DoD's $58.6M software license agreement with Carahsoft Technology Corp. awarded under a BPA call

Contract Overview

Contract Amount: $58,572,945 ($58.6M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2024-09-17

End Date: 2026-04-30

Contract Duration: 590 days

Daily Burn Rate: $99.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BASE YEAR - ENTERPRISE LICENSE AGREEMENT

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $58.6 million to CARAHSOFT TECHNOLOGY CORP for work described as: BASE YEAR - ENTERPRISE LICENSE AGREEMENT Key points: 1. Value for money appears fair, with a base year cost of $58.6M for enterprise software licenses. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are moderate, given the firm fixed-price contract type which shifts some risk to the contractor. 4. Performance context is for enterprise software licenses, a common but critical IT need. 5. Sector positioning is within the Defense sector, specifically for counterintelligence and security agency needs. 6. The contract duration of approximately 1.9 years (590 days) is relatively short for an enterprise license.

Value Assessment

Rating: fair

The base year cost of $58.6 million for enterprise software licenses is substantial. Benchmarking against similar large-scale software agreements is challenging without specific product details. However, the firm fixed-price contract type suggests that the pricing was agreed upon upfront, potentially offering predictability. The contract's value proposition hinges on the criticality and breadth of the software's application within the Defense Counterintelligence and Security Agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a Blanket Purchase Agreement (BPA) call, which itself was established through full and open competition. This implies that multiple vendors had the opportunity to bid on the BPA, and subsequent calls under that BPA are also expected to be competed. The presence of full and open competition generally fosters a more competitive pricing environment and allows for a wider range of solutions to be considered.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider selection of software solutions due to the open competition, which can lead to better value for the government's investment.

Public Impact

The primary beneficiaries are personnel within the Defense Counterintelligence and Security Agency (DCSA) who will utilize the licensed software. The services delivered are enterprise software licenses, crucial for operational efficiency and data management. The geographic impact is likely concentrated within DCSA facilities, primarily in Virginia where the agency is headquartered. Workforce implications include enabling DCSA staff with necessary software tools to perform their counterintelligence and security missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software becomes deeply integrated into agency workflows.
Reliance on a single vendor for critical software updates and support could pose a risk.
The specific software's effectiveness and user adoption are key factors for realizing the full value.
The contract's duration is relatively short, which might necessitate future re-competition or extension, introducing transition risks.

Positive Signals

Awarded under a firm fixed-price contract, which limits cost overruns for the government.
The software is procured through a BPA call, suggesting a pre-vetted and potentially streamlined acquisition process.
Full and open competition for the underlying BPA indicates a robust market assessment and vendor engagement.
The vendor, Carahsoft Technology Corp., is a well-established reseller of government IT solutions, implying experience with federal procurement.

Sector Analysis

The software publishing industry (NAICS 511210) is a significant sector within the broader IT market, characterized by rapid innovation and diverse product offerings. Enterprise software licenses are a critical component for government agencies, enabling everything from productivity to specialized mission functions. Spending in this category is consistently high across federal agencies. This contract fits within the Defense sector's substantial IT procurement landscape, where agencies like DCSA require robust software solutions for national security missions.

Small Business Impact

This contract was awarded to Carahsoft Technology Corp., a large reseller, and does not appear to have a small business set-aside component (ss: false, sb: false). While Carahsoft may work with small business software developers, the primary awardee is not a small business. There is no explicit information provided regarding subcontracting plans for small businesses within this specific BPA call, though larger resellers often have such programs in place.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Counterintelligence and Security Agency's contracting and program management offices. As a firm fixed-price contract awarded via a BPA call, the primary accountability lies in ensuring the delivered software meets the specified requirements. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Enterprise Software Licensing
IT Services and Support
Software Publishers
Defense Agency IT Procurement
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for vendor lock-in
Reliance on specific software vendor
Software obsolescence risk
Integration challenges with existing systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.6 million to CARAHSOFT TECHNOLOGY CORP. BASE YEAR - ENTERPRISE LICENSE AGREEMENT

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 Counterintelligence and Security Agency).

What is the total obligated amount?

The obligated amount is $58.6 million.

What is the period of performance?

Start: 2024-09-17. End: 2026-04-30.

What specific software product(s) are being licensed under this agreement, and what is their criticality to DCSA operations?

The provided data does not specify the exact software product(s) licensed under this $58.6 million agreement. Carahsoft Technology Corp. is a reseller, meaning they provide a wide range of software from various publishers. The criticality of the software to DCSA operations is inferred from its procurement by a defense intelligence agency. Enterprise software licenses typically support core functions such as data management, communication, cybersecurity, or specialized analytical tools essential for counterintelligence and security missions. Without knowing the specific product, a precise assessment of its criticality is not possible, but its substantial cost suggests a high degree of importance.

How does the per-unit cost or total cost compare to similar enterprise software licenses procured by other federal agencies or within the private sector?

Direct comparison of the total cost ($58.6 million for the base year) to similar enterprise software licenses is difficult without knowing the specific software title, the number of users or endpoints covered, and the included features or support levels. Carahsoft Technology Corp. resells numerous software products, and pricing varies significantly. However, the fact that this is a firm fixed-price contract awarded under a BPA call suggests that pricing was negotiated and deemed acceptable at the time of award. To perform a robust comparison, one would need to identify comparable software suites (e.g., operating systems, productivity software, security platforms) procured by agencies of similar size and mission scope, and analyze their pricing structures, including volume discounts and contract vehicles.

What is Carahsoft Technology Corp.'s track record with the Department of Defense and specifically the Defense Counterintelligence and Security Agency?

Carahsoft Technology Corp. is a major government IT reseller with a significant track record across numerous federal agencies, including the Department of Defense (DoD). They frequently win contracts and are known for their ability to provide a wide array of software and hardware solutions through various contract vehicles, including BPAs. While specific contract history with the Defense Counterintelligence and Security Agency (DCSA) is not detailed in the provided data, Carahsoft's extensive experience with the DoD suggests a familiarity with its procurement processes and requirements. Their business model relies heavily on successful past performance and established relationships within the federal IT acquisition ecosystem.

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

The provided contract data does not explicitly list the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this software license. However, for enterprise software licenses, typical SLAs often revolve around software availability (uptime), response times for technical support, patch and update delivery schedules, and potentially performance metrics related to software speed or capacity. KPIs might focus on user adoption rates, reduction in support tickets, or successful integration with other systems. Given the firm fixed-price nature, the primary performance expectation is the delivery and ongoing availability of the licensed software as specified in the contract's statement of work or technical exhibit.

What is the historical spending pattern for enterprise software licenses by the Defense Counterintelligence and Security Agency?

The provided data focuses on a single contract award and does not offer historical spending patterns for enterprise software licenses by the Defense Counterintelligence and Security Agency (DCSA). To analyze historical spending, one would need access to DCSA's procurement data over several fiscal years, identifying all contracts related to software licenses, their values, durations, and the types of software procured. Such an analysis would reveal trends in spending, identify major software categories, and potentially highlight shifts in technology adoption or vendor reliance over time. Without this broader dataset, it's impossible to establish a historical context for this specific $58.6 million award.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

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

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: $270,946,889

Exercised Options: $58,572,945

Current Obligation: $58,572,945

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600119A0120

IDV Type: BPA

Timeline