DoD's Air Force Awards $81M for Agile Software Development to Carahsoft Technology Corp
Contract Overview
Contract Amount: $81,000,000 ($81.0M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Defense
Start Date: 2020-05-22
End Date: 2023-05-21
Contract Duration: 1,094 days
Daily Burn Rate: $74.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: FOR AGILE SOFTWARE DEVELOPMENT AND OPERATIONS ENVIRONMENT
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $81.0 million to CARAHSOFT TECHNOLOGY CORP for work described as: FOR AGILE SOFTWARE DEVELOPMENT AND OPERATIONS ENVIRONMENT Key points: 1. The contract focuses on agile software development and operations, a critical area for modernizing defense capabilities. 2. Carahsoft Technology Corp, a reseller, is the awardee, suggesting a potential for markups and limited direct vendor engagement. 3. The contract's duration of nearly three years presents a significant financial commitment. 4. The 'Other Computer Related Services' NAICS code is broad, potentially encompassing a wide range of services.
Value Assessment
Rating: fair
The award amount of $81 million over three years for agile software development appears reasonable given the scope. However, without specific performance metrics or comparison to similar, directly sourced contracts, a precise valuation is difficult. The use of a reseller may also inflate the effective cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the awardee is Carahsoft Technology Corp, a reseller, which may limit direct competition among software developers and potentially impact price competitiveness.
Taxpayer Impact: Taxpayer funds are being used for this contract. While competition was sought, the reseller model could lead to higher costs than direct procurement from service providers.
Public Impact
Modernization of Air Force IT systems through agile development. Potential for improved software delivery and operational efficiency. Ensuring cybersecurity and data integrity within the developed environments. Impact on the broader defense IT services market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reseller awardee may increase costs.
- Broad NAICS code lacks specificity.
- Limited insight into direct service provider competition.
Positive Signals
- Awarded under full and open competition.
- Focus on agile development for modernization.
- Long-term contract provides stability for development.
Sector Analysis
The IT services sector, particularly within defense, is characterized by rapid technological advancements and a constant need for modernization. Spending benchmarks for agile software development contracts of this size can vary widely based on complexity and specific services required. This contract falls within the broader IT services category.
Small Business Impact
While the contract was awarded under full and open competition, the awardee is Carahsoft Technology Corp, a large reseller. This structure may limit direct opportunities for small businesses to participate as primary service providers, although they could potentially be subcontractors.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The use of a delivery order under a larger contract vehicle suggests existing oversight mechanisms are in place. However, monitoring the performance and cost-effectiveness of services provided through a reseller requires diligent attention.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for inflated costs due to reseller.
- Lack of specificity in NAICS code.
- Limited visibility into direct service provider performance.
- Dependency on a single delivery order for a significant duration.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $81.0 million to CARAHSOFT TECHNOLOGY CORP. FOR AGILE SOFTWARE DEVELOPMENT AND OPERATIONS ENVIRONMENT
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 $81.0 million.
What is the period of performance?
Start: 2020-05-22. End: 2023-05-21.
What is the estimated cost savings or value added by using Carahsoft as a reseller compared to direct procurement from software development firms?
Estimating direct cost savings is challenging without detailed pricing breakdowns. Resellers typically add a margin, increasing the overall cost. However, they can offer consolidated purchasing, simplified contracting, and access to a wide range of pre-vetted vendors, potentially reducing administrative burden and lead times. The value proposition hinges on whether these efficiencies outweigh the added markup.
What specific agile methodologies and operational frameworks are being implemented under this contract, and how are they being measured for effectiveness?
The provided data does not specify the agile methodologies (e.g., Scrum, Kanban) or operational frameworks (e.g., DevOps, CI/CD) employed. Effectiveness measurement would typically involve Key Performance Indicators (KPIs) related to development speed, code quality, bug resolution rates, system uptime, and user satisfaction. Detailed contract performance reports would be necessary to assess these metrics.
How does the 'Other Computer Related Services' NAICS code (541519) accurately reflect the specific agile software development and operations requirements of the Air Force?
NAICS code 541519 is a broad category for services not elsewhere classified in computer-related fields. While it can encompass agile development, it lacks specificity. A more precise code might better reflect the core services, potentially allowing for more targeted competition. The broadness necessitates careful review of the Performance Work Statement (PWS) to ensure alignment with actual needs.
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 › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA880620R0003
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: $81,000,000
Exercised Options: $81,000,000
Current Obligation: $81,000,000
Actual Outlays: $21,211,555
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SC27B
IDV Type: GWAC
Timeline
Start Date: 2020-05-22
Current End Date: 2023-05-21
Potential End Date: 2023-05-21 00:00:00
Last Modified: 2022-12-05
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