NNSA Awards $12M Zscaler Contract to Carahsoft for Cybersecurity Enhancements
Contract Overview
Contract Amount: $12,015,000 ($12.0M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Energy
Start Date: 2025-07-31
End Date: 2026-07-30
Contract Duration: 364 days
Daily Burn Rate: $33.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NNSA OCIO CURRENTLY USES ZSCALER TO MEET EXECUTIVE ORDER 14028
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $12.0 million to CARAHSOFT TECHNOLOGY CORP for work described as: NNSA OCIO CURRENTLY USES ZSCALER TO MEET EXECUTIVE ORDER 14028 Key points: 1. Contract value of $12.015 million for cybersecurity services. 2. Sole-source award to Carahsoft Technology Corp. 3. Focus on meeting Executive Order 14028 requirements. 4. Potential risk due to lack of competition.
Value Assessment
Rating: fair
The contract value of $12.015 million for a 364-day period appears reasonable for specialized cybersecurity services like Zscaler. However, without competitive bidding, it's difficult to ascertain if this represents the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Carahsoft Technology Corp. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Enhances cybersecurity posture for the NNSA OCIO. Supports compliance with federal cybersecurity mandates (EO 14028). Ensures continuity of critical IT security services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Potential for overpayment due to lack of bidding.
- Reliance on a single vendor for critical services.
Positive Signals
- Addresses critical cybersecurity needs.
- Aligns with federal cybersecurity directives.
Sector Analysis
This contract falls under 'Other Computer Related Services' (NAICS 541519), a broad category encompassing IT support and solutions. Cybersecurity services are increasingly critical across all government sectors, with spending benchmarks varying widely based on scope and technology.
Small Business Impact
The contract was awarded to Carahsoft Technology Corp., a large reseller. There is no indication that small businesses were involved in the prime contract award, nor is there information on subcontracting opportunities.
Oversight & Accountability
The Department of Energy is the awarding agency. Oversight would typically involve contract performance monitoring and ensuring adherence to the terms and conditions, especially given the sole-source nature.
Related Government Programs
- Other Computer Related Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on justification
Tags
other-computer-related-services, department-of-energy, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $12.0 million to CARAHSOFT TECHNOLOGY CORP. NNSA OCIO CURRENTLY USES ZSCALER TO MEET EXECUTIVE ORDER 14028
Who is the contractor on this award?
The obligated recipient is CARAHSOFT TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $12.0 million.
What is the period of performance?
Start: 2025-07-31. End: 2026-07-30.
What was the justification for the sole-source award, and were any market research efforts conducted to explore competitive options?
The justification for a sole-source award is crucial for understanding why competition was bypassed. Agencies must typically demonstrate that only one responsible source can provide the required supplies or services. Without this justification, it's difficult to assess if taxpayer funds were used efficiently or if alternative, potentially more cost-effective solutions were overlooked.
How does the pricing of this Zscaler service compare to similar cybersecurity solutions or previous contracts for comparable services?
Benchmarking the pricing against similar cybersecurity solutions or previous contracts is essential for value assessment. Given this is a sole-source award, a thorough price analysis by the agency is critical to ensure the $12.015 million is fair and reasonable. Without this analysis, it's hard to determine if the government is receiving good value for its investment.
What specific metrics will be used to measure the effectiveness of Zscaler in meeting Executive Order 14028 requirements and enhancing NNSA's cybersecurity posture?
Measuring effectiveness requires clearly defined metrics tied to the contract's objectives. For NNSA's cybersecurity, this could include reduction in security incidents, improved threat detection times, or successful vulnerability remediation. Understanding these metrics is key to evaluating the actual impact and return on investment of this contract.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $24,871,050
Exercised Options: $12,015,000
Current Obligation: $12,015,000
Actual Outlays: $12,015,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-07-31
Current End Date: 2026-07-30
Potential End Date: 2027-07-30 00:00:00
Last Modified: 2026-03-26
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