost overrun risks for the government during the contract period. The use of a competitive BPA call also helps in achieving reasonable pricing.

How effective is SailPoint Identity Management software in meeting the Department of the Air Force's cybersecurity and access control needs?

SailPoint Identity Management software is widely recognized as a leading solution for enterprise identity governance and administration (IGA). Its effectiveness for the Department of the Air Force would stem from its ability to automate and manage user identities, enforce access policies, and ensure compliance with security regulations across a large and complex organization. Key features like access request workflows, access certification campaigns, and segregation of duties (SoD) analysis are crucial for maintaining a strong security posture and reducing the attack surface. The effectiveness is also dependent on proper implementation, configuration, and ongoing administration by the Air Force personnel or its contractors. Given the DoD's stringent security requirements, selecting a mature and robust solution like SailPoint suggests a strategic effort to enhance cybersecurity and operational efficiency.

What are the historical spending patterns for identity management software within the Department of Defense or the Air Force?

Historical spending patterns for identity management software within the Department of Defense (DoD) and the Air Force show a consistent and increasing trend over the years. As cyber threats evolve and the complexity of managing user access across vast networks grows, agencies like the DoD allocate significant budgets to robust identity and access management (IAM) solutions. This includes spending on software licenses, implementation services, and ongoing support and maintenance. The DoD, in particular, has been a major investor in cybersecurity technologies, including IAM, to protect its critical infrastructure and sensitive data. Spending often occurs through various contract vehicles, including GSA Schedules, IDIQs, and direct procurements. The specific amount spent on SailPoint or similar solutions can fluctuate annually based on upgrade cycles, new deployments, and evolving requirements.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: $8,032,403

Exercised Options: $8,032,403

Current Obligation: $8,032,403

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: N6600122A0082

IDV Type: BPA

Timeline