DoD's $78M VMware ELA with Carahsoft Technology Corp. awarded via full and open competition

Contract Overview

Contract Amount: $78,149,727 ($78.1M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2013-09-25

End Date: 2014-09-29

Contract Duration: 369 days

Daily Burn Rate: $211.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VMWARE ELA

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $78.1 million to CARAHSOFT TECHNOLOGY CORP for work described as: VMWARE ELA Key points: 1. The contract represents a significant investment in virtualization software for the Department of Defense. 2. Carahsoft Technology Corp. is a major reseller of software for government agencies. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract is approximately one year, indicating a need for ongoing software licensing. 5. The fixed-price nature of the contract provides cost certainty for the government. 6. The specific software covered by the ELA is VMware, a leading virtualization platform.

Value Assessment

Rating: fair

The contract value of approximately $78 million for a one-year VMware ELA is substantial. Benchmarking this against other large government software agreements requires detailed knowledge of specific VMware product suites and negotiated discounts. Without direct comparable ELA data for similar scope and duration, assessing value-for-money is challenging. However, the use of a reseller like Carahsoft may introduce a margin compared to direct purchasing, though their role in managing multiple vendors can offer convenience.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of multiple bidders, if any, would indicate a healthy competitive environment. The specific number of bids received is not detailed, but the award suggests that Carahsoft Technology Corp. offered the most advantageous proposal based on the evaluation criteria.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring the government receives competitive pricing for its software needs.

Public Impact

The Department of Defense benefits from access to essential virtualization software, enabling efficient IT infrastructure management. This contract supports the operational capabilities of various defense information systems. The software likely impacts IT personnel across different defense agencies responsible for maintaining and utilizing virtualized environments. Geographic impact is nationwide, supporting DoD installations and operations across the United States and potentially overseas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for markups by reseller Carahsoft Technology Corp. compared to direct vendor pricing.
Lack of specific details on the exact VMware products and quantities limits precise value assessment.
The fixed-price nature might not capture potential cost savings if market prices for VMware decrease during the contract period.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The use of an Enterprise License Agreement (ELA) can streamline software procurement and management.
VMware software is critical for modernizing and optimizing IT infrastructure, potentially leading to long-term cost efficiencies.

Sector Analysis

The software industry, particularly enterprise software like virtualization, is a significant segment of federal IT spending. VMware is a dominant player in this market, providing solutions for server consolidation, cloud computing, and desktop virtualization. Government agencies increasingly rely on such technologies to enhance agility, reduce hardware costs, and improve disaster recovery capabilities. This contract fits within the broader trend of federal agencies consolidating software licenses and adopting enterprise-wide agreements to achieve economies of scale and better manage their software assets.

Small Business Impact

This contract was awarded to Carahsoft Technology Corp., a reseller. While Carahsoft is a large entity, the contract itself does not indicate a small business set-aside. Analysis of subcontracting opportunities for small businesses would depend on Carahsoft's internal policies and the specific nature of the services or support required beyond the software license itself. Without further details, the direct impact on the small business ecosystem is unclear, though large resellers often have programs to engage with small business partners.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Information Systems Agency (DISA) and the Department of Defense's contracting and financial management offices. Accountability is maintained through contract performance monitoring, adherence to the terms and conditions of the firm-fixed-price agreement, and potentially through IT asset management systems. Transparency is facilitated by the contract award notice, though detailed pricing breakdowns and usage metrics are often proprietary. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

VMware Software Licenses
Enterprise Software Agreements
Department of Defense IT Modernization Programs
Defense Information Systems Agency (DISA) Contracts
Software Reseller Agreements

Risk Flags

Potential for reseller markup impacting overall cost-effectiveness.
Lack of specific product details limits granular value assessment.
Contract duration is relatively short (approx. 1 year), requiring subsequent procurements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $78.1 million to CARAHSOFT TECHNOLOGY CORP. VMWARE ELA

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 $78.1 million.

What is the period of performance?

Start: 2013-09-25. End: 2014-09-29.

What specific VMware products and versions are included in this Enterprise License Agreement?

The provided data does not specify the exact VMware products and versions covered under this Enterprise License Agreement (ELA). ELAs typically encompass a broad range of software, potentially including vSphere, vCenter Server, Horizon, NSX, and others, often across multiple editions. To understand the full scope, one would need to consult the contract's statement of work or associated licensing documentation. The absence of this detail makes it difficult to precisely benchmark the value or assess the technological capabilities being procured.

How does the $78 million price compare to similar VMware ELAs awarded to other federal agencies or large state/local governments?

Directly comparing the $78 million price tag for this one-year VMware ELA to other government contracts is challenging without knowing the specific products, quantities, and negotiated discount levels. Large ELAs can vary significantly based on the size and scope of the deployment. However, for context, major federal agencies often enter into multi-year ELAs worth tens to hundreds of millions of dollars. The price per unit or per user is the most effective metric for comparison, but this data is not available here. Carahsoft, as a reseller, may also influence the final price compared to direct purchases from VMware.

What is Carahsoft Technology Corp.'s role in fulfilling this contract, and what is their typical margin on VMware products?

Carahsoft Technology Corp. acts as a reseller and aggregator for VMware products under this contract. Their primary role is to provide a streamlined procurement channel for the Department of Defense, often leveraging existing government-wide acquisition contracts or cooperative purchasing agreements. While Carahsoft is known for its extensive government IT sales, their specific margin on VMware products is proprietary information and can vary based on volume, negotiated terms with VMware, and the specific products involved. Government agencies typically evaluate the overall value proposition, including support and ease of acquisition, when selecting resellers.

What are the key performance indicators (KPIs) used to measure the success of this VMware ELA for the Department of Defense?

The provided data does not detail the specific Key Performance Indicators (KPIs) for this contract. However, for a VMware ELA, typical KPIs would likely focus on aspects such as software uptime and availability, successful deployment of virtualized resources, user satisfaction with virtual desktop infrastructure (if applicable), reduction in physical server footprint, energy savings, and the efficiency of IT operations and management. The Defense Information Systems Agency (DISA) would likely have internal metrics to track the utilization and effectiveness of the licensed software in supporting its mission objectives.

Has the Department of Defense previously procured VMware software through Carahsoft Technology Corp., and what is the historical spending trend?

While the provided data is for a specific contract awarded in 2013-2014, Carahsoft Technology Corp. has a long history of serving as a reseller for VMware products to various U.S. government agencies, including the Department of Defense. Historical spending trends for VMware within the DoD are likely substantial and have generally increased over time as virtualization became a standard IT practice. This specific $78 million contract is one data point within a larger, ongoing procurement relationship for VMware software across the federal government.

What are the potential risks associated with relying on a single reseller like Carahsoft for a large software ELA?

Relying on a single reseller like Carahsoft for a large software ELA can present several risks. Firstly, it may limit price competition if alternative resellers or direct purchasing options are not actively explored or available. Secondly, there's a potential for increased costs due to reseller markups. Thirdly, dependence on one vendor for procurement and support could reduce flexibility in adapting to changing market conditions or seeking alternative solutions. However, established resellers like Carahsoft often provide value through consolidated billing, vendor management, and specialized government procurement expertise, which can mitigate some of these risks.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12369 SUNRISE VALLEY DR,STE. D2, RESTON, VA, 11

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $78,149,727

Exercised Options: $78,149,727

Current Obligation: $78,149,727

Contract Characteristics

Consolidated Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ09A0003

IDV Type: IDC

Timeline