DoD's $11.7M Red Hat Software Contract with Carahsoft Technology Corp. Awarded via BPA Call

Contract Overview

Contract Amount: $11,667,091 ($11.7M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2025-12-01

End Date: 2025-12-01

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: RED HAT SOFTWARE AND SOFTWARE SUPPORT

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to CARAHSOFT TECHNOLOGY CORP for work described as: RED HAT SOFTWARE AND SOFTWARE SUPPORT Key points: 1. Contract awarded through a Blanket Purchase Agreement (BPA) Call, suggesting pre-negotiated terms and potentially streamlined acquisition. 2. The contract is for software and software support, a common and critical need within the Department of Defense. 3. Awarded under a full and open competition, indicating a broad solicitation process. 4. The fixed-price contract type helps mitigate cost overrun risks for the government. 5. The duration is for one year, allowing for regular re-evaluation of needs and vendor performance. 6. The specific NAICS code (511210) points to the Software Publishers industry. 7. The contract is managed by the Defense Information Systems Agency (DISA).

Value Assessment

Rating: good

Benchmarking the value of this specific software support contract is challenging without detailed service level agreements and comparable market data for Red Hat products. However, the firm fixed-price structure is a positive indicator for cost control. The award through a BPA Call suggests that pricing may have been previously vetted, potentially offering better value than a new, open-market solicitation. Further analysis would require comparing the specific software licenses and support tiers to industry benchmarks and other government contracts for similar Red Hat offerings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The fact that it was awarded via a BPA Call indicates that the underlying BPA likely underwent a competitive process. While the number of bidders for this specific call isn't provided, the 'full and open' designation generally promotes price discovery and allows the government to select from a wide range of qualified vendors.

Taxpayer Impact: A full and open competition ensures that taxpayers benefit from the most competitive pricing available, as multiple vendors are encouraged to offer their best terms to secure the contract.

Public Impact

The Department of Defense benefits from access to essential Red Hat software and ongoing support, crucial for its IT infrastructure. This contract ensures the continued operation and security of critical defense systems that rely on Red Hat technologies. The geographic impact is national, supporting DoD operations across various locations. Workforce implications include ensuring IT personnel have the necessary tools and support to maintain and operate systems effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or service level agreements (SLAs) in the provided data makes it difficult to assess the quality of software support.
The contract duration of one year, while allowing for flexibility, may lead to recurring administrative effort for renewals or re-competition.
Without details on the specific Red Hat products and versions, it's hard to gauge if the pricing is competitive against market alternatives or other government agreements.

Positive Signals

Awarded via a BPA Call suggests a streamlined acquisition process, potentially leading to faster delivery of critical software and support.
The firm fixed-price contract type provides cost certainty for the DoD, protecting against unexpected price increases.
The use of a full and open competition process generally leads to better value and wider vendor participation.

Sector Analysis

The software publishers industry is a significant sector within the broader technology market, characterized by companies that develop, license, and support software products. Government spending in this area is substantial, driven by the need for operating systems, application software, cybersecurity tools, and specialized solutions across all federal agencies. Red Hat is a major player in the enterprise Linux and open-source software market, providing critical infrastructure software widely adopted by government and commercial entities. This contract fits within the government's ongoing strategy to leverage commercial off-the-shelf (COTS) software and support to maintain and modernize its IT systems.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Carahsoft Technology Corp., the awardee, is a large business. While this specific contract does not directly benefit small businesses through a set-aside, large prime contractors like Carahsoft often have subcontracting plans that may include opportunities for small businesses to provide ancillary services or components. However, without specific subcontracting goals or reporting, the direct impact on the small business ecosystem from this particular award is not evident.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Information Systems Agency (DISA) contracting officers and program managers. As a firm fixed-price contract awarded via a BPA Call, the primary oversight focuses on ensuring delivery of the specified software and support services aligns with the contract terms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.

Related Government Programs

General Services Administration (GSA) Schedules
Enterprise Software Agreements
Department of Defense IT Modernization Programs
Defense Information Technology Contracting Office (DITCO) contracts

Risk Flags

Potential for vendor lock-in with Red Hat ecosystem
Lack of specific performance metrics (SLAs/KPIs) in provided data
Reliance on reseller (Carahsoft) for delivery and support coordination

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to CARAHSOFT TECHNOLOGY CORP. RED HAT SOFTWARE AND SOFTWARE SUPPORT

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 $11.7 million.

What is the period of performance?

Start: 2025-12-01. End: 2025-12-01.

What specific Red Hat products and support levels are included in this $11.7 million contract?

The provided data identifies the contract as being for 'RED HAT SOFTWARE AND SOFTWARE SUPPORT' but does not specify the exact products (e.g., Red Hat Enterprise Linux, OpenShift, Ansible Automation Platform) or the level of support (e.g., standard, premium, 24x7). This level of detail is crucial for understanding the scope of the contract and for performing accurate value benchmarking. Without this information, it's difficult to determine if the $11.7 million represents a fair price for the specific software licenses and support services being procured by the Department of Defense.

How does the $11.7 million contract value compare to previous Red Hat software procurements by the DoD or DISA?

To assess the value, a comparison with historical spending on Red Hat software and support by the Department of Defense (DoD) and specifically the Defense Information Systems Agency (DISA) is necessary. Analyzing past contract awards for similar products and support levels would reveal trends in pricing and volume. For instance, if previous contracts for comparable Red Hat offerings were significantly lower or higher, it could indicate changes in market prices, negotiation outcomes, or the scope of services. The current $11.7 million award needs to be contextualized against this historical spending pattern to determine if it represents an increase, decrease, or stable expenditure.

What is Carahsoft Technology Corp.'s track record with Red Hat software contracts within the federal government?

Carahsoft Technology Corp. is a well-known reseller of IT solutions to the public sector, often acting as an aggregator for various software and hardware vendors, including Red Hat. Their track record typically involves facilitating government procurement through established contract vehicles like GSA Schedules and GWACs. Analyzing Carahsoft's history with Red Hat contracts would involve reviewing the volume and value of similar awards they have managed, their performance ratings on past contracts, and their ability to meet delivery and support requirements. Their role as a reseller means the underlying Red Hat product quality and support are key, but Carahsoft's efficiency in contracting and distribution is also a factor.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this software support contract?

The provided data does not include information on Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. For a software support contract, these are critical for measuring the effectiveness and responsiveness of the vendor. Typical SLAs might include response times for technical issues, resolution times for critical bugs, uptime guarantees for support portals, and availability of technical expertise. Without defined KPIs and SLAs, it is challenging for the DoD to objectively assess whether they are receiving adequate value and timely support for the $11.7 million investment. Oversight would rely on the contracting officer's representative (COR) to monitor performance qualitatively.

How does the 'BPA Call' acquisition method impact the overall cost-effectiveness and competition for this Red Hat software?

Awarding this contract via a Blanket Purchase Agreement (BPA) Call suggests that the underlying BPA was previously established through a competitive process, likely offering pre-negotiated pricing and terms. A BPA Call is essentially an order placed against an existing BPA. This method can enhance cost-effectiveness by leveraging bulk purchasing power and potentially securing volume discounts. It also streamlines the acquisition process, reducing administrative burden and lead times. While the initial BPA competition ensures a baseline level of price discovery, the specific competition for this 'call' might be limited to the vendors already on the BPA, potentially reducing the breadth of competition compared to a new full and open solicitation, though it often provides better value than non-competitive awards.

What is the potential risk associated with relying on a single vendor, Carahsoft Technology Corp., for Red Hat software and support, even if procured competitively?

While Carahsoft Technology Corp. is the awardee, they are acting as a reseller for Red Hat products. The primary vendor risk lies with Red Hat itself. However, relying on Carahsoft as the contracting intermediary introduces potential risks related to their service delivery, responsiveness, and administrative processes. If Carahsoft faces financial instability or operational issues, it could disrupt the supply chain for Red Hat software and support. Furthermore, even with competitive bidding, the long-term reliance on specific software ecosystems like Red Hat's can lead to vendor lock-in, making future transitions to alternative solutions more complex and costly. The government should ensure robust contract management and monitor Carahsoft's performance closely.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $201,504,843

Exercised Options: $11,823,085

Current Obligation: $11,667,091

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600124A0056

IDV Type: BPA

Timeline