DoD's $103.6M Defense Connect Online contract with Carahsoft Technology Corp raises questions about competition and value
Contract Overview
Contract Amount: $103,658,371 ($103.7M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Defense
Start Date: 2011-06-24
End Date: 2015-06-24
Contract Duration: 1,461 days
Daily Burn Rate: $71.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DEFENSE CONNECT ONLINE, COLLABORATION SERVICES
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20191
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $103.7 million to CARAHSOFT TECHNOLOGY CORP for work described as: DEFENSE CONNECT ONLINE, COLLABORATION SERVICES Key points: 1. The contract awarded to Carahsoft Technology Corp for collaboration services represents a significant expenditure. 2. Lack of competition is a major concern, potentially leading to suboptimal pricing. 3. The 'Computer Systems Design Services' NAICS code suggests a broad category, but the specific service is collaboration. 4. The contract duration of over four years warrants scrutiny for ongoing necessity and market evolution.
Value Assessment
Rating: questionable
The contract's value of over $100 million for collaboration services, awarded without competition, suggests potential overpricing. Benchmarking against similar, competitively awarded contracts for comparable services is crucial to assess fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source definitive contract, indicating a lack of competitive bidding. This significantly limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely means taxpayers paid more than necessary for these collaboration services.
Public Impact
Taxpayers may have overpaid due to the lack of competitive bidding. The long contract duration could mean the technology or services are outdated or no longer the most cost-effective. Limited transparency into the sole-source justification hinders public understanding of the procurement decision.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Long contract duration
- Lack of clear justification for sole-source
Positive Signals
- Services provided to the Department of Defense
Sector Analysis
The IT services sector, particularly for collaboration tools, is highly dynamic. Benchmarks for similar services often show significant price variations based on competition and contract type. This contract's value should be compared to current market rates for comparable solutions.
Small Business Impact
The contract was awarded to Carahsoft Technology Corp, a large reseller. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this sole-source award.
Oversight & Accountability
The sole-source nature of this contract warrants close oversight to ensure the services were necessary and priced appropriately. A review of the justification for the sole-source award and performance metrics would be beneficial.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for overpayment due to lack of competition.
- Contract duration may exceed the useful life of technology.
- No clear indication of small business participation.
- Value for money is questionable without competitive benchmarking.
Tags
computer-systems-design-services, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $103.7 million to CARAHSOFT TECHNOLOGY CORP. DEFENSE CONNECT ONLINE, COLLABORATION SERVICES
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 $103.7 million.
What is the period of performance?
Start: 2011-06-24. End: 2015-06-24.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The provided data indicates a sole-source award, but the specific justification is missing. Typically, sole-source contracts are justified by factors such as unique capabilities, urgent needs, or lack of market availability. A thorough review of the contract file would be necessary to ascertain the documented rationale and assess its validity.
How does the cost of these collaboration services compare to similar, competitively procured contracts within the DoD or other federal agencies?
Without access to comparable contract data, a precise cost comparison is difficult. However, given the sole-source nature and the contract's value, it is highly probable that the per-unit cost or overall price is higher than what would be achieved through a competitive process. Benchmarking against current market offerings for similar collaboration platforms is recommended.
What was the actual utilization and effectiveness of the Defense Connect Online services throughout the contract period?
The data does not provide details on the utilization or effectiveness of the Defense Connect Online services. Assessing the return on investment and whether the services met the DoD's evolving needs would require analyzing usage statistics, user feedback, and performance metrics documented during the contract's lifecycle.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HC104711R4007
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12369 SUNRISE VALLEY DR STE D2, RESTON, VA, 20191
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $117,944,818
Exercised Options: $103,658,371
Current Obligation: $103,658,371
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2011-06-24
Current End Date: 2015-06-24
Potential End Date: 2015-12-24 00:00:00
Last Modified: 2015-12-24
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