USAGM Spends $13.3M on CDN Services from Carahsoft, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $13,277,284 ($13.3M)

Contractor: Carahsoft Technology Corp

Awarding Agency: U.S. Agency for Global Media

Start Date: 2022-09-27

End Date: 2026-08-26

Contract Duration: 1,429 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONTENT DELIVERY NETWORK (CDN)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20237

State: District of Columbia Government Spending

Plain-Language Summary

U.S. Agency for Global Media obligated $13.3 million to CARAHSOFT TECHNOLOGY CORP for work described as: CONTENT DELIVERY NETWORK (CDN) Key points: 1. The contract value is $13.3 million for Content Delivery Network (CDN) services. 2. Carahsoft Technology Corp is the sole awardee, indicating a competitive award process. 3. The contract duration is approximately 3.9 years, ending in August 2026. 4. The NAICS code 511210 (Software Publishers) is noted, though CDN services might align with other categories. 5. The contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: good

The $13.3 million contract value for CDN services appears reasonable given the 3.9-year duration. Benchmarking against similar large-scale CDN contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The competitive award process is expected to yield a fair price, maximizing taxpayer value for essential CDN services.

Public Impact

Ensures reliable and fast delivery of digital content for USAGM's global audience. Supports the dissemination of information and programming across various platforms. Potential for enhanced user experience due to improved content loading speeds. Contributes to the operational efficiency of USAGM's digital infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

NAICS code mismatch potential (511210 for Software Publishers vs. CDN services).
Lack of specific performance metrics in the provided data.
Potential for vendor lock-in if not managed carefully post-award.

Positive Signals

Awarded via full and open competition.
Firm Fixed Price contract type provides cost predictability.
Long-term contract (3.9 years) allows for stable service provision.
Significant investment in critical digital infrastructure.

Sector Analysis

The contract falls under IT services, specifically Content Delivery Networks. Spending on CDN services is common across government agencies to ensure efficient and reliable delivery of digital content, especially for public-facing platforms.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. Further analysis would be needed to determine the extent of small business participation in the supply chain for this contract.

Oversight & Accountability

The contract was awarded through full and open competition, suggesting a structured procurement process. Ongoing oversight would focus on performance against contract requirements and adherence to terms.

Related Government Programs

Software Publishers
U.S. Agency for Global Media Contracting
U.S. Agency for Global Media Programs

Risk Flags

Potential NAICS code discrepancy.
Lack of detailed performance metrics.
Single awardee for a significant duration.
No explicit mention of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

U.S. Agency for Global Media awarded $13.3 million to CARAHSOFT TECHNOLOGY CORP. CONTENT DELIVERY NETWORK (CDN)

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: U.S. Agency for Global Media (U.S. Agency for Global Media).

What is the total obligated amount?

The obligated amount is $13.3 million.

What is the period of performance?

Start: 2022-09-27. End: 2026-08-26.

What specific CDN services are included in this contract, and how do they align with USAGM's mission objectives?

The contract is for Content Delivery Network (CDN) services, which are crucial for ensuring the rapid and reliable delivery of digital content to a global audience. This includes hosting and distributing video, audio, and other media assets. These services directly support USAGM's mission of informing, engaging, and connecting people worldwide by making their online content accessible and performant, regardless of user location or network conditions.

What are the potential risks associated with relying on a single vendor, Carahsoft Technology Corp, for these critical CDN services over nearly four years?

While awarded competitively, reliance on a single vendor for nearly four years carries risks such as potential price increases upon renewal, reduced negotiating leverage, and vulnerability to service disruptions if the vendor experiences technical issues or financial instability. Vendor lock-in is also a concern, potentially limiting future adoption of more advanced or cost-effective CDN technologies. Mitigation strategies include robust performance monitoring and contingency planning.

How does the reported spending of $13.3 million compare to industry benchmarks for similar CDN services provided to large government agencies?

The $13.3 million expenditure over approximately 3.9 years for CDN services appears to be within a reasonable range for a large federal agency like USAGM, especially considering the global reach and volume of content. However, without specific details on bandwidth, features, and service level agreements, a precise benchmark is difficult. Comparing this to other agencies' CDN contracts of similar scope and duration would provide a more accurate assessment of cost-effectiveness.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $17,194,870

Exercised Options: $13,545,081

Current Obligation: $13,277,284

Actual Outlays: $3,225,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA18D008F

IDV Type: FSS

Timeline