USDA Forest Service awards $7.16M software contract to Carahsoft Technology Corp. under full and open competition

Contract Overview

Contract Amount: $7,163,711 ($7.2M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Agriculture

Start Date: 2024-06-20

End Date: 2025-06-14

Contract Duration: 359 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOFTWARE BUY

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $7.2 million to CARAHSOFT TECHNOLOGY CORP for work described as: SOFTWARE BUY Key points: 1. The contract value of $7.16 million represents a significant investment in software solutions for the Forest Service. 2. Carahsoft Technology Corp. secured this award, indicating strong performance or competitive positioning in the software publisher market. 3. The 'FULL AND OPEN COMPETITION' indicates a robust bidding process, likely leading to favorable pricing for the government. 4. The contract duration of 359 days suggests a focused, short-term need for the software. 5. The fixed-price contract type provides cost certainty for the agency. 6. The award is categorized under Software Publishers (NAICS 511210), a key sector for government IT infrastructure.

Value Assessment

Rating: good

The contract value of $7.16 million for a one-year software license and support appears reasonable given the nature of enterprise software procurement. Benchmarking against similar large-scale software deals would provide more precise value-for-money assessment. The fixed-price nature of the contract helps mitigate cost overruns. Without specific details on the software's functionality and user base, a definitive value comparison is challenging, but the competitive award process suggests a fair market price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION,' meaning all responsible sources were permitted to submit a bid. The fact that there were 4 bidders suggests a healthy level of competition for this software requirement. This competitive environment is generally conducive to achieving better pricing and innovative solutions for the government.

Taxpayer Impact: A fully competed contract ensures that taxpayer dollars are used efficiently by driving down costs through market forces. It provides assurance that the government is not overpaying for the software.

Public Impact

The primary beneficiaries are the employees and operations of the USDA Forest Service, who will utilize the procured software. The contract will deliver essential software solutions, likely for data management, analysis, or operational support within the agency. The geographic impact is national, supporting the Forest Service's widespread operations across the United States. There are potential workforce implications related to the adoption and utilization of new software, requiring training and adaptation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software becomes deeply integrated into agency workflows.
Risk of underutilization if user adoption is low or training is insufficient.
Dependence on Carahsoft Technology Corp. for ongoing support and maintenance.
The specific software's long-term relevance and potential obsolescence.
Ensuring data security and privacy compliance with the new software.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Fixed-price contract type provides budget certainty.
Carahsoft Technology Corp. is a known entity in government contracting, suggesting a degree of reliability.
The contract duration is relatively short, allowing for reassessment of needs.
The software publisher category (NAICS 511210) is a standard government procurement area.

Sector Analysis

The software publisher industry (NAICS 511210) is a critical component of the government's IT infrastructure, providing essential tools for operations, data management, and analysis. The total government spending in this sector is substantial, with numerous contracts awarded annually. This specific contract fits within the broader trend of agencies investing in modern software solutions to improve efficiency and effectiveness. Comparable spending benchmarks would depend heavily on the specific type of software procured, but multi-million dollar awards for enterprise-level solutions are common.

Small Business Impact

This contract was awarded under 'FULL AND OPEN COMPETITION' and there is no indication of a small business set-aside. Carahsoft Technology Corp. is a large business. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data but are a possibility depending on the nature of the software and Carahsoft's business practices. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract will primarily reside with the USDA Forest Service contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified software and services. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

USDA IT Modernization Initiatives
Forest Service Data Management Systems
Government-wide Software Licensing Programs
Federal Civilian Agency Software Procurement

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Risk of inadequate user training leading to low adoption.
Dependency on a single vendor for critical software functionality.
Ensuring data migration and integration with existing systems is seamless.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $7.2 million to CARAHSOFT TECHNOLOGY CORP. SOFTWARE BUY

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $7.2 million.

What is the period of performance?

Start: 2024-06-20. End: 2025-06-14.

What specific software is being procured under this contract, and what are its primary functions for the Forest Service?

The provided data does not specify the exact software being procured. However, given the NAICS code 511210 (Software Publishers) and the agency (Forest Service), it is likely a commercial off-the-shelf (COTS) software solution. Potential functions could include data analysis, geographic information systems (GIS) support, resource management, financial tracking, or administrative tools. The Forest Service manages vast natural resources and requires robust software for tasks such as wildfire management, land use planning, ecological monitoring, and public engagement. Further details would be available in the contract's statement of work (SOW).

How does the $7.16 million contract value compare to historical spending on similar software by the Forest Service or other USDA agencies?

Without knowing the specific software category, a direct comparison is difficult. However, $7.16 million for a one-year contract is a substantial investment, typical for enterprise-level software licenses, maintenance, and support for a large federal agency. Historical data from agencies like the Forest Service often shows significant annual spending on IT, including software. For instance, agencies frequently spend millions on enterprise resource planning (ERP) systems, customer relationship management (CRM) software, or specialized scientific and geospatial analysis tools. A review of past Forest Service IT budgets and contract awards for software in similar categories would be necessary for a precise benchmark.

What is Carahsoft Technology Corp.'s track record with the USDA and other federal agencies for software procurements?

Carahsoft Technology Corp. is a well-established government IT reseller and solutions provider with a significant track record across numerous federal agencies, including the USDA. They often leverage existing government-wide acquisition contracts (GWACs) and indefinite-delivery/indefinite-quantity (IDIQ) vehicles to provide software and IT services. Their business model focuses on partnering with software manufacturers to make their products accessible to government buyers. A review of federal procurement databases would reveal numerous past awards to Carahsoft from various agencies, indicating their experience and established presence in the federal IT market.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this software contract?

The provided data does not detail the specific KPIs for this contract. However, typical KPIs for software contracts include successful software deployment and integration, user adoption rates, system uptime and availability, response times for technical support, achievement of defined performance objectives (e.g., processing speed, data accuracy), and adherence to security protocols. The contract's statement of work (SOW) would outline these performance standards and the methods for measuring contractor performance. The Forest Service would monitor these metrics to ensure the software delivers the intended value.

What is the potential risk associated with the 'FULL AND OPEN COMPETITION' award, considering the number of bidders?

The 'FULL AND OPEN COMPETITION' award, with 4 bidders, generally indicates a healthy competitive environment, which is a positive risk mitigation factor. The primary risks in such a scenario are less about the competition itself and more about the execution of the contract. Risks could include the chosen software not fully meeting evolving agency needs, potential integration challenges with existing systems, or the contractor failing to meet performance standards outlined in the contract. However, the competitive process itself helps mitigate risks related to price gouging and ensures the government selected a solution based on merit and value, rather than a lack of alternatives.

How does this contract align with the USDA's broader IT modernization goals or strategic objectives?

Federal agencies, including the USDA, are under continuous pressure to modernize their IT infrastructure to improve efficiency, enhance cybersecurity, and leverage data for better decision-making. Procuring new software, especially through competitive means, often aligns with these modernization goals. This contract likely supports the Forest Service's specific mission objectives, which in turn contribute to the USDA's overall strategic vision. Whether it's enabling better data analytics for resource management, improving internal workflows, or enhancing public-facing services, the software acquisition is expected to contribute to the agency's modernization efforts.

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

Solicitation ID: RFQ1699559

Offers Received: 4

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: $7,163,711

Exercised Options: $7,163,711

Current Obligation: $7,163,711

Actual Outlays: $7,163,711

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA18D008F

IDV Type: FSS

Timeline