GSA's $23.8M Microsoft Enterprise Agreement for FY24-FY26 awarded to Carahsoft Technology Corp

Contract Overview

Contract Amount: $23,793,329 ($23.8M)

Contractor: Carahsoft Technology Corp

Awarding Agency: General Services Administration

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MICROSOFT ENTERPRISE LICENSE AGREEMENT FY24-FY26

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $23.8 million to CARAHSOFT TECHNOLOGY CORP for work described as: MICROSOFT ENTERPRISE LICENSE AGREEMENT FY24-FY26 Key points: 1. Value-for-money assessment pending detailed cost-benefit analysis. 2. Competition dynamics indicate a broad market approach for software licensing. 3. Risk indicators include potential vendor lock-in and the need for ongoing license management. 4. Performance context relies on successful delivery of software and support services. 5. Sector positioning places this within the broader government IT procurement landscape.

Value Assessment

Rating: fair

The contract value of $23.8 million over three years for Microsoft enterprise licenses appears to be within a reasonable range for large federal agencies. Benchmarking against similar enterprise-wide software agreements is crucial for a definitive value assessment. Without specific details on the software suite and user count, a precise per-unit cost comparison is difficult, but the overall expenditure aligns with typical large-scale IT procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. The use of a BPA Call indicates that a broader agreement was already in place, and this specific call leveraged that established competition. The presence of multiple bidders generally promotes competitive pricing and encourages vendors to offer favorable terms.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Federal employees across various agencies will benefit from access to Microsoft software. Essential services include productivity software, operating systems, and potentially cloud-based solutions. The geographic impact is nationwide, supporting federal operations across all locations. Workforce implications involve enabling federal employees with necessary digital tools for their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if usage is not carefully managed.
Risk of vendor lock-in with a single software provider.
Need for robust asset management to ensure all licenses are utilized effectively.

Positive Signals

Standardized software environment across the government can improve interoperability.
Access to updated software versions and security patches.
Consolidated procurement can lead to administrative efficiencies.

Sector Analysis

This contract falls within the Information Technology sector, specifically software licensing and enterprise agreements. The market for government IT procurement is highly competitive, with major software vendors and resellers vying for large federal contracts. This agreement represents a significant portion of government spending on essential software, enabling digital operations across numerous agencies. Comparable spending benchmarks would include other large-scale enterprise software licenses for operating systems, productivity suites, and specialized applications.

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. Carahsoft Technology Corp. is a reseller, and while they may engage small business subcontractors, the primary award mechanism does not appear to prioritize small business participation directly. Further review of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract is managed by the General Services Administration (GSA), specifically its Federal Acquisition Service. GSA has established procurement regulations and oversight mechanisms to ensure compliance and accountability. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Microsoft Enterprise Agreements
Software Licensing Procurements
General Services Administration IT Contracts
BPA Calls

Risk Flags

Potential for cost creep over contract duration.
Need for robust license management to ensure value.
Vendor lock-in risk requires strategic planning.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.8 million to CARAHSOFT TECHNOLOGY CORP. MICROSOFT ENTERPRISE LICENSE AGREEMENT FY24-FY26

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $23.8 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What is Carahsoft Technology Corp.'s track record with similar large-scale federal software agreements?

Carahsoft Technology Corp. is a prominent government IT reseller with a substantial track record of delivering software and IT solutions to federal agencies. They frequently act as a reseller for major software manufacturers like Microsoft, often through established Blanket Purchase Agreements (BPAs) or other contract vehicles. Their business model relies on navigating federal procurement processes and providing a wide range of IT products and services. Historically, Carahsoft has been involved in numerous large federal contracts, demonstrating an ability to manage complex procurements and fulfill agency requirements. Their success is often measured by their ability to secure and manage these large-volume contracts, acting as a crucial intermediary between software vendors and government buyers.

How does the $23.8 million cost compare to previous Microsoft enterprise agreements with the federal government?

Comparing the $23.8 million cost requires access to historical data on similar Microsoft enterprise agreements awarded by the GSA or other agencies. Without specific historical figures for comparable agreements (e.g., same software suite, similar user base, same contract duration), a direct cost comparison is challenging. However, the value suggests a significant commitment, likely covering a large number of users or a comprehensive suite of Microsoft products across multiple agencies. Federal IT spending on software licenses is substantial, and enterprise agreements are designed to achieve economies of scale. To provide a precise comparison, one would need to analyze the per-user cost, the specific products included, and the contract terms (like duration and support levels) of past agreements.

What are the primary risks associated with this type of enterprise software license agreement?

The primary risks associated with this enterprise software license agreement include vendor lock-in, where the agency becomes heavily reliant on Microsoft products and faces high switching costs. There's also a risk of underutilization or over-licensing, leading to wasted expenditure if the number of licenses procured does not accurately match the actual user needs. Another risk is the potential for price increases in future renewals, especially if competition is limited in subsequent procurements. Furthermore, managing software assets and ensuring compliance with license terms can be complex and resource-intensive. Security vulnerabilities within the software itself, although managed by Microsoft, also represent an ongoing risk that requires diligent patching and monitoring by the agency.

How effective is the GSA's Federal Acquisition Service in managing large IT procurements like this one?

The GSA's Federal Acquisition Service (FAS) is generally considered effective in managing large IT procurements, leveraging its expertise, established contract vehicles, and market intelligence. FAS aims to provide agencies with efficient and cost-effective acquisition solutions. For enterprise agreements, FAS often negotiates master agreements and BPAs that streamline the procurement process for individual agencies. Their effectiveness is demonstrated by the volume and value of IT contracts they manage annually. However, challenges can arise in ensuring optimal pricing across all specific calls, managing vendor performance consistently, and adapting to the rapidly evolving IT landscape. Continuous evaluation of their processes and market dynamics is essential to maintain high levels of effectiveness.

What is the historical spending trend for Microsoft software licenses through GSA?

Historical spending trends for Microsoft software licenses through GSA have generally shown a consistent and significant volume, reflecting the widespread adoption of Microsoft products within the federal government. GSA, through vehicles like the Microsoft Enterprise Agreement (EA) and various BPAs, facilitates these large-scale procurements. Spending typically fluctuates based on agency needs, technology refresh cycles, and the introduction of new software or cloud services. Over the years, there has been a notable shift towards cloud-based solutions (like Microsoft 365), which may alter the structure of licensing costs but often maintain a high overall expenditure. Analyzing specific historical data would reveal patterns in the types of licenses procured (e.g., desktop, server, cloud) and the total dollar amounts obligated annually.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 24322624R0005

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: $23,793,329

Exercised Options: $23,793,329

Current Obligation: $23,793,329

Actual Outlays: $23,793,329

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 24322624A0002

IDV Type: BPA

Timeline