Army's $16.6M Salesforce Enterprise License Agreement Awarded to Computable Insights LLC

Contract Overview

Contract Amount: $16,566,019 ($16.6M)

Contractor: Computable Insights LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-27

End Date: 2026-01-26

Contract Duration: 213 days

Daily Burn Rate: $77.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS AWARD IS TO ESTABLISH AN ENTERPRISE LICENSE AGREEMENT ON BEHALF OF PEO ENTERPRISE FOR THE PROCUREMENT OF SALESFORCE PRODUCTS DIRECTLY WITH THE ORIGINAL EQUIPMENT MANUFACTURER IN SUPPORT OF THE U.S. ARMY.

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to COMPUTABLE INSIGHTS LLC for work described as: THIS AWARD IS TO ESTABLISH AN ENTERPRISE LICENSE AGREEMENT ON BEHALF OF PEO ENTERPRISE FOR THE PROCUREMENT OF SALESFORCE PRODUCTS DIRECTLY WITH THE ORIGINAL EQUIPMENT MANUFACTURER IN SUPPORT OF THE U.S. ARMY. Key points: 1. Value for money assessed through comparison to similar enterprise software agreements. 2. Competition dynamics indicate a sole-source award, potentially impacting price discovery. 3. Risk indicators include reliance on a single vendor for critical enterprise software. 4. Performance context is established by the enterprise-wide scope of Salesforce products. 5. Sector positioning is within the Software Publishers industry, supporting Army operations.

Value Assessment

Rating: fair

The contract value of $16.6 million for a 7-month period appears high for an enterprise license, especially when compared to typical annual subscription costs for similar CRM platforms. Without detailed breakdowns of included modules and user counts, a precise value-for-money assessment is challenging. However, direct procurement from the OEM (Salesforce) might offer some advantages in terms of support and access to the latest features, but it also bypasses potential reseller discounts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis directly to Computable Insights LLC, which is acting as a reseller or partner for Salesforce. The justification for not competing the award is not provided in the data, but it is common for enterprise software licenses, especially for established platforms like Salesforce, to be procured directly from the OEM or authorized partners to ensure compatibility, support, and access to specific features. The lack of competition means that the government did not benefit from a competitive bidding process to potentially drive down costs.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most competitive pricing available in the market. Without competitive bids, there is less pressure on the vendor to offer the lowest possible price.

Public Impact

The U.S. Army benefits from an enterprise-wide license for Salesforce products, enhancing its customer relationship management and operational capabilities. Services delivered include access to Salesforce software, supporting various departmental functions. The geographic impact is nationwide, as the Army is a federal agency operating across the U.S. Workforce implications include enabling Army personnel to utilize advanced CRM tools for improved efficiency and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to sole-source award.
Lack of competitive pricing may lead to overspending.
Dependence on a single vendor for critical enterprise software.

Positive Signals

Direct procurement from OEM partner ensures access to latest features and support.
Enterprise-wide license can streamline software management and deployment.
Firm Fixed Price contract provides cost certainty for the duration of the award.

Sector Analysis

This contract falls within the Software Publishers industry, specifically for Customer Relationship Management (CRM) software. The market for enterprise CRM solutions is dominated by a few major players, including Salesforce, Microsoft Dynamics, and Oracle. Federal agencies increasingly rely on these platforms for managing citizen and internal stakeholder interactions, improving data analytics, and streamlining operations. The total addressable market for enterprise software in the federal government is substantial, with significant spending allocated annually to software licenses and support services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. As a sole-source award to Computable Insights LLC, which is likely a reseller or partner for Salesforce, the direct impact on the small business ecosystem is minimal unless Computable Insights itself is a small business and has specific subcontracting plans not detailed here. Further investigation into Computable Insights' size and subcontracting practices would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The contract type is Firm Fixed Price, which provides a degree of cost certainty. Transparency is limited by the sole-source nature of the award and the lack of publicly available justification. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Salesforce Enterprise Agreements
Department of Defense Software Procurements
Army IT Modernization Programs
Enterprise Resource Planning (ERP) Systems

Risk Flags

Sole-source award may limit price competition.
Contract duration is relatively short for an enterprise-wide agreement.
Lack of detailed justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to COMPUTABLE INSIGHTS LLC. THIS AWARD IS TO ESTABLISH AN ENTERPRISE LICENSE AGREEMENT ON BEHALF OF PEO ENTERPRISE FOR THE PROCUREMENT OF SALESFORCE PRODUCTS DIRECTLY WITH THE ORIGINAL EQUIPMENT MANUFACTURER IN SUPPORT OF THE U.S. ARMY.

Who is the contractor on this award?

The obligated recipient is COMPUTABLE INSIGHTS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2025-06-27. End: 2026-01-26.

What is the track record of Computable Insights LLC in delivering Salesforce solutions to federal agencies?

Information regarding Computable Insights LLC's specific track record in delivering Salesforce solutions to federal agencies is not detailed in the provided data. As a sole-source award, the justification for selecting this specific contractor would typically include their qualifications and past performance. To assess their track record, one would need to review contract databases for previous awards to Computable Insights for similar services, client testimonials, and performance evaluations. Without this external data, it's difficult to ascertain their experience level and success rate in supporting federal Salesforce implementations. The duration of this contract (7 months) suggests it might be for a specific project phase or an initial enterprise license period, rather than a long-term, large-scale implementation.

How does the per-unit cost of this Salesforce license compare to other federal agencies or commercial entities?

The provided data does not include specific per-unit cost breakdowns (e.g., per user, per module) for this Salesforce enterprise license agreement. The total award amount is $16.6 million for approximately 7 months. To benchmark the per-unit cost, one would need to know the number of users, the specific Salesforce products and modules included (e.g., Sales Cloud, Service Cloud, Marketing Cloud, specific add-ons), and the contract duration. Commercial entities and other federal agencies often negotiate different pricing tiers based on volume, commitment length, and specific feature sets. Without these details, a direct per-unit comparison is not feasible. However, enterprise-wide licenses can sometimes offer cost savings compared to procuring individual licenses, but the overall value depends heavily on utilization and the specific negotiated terms.

What are the primary risks associated with a sole-source award for enterprise software like Salesforce?

The primary risks associated with a sole-source award for enterprise software like Salesforce include: 1. **Higher Costs:** Lack of competition can lead to inflated prices as the vendor faces no pressure to offer the most competitive rates. 2. **Limited Innovation/Flexibility:** The agency becomes dependent on a single vendor's roadmap and pricing structure, potentially limiting future options or forcing costly upgrades. 3. **Vendor Lock-in:** Migrating away from a deeply integrated enterprise system like Salesforce can be extremely complex and expensive, making the agency reliant on the incumbent vendor. 4. **Reduced Service Quality:** Without competitive pressure, there's a potential risk of diminished customer service or support responsiveness. 5. **Oversight Challenges:** Sole-source awards often require robust justification and can face increased scrutiny regarding fairness and value.

What is the expected effectiveness of Salesforce products in supporting U.S. Army operations?

Salesforce products are widely recognized for their effectiveness in enhancing customer relationship management, data analytics, and workflow automation across various sectors, including government. For the U.S. Army, Salesforce can support a range of functions such as personnel management, training coordination, logistics tracking, constituent services (for public affairs), and internal process optimization. Its cloud-based nature allows for scalability and accessibility across different units and locations. The effectiveness will largely depend on how well the Army integrates Salesforce into its existing processes, the specific modules procured, the training provided to users, and the ongoing support and customization. A well-implemented Salesforce solution can lead to improved data visibility, streamlined communication, and enhanced operational efficiency.

How does this $16.6 million award compare to historical federal spending on Salesforce or similar CRM platforms?

The $16.6 million award for a 7-month period represents a significant investment. Historical federal spending on Salesforce and comparable CRM platforms varies widely based on agency size, scope of deployment, and contract duration. For instance, large agencies like the Department of Veterans Affairs or the General Services Administration have had multi-year, multi-million dollar contracts for Salesforce. Comparing this specific award requires context on the number of users and modules. If this is for a broad enterprise-wide deployment across a substantial portion of the Army, the cost might be within the expected range for such a large-scale implementation, especially considering it's a direct OEM agreement. However, without more granular data on user counts and specific product suites, it's difficult to definitively state if it's high or low compared to historical benchmarks. The short duration (7 months) suggests it might be an initial phase or a bridge contract.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13454 SUNRISE VALLEY DR FL 4, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $99,697,753

Exercised Options: $16,566,019

Current Obligation: $16,566,019

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline