CBP awards $14.6M for EXADATA systems, with Carahsoft Technology Corp. as the prime contractor

Contract Overview

Contract Amount: $14,585,035 ($14.6M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-30

End Date: 2025-10-30

Contract Duration: 30 days

Daily Burn Rate: $486.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EXADATA

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.6 million to CARAHSOFT TECHNOLOGY CORP for work described as: EXADATA Key points: 1. Value for money appears reasonable given the specialized nature of EXADATA systems. 2. Competition dynamics indicate a full and open process, suggesting fair market pricing. 3. Risk indicators are low due to a firm-fixed-price contract and a short duration. 4. Performance context is tied to critical border protection operations. 5. Sector positioning is within the IT hardware and data management domain.

Value Assessment

Rating: good

The contract value of $14.6 million for EXADATA systems seems aligned with the high cost of specialized data hardware. Benchmarking against similar procurements for advanced data solutions would provide a more precise value assessment. The firm-fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bidders suggests a healthy level of competition for this specialized IT requirement, which typically leads to more competitive pricing and better terms for the government.

Taxpayer Impact: A competitive bidding process ensures that taxpayer dollars are used efficiently by driving down costs and encouraging innovative solutions from multiple vendors.

Public Impact

U.S. Customs and Border Protection (CBP) benefits from enhanced data processing capabilities. Services delivered include the provision and potential support of EXADATA data systems. Geographic impact is national, supporting border security operations across the U.S. Workforce implications include enabling CBP personnel with advanced data analytics tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with highly specialized EXADATA systems.
Reliance on a single prime contractor for critical data infrastructure.

Positive Signals

Firm-fixed-price contract limits cost overruns.
Short contract duration allows for reassessment of needs.
Full and open competition promotes market-driven pricing.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on high-performance data management and hardware. The market for such specialized systems is often dominated by a few key players, making competitive procurement crucial. Comparable spending benchmarks would involve looking at other large-scale data infrastructure procurements by federal agencies.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the prime contractor is Carahsoft Technology Corp., a large business. There is no explicit mention of small business set-asides. Future analysis could explore subcontracting opportunities for small businesses within this contract's scope.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Customs and Border Protection contracting office. Accountability measures are embedded in the firm-fixed-price terms and delivery schedule. Transparency is supported by the public nature of federal contract awards, though detailed performance metrics may not be publicly disclosed.

Related Government Programs

Department of Homeland Security IT Modernization Initiatives
Federal Data Center Consolidation Initiative
Customs and Border Protection Technology Modernization

Risk Flags

Specialized Hardware Dependency
High Cost of Technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.6 million to CARAHSOFT TECHNOLOGY CORP. EXADATA

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $14.6 million.

What is the period of performance?

Start: 2025-09-30. End: 2025-10-30.

What is the track record of Carahsoft Technology Corp. in fulfilling similar IT hardware contracts for federal agencies?

Carahsoft Technology Corp. is a well-established government IT solutions provider and reseller. They have a extensive history of delivering a wide range of IT products and services to federal agencies, often acting as a prime contractor or reseller for various hardware and software solutions. Their business model typically involves partnering with manufacturers to provide these solutions to the government. While they are known for their broad reach and ability to procure complex systems, specific performance details on EXADATA systems would require a deeper dive into their contract history with agencies like DHS and CBP. Their success is often measured by their ability to navigate government procurement processes and provide competitive pricing through their established vendor relationships.

How does the awarded price compare to market rates for EXADATA systems or comparable high-performance computing solutions?

Benchmarking the exact price for EXADATA systems is challenging without specific configuration details and market intelligence. EXADATA is a high-end data warehousing solution known for its performance and cost. The $14.6 million award for a 30-day period suggests a significant investment, likely for a substantial deployment or critical operational need. To compare, one would need to identify similar procurements by other federal agencies or large enterprises for comparable data appliance solutions. Factors such as the number of nodes, storage capacity, software licenses, and support included would heavily influence the price. Given the 'full and open competition' and 3 bidders, the price is likely competitive within the specialized market for such systems, but a precise market rate comparison would require access to detailed vendor quotes and industry pricing data.

What are the primary risks associated with deploying EXADATA systems for border protection, and how are they mitigated?

Primary risks associated with deploying EXADATA systems for border protection include potential technical integration challenges with existing CBP infrastructure, the high cost of specialized hardware and maintenance, and the critical nature of data availability for operational success. Mitigation strategies include the firm-fixed-price contract, which caps cost overruns, and the short 30-day duration, which limits the initial commitment and allows for performance review. Furthermore, the selection of a known vendor like Carahsoft, which likely partners with Oracle (the maker of EXADATA), suggests a degree of confidence in their ability to deliver and support the system. Robust testing and phased deployment plans, though not detailed in the award, would also be crucial mitigation steps.

What is the expected impact of these EXADATA systems on the operational effectiveness of U.S. Customs and Border Protection?

The deployment of EXADATA systems is expected to significantly enhance the operational effectiveness of U.S. Customs and Border Protection (CBP) by providing advanced capabilities for data warehousing, analytics, and real-time processing. These systems are designed to handle massive datasets, enabling CBP to analyze vast amounts of information related to border crossings, cargo, intelligence, and other critical operational data more efficiently. This improved data analysis can lead to better threat detection, more informed decision-making, faster response times, and enhanced resource allocation. Ultimately, the goal is to strengthen border security and facilitate legitimate trade and travel through superior data management and intelligence capabilities.

How has CBP's spending on data management and analytics hardware evolved over the past five years, and does this award represent a significant shift?

Analyzing CBP's spending evolution on data management and analytics hardware over the past five years would require access to historical contract data and budget reports. However, it is generally understood that federal agencies, including DHS and its components like CBP, have been increasingly investing in advanced data analytics capabilities to address complex security challenges. The procurement of high-performance systems like EXADATA suggests a continued or potentially increased investment in robust data infrastructure. Whether this specific $14.6 million award represents a 'significant shift' would depend on the scale of previous investments. If CBP has historically relied on less powerful or on-premise solutions, this could indicate a move towards more centralized, high-capacity data platforms to manage growing data volumes and analytical demands.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $14,585,035

Exercised Options: $14,585,035

Current Obligation: $14,585,035

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC03B

IDV Type: GWAC

Timeline