DOE's $96M Splunk Software & Support Contract Awarded to Carahsoft Technology Corp
Contract Overview
Contract Amount: $95,948,362 ($95.9M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Energy
Start Date: 2015-09-24
End Date: 2022-09-26
Contract Duration: 2,559 days
Daily Burn Rate: $37.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO PROCURE SPLUNK SOFTWARE AND SUPPORT SERVICES FOR THE NATIONAL NUCLEAR SECURITY ADMINISTRATION (NNSA) WITHIN THE U.S. DEPARTMENT OF ENERGY.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $95.9 million to CARAHSOFT TECHNOLOGY CORP for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO PROCURE SPLUNK SOFTWARE AND SUPPORT SERVICES FOR THE NATIONAL NUCLEAR SECURITY ADMINISTRATION (NNSA) WITHIN THE U.S. DEPARTMENT OF ENERGY. Key points: 1. Value-for-money assessment indicates potential for cost savings through competitive bidding. 2. Competition dynamics show a full and open approach, suggesting a healthy market. 3. Risk indicators are low due to a firm-fixed-price contract type. 4. Performance context is tied to essential software and support services for NNSA. 5. Sector positioning is within the software publishing industry, supporting government IT infrastructure.
Value Assessment
Rating: good
The contract's firm-fixed-price structure provides cost certainty for the government. Benchmarking against similar software and support contracts for large federal agencies suggests the pricing is within a reasonable range, especially considering the duration and scope. The competitive award process likely contributed to achieving a fair market price. However, a detailed unit cost analysis of the Splunk software licenses and support hours would provide a more granular assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a robust market for Splunk software and support services. This approach generally leads to better price discovery and ensures the government receives competitive offers.
Taxpayer Impact: A full and open competition benefits taxpayers by driving down costs through market forces and ensuring that the government is not locked into a single provider, potentially leading to better long-term value.
Public Impact
The National Nuclear Security Administration (NNSA) within the Department of Energy is the primary beneficiary, gaining access to critical software and support. Services delivered include the procurement of Splunk software licenses and associated support, crucial for data analysis and security. The geographic impact is national, supporting the operational needs of a federal agency. Workforce implications include enabling IT professionals within the NNSA to utilize advanced data management and security tools.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not managed proactively.
- Reliance on a single software platform may create integration challenges with other systems.
- Ensuring adequate training and knowledge transfer for government personnel is crucial for effective utilization.
Positive Signals
- Firm-fixed-price contract type mitigates cost overrun risks.
- Full and open competition suggests a competitive market and potentially favorable pricing.
- Long-term support ensures continuity of operations for critical NNSA functions.
Sector Analysis
This contract falls within the Software Publishers industry (NAICS 511210), a sector characterized by the development, licensing, and support of software products. The market for data analytics and security information and event management (SIEM) software, like Splunk, is substantial within the federal government, driven by increasing data volumes and cybersecurity needs. Comparable spending benchmarks for enterprise software licenses and support services for large federal agencies often run into tens of millions of dollars annually.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. As a large contract awarded to Carahsoft Technology Corp., a reseller known for its government contracts, the primary impact on small businesses would likely be through potential subcontracting opportunities if Carahsoft engages them. However, without specific subcontracting plans, the direct impact on the small business ecosystem is unclear.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's contracting and financial management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified software and support. Transparency is facilitated by the contract's award under full and open competition, which is publicly recordable. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Energy IT Modernization Programs
- National Nuclear Security Administration (NNSA) Operations
- Federal Government Software Procurement
- Cybersecurity and Data Analytics Solutions
Risk Flags
- Potential for vendor lock-in
- Reliance on a single software vendor
- Need for ongoing training and skill development
Tags
it, software-publishing, department-of-energy, national-nuclear-security-administration, firm-fixed-price, full-and-open-competition, enterprise-software, data-analytics, cybersecurity, district-of-columbia, carahsoft-technology-corp
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $95.9 million to CARAHSOFT TECHNOLOGY CORP. THE PURPOSE OF THIS REQUIREMENT IS TO PROCURE SPLUNK SOFTWARE AND SUPPORT SERVICES FOR THE NATIONAL NUCLEAR SECURITY ADMINISTRATION (NNSA) WITHIN THE U.S. DEPARTMENT OF ENERGY.
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 $95.9 million.
What is the period of performance?
Start: 2015-09-24. End: 2022-09-26.
What is the historical spending trend for Splunk software and support services within the Department of Energy?
Historical spending data for Splunk software and support services within the Department of Energy (DOE) prior to this specific contract award would provide valuable context. Analyzing previous contract values, durations, and awardees can reveal trends in the agency's reliance on Splunk, potential price fluctuations over time, and the evolution of competition. For instance, if previous contracts were sole-source or awarded at significantly higher unit costs, it would highlight the value achieved through this more recent full and open competition. Understanding the historical spend also helps in forecasting future budgetary needs and identifying potential areas for cost optimization or consolidation of software licenses across different DOE components.
How does the per-unit cost of Splunk software and support under this contract compare to similar federal contracts?
A detailed comparison of the per-unit cost for Splunk software licenses and support hours under this contract against similar federal procurements is essential for a robust value-for-money assessment. This involves identifying benchmark data from contracts awarded to other agencies for comparable quantities and service levels. Factors such as the specific Splunk product tiers (e.g., Enterprise Security, IT Service Intelligence), the number of data sources or users covered, and the level of support (e.g., 24/7, standard) must be standardized for a fair comparison. If this contract's per-unit costs are significantly lower than benchmarks, it indicates strong price negotiation and competitive pressure. Conversely, higher costs might warrant further investigation into contract scope, duration, or potential market shifts.
What are the specific performance metrics and Service Level Agreements (SLAs) associated with the support services in this contract?
The effectiveness and value of the support services component of this contract are directly tied to its performance metrics and Service Level Agreements (SLAs). Key metrics might include response times for technical issues, resolution times for critical incidents, availability of support personnel, and the quality of technical assistance provided. SLAs define the expected standards for these metrics and often include remedies or penalties if they are not met. Understanding these SLAs is crucial for assessing whether the NNSA is receiving adequate support for the software, ensuring operational continuity, and justifying the expenditure on support services. A review of past performance against these SLAs, if available, would further illuminate the contractor's reliability.
What is Carahsoft Technology Corp.'s track record with providing Splunk software and support to federal agencies?
Carahsoft Technology Corp. is a well-established government IT solutions provider and reseller, known for its extensive portfolio of software and services. Their track record with providing Splunk software and support to federal agencies is generally strong, often leveraging existing government-wide acquisition contracts (GWACs) or indefinite-delivery/indefinite-quantity (IDIQ) vehicles. They typically act as a reseller, partnering with Splunk directly or other authorized partners to fulfill agency requirements. Assessing Carahsoft's past performance on similar contracts would involve reviewing contract databases for delivery performance, past performance evaluations, and any reported issues or successes. Their established presence suggests a familiarity with federal procurement processes and a capacity to deliver complex IT solutions.
Are there any identified risks related to the long-term sustainment or obsolescence of the Splunk software procured under this contract?
Risks related to the long-term sustainment or obsolescence of Splunk software are a critical consideration for any federal agency relying on it. Splunk, like most technology platforms, undergoes regular updates and version releases. Potential risks include the possibility that older versions may eventually be retired, requiring costly upgrades or migrations. There's also the risk of vendor-driven obsolescence, where features are deprecated or support for specific versions is phased out, forcing agencies to adopt newer, potentially more expensive, iterations. Furthermore, the long-term viability of Splunk as a company and its continued investment in research and development are factors. Agencies must have a strategy for managing software lifecycles, including regular reviews of the product roadmap and proactive planning for future technology needs to mitigate these risks.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $98,703,978
Exercised Options: $98,703,978
Current Obligation: $95,948,362
Actual Outlays: $35,587,641
Parent Contract
Parent Award PIID: DEIM0000789
IDV Type: BPA
Timeline
Start Date: 2015-09-24
Current End Date: 2022-09-26
Potential End Date: 2022-11-26 00:00:00
Last Modified: 2023-03-05
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