HHS Awards $368.5M for Software Publishers to Carahsoft, Highlighting Full and Open Competition

Contract Overview

Contract Amount: $368,534,659 ($368.5M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2018-04-01

End Date: 2023-09-29

Contract Duration: 2,007 days

Daily Burn Rate: $183.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CURRENT SOURCES OF INCOME AND EMPLOYMENT VERIFICATION

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $368.5 million to CARAHSOFT TECHNOLOGY CORP for work described as: CURRENT SOURCES OF INCOME AND EMPLOYMENT VERIFICATION Key points: 1. Significant contract value of $368.5 million awarded. 2. Carahsoft Technology Corp is the primary contractor. 3. The contract falls under the Software Publishers NAICS code. 4. Full and open competition was utilized for this award.

Value Assessment

Rating: good

The contract value is substantial, indicating a significant need for software publishing services. Benchmarking against similar contracts would require more granular data on specific software provided, but the overall value suggests a competitive pricing structure was likely achieved through full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows multiple vendors to bid, driving down costs and ensuring the government receives competitive pricing for the software publishing services.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from efficient pricing, as multiple vendors vied for the contract.

Public Impact

Ensures continued access to essential software publishing services for CMS. Supports a major technology vendor, potentially impacting the software market. The large contract value may influence future government IT procurement strategies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (2018-2023), potentially leading to scope creep or outdated technology if not managed well.

Positive Signals

Full and open competition utilized.
Significant contract value awarded to a single entity, indicating a strong partnership.
Services provided to a critical agency (CMS).

Sector Analysis

The Software Publishers sector (NAICS 511210) is crucial for government operations, providing essential digital tools and platforms. Spending benchmarks in this sector vary widely based on the type of software and services. This contract's value is substantial within this domain.

Small Business Impact

While the award went to Carahsoft Technology Corp, a large prime contractor, the use of full and open competition theoretically allows for subcontracting opportunities for small businesses. However, the data does not specify the extent of small business participation.

Oversight & Accountability

The contract was awarded via a Delivery Order under a larger contract vehicle. Oversight would focus on the performance of Carahsoft Technology Corp and the specific terms of the delivery order to ensure compliance and value for money.

Related Government Programs

Software Publishers
Department of Health and Human Services Contracting
Centers for Medicare and Medicaid Services Programs

Risk Flags

Long contract duration.
Potential for vendor lock-in.
Lack of specific service details.
No explicit mention of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $368.5 million to CARAHSOFT TECHNOLOGY CORP. CURRENT SOURCES OF INCOME AND EMPLOYMENT VERIFICATION

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $368.5 million.

What is the period of performance?

Start: 2018-04-01. End: 2023-09-29.

What specific software publishing services were procured under this contract, and how do they align with CMS's evolving needs?

The provided data lacks specificity regarding the exact software publishing services. To assess alignment, a detailed review of the contract's statement of work and any amendments would be necessary. Understanding the technological advancements and operational requirements of CMS during the contract period is crucial for evaluating its continued relevance and effectiveness.

What is the potential risk of vendor lock-in or over-reliance on Carahsoft Technology Corp given the contract's duration and value?

A contract spanning nearly six years with a significant value inherently carries a risk of vendor lock-in. This could limit flexibility in adopting new technologies or switching providers if better solutions emerge. Effective oversight, clear performance metrics, and contingency planning are vital to mitigate this risk and ensure the government retains leverage.

How effectively did the full and open competition process ensure the best value for taxpayers, considering the specific nature of software publishing?

Full and open competition is generally the best mechanism for ensuring taxpayer value. However, the effectiveness hinges on the clarity of the solicitation, the ability of diverse vendors to compete, and the evaluation criteria used. For specialized software publishing, ensuring that all relevant technical capabilities were considered and that the pricing reflected true market value is key to maximizing this benefit.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

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: $483,989,662

Exercised Options: $368,534,659

Current Obligation: $368,534,659

Actual Outlays: $217,634,122

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0119Y

IDV Type: FSS

Timeline