GSA Awards $17.3M Microsoft ELA Option Year to Carahsoft, Extending Software Access Through April 2027
Contract Overview
Contract Amount: $17,306,463 ($17.3M)
Contractor: Carahsoft Technology Corp
Awarding Agency: General Services Administration
Start Date: 2026-04-01
End Date: 2027-03-31
Contract Duration: 364 days
Daily Burn Rate: $47.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MICROSOFT ELA OPTION YEAR
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006
Plain-Language Summary
General Services Administration obligated $17.3 million to CARAHSOFT TECHNOLOGY CORP for work described as: MICROSOFT ELA OPTION YEAR Key points: 1. Significant contract value for software licensing and support. 2. Carahsoft Technology Corp is the incumbent awardee. 3. Potential risk of vendor lock-in and price escalation. 4. IT Software Publishers sector with a focus on cloud services.
Value Assessment
Rating: good
The contract value of $17.3M for a one-year option period appears reasonable for a large enterprise software agreement. Benchmarking against similar Microsoft Enterprise License Agreements (ELAs) would provide a more precise assessment, but this figure is within expected ranges for federal agencies of this size.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under a BPA Call, indicating it likely originated from a broader agreement with full and open competition. This method generally promotes competitive pricing and allows for a wide range of vendors to participate, leading to better price discovery.
Taxpayer Impact: Taxpayer funds are being used to procure essential software licenses, ensuring agency operational continuity. The competitive award process aims to secure favorable pricing, maximizing the value of taxpayer investment.
Public Impact
Ensures continued access to critical Microsoft software for federal employees. Supports agency operations and productivity through updated software. Potential for cost savings through consolidated licensing. Impacts agencies relying on Microsoft's suite of products.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future option periods.
- Reliance on a single vendor for critical software.
Positive Signals
- Awarded through a competitive process.
- Long-term contract provides stability.
- Firm fixed price contract limits cost uncertainty.
Sector Analysis
This contract falls within the IT sector, specifically Software Publishers. Federal spending on software licenses and cloud services is substantial, with ELAs being a common procurement vehicle for large agencies to manage costs and access.
Small Business Impact
While Carahsoft Technology Corp is a large business, the underlying BPA may have provisions for small business participation or subcontracting. Further analysis of the BPA's structure would be needed to determine the direct impact on small businesses.
Oversight & Accountability
The General Services Administration (GSA) Federal Acquisition Service oversees this contract, ensuring compliance with federal procurement regulations. Regular reviews and performance monitoring are expected to maintain accountability and value.
Related Government Programs
- Software Publishers
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Potential for price increases in future option periods.
- Vendor lock-in and dependence on Microsoft ecosystem.
- Need for ongoing monitoring of software utilization and cost-effectiveness.
- Cybersecurity risks associated with software vulnerabilities.
Tags
software-publishers, general-services-administration, dc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $17.3 million to CARAHSOFT TECHNOLOGY CORP. MICROSOFT ELA OPTION YEAR
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 $17.3 million.
What is the period of performance?
Start: 2026-04-01. End: 2027-03-31.
What is the total cost of ownership for this ELA over its potential full term, including all options?
The provided data covers only one option year at $17.3M. To determine the total cost of ownership, one would need to sum the costs of the base period and all exercised option periods. Without the base period's cost and information on whether future options will be exercised, a comprehensive total cost cannot be calculated from this data alone.
What are the specific performance metrics and service level agreements (SLAs) associated with this ELA?
The data does not specify the performance metrics or SLAs. Typically, ELAs include detailed SLAs for software availability, support response times, and patch management. These are crucial for ensuring the software functions as expected and that the vendor provides adequate support, directly impacting agency productivity and risk mitigation.
How does the per-unit cost of licenses under this ELA compare to commercial market rates for similar Microsoft products?
Direct per-unit cost comparison is difficult without knowing the exact SKUs and quantities. However, ELAs often provide volume discounts that can make per-unit costs lower than commercial retail. The benchmark of $47,545 (br) might represent a total value for a specific component or a different metric, requiring further breakdown for a true per-unit comparison.
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: 47QACA26Q0168
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: $17,306,463
Exercised Options: $17,306,463
Current Obligation: $17,306,463
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QACA26A0011
IDV Type: BPA
Timeline
Start Date: 2026-04-01
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 00:00:00
Last Modified: 2026-04-02
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 General Services Administration Contracts
- Software Life Cycle Development — $1.4B (Science Applications International Corporation)
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (Booz Allen Hamilton Inc)
- Federal Contract — $1.2B (Booz Allen Hamilton Inc)
- THE Scope of the to IS to Provide Enterprise IT Services for the Usace — $1.1B (Science Applications International Corporation)
- Task Order Award — $1.1B (Booz Allen Hamilton Inc)