Treasury's IRS awards $29.9M Splunk BPA for software licenses and services, with full and open competition
Contract Overview
Contract Amount: $29,877,712 ($29.9M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of the Treasury
Start Date: 2023-07-21
End Date: 2025-07-20
Contract Duration: 730 days
Daily Burn Rate: $40.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: ADDITIONAL LICENSES & PROFESSIONAL SERVICES FOR SPLUNK BPA NUMBER 2032H5-A-00025 DO 0001
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $29.9 million to CARAHSOFT TECHNOLOGY CORP for work described as: ADDITIONAL LICENSES & PROFESSIONAL SERVICES FOR SPLUNK BPA NUMBER 2032H5-A-00025 DO 0001 Key points: 1. The contract focuses on software licenses and professional services for Splunk, a key data analytics platform. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. The contract duration is two years, with a potential for renewal. 4. The value of $29.9M over two years indicates significant investment in data management capabilities.
Value Assessment
Rating: good
The contract value of $29.9M over two years for Splunk licenses and services appears reasonable given the software's capabilities and market pricing. Benchmarking against similar large-scale government software procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, driving competitive pricing and potentially leading to better value for the government.
Taxpayer Impact: The competitive nature of this award is expected to yield fair pricing, ensuring taxpayer funds are used efficiently for essential software and services.
Public Impact
Enhances IRS data analytics capabilities for tax administration and fraud detection. Supports critical IT infrastructure for a major federal agency. Ensures access to up-to-date software and expert support for Splunk users.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized software.
- Reliance on a single vendor for critical professional services.
Positive Signals
- Utilizes full and open competition.
- Supports essential government functions.
- Clear contract duration and delivery order structure.
Sector Analysis
This contract falls within the Software Publishers sector, specifically for data analytics and security software. Government spending in this area is substantial, driven by the need for advanced IT solutions to manage vast amounts of data and enhance cybersecurity.
Small Business Impact
While the contract was awarded under full and open competition, there is no explicit mention of small business participation or set-asides. Further analysis would be needed to determine if small businesses had an opportunity to compete or subcontract.
Oversight & Accountability
The contract is a delivery order under a Blanket Purchase Agreement (BPA), indicating a structured procurement process. Oversight will be crucial to ensure performance and adherence to contract terms by both CARAHSOFT TECHNOLOGY CORP and the IRS.
Related Government Programs
- Software Publishers
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Potential for cost overruns if scope creeps.
- Dependence on a single software platform.
- Risk of vendor lock-in for future upgrades and support.
- Need for robust contract management to ensure value.
Tags
software-publishers, department-of-the-treasury, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $29.9 million to CARAHSOFT TECHNOLOGY CORP. ADDITIONAL LICENSES & PROFESSIONAL SERVICES FOR SPLUNK BPA NUMBER 2032H5-A-00025 DO 0001
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 $29.9 million.
What is the period of performance?
Start: 2023-07-21. End: 2025-07-20.
What is the specific scope of professional services included in this contract, and how do they align with the IRS's strategic IT goals?
The provided data does not detail the specific scope of professional services. These could range from implementation and configuration to training, support, and custom development related to Splunk. Aligning these services with IRS strategic goals would require a review of the Statement of Work (SOW) to ensure they contribute to objectives like improved data analysis, enhanced cybersecurity, or streamlined tax processing.
How does the benchmarked price per unit for Splunk licenses compare to commercial off-the-shelf (COTS) pricing, and are there any volume discounts reflected?
A precise per-unit cost benchmark is not available without detailed license information (e.g., number of users, features). However, government contracts often leverage volume discounts. The $29.9M value over two years suggests significant scale, and the full and open competition should have driven competitive pricing, potentially including favorable terms compared to standard commercial rates.
What are the key performance indicators (KPIs) for the professional services, and how will the IRS measure contractor performance and effectiveness?
Key performance indicators for professional services are not detailed in the provided data. Typically, for software services, KPIs might include response times for support, successful implementation of features, user satisfaction, and adherence to project timelines. The IRS would likely have a Quality Assurance Surveillance Plan (QASP) to monitor these aspects and ensure the contractor meets contractual obligations.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - COMPUTE
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: $29,877,712
Exercised Options: $29,877,712
Current Obligation: $29,877,712
Actual Outlays: $15,904,374
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS35F0119Y
IDV Type: FSS
Timeline
Start Date: 2023-07-21
Current End Date: 2025-07-20
Potential End Date: 2025-07-20 10:39:19
Last Modified: 2025-04-24
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