HHS Spends $2.1M on SAP Business Objects Maintenance with Carahsoft Technology Corp

Contract Overview

Contract Amount: $2,099,218 ($2.1M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Health and Human Services

Start Date: 2015-08-21

End Date: 2019-09-24

Contract Duration: 1,495 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF ANNUAL MAINTENANCE FOR SAP BUSINESS OBJECTS ENTERPRISE SUPPORT

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.1 million to CARAHSOFT TECHNOLOGY CORP for work described as: IGF::OT::IGF ANNUAL MAINTENANCE FOR SAP BUSINESS OBJECTS ENTERPRISE SUPPORT Key points: 1. Spending on SAP Business Objects Enterprise Support is concentrated with Carahsoft Technology Corp. 2. The contract spans nearly four years, indicating a long-term need for software maintenance. 3. The primary risk lies in potential vendor lock-in and the lack of ongoing competitive pressure. 4. This spending falls within the IT sector, specifically software publishers.

Value Assessment

Rating: fair

The total award of $2,099,218.2 over approximately four years suggests a significant investment. Benchmarking against similar SAP support contracts is difficult without more granular data on the specific modules and support levels provided.

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 specific details of the competition and whether multiple bids were received are not provided, making it hard to assess the effectiveness of the competition in driving down costs.

Taxpayer Impact: Taxpayer funds are being used for essential software maintenance. The effectiveness of the competition in securing the best price will determine the ultimate taxpayer impact.

Public Impact

Ensures continued operation of critical SAP software for HHS administrative functions. Supports a key government agency's IT infrastructure. Potential for cost savings if competition was robust and pricing is benchmarked effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This expenditure is within the Information Technology sector, specifically for software publishers. Annual spending on software maintenance can vary widely, but for enterprise-level systems like SAP, significant investment is typical to ensure operational continuity and access to updates and support.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight would involve ensuring the services provided meet the terms of the contract and that the pricing remains competitive over the contract's duration. Regular performance reviews and market analysis are key accountability measures.

Related Government Programs

Risk Flags

Tags

software-publishers, department-of-health-and-human-services, md, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.1 million to CARAHSOFT TECHNOLOGY CORP. IGF::OT::IGF ANNUAL MAINTENANCE FOR SAP BUSINESS OBJECTS ENTERPRISE SUPPORT

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2015-08-21. End: 2019-09-24.

What specific SAP Business Objects modules and support levels are covered under this contract, and how do they compare to industry standards?

The provided data lacks specifics on the SAP Business Objects modules and support levels included. Understanding these details is crucial for a meaningful comparison against industry benchmarks. Without this granularity, it's difficult to ascertain if the $2.1 million expenditure represents fair market value for the services rendered, beyond the general classification of enterprise support.

How effective was the 'full and open competition' in securing competitive pricing for this SAP maintenance contract?

While the contract was awarded under 'full and open competition,' the effectiveness in securing competitive pricing is not evident from the data. Key indicators like the number of bids received, the spread between bids, and the final negotiated price relative to initial offers are missing. This lack of detail prevents a thorough assessment of whether the competition truly drove down costs for taxpayers.

What is the long-term strategy for managing SAP Business Objects licensing and support costs beyond this contract's expiration?

The current data focuses solely on this specific contract period. A comprehensive long-term strategy for managing SAP costs would involve evaluating alternative solutions, negotiating multi-year enterprise agreements, or exploring open-source alternatives if feasible. Without such a strategy, HHS risks continued reliance on potentially escalating costs with the current vendor.

Industry Classification

NAICS: InformationSoftware PublishersSoftware Publishers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FCISJB980001B

Offers Received: 3

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: $2,518,636

Exercised Options: $2,099,218

Current Obligation: $2,099,218

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0119Y

IDV Type: FSS

Timeline

Start Date: 2015-08-21

Current End Date: 2019-09-24

Potential End Date: 2019-09-24 00:00:00

Last Modified: 2026-01-23

More Contracts from Carahsoft Technology Corp

View all Carahsoft Technology Corp federal contracts →

Other Department of Health and Human Services Contracts

View all Department of Health and Human Services contracts →

Explore Related Government Spending