DHS FEMA's $20.9M contract for IT modernization awarded to Carahsoft Technology Corp

Contract Overview

Contract Amount: $20,933,351 ($20.9M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Homeland Security

Start Date: 2016-07-20

End Date: 2019-10-22

Contract Duration: 1,189 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF GRANTS MANAGEMENT MODERNIZATION: BUSINESS SYSTEMS INTEGRATION AND GOVERNANCE AND MANAGEMENT ASSESSMENT (B-SIGMA)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20472

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.9 million to CARAHSOFT TECHNOLOGY CORP for work described as: IGF::CT::IGF GRANTS MANAGEMENT MODERNIZATION: BUSINESS SYSTEMS INTEGRATION AND GOVERNANCE AND MANAGEMENT ASSESSMENT (B-SIGMA) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of nearly 3.5 years indicates a significant, long-term IT project. 3. The firm-fixed-price structure aims to control costs and transfer risk to the contractor. 4. Awarded to a single vendor, Carahsoft Technology Corp., for software publishing services. 5. The contract value of over $20 million represents a substantial investment in IT infrastructure. 6. Focus on business systems integration and governance points to critical modernization efforts.

Value Assessment

Rating: good

The contract value of $20.9 million for IT modernization services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT integration projects within federal agencies suggests that this price point is within expected ranges. The firm-fixed-price contract type also indicates a commitment to cost control by the agency. Without specific details on the deliverables and the market rates for comparable custom integration and governance services, a precise value-for-money assessment is challenging, but the structure suggests an effort to achieve good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that it resulted in a single award suggests that Carahsoft Technology Corp. was the most advantageous offer based on the evaluation criteria. The level of competition, while not explicitly detailed in terms of the number of bidders, is generally positive for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A full and open competition provides taxpayers with assurance that the contract was awarded through a fair process, likely resulting in a more competitive price than a sole-source or limited competition award.

Public Impact

Federal agencies, specifically FEMA, benefit from modernized business systems, leading to improved operational efficiency and data governance. The services delivered include business systems integration and governance and management assessment, crucial for IT infrastructure. The geographic impact is primarily within the District of Columbia, where the contract is registered, but the benefits extend to FEMA's national operations. Workforce implications may include the need for skilled IT professionals to manage and implement the new systems, both within FEMA and at the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the integrated systems become highly proprietary.
Risk of scope creep if requirements are not clearly defined and managed throughout the project lifecycle.
Dependence on a single contractor for critical IT modernization could pose continuity risks.
Ensuring adequate technical expertise within FEMA to oversee the complex integration process.

Positive Signals

The firm-fixed-price contract structure helps mitigate cost overruns.
Awarded through full and open competition, suggesting a competitive selection process.
Focus on modernization and governance indicates a strategic investment in IT infrastructure.
The contract duration allows for thorough implementation and testing of new systems.

Sector Analysis

This contract falls within the Software Publishers (NAICS 511210) sector, specifically related to IT services and business systems integration. The federal IT services market is substantial, with agencies continually investing in modernizing their infrastructure to improve efficiency and security. This contract for FEMA's business systems integration and governance fits within the broader trend of federal agencies seeking to upgrade legacy systems and enhance their operational capabilities through technology. Comparable spending benchmarks for large-scale IT modernization projects within federal agencies often range in the tens to hundreds of millions of dollars, depending on the complexity and scope.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions, nor does it explicitly mention subcontracting goals for small businesses. The award to Carahsoft Technology Corp., a large reseller, suggests that the primary contract may not directly benefit small businesses unless they are part of Carahsoft's subcontracting network. Further analysis would be needed to determine if subcontracting opportunities were made available to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Emergency Management Agency (FEMA) contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the agreed-upon services within the set budget. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal IT Modernization Programs
Agency Business Systems Modernization
Software and IT Services Procurement
Homeland Security IT Investments
FEMA IT Infrastructure

Risk Flags

Potential for vendor lock-in
Scope creep risk
Integration complexity with legacy systems
Cybersecurity vulnerabilities during modernization

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.9 million to CARAHSOFT TECHNOLOGY CORP. IGF::CT::IGF GRANTS MANAGEMENT MODERNIZATION: BUSINESS SYSTEMS INTEGRATION AND GOVERNANCE AND MANAGEMENT ASSESSMENT (B-SIGMA)

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2016-07-20. End: 2019-10-22.

What is the track record of Carahsoft Technology Corp. in delivering similar IT modernization and business systems integration projects for federal agencies?

Carahsoft Technology Corp. is a major government IT reseller and solutions provider, known for its extensive catalog of software and hardware from leading manufacturers. While they primarily act as a reseller and integrator, their track record in delivering complex IT solutions to federal agencies is extensive. They often partner with prime contractors and technology vendors to fulfill large government contracts. For IT modernization and business systems integration, Carahsoft's strength lies in its ability to aggregate solutions and manage the procurement process for agencies. Their success is often measured by their ability to facilitate the delivery of technology and services from their partners to meet specific agency requirements, rather than direct development. Specific project outcomes would depend on the underlying technology providers and the agency's program management.

How does the $20.9 million contract value compare to other federal IT modernization contracts of similar scope and duration?

The $20.9 million contract value for IT modernization services over approximately 3.5 years is within a moderate range for federal IT projects. Large-scale enterprise-wide IT modernization efforts, especially those involving significant system integration, cloud migration, or cybersecurity enhancements, can easily reach tens or even hundreds of millions of dollars. For instance, major ERP system implementations or core infrastructure overhauls can exceed $50 million. However, contracts focused on specific business system integrations or governance assessments, like this one, can be executed within this budget. The firm-fixed-price structure suggests a defined scope, which helps in comparing value. Without knowing the exact technical scope and deliverables, it's difficult to provide a precise benchmark, but it appears to be a substantial but not exceptionally large investment for the described services.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns or delays, despite the firm-fixed-price structure. Another risk is vendor lock-in, where FEMA becomes overly dependent on Carahsoft's specific solutions or integration methods, making future changes difficult or costly. Technical risks, such as integration challenges with existing legacy systems or cybersecurity vulnerabilities introduced during modernization, are also significant. Mitigation strategies likely include robust contract management by FEMA, clear definition and control of project scope, regular performance reviews, and potentially requiring Carahsoft to use open standards or provide detailed documentation to reduce lock-in. Cybersecurity assessments and testing would be critical throughout the project lifecycle.

How effective is the firm-fixed-price contract type in ensuring value for money for this IT modernization project?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and understood. For this IT modernization project, FFP shifts the risk of cost overruns to the contractor, Carahsoft Technology Corp. This incentivizes the contractor to manage costs efficiently and complete the project within the agreed-upon budget. If the scope is accurately defined and managed, FFP can lead to predictable costs for FEMA and prevent budget blowouts. However, if the scope is ambiguous or unforeseen technical challenges arise, the contractor might be disincentivized from addressing them fully, or the agency might face difficulties in requesting necessary changes without significant cost implications. Therefore, the effectiveness hinges on the clarity of the SOW and FEMA's ability to manage scope.

What are the historical spending patterns for IT modernization at FEMA, and how does this contract fit within them?

FEMA, like many agencies within the Department of Homeland Security (DHS), has historically invested significantly in IT modernization to improve its disaster response, recovery, and management capabilities. Spending patterns often reflect a need to upgrade aging systems, enhance data analytics for better situational awareness, and improve communication platforms. Contracts for IT modernization at FEMA can range from large enterprise-wide system overhauls to smaller, targeted projects for specific business functions. This $20.9 million contract for business systems integration and governance appears to be a mid-sized investment focused on foundational IT improvements. It likely fits within a broader strategy to enhance the agency's operational resilience and efficiency, aligning with consistent federal efforts to modernize IT infrastructure across various departments.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

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: $23,150,850

Exercised Options: $20,933,351

Current Obligation: $20,933,351

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0119Y

IDV Type: FSS

Timeline