GSA Awards $38.5M Salesforce Licensing Contract to Carahsoft, Ending April 2025
Contract Overview
Contract Amount: $38,492,627 ($38.5M)
Contractor: Carahsoft Technology Corp
Awarding Agency: General Services Administration
Start Date: 2020-06-09
End Date: 2025-04-09
Contract Duration: 1,765 days
Daily Burn Rate: $21.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SALESFORCE LICENSING
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410
Plain-Language Summary
General Services Administration obligated $38.5 million to CARAHSOFT TECHNOLOGY CORP for work described as: SALESFORCE LICENSING Key points: 1. Significant contract value of $38.5 million for Salesforce licensing. 2. Carahsoft Technology Corp is the sole awardee. 3. Contract spans nearly five years, indicating long-term need. 4. The NAICS code 541519 suggests a broad range of computer-related services.
Value Assessment
Rating: good
The contract's firm-fixed-price structure provides cost certainty. Benchmarking against similar large-scale software licensing agreements would be beneficial to confirm optimal pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure fair pricing for essential software licenses.
Public Impact
Federal agencies rely on Salesforce for various operational needs, impacting productivity and data management. The substantial investment highlights the government's continued adoption of cloud-based CRM solutions. Ensuring efficient utilization of these licenses is crucial for maximizing taxpayer return on investment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with a single provider.
- Risk of price increases upon contract renewal.
- Need for robust contract management to ensure service delivery.
Positive Signals
- Firm-fixed-price contract provides budget predictability.
- Long-term award indicates sustained government need and potential for volume discounts.
- Awarded under full and open competition.
Sector Analysis
This contract falls within the IT services sector, specifically software licensing and related services. Government IT spending benchmarks indicate significant investment in cloud solutions and enterprise software.
Small Business Impact
The awardee, Carahsoft Technology Corp, is a large business. There is no explicit indication of small business participation in this specific award, which could be an area for future focus.
Oversight & Accountability
The General Services Administration (GSA) manages this contract through its Federal Acquisition Service, indicating established oversight mechanisms for federal IT procurement.
Related Government Programs
- Other Computer Related Services
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- Lack of detailed pricing breakdown.
- No explicit small business participation noted.
- Potential for vendor lock-in.
- Long contract duration may require re-evaluation of needs.
- Dependence on a single large vendor.
Tags
other-computer-related-services, general-services-administration, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $38.5 million to CARAHSOFT TECHNOLOGY CORP. SALESFORCE LICENSING
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 $38.5 million.
What is the period of performance?
Start: 2020-06-09. End: 2025-04-09.
What is the specific breakdown of Salesforce products and services being procured under this contract?
The provided data does not detail the specific Salesforce products or modules included in this $38.5 million contract. A comprehensive understanding of the procured services is essential for assessing value and ensuring alignment with agency needs. Further analysis would require access to the contract's statement of work or detailed line-item information.
How does the per-user cost compare to commercial rates or other government contracts for Salesforce?
Without specific per-unit cost data or a breakdown of user types and license tiers, a direct comparison to commercial rates or other government contracts is not feasible. The 'N/A' for CPU reflects this lack of granular data. A thorough value assessment would necessitate obtaining this detailed pricing information.
What mechanisms are in place to ensure the government is leveraging these Salesforce licenses effectively and avoiding underutilization?
Effective utilization hinges on robust internal agency asset management and contract oversight. While the contract itself provides the licenses, the government must actively monitor usage, manage user accounts, and ensure licenses are assigned to active users. Agencies should have processes to identify and reallocate underused licenses to maximize the return on this significant investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: ID09200041
Offers Received: 1
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: $52,896,330
Exercised Options: $41,447,097
Current Obligation: $38,492,627
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC27B
IDV Type: GWAC
Timeline
Start Date: 2020-06-09
Current End Date: 2025-04-09
Potential End Date: 2025-04-09 00:00:00
Last Modified: 2025-09-11
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