DoD's $34M IT Services Contract Awarded to Carahsoft Technology Corp. for 500 Concurrent Users

Contract Overview

Contract Amount: $33,987,636 ($34.0M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2007-06-08

End Date: 2011-06-25

Contract Duration: 1,478 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 500 CONCURRENT USERS (PEAK)

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.0 million to CARAHSOFT TECHNOLOGY CORP for work described as: 500 CONCURRENT USERS (PEAK) Key points: 1. Contract value of $33.99M over its duration suggests a significant investment in IT services. 2. The contract was awarded under full and open competition, indicating a broad market solicitation. 3. With 8 bidders, the competition level appears moderate, potentially impacting price discovery. 4. The fixed-price contract type offers cost certainty for the government. 5. The contract's duration of approximately 4 years (1478 days) indicates a long-term need for these services. 6. The peak user count of 500 suggests a substantial operational requirement. 7. The NAICS code 541519 points to a broad range of computer-related services.

Value Assessment

Rating: good

The contract's total value of $33.99M over nearly 4 years averages to approximately $8.95M annually. Benchmarking this against similar large-scale IT service contracts for federal agencies requires detailed analysis of scope and deliverables. However, the firm fixed-price structure provides a degree of cost control. Without specific details on the services rendered, a precise value-for-money assessment is challenging, but the competitive award suggests a reasonable market price was sought.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit offers. With 8 bidders participating, the level of competition was moderate. This suggests that while multiple companies vied for the contract, the pool of potential bidders may not have been exhaustive, potentially influencing the final negotiated price. The agency sought a broad range of IT services under this solicitation.

Taxpayer Impact: A competitive process with 8 bidders generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and technical solutions, leading to a more cost-effective outcome compared to sole-source or limited competition awards.

Public Impact

The Department of Defense benefits from enhanced IT services, supporting its operational and administrative functions. The contract likely delivers a range of computer-related services, crucial for modern defense operations. The geographic impact is primarily within the Department of Defense's operational footprint, likely supporting personnel across various locations. Workforce implications may include the direct employment of IT professionals by the contractor and potential indirect impacts on government IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Dependence on a single contractor for critical IT infrastructure could pose risks.
Ensuring adequate performance metrics and service level agreements are met throughout the contract lifecycle.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract provides budget certainty for the government.
Moderate number of bidders suggests a competitive market was engaged.
Long contract duration implies a stable, ongoing need for the services provided.

Sector Analysis

This contract falls within the Information Technology sector, specifically under 'Other Computer Related Services' (NAICS 541519). This category encompasses a wide array of IT services, including IT consulting, systems integration, and custom software development. The federal IT market is substantial, with agencies consistently investing in technology to maintain operational effectiveness and security. This contract represents a portion of the DoD's broader IT spending, aimed at acquiring necessary services to support its complex mission.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Carahsoft Technology Corp., is likely a large business. While there is no explicit small business set-aside, large federal contracts often include subcontracting requirements. The extent to which Carahsoft engages small businesses as subcontractors would determine the direct impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Performance would be monitored against the contract's terms, conditions, and service level agreements. Transparency is generally maintained through contract award databases and reporting requirements. The Department of Defense also has an Inspector General responsible for auditing and investigating potential fraud, waste, and abuse within its contracts.

Related Government Programs

Department of Defense IT Modernization Programs
Defense Information Systems Agency (DISA) Contracts
Federal Civilian IT Services Contracts
IT Consulting and Professional Services

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for scope creep if not managed tightly.
Dependence on a single vendor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.0 million to CARAHSOFT TECHNOLOGY CORP. 500 CONCURRENT USERS (PEAK)

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $34.0 million.

What is the period of performance?

Start: 2007-06-08. End: 2011-06-25.

What specific IT services were included under this contract?

The provided data indicates the NAICS code is 541519, 'Other Computer Related Services.' This broad category can encompass a wide range of services such as IT consulting, systems integration, custom software development, IT project management, and potentially IT support and maintenance. Without the full contract details or statement of work, the precise nature of the services delivered remains unspecified. However, given the contract's value and duration, it likely involved significant IT support or development efforts critical to the Department of Defense's operations, potentially including network management, cybersecurity services, or application development and sustainment.

How does the per-user cost compare to industry benchmarks?

The contract value is $33,987,636.17 over 1478 days, supporting 500 concurrent users. This equates to approximately $67,975 per user over the contract's life, or roughly $17,993 per user annually. Benchmarking this requires specific details on the services provided. If these are high-level managed services or complex system integration, this cost might be within market norms. However, if it represents basic IT support or licensing, it could be higher than average. Industry benchmarks vary widely based on service complexity, security requirements, and geographic location. A detailed comparison would necessitate analyzing similar DoD or federal contracts for comparable IT services.

What is Carahsoft Technology Corp.'s track record with federal contracts?

Carahsoft Technology Corp. is a well-established government IT solutions provider and reseller. They frequently appear as a prime contractor and distributor for numerous federal agencies, often leveraging reseller agreements with major technology manufacturers. Their extensive portfolio includes software, hardware, and IT services. Historically, Carahsoft has managed a high volume of federal contracts, indicating significant experience navigating government procurement processes and delivering IT solutions. Their performance record across these contracts would be a key factor in assessing their capability for this specific award, though specific performance metrics for this contract are not detailed here.

What are the potential risks associated with this contract?

Potential risks include vendor lock-in, where the government becomes overly dependent on Carahsoft's specific solutions or expertise, making future transitions difficult or costly. There's also the risk of performance issues if the contractor fails to meet service level agreements, potentially impacting critical DoD operations. Budgetary risks exist if the contract's scope expands beyond initial projections or if unforeseen technical challenges arise. Ensuring robust oversight and clear performance metrics are crucial to mitigating these risks. The long duration also means that technology could evolve significantly, potentially making the contracted services less relevant or efficient over time.

How does this spending compare to overall federal IT spending?

This contract's value of approximately $34 million represents a fraction of the total federal IT spending, which runs into the hundreds of billions of dollars annually. The Department of Defense is consistently one of the largest federal IT spenders, allocating significant resources to maintain its technological superiority and operational readiness. While $34 million is a substantial sum for a single contract, it is relatively small in the context of the entire DoD's IT budget and the broader federal IT landscape. This contract likely supports a specific program or set of services within DISA's broader IT infrastructure.

What is the significance of the 'Delivery Order' award type?

The 'Delivery Order' (aw: DELIVERY ORDER) award type suggests that this contract was likely established as a basic ordering agreement (BOA) or a similar indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle. Under such arrangements, the government establishes terms and conditions for future purchases, and then issues individual delivery orders as needs arise. This allows for flexibility and streamlined procurement for recurring needs. The $33.99M represents the total value of orders placed against this vehicle over its period of performance, rather than a single upfront commitment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12369 SUNRISE VALLEY DR,STE. D2, RESTON, VA, 20191

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $33,987,636

Exercised Options: $33,987,636

Current Obligation: $33,987,636

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0131R

IDV Type: FSS

Timeline