DoD awards $26.6M software contract to Carahsoft Technology Corp. for C2C BUNDLE

Contract Overview

Contract Amount: $26,614,690 ($26.6M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2024-11-29

End Date: 2026-11-28

Contract Duration: 729 days

Daily Burn Rate: $36.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: C2C BUNDLE

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $26.6 million to CARAHSOFT TECHNOLOGY CORP for work described as: C2C BUNDLE Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-competed framework. 2. The contract is for software, falling under the 'Software Publishers' North American Industry Classification System (NAICS) code. 3. A firm-fixed-price contract type suggests predictable costs for the government. 4. The contract duration is approximately two years, ending in November 2026. 5. The award was made by the Defense Information Systems Agency (DISA) under the Department of Defense (DoD). 6. No small business set-aside was utilized for this award.

Value Assessment

Rating: good

The contract value of $26.6 million over two years for software procurement is within a reasonable range for enterprise-level solutions. Without specific details on the software bundle, a direct value-for-money assessment is challenging. However, the use of a BPA Call suggests that pricing was likely benchmarked during the initial BPA competition, potentially offering better value than a new sole-source award. Further analysis would require understanding the specific software licenses and support included.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition via a Blanket Purchase Agreement (BPA) Call. This implies that the underlying BPA was competed broadly, allowing multiple vendors to propose solutions. The specific call order likely involved a streamlined process, but the initial competition for the BPA ensures a degree of market vetting. The number of bidders for the specific call is not provided, but the BPA structure generally fosters competitive pricing.

Taxpayer Impact: A full and open competition for the BPA ensures that taxpayers benefit from a competitive marketplace, driving down prices and encouraging innovation among software providers vying for government-wide agreements.

Public Impact

The primary beneficiaries are likely Department of Defense personnel who will utilize the C2C BUNDLE software. The contract delivers software licenses and potentially associated support services. The geographic impact is primarily within the state of Arizona, where the contract is registered, but the software's use could be global within DoD. Workforce implications are minimal, as this is a software procurement rather than a services contract requiring significant labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the software bundle makes it difficult to assess if it meets evolving technological needs.
Potential for vendor lock-in if the software becomes deeply integrated without clear exit strategies.
Reliance on a single awardee for this bundle could limit future flexibility in sourcing similar solutions.

Positive Signals

Awarded under a full and open competition BPA, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
The contract is managed by DISA, an agency experienced in large-scale IT procurements.

Sector Analysis

The software publishing industry is a significant sector within the broader IT market, characterized by rapid innovation and diverse product offerings. Government spending on software is substantial, covering everything from operating systems and productivity suites to specialized mission-critical applications. This contract, falling under NAICS code 511210, represents a portion of the DoD's investment in acquiring necessary software capabilities. Benchmarks for similar enterprise software procurements vary widely based on the specific technology and scale.

Small Business Impact

This contract was not awarded as a small business set-aside, and the prime contractor, Carahsoft Technology Corp., is a large business. While Carahsoft often partners with small businesses for subcontracting opportunities, the direct award does not provide an immediate benefit to small businesses through a set-aside. The impact on the small business ecosystem will depend on whether Carahsoft includes small businesses in its subcontracting plan for this specific BPA call.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Information Systems Agency (DISA), which has established procurement and contract management processes. As a BPA Call, the underlying BPA likely has its own oversight mechanisms. Transparency is facilitated by public contract databases, but detailed performance metrics and spending breakdowns may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Technology Contracting Office (DITCO) procurements
General Services Administration (GSA) Schedule contracts
Enterprise Software Agreements (ESAs)
Cloud Computing Services

Risk Flags

Potential for vendor lock-in
Lack of specific software details hinders full assessment
Reliance on BPA framework may obscure specific competition dynamics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.6 million to CARAHSOFT TECHNOLOGY CORP. C2C BUNDLE

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 $26.6 million.

What is the period of performance?

Start: 2024-11-29. End: 2026-11-28.

What specific software is included in the 'C2C BUNDLE' and what is its intended use within the DoD?

The provided data does not specify the exact software titles included in the 'C2C BUNDLE.' This designation likely refers to a consolidated package of software licenses and potentially maintenance/support services procured under a Blanket Purchase Agreement (BPA) Call. Such bundles are often created to streamline procurement of commonly used software across multiple agencies or departments. The intended use is likely related to command and control (C2) functions, given the 'C2C' acronym, which could encompass communication, data management, situational awareness, or operational planning software critical for military operations. Further details would require accessing the specific BPA or call order documentation.

How does the $26.6 million award compare to historical spending on similar software bundles by the DoD or DISA?

Without knowing the specific software components of the 'C2C BUNDLE,' a precise historical spending comparison is difficult. However, the Department of Defense is one of the largest government purchasers of software, with annual spending in the billions. DISA, in particular, manages numerous large-scale IT contracts. A $26.6 million award over two years ($13.3 million annually) for a software bundle is substantial but not extraordinary within the context of DoD's overall IT budget. Comparable spending would involve other enterprise-wide software licenses for operating systems, productivity suites, cybersecurity tools, or specialized mission software procured through large BPAs or other competitive vehicles. The value is moderate for an enterprise-level software acquisition.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. As a firm-fixed-price contract for software licenses and potentially support, SLAs would typically focus on aspects like software availability, uptime guarantees (if support includes hosting or managed services), response times for technical support, and delivery timelines for any updates or patches. KPIs might relate to the successful deployment of the software across a certain number of users or systems, or the achievement of specific operational objectives enabled by the software. These details are usually outlined in the contract's statement of work (SOW) or performance work statement (PWS).

What is Carahsoft Technology Corp.'s track record with the DoD and specifically with DISA for similar software procurements?

Carahsoft Technology Corp. is a major government IT reseller and has a significant track record of awards across federal agencies, including the Department of Defense and its components like DISA. They frequently leverage GSA Schedules and other contract vehicles to provide a wide array of software and IT solutions. Their business model often involves partnering with numerous software manufacturers to offer consolidated purchasing options. For DISA, Carahsoft has likely been involved in numerous procurements, including those under large BPAs or IDIQs, providing software licenses, maintenance, and support for various IT infrastructure and mission-specific applications. Their extensive experience suggests familiarity with DoD procurement requirements and processes.

Are there any identified risks associated with the 'C2C BUNDLE' software or its implementation?

Potential risks associated with the 'C2C BUNDLE' software, without specific knowledge of its components, could include: 1) Technical obsolescence if the software is not regularly updated or if newer, more capable technologies emerge. 2) Integration challenges if the software needs to interface with existing DoD systems, which are often complex and legacy-based. 3) Security vulnerabilities, as any software can be a target for cyber threats; rigorous testing and patching are crucial. 4) User adoption issues if the software has a steep learning curve or does not meet user needs effectively. 5) Vendor viability, although less likely with established software, is always a background concern. The firm-fixed-price nature mitigates cost overrun risks for the government.

What is the total spending trend for software procurement under NAICS code 511210 by the DoD over the last five fiscal years?

Analyzing the total spending trend for software procurement under NAICS code 511210 by the DoD over the last five fiscal years requires access to comprehensive federal procurement databases (like FPDS or SAM.gov). Generally, DoD spending on software has been consistently high and likely increasing, driven by modernization efforts, cybersecurity needs, and the adoption of new technologies. This includes operating systems, application software, development tools, and specialized defense software. While the specific figure for NAICS 511210 isn't provided here, it represents a significant portion of the DoD's overall IT expenditure, which runs into tens of billions of dollars annually. Trends often show a shift towards cloud-based solutions and subscription models alongside traditional perpetual licenses.

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: 1

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: $40,289,150

Exercised Options: $26,614,690

Current Obligation: $26,614,690

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N6600124A0003

IDV Type: BPA

Timeline