Army Awards $34.5M Veritas Software Maintenance Contract to Carahsoft via Full and Open Competition

Contract Overview

Contract Amount: $34,479,861 ($34.5M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2018-03-30

End Date: 2021-03-31

Contract Duration: 1,097 days

Daily Burn Rate: $31.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS DELIVERY ORDER IS FOR THE ESTABLISHMENT OF AN ELA FOR VERITAS SOFTWARE MAINTENANCE TO SUPPORT HQDA CIO/G6. THE PERIOD OF PERFORMANCE IS FOR YEARS AS FOLLOWS: BASE PERIOD: 01 APRIL 2018 THROUGH 31 MARCH 2019 OPTION PERIOD 1: 01 APRIL 2019 THROUGH 31 MARCH 2020 OPTION PERIOD 2: 01 APRIL 2020 THROUGH 31 MARCH 2021

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.5 million to CARAHSOFT TECHNOLOGY CORP for work described as: THIS DELIVERY ORDER IS FOR THE ESTABLISHMENT OF AN ELA FOR VERITAS SOFTWARE MAINTENANCE TO SUPPORT HQDA CIO/G6. THE PERIOD OF PERFORMANCE IS FOR YEARS AS FOLLOWS: BASE PERIOD: 01 APRIL 2018 THROUGH 31 MARCH 2019 OPTION PERIOD 1: 01 APRIL 2019 THROUGH 31 MARCH 2020 OPTION PER… Key points: 1. The contract is for Veritas software maintenance, supporting the HQDA CIO/G6. 2. Carahsoft Technology Corp. is the awardee, with a contract value of $34,479,861.30. 3. The contract spans three years, from April 1, 2018, to March 31, 2021. 4. This is a Delivery Order under an existing contract, indicating a specific need for software maintenance. 5. The North American Industry Classification System (NAICS) code is 511210 (Software Publishers).

Value Assessment

Rating: good

The contract value of $34.5M over three years for software maintenance appears reasonable given the nature of enterprise software support. Benchmarking against similar large-scale software maintenance agreements would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for necessary software maintenance.

Public Impact

Ensures continued operation of critical IT infrastructure for the Army's CIO/G6. Supports the maintenance and updates of essential software for government operations. Provides stability for IT services by securing necessary software licenses and support. The award to Carahsoft, a reseller, may involve markups, but the competitive process should mitigate excessive costs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized software maintenance.
Reliance on a single vendor for critical software updates and support.

Positive Signals

Awarded via full and open competition.
Supports critical IT functions for HQDA CIO/G6.
Firm Fixed Price contract type provides cost certainty.

Sector Analysis

This contract falls within the Information Technology sector, specifically software publishers and maintenance. Spending on enterprise software maintenance is a significant component of government IT budgets, essential for maintaining legacy systems and supporting ongoing operations.

Small Business Impact

While Carahsoft Technology Corp. is the awardee, the data does not indicate if they are a small business. The contract itself is a Delivery Order, suggesting it might be part of a larger contract vehicle that could have involved small business set-asides or subcontracting opportunities.

Oversight & Accountability

The award is a Delivery Order, implying it was issued under an existing contract. Oversight would focus on the terms of the base contract, the justification for this specific order, and performance monitoring to ensure Veritas software maintenance meets requirements.

Related Government Programs

Software Publishers
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for price increases in future option periods or renewals.
Dependence on a single software vendor (Veritas) for critical functions.
Risk associated with the reseller model (Carahsoft) potentially adding costs.
Ensuring adequate technical support is provided by Veritas through the reseller.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.5 million to CARAHSOFT TECHNOLOGY CORP. THIS DELIVERY ORDER IS FOR THE ESTABLISHMENT OF AN ELA FOR VERITAS SOFTWARE MAINTENANCE TO SUPPORT HQDA CIO/G6. THE PERIOD OF PERFORMANCE IS FOR YEARS AS FOLLOWS: BASE PERIOD: 01 APRIL 2018 THROUGH 31 MARCH 2019 OPTION PERIOD 1: 01 APRIL 2019 THROUGH 31 MARCH 2020 OPTION PERIOD 2: 01 APRIL 2020 THROUGH 31 MARCH 2021

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 Army).

What is the total obligated amount?

The obligated amount is $34.5 million.

What is the period of performance?

Start: 2018-03-30. End: 2021-03-31.

What is the specific Veritas software being maintained, and what is its criticality to HQDA CIO/G6 operations?

The specific Veritas software is not detailed in the provided data. However, its support for HQDA CIO/G6 suggests it is critical for the Army's information management and IT infrastructure. Understanding the software's function (e.g., data backup, storage management, security) would clarify its operational importance and the necessity of continuous maintenance.

How does the $34.5M contract value compare to industry benchmarks for similar enterprise software maintenance agreements over a three-year period?

Benchmarking this $34.5M contract requires comparing it to similar multi-year enterprise software maintenance agreements for products like Veritas. Factors such as the number of users, modules licensed, and level of support (e.g., 24/7 vs. business hours) significantly influence pricing. Without specific details on these factors, a precise benchmark is difficult, but the value appears substantial, necessitating a review against comparable government or commercial contracts.

What measures are in place to ensure the effectiveness of the software maintenance and prevent potential cost overruns or performance issues?

Effectiveness is likely ensured through the Firm Fixed Price contract type, which caps costs. Performance standards and Service Level Agreements (SLAs) within the Delivery Order would define expected maintenance outcomes. The government's quality assurance personnel would monitor adherence to these SLAs and the overall performance of Carahsoft and Veritas support to ensure the software remains functional and secure.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $34,479,861

Exercised Options: $34,479,861

Current Obligation: $34,479,861

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0119Y

IDV Type: FSS

Timeline