USDA Awards $3.9M C3 AI Correspondence Software Contract to Carahsoft

Contract Overview

Contract Amount: $3,900,000 ($3.9M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Agriculture

Start Date: 2026-01-30

End Date: 2027-01-29

Contract Duration: 364 days

Daily Burn Rate: $10.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: C3 AI CORRESPONDENCE MANAGEMENT SOFTWARE AND SUPPORT; COMMERCIAL OFF THE SHELF (COTS) SOFTWARE AND SOFTWARE CONFIGURATION TO AUTOMATE AND MANAGE USDA'S EXECUTIVE AND LEGISLATIVE CORRESPONDENCE (C-SOFTWARE).

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.9 million to CARAHSOFT TECHNOLOGY CORP for work described as: C3 AI CORRESPONDENCE MANAGEMENT SOFTWARE AND SUPPORT; COMMERCIAL OFF THE SHELF (COTS) SOFTWARE AND SOFTWARE CONFIGURATION TO AUTOMATE AND MANAGE USDA'S EXECUTIVE AND LEGISLATIVE CORRESPONDENCE (C-SOFTWARE). Key points: 1. Software acquisition for executive correspondence automation. 2. Commercial off-the-shelf (COTS) solution. 3. Potential for efficiency gains in USDA's communication management. 4. Focus on IT services within the 'Other Computer Related Services' NAICS code.

Value Assessment

Rating: fair

The contract value of $3.9M for a 1-year duration appears reasonable for enterprise correspondence management software and support. Benchmarking against similar COTS software contracts of this scope would provide a clearer picture of value.

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 value for the government.

Taxpayer Impact: Taxpayer funds are being used for a COTS software solution aimed at improving government efficiency, which is a positive use of resources if the software delivers as expected.

Public Impact

Streamlines communication processes for USDA leadership. Enhances efficiency in managing executive and legislative correspondence. Leverages modern technology for government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics provided.
Potential for vendor lock-in with COTS software.
Integration challenges with existing USDA systems.

Positive Signals

Use of a competitive bidding process.
Focus on improving operational efficiency.
Acquisition of a COTS solution, potentially reducing development costs.

Sector Analysis

This contract falls within the IT sector, specifically 'Other Computer Related Services'. Spending in this area is significant across government, with COTS software procurement being a common strategy for acquiring specialized capabilities.

Small Business Impact

The data indicates this contract was awarded to Carahsoft Technology Corp, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

Standard contract oversight by the Department of Agriculture's Office of the Chief Financial Officer is expected. The delivery order structure implies ongoing monitoring of performance and deliverables.

Related Government Programs

Other Computer Related Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Full and open competition utilized.
COTS software acquisition.
Focus on automation and efficiency.
Clear contract end date.
Awarded to a known government contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.9 million to CARAHSOFT TECHNOLOGY CORP. C3 AI CORRESPONDENCE MANAGEMENT SOFTWARE AND SUPPORT; COMMERCIAL OFF THE SHELF (COTS) SOFTWARE AND SOFTWARE CONFIGURATION TO AUTOMATE AND MANAGE USDA'S EXECUTIVE AND LEGISLATIVE CORRESPONDENCE (C-SOFTWARE).

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2026-01-30. End: 2027-01-29.

What specific features and functionalities of the C3 AI software are critical for automating USDA's correspondence management, and how do these align with the stated objectives?

The C3 AI software is expected to automate and manage USDA's executive and legislative correspondence. Critical functionalities likely include intelligent document processing, workflow automation for routing and approvals, content analysis for categorization and prioritization, and secure storage and retrieval. These features directly address the objective of streamlining communication, reducing manual effort, and ensuring timely responses to legislative and executive inquiries, thereby improving overall governmental efficiency and responsiveness.

What are the potential risks associated with relying on a single COTS software vendor for such a critical function, and how are these risks being mitigated?

Risks include vendor lock-in, potential for future price increases, limited customization options, and dependence on the vendor's product roadmap and support. Mitigation strategies could involve negotiating favorable contract terms, establishing clear service level agreements (SLAs), ensuring data portability, and maintaining internal expertise to manage the system. Regular market analysis and contingency planning for alternative solutions are also crucial.

How will the effectiveness of the C3 AI correspondence management software be measured to ensure it meets USDA's needs and provides value for the $3.9M investment?

Effectiveness will be measured through key performance indicators (KPIs) such as reduction in average response time for correspondence, decrease in manual processing errors, improvement in tracking and auditability of communications, and user satisfaction surveys. Performance metrics should be clearly defined in the contract and regularly reviewed by the Office of the Chief Financial Officer to ensure the software delivers tangible benefits and justifies the investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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: 12314426Q0039

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: $8,900,000

Exercised Options: $8,900,000

Current Obligation: $3,900,000

Actual Outlays: $3,900,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC27B

IDV Type: GWAC

Timeline