FEMA's $3.7M Financial Systems Modernization Contract Awarded to Carahsoft Technology Corp

Contract Overview

Contract Amount: $3,711,249 ($3.7M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Homeland Security

Start Date: 2022-11-18

End Date: 2033-09-26

Contract Duration: 3,965 days

Daily Burn Rate: $936/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FINANCIAL SYSTEMS MODERNIZATION (FSM) FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $3.7 million to CARAHSOFT TECHNOLOGY CORP for work described as: FINANCIAL SYSTEMS MODERNIZATION (FSM) FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) Key points: 1. Contract value of $3.71 million for financial systems modernization. 2. Awarded to Carahsoft Technology Corp., a major reseller. 3. Potential risk in reliance on a reseller for complex modernization. 4. IT sector spending, specifically software publishing (NAICS 511210).

Value Assessment

Rating: fair

The contract value of $3.71 million for a 10-year period appears reasonable for financial systems modernization. However, without specific details on the software and services provided, a precise pricing assessment against similar contracts is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. However, the award type is a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could limit direct price discovery for this specific order.

Taxpayer Impact: The use of taxpayer funds for modernizing critical financial systems is essential for efficient government operations. The competitive award process aims to ensure reasonable pricing.

Public Impact

Modernization of FEMA's financial systems is crucial for disaster response and financial management. Improved financial systems can lead to more efficient allocation of resources during emergencies. The contract supports the IT sector and software publishers.

Waste & Efficiency Indicators

Waste Risk Score: 93 / 10

Warning Flags

Potential for vendor lock-in with a reseller.
Complexity of modernizing legacy financial systems.
Ensuring adequate cybersecurity measures for financial data.

Positive Signals

Supports critical government function (FEMA).
Awarded under full and open competition.
Long-term contract provides stability for modernization efforts.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically software publishing (NAICS 511210). Government spending on IT modernization is substantial, with agencies continually seeking to upgrade outdated systems for efficiency and security.

Small Business Impact

While the award was made to Carahsoft Technology Corp., a large reseller, it is important to understand if this contract includes provisions for subcontracting to small businesses for specialized services or software development. Without this information, the direct impact on small businesses is unclear.

Oversight & Accountability

The Department of Homeland Security, through its Office of Procurement Operations, is responsible for overseeing this contract. Regular performance reviews and financial audits will be critical to ensure accountability and effective use of funds.

Related Government Programs

Software Publishers
Department of Homeland Security Contracting
Office of Procurement Operations Programs

Risk Flags

Reliance on a reseller may increase costs.
Potential for integration challenges with existing systems.
Long contract duration could lead to technology obsolescence if not managed.
Cybersecurity risks associated with financial data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $3.7 million to CARAHSOFT TECHNOLOGY CORP. FINANCIAL SYSTEMS MODERNIZATION (FSM) FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA)

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 $3.7 million.

What is the period of performance?

Start: 2022-11-18. End: 2033-09-26.

What specific financial system functionalities are being modernized, and how do they align with FEMA's core mission requirements?

The modernization likely focuses on enhancing capabilities for budget execution, financial reporting, accounting, and grants management, crucial for FEMA's disaster relief operations. Aligning these upgrades with mission requirements ensures that financial systems directly support efficient resource deployment and accountability during emergencies, improving overall operational effectiveness.

What are the key risks associated with relying on a reseller like Carahsoft for a complex financial system modernization project?

Key risks include potential markups on software and services, less direct technical expertise compared to a prime vendor, and potential challenges in managing multiple subcontractors. This can impact cost-effectiveness and the ability to tailor solutions precisely to FEMA's unique needs, potentially leading to integration issues or delays.

How will the effectiveness of the modernized financial system be measured to ensure it meets performance goals and taxpayer expectations?

Effectiveness will be measured through key performance indicators (KPIs) such as improved processing times, enhanced data accuracy, reduced system downtime, successful integration with other government financial platforms, and user satisfaction surveys. Regular performance reviews against these KPIs will ensure the system meets its objectives and provides value for taxpayer investment.

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: 70RTAC22R00000021

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: $19,984,752

Exercised Options: $3,711,249

Current Obligation: $3,711,249

Actual Outlays: $2,113,280

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RTAC21D00000004

IDV Type: IDC

Timeline