HHS Spends $2.1M on SAP Business Objects Maintenance with Carahsoft Technology Corp
Contract Overview
Contract Amount: $2,099,218 ($2.1M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Health and Human Services
Start Date: 2015-08-21
End Date: 2019-09-24
Contract Duration: 1,495 days
Daily Burn Rate: $1.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF ANNUAL MAINTENANCE FOR SAP BUSINESS OBJECTS ENTERPRISE SUPPORT
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $2.1 million to CARAHSOFT TECHNOLOGY CORP for work described as: IGF::OT::IGF ANNUAL MAINTENANCE FOR SAP BUSINESS OBJECTS ENTERPRISE SUPPORT Key points: 1. Spending on SAP Business Objects Enterprise Support is concentrated with Carahsoft Technology Corp. 2. The contract spans nearly four years, indicating a long-term need for software maintenance. 3. The primary risk lies in potential vendor lock-in and the lack of ongoing competitive pressure. 4. This spending falls within the IT sector, specifically software publishers.
Value Assessment
Rating: fair
The total award of $2,099,218.2 over approximately four years suggests a significant investment. Benchmarking against similar SAP support contracts is difficult without more granular data on the specific modules and support levels provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific details of the competition and whether multiple bids were received are not provided, making it hard to assess the effectiveness of the competition in driving down costs.
Taxpayer Impact: Taxpayer funds are being used for essential software maintenance. The effectiveness of the competition in securing the best price will determine the ultimate taxpayer impact.
Public Impact
Ensures continued operation of critical SAP software for HHS administrative functions. Supports a key government agency's IT infrastructure. Potential for cost savings if competition was robust and pricing is benchmarked effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed pricing breakdown
- Limited visibility into competition effectiveness
- Potential for price increases in future renewals
Positive Signals
- Awarded under full and open competition
- Firm fixed price contract type
- Supports critical government functions
Sector Analysis
This expenditure is within the Information Technology sector, specifically for software publishers. Annual spending on software maintenance can vary widely, but for enterprise-level systems like SAP, significant investment is typical to ensure operational continuity and access to updates and support.
Small Business Impact
The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
Oversight would involve ensuring the services provided meet the terms of the contract and that the pricing remains competitive over the contract's duration. Regular performance reviews and market analysis are key accountability measures.
Related Government Programs
- Software Publishers
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Potential for vendor lock-in
- Lack of detailed service scope
- Uncertainty regarding competitive pricing effectiveness
- Limited transparency on small business participation
Tags
software-publishers, department-of-health-and-human-services, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $2.1 million to CARAHSOFT TECHNOLOGY CORP. IGF::OT::IGF ANNUAL MAINTENANCE FOR SAP BUSINESS OBJECTS ENTERPRISE SUPPORT
Who is the contractor on this award?
The obligated recipient is CARAHSOFT TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $2.1 million.
What is the period of performance?
Start: 2015-08-21. End: 2019-09-24.
What specific SAP Business Objects modules and support levels are covered under this contract, and how do they compare to industry standards?
The provided data lacks specifics on the SAP Business Objects modules and support levels included. Understanding these details is crucial for a meaningful comparison against industry benchmarks. Without this granularity, it's difficult to ascertain if the $2.1 million expenditure represents fair market value for the services rendered, beyond the general classification of enterprise support.
How effective was the 'full and open competition' in securing competitive pricing for this SAP maintenance contract?
While the contract was awarded under 'full and open competition,' the effectiveness in securing competitive pricing is not evident from the data. Key indicators like the number of bids received, the spread between bids, and the final negotiated price relative to initial offers are missing. This lack of detail prevents a thorough assessment of whether the competition truly drove down costs for taxpayers.
What is the long-term strategy for managing SAP Business Objects licensing and support costs beyond this contract's expiration?
The current data focuses solely on this specific contract period. A comprehensive long-term strategy for managing SAP costs would involve evaluating alternative solutions, negotiating multi-year enterprise agreements, or exploring open-source alternatives if feasible. Without such a strategy, HHS risks continued reliance on potentially escalating costs with the current vendor.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FCISJB980001B
Offers Received: 3
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: $2,518,636
Exercised Options: $2,099,218
Current Obligation: $2,099,218
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0119Y
IDV Type: FSS
Timeline
Start Date: 2015-08-21
Current End Date: 2019-09-24
Potential End Date: 2019-09-24 00:00:00
Last Modified: 2026-01-23
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