Carahsoft Technology Corp awarded $2.78M contract for software publishing by the Department of the Navy

Contract Overview

Contract Amount: $2,776,491 ($2.8M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2025-05-15

End Date: 2026-05-14

Contract Duration: 364 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LABOR

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $2.8 million to CARAHSOFT TECHNOLOGY CORP for work described as: LABOR Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated agreement. 2. The contract is for software publishing services, a common need across government agencies. 3. Fixed-price contract type suggests predictable costs for the government. 4. The duration of 364 days aligns with typical annual software licensing or support contracts. 5. No small business set-aside was applied, suggesting a focus on established vendors. 6. The contract is managed by the Department of the Navy, part of the larger Department of Defense.

Value Assessment

Rating: good

The contract value of $2.78 million for a one-year term for software publishing appears reasonable given the nature of the services. Without specific details on the software or services provided, direct benchmarking is challenging. However, the use of a BPA Call suggests that pricing may have been previously vetted and found competitive. The firm fixed-price structure provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, utilizing a BPA Call. This indicates that multiple vendors had the opportunity to bid on the underlying BPA, and this call represents a specific order against that agreement. The presence of two bids suggests a degree of competition, though the specifics of the BPA's competition level are not detailed here.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The Department of the Navy benefits from access to necessary software publishing services. This contract supports the operational needs of naval forces through software solutions. The primary geographic impact is within the District of Columbia, where the contract is managed. The contract likely supports IT professionals and potentially end-users within the Navy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the software or services could obscure potential value for money issues.
The limited number of bids (2) on the BPA Call warrants further investigation into the broader competition for the underlying BPA.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Firm fixed-price contract type provides cost predictability.
The contract is managed by a major federal agency (Department of Defense), implying established procurement processes.

Sector Analysis

The software publishing industry is a critical component of the IT sector, providing essential tools and platforms for government operations. This contract falls under the NAICS code 511210 (Software Publishers). Spending in this category is substantial across the federal government, supporting everything from operating systems and productivity software to specialized mission-critical applications. Benchmarking this specific award requires understanding the exact software or services procured, but it represents a typical transaction within the broader federal IT procurement landscape.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary awardee, Carahsoft Technology Corp, is likely a large business, and the focus was on fulfilling the government's needs through the most capable vendor rather than specifically promoting small business participation in this instance.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting and program management offices. 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 specific oversight activities are typically internal to the agency. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Procurement
Software Licensing and Support Contracts
Blanket Purchase Agreements (BPAs)
General Services Administration (GSA) Schedules

Risk Flags

Limited Competition on Underlying BPA
Lack of Specific Software Details
Potential for Vendor Lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.8 million to CARAHSOFT TECHNOLOGY CORP. LABOR

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 $2.8 million.

What is the period of performance?

Start: 2025-05-15. End: 2026-05-14.

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

The provided data indicates the NAICS code is 511210, which corresponds to 'Software Publishers.' This suggests the contract is for the procurement of software licenses, subscriptions, or related publishing services. However, the specific titles or descriptions of the software or services are not detailed in the provided data. To fully assess the value and impact, understanding the exact nature of the software (e.g., operating systems, cybersecurity tools, productivity suites, specialized mission software) and the services (e.g., maintenance, support, updates, development) would be crucial. This information is typically found in the contract award details or statement of work.

How does the pricing compare to similar software publishing contracts awarded by the Department of Defense?

Benchmarking the pricing of this $2.78 million contract requires access to detailed pricing information for the specific software or services procured, as well as comparable contracts. The firm fixed-price nature provides cost certainty, but without knowing the exact products or services, a direct comparison is difficult. Generally, the Department of Defense procures a wide range of software, from COTS (Commercial Off-The-Shelf) products to highly specialized solutions. Pricing can vary significantly based on licensing models (per user, per device, enterprise-wide), support levels, and volume discounts. The fact that this was awarded via a BPA Call suggests that pricing may have been negotiated at a master agreement level, potentially offering some level of pre-vetted value.

What is the track record of Carahsoft Technology Corp in fulfilling federal software contracts?

Carahsoft Technology Corp is a well-established government IT solutions provider and reseller, frequently appearing on federal contract awards lists. They specialize in providing a wide array of software and IT solutions to government agencies, often leveraging GSA Schedules and other contract vehicles. Their business model typically involves partnering with software manufacturers to resell their products to the public sector. While specific performance metrics for individual contracts are not publicly detailed, Carahsoft's consistent presence and high contract volume suggest a generally positive track record in meeting government procurement requirements and delivering software solutions.

What are the potential risks associated with this contract award?

Potential risks include vendor lock-in if the software is proprietary and difficult to replace, potential for cost increases upon renewal if market conditions change or if the initial pricing was aggressive, and the risk of the software not meeting evolving operational requirements. Given that it's a BPA Call, there's also a risk related to the broader competition for the underlying BPA itself – if that competition was limited, it could impact long-term value. Ensuring adequate technical support and cybersecurity compliance for the software are also ongoing risks that need active management by the agency.

How does this contract fit into the Department of the Navy's broader IT modernization or software acquisition strategy?

This contract likely supports the Department of the Navy's ongoing need for software to maintain and enhance its operational capabilities. Without knowing the specific software, it's hard to place it within a precise modernization strategy. However, federal agencies are continuously updating their software portfolios to improve efficiency, enhance security, and adopt new technologies. Contracts like this, even if for standard software, are essential components of maintaining a functional IT infrastructure. It could be part of a larger effort to consolidate software licenses, upgrade existing systems, or acquire new tools to address emerging challenges.

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

Solicitation ID: N0018925RZ092

Offers Received: 2

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: $8,370,747

Exercised Options: $2,776,491

Current Obligation: $2,776,491

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600124A0048

IDV Type: BPA

Timeline