DHS awards $10.9M for financial management software and support, with competition driving value

Contract Overview

Contract Amount: $10,935,472 ($10.9M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Homeland Security

Start Date: 2022-11-18

End Date: 2026-09-26

Contract Duration: 1,408 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO PROCURE TIER 4 CONSULTATIVE SUPPORT SERVICES AND COMMERCIAL OFF-THE-SHELF (COTS) SOFTWARE FOR THE CUBE (DMO, ICE, CISA, USCIS, S&T) THAT WILL SUPPORT INTEGRATED FINANCIAL MANAGEMENT, PROCUREMENT, AND ASSET MANAGEMENT OPERATIONS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $10.9 million to CARAHSOFT TECHNOLOGY CORP for work described as: TO PROCURE TIER 4 CONSULTATIVE SUPPORT SERVICES AND COMMERCIAL OFF-THE-SHELF (COTS) SOFTWARE FOR THE CUBE (DMO, ICE, CISA, USCIS, S&T) THAT WILL SUPPORT INTEGRATED FINANCIAL MANAGEMENT, PROCUREMENT, AND ASSET MANAGEMENT OPERATIONS. Key points: 1. Contract aims to enhance integrated financial, procurement, and asset management operations. 2. Competition level suggests potential for competitive pricing and good value. 3. Firm Fixed Price contract type offers cost certainty for the government. 4. Duration of over 3 years indicates a significant, ongoing need for these services. 5. Software Publishers NAICS code points to a market with established players. 6. Delivery Order under a larger contract structure implies existing procurement vehicles are being leveraged.

Value Assessment

Rating: good

The contract's value of $10.9 million over approximately 3.7 years appears reasonable for comprehensive financial management software and consultative support. While direct comparisons are difficult without specific service details, the firm-fixed-price structure provides cost predictability. The competitive award process suggests that pricing was vetted against market alternatives, indicating a likely good value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the competitive nature suggests that multiple companies vied for this work. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment where contractors strive to offer the best value.

Public Impact

Benefits DHS components including DMO, ICE, CISA, USCIS, and S&T by improving financial operations. Delivers consultative support services and commercial off-the-shelf software. Geographic impact is primarily within the District of Columbia, where DHS headquarters are located. Workforce implications include support for federal employees managing financial and procurement systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if COTS software is highly customized or integrated.
Reliance on a single contractor for both software and consultative support could limit future flexibility.
Scope creep could increase costs beyond the initial award if not managed tightly.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Full and open competition suggests a competitive market and potentially good value.
Delivery Order mechanism leverages existing contract vehicles, potentially reducing administrative burden.

Sector Analysis

This contract falls within the Software Publishers (NAICS 511210) sector, which encompasses companies that publish, develop, and distribute software. The market is characterized by a wide range of providers, from large enterprise solution vendors to specialized niche players. The $10.9 million award is a moderate-sized contract within this sector, likely supporting a critical business function for a large federal agency like DHS.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting requirements. This suggests the primary award went to a larger entity, and opportunities for small businesses would likely be through subcontracting if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's Office of Procurement Operations, which awarded the delivery order. The firm-fixed-price nature provides some cost control. Transparency is facilitated by the contract award being publicly available. Further oversight would involve contract performance monitoring and potentially the DHS Inspector General's office if performance issues or fraud are suspected.

Related Government Programs

DHS Financial Management Systems
Federal Procurement Software
Asset Management Systems
IT Consulting Services
Commercial Off-the-Shelf Software Procurement

Risk Flags

Potential for vendor lock-in
Integration complexity with existing systems
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.9 million to CARAHSOFT TECHNOLOGY CORP. TO PROCURE TIER 4 CONSULTATIVE SUPPORT SERVICES AND COMMERCIAL OFF-THE-SHELF (COTS) SOFTWARE FOR THE CUBE (DMO, ICE, CISA, USCIS, S&T) THAT WILL SUPPORT INTEGRATED FINANCIAL MANAGEMENT, PROCUREMENT, AND ASSET MANAGEMENT OPERATIONS.

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2022-11-18. End: 2026-09-26.

What is the specific COTS software being procured and what are its key functionalities?

The provided data does not specify the exact Commercial Off-the-Shelf (COTS) software being procured. It broadly states 'COTS SOFTWARE FOR THE CUBE (DMO, ICE, CISA, USCIS, S&T) THAT WILL SUPPORT INTEGRATED FINANCIAL MANAGEMENT, PROCUREMENT, AND ASSET MANAGEMENT OPERATIONS.' To understand the specific functionalities, one would need to consult the detailed contract statement of work (SOW) or related procurement documents. These documents would outline the software's capabilities in areas such as general ledger, accounts payable/receivable, budgeting, forecasting, procurement lifecycle management, inventory tracking, and asset lifecycle management, tailored to the needs of the listed DHS components.

How does the $10.9 million contract value compare to similar federal spending on financial management software and support?

The $10.9 million contract value for integrated financial management, procurement, and asset management support over approximately 3.7 years (from Nov 2022 to Sep 2026) represents an average annual spend of roughly $2.95 million. This figure is within a common range for large federal agencies procuring enterprise-level financial systems and associated support. Larger agencies often spend tens or even hundreds of millions on major financial system modernizations or sustainment. For a specific set of DHS components (DMO, ICE, CISA, USCIS, S&T), this amount suggests a focused effort on enhancing or maintaining these critical functions, likely leveraging existing infrastructure or consolidating disparate systems. Benchmarking would require comparing against contracts with similar scope, number of users, and complexity of modules (financials, procurement, asset management).

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

Key risks include potential vendor lock-in due to reliance on specific COTS software and consultative support, scope creep that could inflate costs beyond the initial $10.9 million, and integration challenges with existing DHS systems. Mitigation strategies likely involve clearly defined SOWs, robust contract management by the Office of Procurement Operations, performance metrics, and potentially phased implementation. The firm-fixed-price structure helps mitigate cost overrun risks, provided the scope is well-defined. The use of a delivery order under an existing contract vehicle might also imply some level of pre-vetting and established terms, reducing certain risks.

What is the track record of Carahsoft Technology Corp. in delivering similar IT services and software to the federal government?

Carahsoft Technology Corp. is a major government IT reseller and solutions provider, known for its extensive catalog of software and hardware from numerous manufacturers. They frequently win contracts, often as a reseller or prime contractor, for COTS software and related services across various federal agencies. Their business model focuses on simplifying the procurement process for government agencies by offering pre-negotiated contract vehicles and a wide range of IT products. While they may not always provide direct hands-on implementation services themselves, they partner with system integrators and service providers. Their track record is generally strong in terms of contract awards and fulfilling orders, particularly for COTS software.

How does the 'full and open competition' award mechanism impact the overall value and efficiency for taxpayers?

Awarding this contract through 'full and open competition' is generally beneficial for taxpayers. It ensures that a wide range of potential vendors can compete, fostering a competitive environment that drives down prices and encourages innovation. This process allows the government to solicit proposals from all qualified sources, compare them based on technical merit and price, and select the best value. Unlike sole-source or limited competition contracts, full and open competition reduces the risk of inflated pricing due to lack of market pressure. It increases the likelihood that the government secures high-quality services and software at a fair and reasonable price, maximizing the efficient use of taxpayer funds.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70RTAC22R00000020

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: $44,738,991

Exercised Options: $10,935,472

Current Obligation: $10,935,472

Actual Outlays: $2,636,859

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RTAC21D00000004

IDV Type: IDC

Timeline