IRS Spends $3.98M on Splunk Services via Carahsoft Technology Corp under BPA Call
Contract Overview
Contract Amount: $3,979,736 ($4.0M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of the Treasury
Start Date: 2025-09-27
End Date: 2026-06-30
Contract Duration: 276 days
Daily Burn Rate: $14.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: REQUIREMENT FOR SUBJECT MATTER EXPERT SPLUNK SERVICES.
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of the Treasury obligated $4.0 million to CARAHSOFT TECHNOLOGY CORP for work described as: REQUIREMENT FOR SUBJECT MATTER EXPERT SPLUNK SERVICES. Key points: 1. Spending focuses on Splunk services, a key data analytics platform. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the established vendor and contract type. 4. IT sector spending on software and related services is common.
Value Assessment
Rating: good
The contract value of $3.98M for 276 months (approx. $14.4K/month) appears reasonable for specialized Splunk expertise. Benchmarking against similar IT support contracts would provide further validation.
Cost Per Unit: $14,419
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition via a BPA Call. This method generally promotes competitive pricing and allows for a broad range of vendors to participate.
Taxpayer Impact: The use of full and open competition is positive for taxpayer value, as it encourages market-driven pricing for essential IT services.
Public Impact
Ensures continued operation and support for critical IRS data analytics infrastructure. Supports tax administration and enforcement through advanced data processing capabilities. Potential for improved efficiency and effectiveness in IRS operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor (Carahsoft) for specialized services.
- Potential for scope creep or unmanaged service expansion over the contract term.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type limits cost uncertainty.
- BPA Call mechanism can streamline procurement.
Sector Analysis
This contract falls within the IT sector, specifically software publishers and related services. Spending on data analytics platforms like Splunk is a growing trend across government agencies for operational efficiency and data-driven decision-making.
Small Business Impact
While Carahsoft Technology Corp is a large business, the use of a BPA Call may offer opportunities for small businesses to participate as subcontractors, though this is not explicitly stated in the provided data.
Oversight & Accountability
The contract is managed by the IRS, a component of the Department of the Treasury. Oversight would involve monitoring service delivery, performance, and adherence to contract terms to ensure value for money.
Related Government Programs
- Software Publishers
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Vendor Lock-in Potential
- Service Scope Definition
- Performance Monitoring Gaps
- Cost Overruns Risk
Tags
software-publishers, department-of-the-treasury, va, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $4.0 million to CARAHSOFT TECHNOLOGY CORP. REQUIREMENT FOR SUBJECT MATTER EXPERT SPLUNK SERVICES.
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 $4.0 million.
What is the period of performance?
Start: 2025-09-27. End: 2026-06-30.
What specific Splunk services are being procured, and how do they align with the IRS's strategic IT goals?
The data indicates a requirement for 'Subject Matter Expert Splunk Services.' These likely encompass areas such as platform administration, data ingestion, analysis, reporting, and potentially security monitoring. Understanding the specific use cases and their alignment with the IRS's broader objectives, such as enhancing tax fraud detection or improving taxpayer services through data insights, is crucial for assessing the strategic value.
What is the historical performance and cost-effectiveness of Carahsoft Technology Corp in providing similar Splunk services?
Assessing Carahsoft's track record with the IRS or other federal agencies for Splunk expertise is key. Evaluating past performance reviews, any documented cost savings or efficiencies achieved, and their ability to meet service level agreements will provide insight into their reliability and value proposition. This historical data helps mitigate risks associated with vendor performance and ensures continued effective service delivery.
How will the effectiveness of these Splunk services be measured to ensure they meet IRS operational needs and taxpayer benefit?
Effectiveness measurement should involve clearly defined Key Performance Indicators (KPIs) tied to the Splunk services. These could include metrics related to data processing speed, uptime, accuracy of analysis, and the successful implementation of new features or reports. Regular performance reviews and user feedback mechanisms will ensure the services are meeting the IRS's operational demands and ultimately contributing to improved taxpayer services or administrative efficiency.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 2032H5-25-Q-00061
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: $3,979,736
Exercised Options: $3,979,736
Current Obligation: $3,979,736
Actual Outlays: $2,277,642
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 2032H521A00025
IDV Type: BPA
Timeline
Start Date: 2025-09-27
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 08:39:48
Last Modified: 2026-03-25
More Contracts from Carahsoft Technology Corp
- Current Sources of Income and Employment Verification Service (CSI) — $465.0M (Department of Health and Human Services)
- Current Sources of Income and Employment Verification — $368.5M (Department of Health and Human Services)
- Usda Disc Enterprise Wide Salesforce Software&support Services — $294.8M (Department of Agriculture)
- This Delivery Order Will Provide Commercial OFF the Shelf Brand Name SAP Enterprise Resource Planning Software Licenses, Tightly Integrated Dependent Third Party Software Licenses, and Associated Maintenance — $240.7M (Department of Defense)
- Initial Order OFF Idiq Contract W519tc23d0005 for Service NOW Licenses — $204.3M (Department of Defense)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)