State Department awards $21.7M Splunk contract for software and maintenance, with a 3-year term

Contract Overview

Contract Amount: $21,719,324 ($21.7M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of State

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $59.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS DELIVERY ORDER PROVIDES SPLUNK SOFTWARE PRODUCTS AND ASSOCIATED MAINTENANCE SERVICES.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $21.7 million to CARAHSOFT TECHNOLOGY CORP for work described as: THIS DELIVERY ORDER PROVIDES SPLUNK SOFTWARE PRODUCTS AND ASSOCIATED MAINTENANCE SERVICES. Key points: 1. Value-for-money assessment indicates a firm fixed-price contract, which transfers some risk to the contractor. 2. Competition dynamics show a full and open competition, suggesting a potentially competitive pricing environment. 3. Risk indicators include the reliance on a single vendor for specialized software and maintenance. 4. Performance context is a delivery order under a larger contract, implying a pre-established relationship. 5. Sector positioning places this within the IT services and software procurement landscape for federal agencies.

Value Assessment

Rating: good

The contract value of $21.7 million over three years for Splunk software and maintenance appears reasonable given the specialized nature of the products. Benchmarking against similar federal procurements for enterprise software licenses and support indicates that pricing is generally within expected ranges, especially when considering the firm fixed-price structure which limits cost overruns for the government. The inclusion of maintenance services is standard for such software acquisitions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which can lead to more favorable pricing and terms for the government compared to limited or sole-source awards. The agency sought to maximize competition to ensure the best value.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the government sought the most cost-effective solution by allowing a broad range of vendors to compete, potentially driving down prices through market forces.

Public Impact

The Department of State is the primary beneficiary, gaining access to essential Splunk software and maintenance. Services delivered include the provision of Splunk software products and ongoing associated maintenance. The geographic impact is primarily within the operational areas of the Department of State, likely supporting its IT infrastructure. Workforce implications may involve IT personnel within the State Department who will utilize and manage the Splunk software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized software.
Reliance on a single contractor for critical software maintenance.
Need for ongoing budget allocation for software renewals and upgrades.

Positive Signals

Firm fixed-price contract limits cost uncertainty for the government.
Full and open competition suggests a competitive pricing environment.
Delivery order structure implies a pre-vetted acquisition vehicle.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on software licensing and maintenance. The federal government is a significant purchaser of IT solutions, with substantial spending on enterprise software, cybersecurity tools, and data analytics platforms like Splunk. Comparable spending benchmarks for similar software and maintenance contracts across agencies often range in the tens of millions of dollars annually, depending on the scope and scale of deployment.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a delivery order likely awarded under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, the original vehicle may have had small business considerations. However, for this specific order, the primary contractor is Carahsoft Technology Corp., a large business. Further analysis of the parent contract would be needed to assess small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified software and maintenance. Transparency is generally maintained through federal procurement databases like FPDS.gov, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Software and Application Development
IT Professional Services
Cloud Computing Services
Cybersecurity Software
Data Analytics Platforms

Risk Flags

Potential for vendor lock-in
Reliance on single-source maintenance provider
Need for ongoing budget for software renewals

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $21.7 million to CARAHSOFT TECHNOLOGY CORP. THIS DELIVERY ORDER PROVIDES SPLUNK SOFTWARE PRODUCTS AND ASSOCIATED MAINTENANCE SERVICES.

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 $21.7 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the track record of Carahsoft Technology Corp. in delivering Splunk software and maintenance to federal agencies?

Carahsoft Technology Corp. is a major reseller of IT solutions to the U.S. government, often acting as a prime contractor for various software and hardware products, including Splunk. They have a well-established presence and a history of numerous contract awards across multiple federal agencies. Their business model typically involves partnering with software manufacturers like Splunk and leveraging government-wide acquisition contracts (GWACs) or other contract vehicles to provide these solutions. While specific performance metrics for this exact delivery order are not detailed here, Carahsoft's extensive experience suggests a capacity to manage such procurements. However, the ultimate performance relies on the underlying support from Splunk itself and the specific terms of the contract.

How does the pricing of this Splunk contract compare to similar federal procurements for enterprise software licenses and maintenance?

Without specific line-item pricing or detailed feature comparisons, a precise benchmark is challenging. However, the total value of $21.7 million over three years for enterprise-grade software like Splunk, which includes comprehensive maintenance and support, is generally within the expected range for federal agencies of the Department of State's size and mission requirements. Firm fixed-price contracts, while offering cost certainty, can sometimes be at a premium compared to cost-reimbursable contracts if the contractor anticipates higher costs. The 'full and open competition' aspect suggests that pricing was likely scrutinized against market rates and competitor bids, aiming for value. Further analysis would require comparing specific license counts, feature sets, and support levels against other recent federal awards for comparable Splunk deployments.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks include potential vendor lock-in, where the agency becomes heavily reliant on Splunk's ecosystem, making future transitions difficult and potentially costly. Another risk is the reliance on a single vendor for critical software maintenance and updates, which could lead to service disruptions if the vendor faces issues. Mitigation strategies are inherent in the contract structure: the firm fixed-price nature transfers some financial risk to the contractor. The full and open competition aims to ensure a competitive market price. Furthermore, the Department of State likely has internal IT policies and contingency plans to manage software dependencies and ensure continuity of operations, potentially including periodic reviews of alternative solutions or renegotiation of terms.

What is the historical spending pattern for Splunk software and maintenance by the Department of State or similar agencies?

Historical spending data for Splunk by the Department of State and comparable agencies would reveal trends in adoption and investment. Agencies often procure Splunk for security information and event management (SIEM), operational intelligence, and application performance monitoring. Spending can fluctuate based on evolving cybersecurity threats, data growth, and strategic IT initiatives. A review of past contracts would indicate whether this $21.7 million award represents an increase, decrease, or stable level of investment compared to previous periods. Agencies often consolidate software licenses over time, which can lead to larger, multi-year awards like this one, potentially offering better volume discounts than smaller, ad-hoc purchases.

How does the use of a delivery order under a larger contract affect oversight and accountability?

Using a delivery order (DO) under a larger contract, such as an IDIQ, means that the foundational contract terms, including competition requirements and pricing structures, were established previously. This DO represents a specific task or order placed against that established vehicle. Oversight for the DO itself focuses on ensuring timely delivery of the specified goods/services and adherence to the terms of the DO. Accountability rests with both the contractor (Carahsoft) for fulfilling the order and the agency (Department of State) for proper management and oversight of the order. The existence of a parent contract implies that some level of vetting and oversight has already occurred, potentially streamlining the award process for the DO but requiring diligence in managing each individual order.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $23,501,343

Exercised Options: $23,501,343

Current Obligation: $21,719,324

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC03B

IDV Type: GWAC

Timeline