State Dept. awards $60.6M Splunk ELA to Carahsoft, extending through Jan 2025
Contract Overview
Contract Amount: $60,572,737 ($60.6M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of State
Start Date: 2019-09-30
End Date: 2025-01-25
Contract Duration: 1,944 days
Daily Burn Rate: $31.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SPLUNK ELA
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of State obligated $60.6 million to CARAHSOFT TECHNOLOGY CORP for work described as: SPLUNK ELA Key points: 1. Significant contract value for enterprise software licensing. 2. Carahsoft Technology Corp. is a major reseller in the government IT space. 3. Potential risk of vendor lock-in with long-term enterprise agreements. 4. IT sector spending on software and cloud services continues to grow.
Value Assessment
Rating: fair
The contract's value of $60.6M over its period suggests a substantial investment. Benchmarking against similar enterprise software licenses requires detailed analysis of specific Splunk products and user counts, but the duration and scope indicate a significant commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which theoretically allows for the best price discovery. However, as a delivery order against a larger agreement, the initial competition for the base contract is more critical.
Taxpayer Impact: Taxpayer funds are being used for enterprise software essential for data analysis and security operations within the Department of State.
Public Impact
Enables critical data analysis and cybersecurity capabilities for the Department of State. Supports government-wide efforts to modernize IT infrastructure. Ensures continuity of operations for essential software services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term commitment may limit future cost savings if better deals emerge.
- Reliance on a single vendor for critical software.
Positive Signals
- Provides access to essential, up-to-date software.
- Competition ensures a baseline level of price scrutiny.
Sector Analysis
This contract falls within the IT sector, specifically enterprise software licensing. Government spending on IT, including data analytics and cybersecurity tools like Splunk, has been a consistent area of investment.
Small Business Impact
While the award is to Carahsoft Technology Corp., a large reseller, the underlying contract vehicle and potential for subcontracting could offer opportunities for small businesses in the IT services and support ecosystem.
Oversight & Accountability
The Department of State is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability for spending and performance.
Related Government Programs
- Electronic Computer Manufacturing
- Department of State Contracting
- Department of State Programs
Risk Flags
- Long-term commitment
- Potential for price increases in future renewals
- Vendor lock-in
- Reliance on reseller for support and licensing
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 $60.6 million to CARAHSOFT TECHNOLOGY CORP. SPLUNK 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 $60.6 million.
What is the period of performance?
Start: 2019-09-30. End: 2025-01-25.
What is the total cost per user or per data volume analyzed under this ELA, and how does it compare to industry benchmarks?
Determining the precise cost per user or per data volume requires access to the specific Splunk product entitlements and usage metrics within the Department of State's ELA. Without this granular data, a direct comparison to industry benchmarks is challenging. However, the $60.6M total award over nearly five years suggests a significant investment in enterprise-level data management and analytics capabilities.
What are the key performance indicators (KPIs) for this contract, and how is performance being measured to ensure value for money?
Key performance indicators for an ELA typically revolve around software availability, support response times, and potentially usage metrics or feature adoption. The Department of State would likely have defined SLAs with Carahsoft. Regular performance reviews and reporting against these KPIs are crucial for ensuring the government receives the expected value and that the software effectively meets its operational needs.
Are there provisions for price adjustments or renegotiation within the contract term, especially considering potential market shifts in software pricing?
The contract is a Firm Fixed Price (FFP) delivery order, which generally locks in the price for the specified period. However, the terms of the base contract under which this delivery order was issued would dictate any provisions for price adjustments or renegotiation. It's important to review the base contract's clauses regarding market reviews or potential changes in licensing models.
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: 3
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: $73,216,747
Exercised Options: $61,488,257
Current Obligation: $60,572,737
Actual Outlays: $25,930,101
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC03B
IDV Type: GWAC
Timeline
Start Date: 2019-09-30
Current End Date: 2025-01-25
Potential End Date: 2025-01-25 00:00:00
Last Modified: 2026-02-13
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