DoD's $25.8M Software Publishers Contract with Carahsoft Faces Scrutiny Amidst Limited Small Business Participation

Contract Overview

Contract Amount: $25,779,292 ($25.8M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2022-09-23

End Date: 2024-12-24

Contract Duration: 823 days

Daily Burn Rate: $31.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROGRAM MANAGEMENT

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $25.8 million to CARAHSOFT TECHNOLOGY CORP for work described as: PROGRAM MANAGEMENT Key points: 1. The contract's value of $25.8 million for software publishing services is significant. 2. Carahsoft Technology Corp is the sole awardee, raising questions about competition. 3. The contract's duration and firm fixed-price structure present potential risks. 4. Spending in the software publishing sector is substantial, requiring careful oversight.

Value Assessment

Rating: fair

The contract's total award value is $25.8 million. Benchmarking against similar software publishing contracts is difficult without specific product details, but the value is substantial for a single vendor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded via a BPA Call under a full and open competition. However, the specific award to Carahsoft suggests a limited number of bidders responded or were qualified, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are being utilized for software acquisition. The effectiveness of the competition in securing the best value for the government is a key consideration.

Public Impact

Citizens expect efficient use of taxpayer money in government contracts. Transparency in contracting processes is crucial for public trust. Ensuring fair competition can lead to better pricing and innovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited small business participation
Potential for price escalation over contract duration
Dependence on a single vendor for critical software needs

Positive Signals

Awarded under full and open competition
Firm fixed-price contract limits cost overruns
Long-term contract provides stability for software provision

Sector Analysis

This contract falls within the IT sector, specifically software publishing. Government spending in this area is consistently high due to the need for digital infrastructure and services across agencies.

Small Business Impact

The contract indicates no small business participation (ss: false, sb: false). This is a concern as it limits opportunities for small businesses and may not reflect the full breadth of available solutions.

Oversight & Accountability

The Defense Information Systems Agency (DISA) is responsible for this award. Oversight should focus on ensuring the continued need for these services and the value received throughout the contract's lifecycle.

Related Government Programs

Software Publishers
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Lack of small business participation
Potential for vendor lock-in with a single awardee
Limited transparency on specific software procured
Need to verify initial pricing competitiveness

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to CARAHSOFT TECHNOLOGY CORP. PROGRAM MANAGEMENT

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $25.8 million.

What is the period of performance?

Start: 2022-09-23. End: 2024-12-24.

What specific software products or services are being procured under this contract, and how do they align with DISA's mission requirements?

The contract is categorized under NAICS code 511210 (Software Publishers), indicating the procurement of software licenses, subscriptions, or related services. Without further details, it's difficult to ascertain the exact nature of the software. However, DISA's mission involves providing information technology and telecommunications support to the Department of Defense, suggesting these software solutions are likely critical for command, control, communications, computers, and intelligence (C4I) systems, cybersecurity, or data management.

Given the award to Carahsoft Technology Corp, what was the competitive landscape like, and were there sufficient opportunities for other vendors, including small businesses, to bid?

While the contract states 'FULL AND OPEN COMPETITION', the award being a 'BPA CALL' suggests it was likely competed among pre-qualified vendors on an existing Blanket Purchase Agreement. The fact that Carahsoft was the sole awardee for this specific call raises questions about whether the competition was truly robust or if specific requirements limited the pool of eligible bidders. Further investigation into the BPA's original competition and the specific call's requirements is needed to assess the breadth of competition.

How does the firm fixed-price structure impact the government's ability to manage costs and ensure value for money, especially considering the contract's duration?

A firm fixed-price (FFP) contract is generally advantageous for the government as it shifts the risk of cost overruns to the contractor. For a contract spanning over two years (September 2022 to December 2024), the FFP structure provides cost certainty. However, it's crucial that the initial price was set competitively and reflects fair market value. The government must still monitor performance to ensure the contractor is delivering as agreed, as the FFP structure doesn't inherently guarantee value if the initial price was too high or performance is subpar.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

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: $25,779,292

Exercised Options: $25,779,292

Current Obligation: $25,779,292

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N6600119A0001

IDV Type: BPA

Timeline