State Dept. Spends $59.6M on VMware BPA/ELA with Carahsoft, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $59,573,490 ($59.6M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of State
Start Date: 2018-09-30
End Date: 2023-09-28
Contract Duration: 1,824 days
Daily Burn Rate: $32.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ENTERPRISE WIDE VMWARE BPA AND ELA
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $59.6 million to CARAHSOFT TECHNOLOGY CORP for work described as: ENTERPRISE WIDE VMWARE BPA AND ELA Key points: 1. Significant investment in enterprise-wide virtualization software. 2. Carahsoft Technology Corp. is the primary contractor. 3. Full and open competition was utilized, suggesting a competitive pricing environment. 4. Contract duration spans nearly five years, indicating long-term reliance.
Value Assessment
Rating: fair
The total award amount of $59.6M over five years averages to approximately $11.9M annually. Benchmarking against similar enterprise software agreements is difficult without specific license details, but the scale suggests a substantial commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing. However, the specific impact on price discovery for this particular VMware BPA/ELA requires further analysis of the bidding process and awarded pricing.
Taxpayer Impact: Taxpayer funds are being utilized for enterprise software licensing, with the expectation of cost savings and operational efficiencies through virtualization.
Public Impact
Ensures access to critical virtualization software for Department of State operations. Supports IT infrastructure modernization and flexibility. Potential for cost savings through consolidated licensing and support. Reliance on a single vendor (VMware) for core virtualization technology.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific license details makes per-unit cost analysis impossible.
- Long contract duration could lead to vendor lock-in.
- Potential for price increases in future renewals if competition diminishes.
Positive Signals
- Awarded through full and open competition.
- Consolidates licensing for potential efficiency gains.
- Supports essential government IT infrastructure.
Sector Analysis
This contract falls within the IT sector, specifically software licensing and support. Enterprise-wide agreements for virtualization software are common across government agencies to standardize technology and manage costs.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Carahsoft Technology Corp. is a reseller, and the ultimate benefit to small businesses would depend on their subcontracting practices.
Oversight & Accountability
The contract was awarded via a delivery order under an existing agreement. Oversight would involve monitoring contract performance, adherence to terms, and ensuring value for money throughout the contract period.
Related Government Programs
- Electronic Computer Manufacturing
- Department of State Contracting
- Department of State Programs
Risk Flags
- Lack of detailed product/license information.
- Potential for vendor lock-in.
- Long contract duration.
- Reseller model may obscure true vendor costs.
Tags
electronic-computer-manufacturing, department-of-state, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $59.6 million to CARAHSOFT TECHNOLOGY CORP. ENTERPRISE WIDE VMWARE BPA AND ELA
Who is the contractor on this award?
The obligated recipient is CARAHSOFT TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $59.6 million.
What is the period of performance?
Start: 2018-09-30. End: 2023-09-28.
What specific VMware products and license types are included in this BPA/ELA, and how do they align with the Department of State's current and future IT needs?
The provided data lacks specifics on the exact VMware products, versions, and license metrics (e.g., per-CPU, per-user). Understanding this granular detail is crucial for assessing if the $59.6M expenditure truly reflects the agency's requirements and if the chosen licensing model optimizes cost-effectiveness and scalability for their virtualization infrastructure.
How did the 'full and open competition' process ensure the best possible pricing and terms for this significant VMware enterprise agreement?
While 'full and open competition' theoretically promotes competitive pricing, the effectiveness in this case depends on the number of bidders, the specific requirements outlined, and the evaluation criteria used. Further investigation into the bidding process and the resulting price comparison against market benchmarks would be needed to confirm if optimal value was achieved.
What mechanisms are in place to manage the risk of vendor lock-in and ensure continued cost-effectiveness throughout the five-year contract duration?
The long-term nature of this agreement necessitates proactive risk management. Mechanisms could include periodic price reviews, performance metrics tied to cost savings, and contingency planning for potential technology shifts. Without explicit details on these oversight measures, the risk of vendor lock-in and potential future cost escalations remains a concern.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
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: $73,118,505
Exercised Options: $59,653,798
Current Obligation: $59,573,490
Actual Outlays: $22,729,384
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC03B
IDV Type: GWAC
Timeline
Start Date: 2018-09-30
Current End Date: 2023-09-28
Potential End Date: 2023-09-28 00:00:00
Last Modified: 2025-08-11
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