DoD's $16.3M software contract with Carahsoft Technology Corp. awarded under full and open competition

Contract Overview

Contract Amount: $16,318,527 ($16.3M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2025-01-31

End Date: 2026-01-30

Contract Duration: 364 days

Daily Burn Rate: $44.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SE-100GB-ET-ESI

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to CARAHSOFT TECHNOLOGY CORP for work described as: SE-100GB-ET-ESI Key points: 1. The contract value of $16.3M for a 364-day duration suggests a significant investment in software solutions. 2. Awarded to Carahsoft Technology Corp., a known reseller of government software, indicating a reliance on established channels. 3. The 'FULL AND OPEN COMPETITION' designation implies a broad solicitation, potentially leading to competitive pricing. 4. The contract is a 'BPA CALL' under a 'VA' (GSA Federal Supply Schedule), suggesting it leverages existing agreements for efficiency. 5. The fixed-price nature of the contract provides cost certainty for the Department of Defense. 6. The absence of small business set-aside flags requires further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $16.3M for a one-year term appears reasonable for enterprise software licensing and support, especially given the vendor's role as a major reseller. Benchmarking against similar large-scale software procurements by the DoD would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but the designation suggests a robust competitive process was intended. This approach generally fosters price discovery and encourages vendors to offer their best pricing.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it aims to secure the most competitive pricing and potentially innovative solutions by allowing a wide range of vendors to participate.

Public Impact

The Department of the Navy benefits from access to essential software, likely for operational or administrative functions. The contract supports the delivery of software publishing services, crucial for various government IT needs. The primary geographic impact is within the Department of Defense, supporting its mission readiness. The contract may indirectly impact the IT workforce through the deployment and utilization of the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the software being procured makes it difficult to assess its criticality and potential for vendor lock-in.
The reliance on a single awardee (Carahsoft) through a BPA call, even if competed initially, warrants scrutiny for ongoing price competitiveness.
No explicit small business subcontracting goals are mentioned, which could limit opportunities for smaller firms.

Positive Signals

Awarded under full and open competition, suggesting a competitive process was utilized.
The use of a GSA Federal Supply Schedule (VA) indicates adherence to established procurement vehicles, promoting efficiency.
Firm fixed-price contract type provides budget certainty for the government.
The vendor, Carahsoft, is a well-established reseller with extensive experience in the government market.

Sector Analysis

This contract falls within the Software Publishers (NAICS 511210) sector, a critical component of the IT industry. The market for government software procurement is substantial, with agencies constantly seeking to modernize systems and acquire new capabilities. This contract represents a portion of the broader federal spending on software licenses, maintenance, and support, which is essential for maintaining and enhancing government operations.

Small Business Impact

The contract data indicates that this was not a small business set-aside (ss: false, sb: false). While the primary awardee is Carahsoft Technology Corp., a large business, further analysis would be needed to determine if there are any subcontracting requirements or opportunities for small businesses within this BPA call. Without explicit set-aside provisions, the direct impact on the small business ecosystem is likely limited unless subcontracting plans are mandated.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting officers and program managers. As a GSA Federal Supply Schedule (FSS) BPA Call, it benefits from the oversight framework established by GSA, which includes vendor vetting and contract management. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA Federal Supply Schedule Contracts
Department of Defense IT Procurement
Software Licensing and Maintenance
General Services Administration (GSA) IT Schedule

Risk Flags

Potential for higher costs due to reseller markup
Lack of specific software details limits risk assessment
No explicit small business subcontracting requirements noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to CARAHSOFT TECHNOLOGY CORP. SE-100GB-ET-ESI

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 Navy).

What is the total obligated amount?

The obligated amount is $16.3 million.

What is the period of performance?

Start: 2025-01-31. End: 2026-01-30.

What specific software products or services are being procured under this contract?

The provided data (SE-100GB-ET-ESI) does not specify the exact software products or services. However, the NAICS code 511210 (Software Publishers) and the vendor Carahsoft Technology Corp., a major reseller of software to the government, strongly suggest that this contract covers a range of commercial off-the-shelf (COTS) software licenses, potentially including operating systems, productivity suites, cybersecurity tools, or specialized application software. Further details would typically be found in the BPA call document itself or associated task orders, which are not included in the provided snippet.

How does the $16.3M contract value compare to historical spending on similar software by the Department of the Navy?

Without specific historical spending data for comparable software procurements by the Department of the Navy, a direct comparison is challenging. However, $16.3 million for a one-year contract (364-day duration) represents a significant investment. The Department of Defense, as a whole, spends billions annually on IT, including software. This contract's value should be assessed against the agency's overall IT budget and the criticality of the software procured. If this contract is for enterprise-wide licenses or a critical system, the value might be in line with or even below market rates, especially if procured through a competitive GSA schedule. Conversely, if it's for a niche application, it could be on the higher end.

What are the potential risks associated with awarding a large software contract to a reseller like Carahsoft?

A primary risk when contracting with resellers like Carahsoft is the potential for higher costs compared to direct purchasing from software manufacturers, as the reseller's margin is included. Another risk is vendor lock-in, where the government becomes dependent on specific software and the reseller for support and future upgrades. Additionally, the complexity of managing multiple software agreements through a single reseller can sometimes lead to administrative challenges or gaps in oversight if not managed diligently. However, resellers often provide value through consolidated purchasing, simplified procurement, and expertise in navigating government acquisition regulations.

What does the 'BPA CALL' contract type imply for the Department of the Navy?

A 'BPA CALL' signifies a task order issued against a Blanket Purchase Agreement (BPA). BPAs are simplified acquisition vehicles established by federal agencies (in this case, likely a GSA FSS BPA) to streamline the purchase of commonly used supplies or services. This means the underlying terms and conditions, including pricing structures and competition requirements, were established when the parent BPA was created. A BPA Call allows the Department of the Navy to quickly order specific quantities or services under the pre-negotiated terms, reducing the time and effort required for individual contract actions. It implies that the vendor (Carahsoft) has a pre-existing agreement with GSA, and this call represents a specific order against that agreement.

Given the 'FULL AND OPEN COMPETITION' and 'FIRM FIXED PRICE' terms, what is the expected level of price certainty and value for taxpayers?

The combination of 'FULL AND OPEN COMPETITION' and 'FIRM FIXED PRICE' is generally favorable for taxpayers. Full and open competition aims to maximize the number of potential bidders, driving down prices through market forces. A firm fixed-price contract means the price is set and will not change, regardless of the contractor's costs. This provides the government with excellent cost certainty and shifts the risk of cost overruns to the contractor. Therefore, taxpayers can expect a predictable cost for the software and services, with the potential for competitive pricing achieved through the open bidding process.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: 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: $88,157,547

Exercised Options: $16,318,527

Current Obligation: $16,318,527

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600120A0022

IDV Type: BPA

Timeline