DoD Awards $30M Salesforce Licenses to Carahsoft, Raising Questions on Value and Competition
Contract Overview
Contract Amount: $30,062,406 ($30.1M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Defense
Start Date: 2024-02-28
End Date: 2025-02-27
Contract Duration: 365 days
Daily Burn Rate: $82.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PKH: SNYDER, ISLER, A1/AFRS SALESFORCE AND SUPPORTING LICENSES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $30.1 million to CARAHSOFT TECHNOLOGY CORP for work described as: PKH: SNYDER, ISLER, A1/AFRS SALESFORCE AND SUPPORTING LICENSES Key points: 1. Significant contract value of $30M for software licenses and support. 2. Carahsoft Technology Corp is the sole awardee, raising competition concerns. 3. Potential for overpayment given the lack of competitive bidding. 4. IT sector spending on enterprise software is substantial and growing.
Value Assessment
Rating: questionable
The $30M award for Salesforce licenses and support warrants scrutiny. Without competitive pricing, it's difficult to ascertain if this represents fair market value compared to similar enterprise software contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being listed as 'full and open competition,' the award went to a single vendor, Carahsoft Technology Corp. This suggests potential issues in the procurement process or a reliance on specific contract vehicles that may limit price discovery.
Taxpayer Impact: The lack of demonstrated competition could lead to taxpayers paying a premium for these essential software licenses and support services.
Public Impact
Air Force personnel rely on Salesforce for critical operations, making license continuity essential. The significant investment highlights the growing dependence on cloud-based enterprise software. Transparency in software procurement is crucial to ensure taxpayer funds are used efficiently.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'full and open' designation
- Potential for inflated pricing without competitive bids
- Reliance on a single vendor for critical software
Positive Signals
- Clear contract duration and defined scope
- Firm fixed price contract type limits cost overruns
Sector Analysis
This contract falls within the IT sector, specifically for enterprise software and related services. Spending on such solutions by government agencies has been steadily increasing as they modernize operations.
Small Business Impact
The data does not indicate any specific benefit or set-aside for small businesses in this procurement. Large enterprise software contracts often involve major vendors and their resellers.
Oversight & Accountability
The award process, particularly the apparent lack of robust competition despite the 'full and open' designation, warrants further oversight to ensure adherence to procurement regulations and best practices.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of demonstrated competition
- Potential for price inflation
- Sole awardee raises transparency concerns
- Dependence on a single vendor for critical software
Tags
other-computer-related-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.1 million to CARAHSOFT TECHNOLOGY CORP. PKH: SNYDER, ISLER, A1/AFRS SALESFORCE AND SUPPORTING LICENSES
Who is the contractor on this award?
The obligated recipient is CARAHSOFT TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $30.1 million.
What is the period of performance?
Start: 2024-02-28. End: 2025-02-27.
What specific factors led to Carahsoft Technology Corp being the sole awardee under a 'full and open competition' solicitation for these Salesforce licenses and support?
The 'full and open competition' designation may refer to the initial solicitation's broad reach, but the award to a single vendor suggests that only Carahsoft met all requirements, or perhaps utilized a specific contract vehicle (like GSA Schedule) that limited the pool of eligible bidders or facilitated a streamlined award process.
How does the $30M price point compare to industry benchmarks for similar Salesforce enterprise license agreements and support, especially considering the lack of competitive bidding?
Without competitive bids, establishing a precise benchmark is challenging. However, government pricing for enterprise software can sometimes be higher than commercial rates due to specific contract terms, support levels, and administrative overhead. A comparative analysis against publicly available Salesforce pricing or similar government contracts awarded competitively would be necessary.
What is the potential risk to Air Force operations if these Salesforce licenses and support are deemed overpriced or if the vendor relationship deteriorates?
The primary risk is financial, with taxpayers potentially overpaying. Operationally, a deterioration in the vendor relationship could lead to disruptions in support, impacting the Air Force's ability to utilize critical Salesforce functionalities, potentially affecting data management, workflow automation, and overall mission effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
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
Solicitation ID: FA701424R0027
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: $30,062,406
Exercised Options: $30,062,406
Current Obligation: $30,062,406
Actual Outlays: $374,249
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SC27B
IDV Type: GWAC
Timeline
Start Date: 2024-02-28
Current End Date: 2025-02-27
Potential End Date: 2025-02-27 00:00:00
Last Modified: 2024-12-20
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