DoD's $51.3M Splunk Deal with Carahsoft: A 5-Year Enterprise License for Electronic Computer Manufacturing
Contract Overview
Contract Amount: $51,294,719 ($51.3M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Defense
Start Date: 2019-04-19
End Date: 2024-04-19
Contract Duration: 1,827 days
Daily Burn Rate: $28.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SPLUNK ENTERPRISE LICENSE AGREEMENT SOFTWARE BUNDLE
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $51.3 million to CARAHSOFT TECHNOLOGY CORP for work described as: SPLUNK ENTERPRISE LICENSE AGREEMENT SOFTWARE BUNDLE Key points: 1. Significant investment in enterprise software for defense health. 2. Carahsoft Technology Corp is a key reseller, indicating potential pass-through costs. 3. Full and open competition was used, suggesting a competitive pricing process. 4. The contract spans five years, requiring ongoing budget allocation and performance monitoring.
Value Assessment
Rating: fair
The $51.3M price tag for a 5-year enterprise license is substantial. Benchmarking against similar large-scale software bundle agreements is crucial to assess value, especially considering the reseller model.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is positive for price discovery. However, as Carahsoft is a reseller, the ultimate price paid to the software developer might be higher than if procured directly.
Taxpayer Impact: Taxpayers are funding a significant enterprise software acquisition. Ensuring competitive pricing through the full and open process is key to maximizing value for money.
Public Impact
Ensures critical data analytics capabilities for the Defense Health Agency. Supports the agency's mission by providing advanced software tools. Potential for long-term reliance on this specific software ecosystem.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reseller model may inflate final cost.
- Long-term commitment requires sustained budget.
- Dependence on a single software vendor.
Positive Signals
- Full and open competition utilized.
- Supports critical defense health operations.
- Long contract duration provides stability.
Sector Analysis
This contract falls under IT services, specifically software licensing for defense. Spending benchmarks for enterprise software in government, particularly for large agencies like DHA, often run into millions of dollars annually.
Small Business Impact
While Carahsoft is a large reseller, the underlying software developer might be a small or medium business. Further analysis would be needed to determine the extent of small business participation in the supply chain.
Oversight & Accountability
The contract's duration and value necessitate robust oversight to ensure performance, adherence to terms, and continued cost-effectiveness throughout its lifespan.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for inflated costs due to reseller.
- Risk of vendor lock-in.
- Long-term budget commitment.
- Need for ongoing performance validation.
- Dependence on specific technology.
Tags
electronic-computer-manufacturing, department-of-defense, tx, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.3 million to CARAHSOFT TECHNOLOGY CORP. SPLUNK ENTERPRISE LICENSE AGREEMENT SOFTWARE BUNDLE
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 Health Agency).
What is the total obligated amount?
The obligated amount is $51.3 million.
What is the period of performance?
Start: 2019-04-19. End: 2024-04-19.
What is the breakdown of costs, including reseller margins and the actual software developer's price, to ensure fair market value?
A detailed cost breakdown is essential. Understanding the reseller's margin and the original software developer's pricing is critical for assessing fair market value. Without this, it's difficult to determine if the $51.3M represents a competitive price or includes significant markups, potentially impacting taxpayer value.
What are the risks associated with vendor lock-in and the potential for future price increases upon renewal or expansion?
Vendor lock-in is a significant risk, as switching enterprise software can be costly and disruptive. The long-term nature of this contract could lead to increased leverage for the vendor in future negotiations, potentially resulting in higher prices for renewals or additional licenses if alternatives are not actively explored.
How effectively does Splunk Enterprise support the DHA's evolving data analytics and cybersecurity needs?
The effectiveness hinges on Splunk Enterprise's capabilities aligning with DHA's specific requirements for data analytics and cybersecurity. Regular performance reviews and user feedback are crucial to gauge if the software is meeting operational demands and providing the expected return on investment for the $51.3M expenditure.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HT001519R0009
Offers Received: 2
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: $126,878,948
Exercised Options: $51,294,719
Current Obligation: $51,294,719
Actual Outlays: $3,023,090
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SC03B
IDV Type: GWAC
Timeline
Start Date: 2019-04-19
Current End Date: 2024-04-19
Potential End Date: 2024-04-19 00:00:00
Last Modified: 2023-11-17
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