DoD's $760M R&D contract for tech integration awarded to Carahsoft Technology Corp

Contract Overview

Contract Amount: $76,033,130 ($76.0M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2021-07-02

End Date: 2025-12-31

Contract Duration: 1,643 days

Daily Burn Rate: $46.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: RAPID SUSTAINMENT OFFICE, TECHNOLOGY INTEGRATION.

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $76.0 million to CARAHSOFT TECHNOLOGY CORP for work described as: RAPID SUSTAINMENT OFFICE, TECHNOLOGY INTEGRATION. Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Firm Fixed Price contract type aims to control costs for the government. 3. Long duration of 1643 days indicates a significant, ongoing need for services. 4. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 5. Awarded by the Department of the Air Force, highlighting a specific service branch need. 6. Carahsoft Technology Corp. is the sole awardee, indicating a single prime contractor. 7. The contract's value of $760.33M positions it as a substantial investment.

Value Assessment

Rating: good

The contract's value of $760.33M for a 1643-day period suggests a significant investment in technology integration. Without specific performance metrics or comparable contracts for similar R&D efforts, a precise value-for-money assessment is challenging. However, the firm fixed-price structure provides cost certainty. The benchmark for R&D contracts can vary widely, but this award represents a substantial commitment by the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a competitive environment, though the specific details of the bidding process and the nature of the competition are not fully detailed. A competitive process generally helps in achieving better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a market that drives innovation and potentially lower prices through competitive pressures.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force, which will receive advanced technology integration services. The contract supports research and development in physical, engineering, and life sciences, potentially leading to advancements in defense capabilities. Geographic impact is likely concentrated within areas supporting Air Force operations and R&D facilities. Workforce implications may include specialized roles in technology integration, research, and engineering, potentially creating or sustaining high-skilled jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if R&D objectives prove more complex or expensive than initially scoped, despite FFP.
Risk of technology obsolescence during the long contract duration if not managed proactively.
Dependence on a single prime contractor could pose risks if performance falters or if specialized expertise is not maintained.

Positive Signals

Firm Fixed Price contract type provides cost predictability for the government.
Full and open competition suggests a healthy market and potential for competitive pricing.
Long contract duration allows for sustained focus and development of complex technological solutions.

Sector Analysis

This contract falls under the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks are difficult to establish without knowing the specific technological focus, but R&D contracts of this magnitude are common within the defense industry.

Small Business Impact

The data indicates that small business participation is not a primary focus for this specific award, as the contract is not set aside for small businesses and the prime contractor is Carahsoft Technology Corp., a large business. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided information. The impact on the small business ecosystem would depend on the extent of any subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified outcomes within budget. Transparency is generally maintained through contract award databases and reporting requirements, though specific project details may be sensitive.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Technology Modernization Initiatives
Advanced Technology Integration Contracts
Physical and Engineering Sciences Research

Risk Flags

Potential for scope creep in R&D projects.
Risk of contractor underperformance on complex technical tasks.
Dependency on a single prime contractor.
Technological obsolescence during long contract performance period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $76.0 million to CARAHSOFT TECHNOLOGY CORP. RAPID SUSTAINMENT OFFICE, TECHNOLOGY INTEGRATION.

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 $76.0 million.

What is the period of performance?

Start: 2021-07-02. End: 2025-12-31.

What is Carahsoft Technology Corp.'s track record with large federal R&D contracts?

Carahsoft Technology Corp. is a major reseller of IT and software solutions to government agencies. While they are known for their extensive catalog and ability to facilitate large procurements, their direct track record as a prime contractor for complex, multi-year R&D projects involving physical, engineering, and life sciences may be less extensive compared to specialized R&D firms. Their strength often lies in managing the procurement and distribution of technology rather than direct R&D execution. Further investigation into their specific R&D project history and partnerships would be necessary to fully assess their capabilities in this domain.

How does the $760M contract value compare to similar R&D efforts in physical, engineering, and life sciences within the DoD?

The $760.33M contract value is substantial and falls within the upper range for individual R&D contracts within the DoD, particularly for a single award over a 1643-day period. The DoD invests billions annually in R&D across various scientific disciplines. While specific comparisons are difficult without knowing the precise technological focus (e.g., AI, materials science, aerospace engineering), contracts of this magnitude often support critical, long-term research objectives or the development of major technological systems. It suggests a high-priority area for the Air Force's technological advancement.

What are the primary risks associated with a firm fixed-price contract for R&D?

Firm Fixed Price (FFP) contracts are generally preferred for their cost certainty. However, for R&D, FFP can introduce risks. If the scope of work is not precisely defined or if unforeseen technical challenges arise, the contractor may struggle to deliver within the fixed price, potentially leading to reduced quality, scope reduction, or contractor financial distress. Conversely, if the contractor significantly underestimates costs or discovers a more efficient path, they could realize substantial profit. The government bears the risk of inadequate performance if the contractor prioritizes profit over quality due to cost pressures.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification imply for the contract's objectives?

This classification (NAICS 541715) indicates that the contract's primary purpose is to conduct research and development activities that advance scientific knowledge and understanding in fields such as physics, chemistry, biology, engineering disciplines, and earth sciences. This could encompass a wide range of activities, from basic scientific inquiry to applied research aimed at developing new technologies, materials, processes, or systems. For the Air Force, this likely translates to efforts in areas like advanced materials, propulsion systems, sensor technology, cyber capabilities, or human performance enhancement.

How has the Department of the Air Force's spending on R&D in this sector trended historically?

Historical spending data for the Department of the Air Force (DAF) on R&D within physical, engineering, and life sciences (NAICS 541715) shows a consistent and significant investment over the years. While specific annual figures fluctuate based on strategic priorities and budget allocations, the DAF consistently ranks among the top federal agencies for R&D expenditure. Trends often reflect evolving threats, technological advancements, and modernization goals. Analyzing multi-year budget requests and enacted appropriations for the DAF's science and technology accounts would provide a clearer picture of spending patterns and priorities.

What is the significance of the contract being an 'Award Type: DEFINITIVE CONTRACT'?

A definitive contract is a standard, long-term contract that specifies all the terms and conditions, including price, quantity, and delivery schedules. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts, which allow for flexibility in ordering, a definitive contract typically represents a single, fully defined agreement. In this context, it suggests that the scope, requirements, and pricing for this technology integration R&D effort were well-established at the time of award, providing a clear framework for both the government and Carahsoft Technology Corp. over the contract's duration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: FA868420SCO01

Offers Received: 2

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: $95,013,070

Exercised Options: $76,033,130

Current Obligation: $76,033,130

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline