Treasury's IRS awards $2.3M for software, with 2 bids received under full and open competition

Contract Overview

Contract Amount: $2,330,300 ($2.3M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of the Treasury

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: REQUIREMENT IS FOR UNIVERSAL CRIBL SUBSCRIPTION (STREAM, EDGE, SEARCH, LAKE)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.3 million to CARAHSOFT TECHNOLOGY CORP for work described as: REQUIREMENT IS FOR UNIVERSAL CRIBL SUBSCRIPTION (STREAM, EDGE, SEARCH, LAKE) Key points: 1. Value for money assessed against market rates for similar software subscriptions. 2. Competition dynamics indicate a moderate level of interest with two bidders. 3. Risk indicators include contract duration and reliance on a single vendor for software. 4. Performance context is tied to the IRS's need for data management and analytics. 5. Sector positioning within the software publishers industry, focusing on data solutions.

Value Assessment

Rating: good

The contract value of $2.3 million for a one-year subscription appears reasonable given the scope of services (stream, edge, search, lake). Benchmarking against similar enterprise software subscriptions suggests this price is within expected ranges, especially considering the specialized nature of the Universal Cribl platform. The firm-fixed-price structure provides cost certainty for the IRS. However, a more granular breakdown of per-user or per-feature costs would allow for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. The presence of multiple bidders suggests a degree of market interest and potential for price negotiation. However, with only two offers, the level of competition is moderate, which could limit the downward pressure on pricing compared to a scenario with numerous bidders. The IRS's approach ensures a broad search for qualified vendors.

Taxpayer Impact: The moderate competition level means taxpayers are likely benefiting from a fair market price, though potentially not the absolute lowest achievable if more vendors had participated.

Public Impact

The Internal Revenue Service (IRS) is the primary beneficiary, gaining access to critical data management and analytics tools. Services delivered include streaming, edge processing, search, and data lake capabilities, enhancing data infrastructure. The geographic impact is primarily within the IRS's operational centers, supporting federal data processing. Workforce implications involve enabling IRS analysts and IT staff with advanced tools for data utilization.

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 data infrastructure components.
Need for ongoing monitoring of software updates and security patches.

Positive Signals

Awarded under full and open competition, ensuring a fair process.
Firm-fixed-price contract provides budget predictability.
Clear defined period of performance for the subscription.

Sector Analysis

The software publishers industry is a significant sector within the broader technology market, characterized by rapid innovation and diverse product offerings. This contract falls within the data management and analytics sub-sector, which is crucial for government agencies needing to process and derive insights from large datasets. Comparable spending benchmarks for enterprise data platforms can vary widely, but a $2.3 million annual spend for a comprehensive solution like Cribl is not unusual for large organizations.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no explicit mention of subcontracting plans for small businesses. The award to Carahsoft Technology Corp, a reseller, may involve downstream subcontracting opportunities, but the primary contract itself does not directly target small business participation.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature simplifies financial oversight. The IRS's contracting office and program managers will oversee performance and adherence to terms. The Government Accountability Office (GAO) could review protests, and the Inspector General may investigate any allegations of fraud or mismanagement.

Related Government Programs

IRS Data Management Systems
Federal Software Licensing
Cloud Data Services
Cybersecurity Software Procurement

Risk Flags

Moderate competition level (2 bidders)
Reliance on specialized software vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.3 million to CARAHSOFT TECHNOLOGY CORP. REQUIREMENT IS FOR UNIVERSAL CRIBL SUBSCRIPTION (STREAM, EDGE, SEARCH, LAKE)

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 $2.3 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 similar software subscriptions to federal agencies?

Carahsoft Technology Corp is a major government IT reseller, known for partnering with numerous software vendors to provide solutions to federal, state, and local governments. They have a substantial track record in delivering a wide array of software, including data management and analytics tools, to agencies like the IRS. Their business model focuses on simplifying the procurement process for agencies by offering pre-negotiated contracts and a broad portfolio of products. While Carahsoft itself is the awardee, the underlying technology is provided by the software manufacturer (in this case, Cribl). Therefore, the performance track record is also tied to Cribl's product capabilities and support, which Carahsoft facilitates. Agencies often rely on Carahsoft for their established relationships and efficient delivery mechanisms.

How does the $2.3 million contract value compare to historical spending on similar data management solutions by the IRS or other agencies?

The $2.3 million contract value for a one-year subscription to Universal Cribl (stream, edge, search, lake) is within the expected range for enterprise-level data management and observability platforms. While specific historical IRS spending on Cribl is not detailed here, similar solutions from competitors like Splunk, Datadog, or Elastic can range from hundreds of thousands to millions of dollars annually, depending on data volume, features, and user count. The IRS, as a large agency dealing with vast amounts of sensitive data, requires robust solutions. This expenditure reflects the cost of acquiring advanced capabilities for data ingestion, processing, and analysis, which are critical for operational efficiency and security. Without direct comparative data on identical Cribl deployments, this figure appears aligned with market norms for comparable enterprise software.

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

Key risks include potential vendor lock-in due to the specialized nature of the Cribl platform, reliance on a single vendor for critical data infrastructure, and the need for continuous software updates and security patching. Vendor lock-in is mitigated by the competitive bidding process, which allows the IRS to evaluate alternatives periodically. Reliance on a single vendor is inherent in many software subscriptions; mitigation involves ensuring strong Service Level Agreements (SLAs) and maintaining good communication channels for support and issue resolution. The risk of outdated software or security vulnerabilities is managed through the contract's requirement for the vendor to provide updates and patches, and the IRS's own IT security protocols for testing and deploying these updates. The firm-fixed-price nature also mitigates cost overrun risks.

What is the expected effectiveness of the Universal Cribl subscription in supporting the IRS's mission?

The Universal Cribl subscription is expected to significantly enhance the IRS's ability to manage, process, and analyze its vast and complex datasets. The 'stream, edge, search, lake' capabilities provide a comprehensive data pipeline solution. 'Stream' and 'edge' functionalities allow for real-time data ingestion and processing at the source, reducing latency and improving efficiency. 'Search' capabilities enable rapid querying and retrieval of information, crucial for investigations, audits, and operational tasks. The 'lake' component facilitates the storage and management of diverse data types for long-term analysis and compliance. Ultimately, this platform should improve data accessibility, accelerate insights, enhance cybersecurity monitoring, and support more effective decision-making within the IRS, contributing to its core mission of tax administration and enforcement.

Are there any indications of potential overpricing or underperformance based on the contract details?

Based on the provided details, there are no immediate indications of overpricing or expected underperformance. The contract was awarded under full and open competition with two bids, suggesting a degree of market validation for the price. The firm-fixed-price structure incentivizes the vendor to perform within the agreed budget. The value appears reasonable when benchmarked against similar enterprise software solutions. Effectiveness will depend on the IRS's implementation and utilization of the platform, as well as Cribl's ongoing product development and support. Continuous monitoring of performance metrics and user feedback will be essential to ensure the software meets expectations and delivers value.

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

Solicitation ID: 2032H5-25-Q-00069

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: $10,211,544

Exercised Options: $3,072,727

Current Obligation: $2,330,300

Actual Outlays: $1,165,150

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA18D008F

IDV Type: FSS

Timeline