Treasury's $26.8M software contract with Carahsoft Technology Corp. awarded under full and open competition

Contract Overview

Contract Amount: $26,870,691 ($26.9M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of the Treasury

Start Date: 2019-08-05

End Date: 2023-01-27

Contract Duration: 1,271 days

Daily Burn Rate: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FATCA IDES

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $26.9 million to CARAHSOFT TECHNOLOGY CORP for work described as: FATCA IDES Key points: 1. Contract awarded for software licensing and maintenance, indicating a need for ongoing IT support. 2. The firm-fixed-price structure suggests predictable costs for the government. 3. A single award for this delivery order implies a specific need met by this contractor. 4. The duration of over 3 years suggests a significant, long-term requirement. 5. The contract falls under the Software Publishers NAICS code, aligning with IT infrastructure needs.

Value Assessment

Rating: good

The contract value of $26.8 million over approximately 3.5 years represents a significant investment in software. Without specific benchmarks for this particular software suite or comparable contracts for similar functionalities, a precise value-for-money assessment is challenging. However, the firm-fixed-price contract type generally provides cost certainty. Further analysis would require comparing pricing against industry standards for similar software licenses and maintenance agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it resulted in a single delivery order suggests that Carahsoft Technology Corp. was the most advantageous offer received based on the evaluation criteria. The level of competition is positive for price discovery.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers as it encourages a wider range of vendors to offer their best terms.

Public Impact

The primary beneficiary is the Department of the Treasury, specifically the Internal Revenue Service (IRS). The contract delivers essential software licensing and maintenance services. The geographic impact is primarily within Maryland, where the contractor is located. This contract supports the IT infrastructure necessary for the IRS's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type provides cost predictability.
Contract duration of over 3 years indicates a stable, ongoing need.

Sector Analysis

This contract falls within the Information Technology sector, specifically software publishing and licensing. The market for enterprise software licenses and maintenance is substantial, with numerous vendors competing. The Treasury's spending on such software is typical for large federal agencies requiring robust IT systems to manage complex operations like tax administration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting requirements. Therefore, this particular award does not appear to directly benefit small businesses through set-asides, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

As a delivery order under a larger contract vehicle, oversight is likely managed by the contracting officer at the Department of the Treasury. Transparency is facilitated by public contract databases. Specific accountability measures would be detailed within the contract terms and conditions, and performance would be monitored by the IRS.

Related Government Programs

IRS IT Modernization Programs
Federal Enterprise Software Licensing
Treasury Department IT Procurement

Risk Flags

Potential for vendor lock-in if software is proprietary.
Reliance on a single awardee for critical software needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $26.9 million to CARAHSOFT TECHNOLOGY CORP. FATCA IDES

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $26.9 million.

What is the period of performance?

Start: 2019-08-05. End: 2023-01-27.

What specific software is being licensed under this contract?

The provided data does not specify the exact software being licensed. However, the NAICS code '511210 - Software Publishers' indicates that the contract is for software products. Given the agency is the IRS, it is likely related to tax administration, data processing, or internal operational software. Further investigation into the contract details or associated documentation would be required to identify the specific software titles and their functionalities.

How does the $26.8 million value compare to similar IRS software procurements?

Comparing the $26.8 million value requires access to historical spending data for the IRS and similar software procurements. Without a direct comparison dataset, it's difficult to definitively state if this is high or low. However, for a large federal agency like the IRS, significant investments in software licensing and maintenance are common, especially for mission-critical systems. The duration of over three years suggests a substantial, ongoing need that justifies this level of expenditure. Benchmarking against other agencies' software contracts of similar scope would provide better context.

What are the key performance indicators (KPIs) for this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) for this contract. Typically, for software licensing and maintenance contracts, KPIs would focus on aspects such as software uptime, availability, response times for technical support, patch and update delivery schedules, and adherence to service level agreements (SLAs). The contracting officer and the IRS technical team would be responsible for monitoring these KPIs to ensure the contractor is meeting the required performance standards throughout the contract period.

What is the track record of Carahsoft Technology Corp. with the Department of the Treasury?

Carahsoft Technology Corp. is a well-known government IT reseller and prime contractor. Their track record with the Department of the Treasury, and specifically the IRS, would likely involve numerous contracts for various software and IT solutions. As a reseller, they often partner with software manufacturers to provide these solutions to government agencies. A review of federal procurement databases would reveal the extent and nature of their past performance with the Treasury, including any performance issues or commendations.

What is the risk associated with relying on a single vendor for this software?

The primary risk associated with relying on a single vendor for software is vendor lock-in, which can limit future flexibility and potentially lead to higher costs over time if competition is stifled. However, for specialized software, a single vendor may be the only source. In this case, the contract is a delivery order, suggesting it might be part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract or a specific procurement. The risk is mitigated if the contract terms allow for competitive re-competition at its expiration or if the software is a standard product with established market pricing.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

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: $26,870,691

Exercised Options: $26,870,691

Current Obligation: $26,870,691

Actual Outlays: $21,027,777

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0119Y

IDV Type: FSS

Timeline