DoD awards $68.7M for Salesforce CRM, highlighting potential for cost savings and competitive pricing
Contract Overview
Contract Amount: $68,711,596 ($68.7M)
Contractor: Carahsoft Technology Corp
Awarding Agency: Department of Defense
Start Date: 2020-01-31
End Date: 2023-01-31
Contract Duration: 1,096 days
Daily Burn Rate: $62.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CRM SALESFORCE SOFTWARE
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $68.7 million to CARAHSOFT TECHNOLOGY CORP for work described as: CRM SALESFORCE SOFTWARE Key points: 1. Significant contract value of $68.7M for CRM software. 2. Carahsoft Technology Corp is the primary awardee. 3. Full and open competition was utilized, suggesting potential for competitive pricing. 4. The contract spans over three years, indicating a sustained need for the service.
Value Assessment
Rating: good
The contract value of $68.7M for Salesforce CRM appears reasonable given the duration and scope. Benchmarking against similar large-scale CRM deployments would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was employed, which is a positive indicator for price discovery. This method allows multiple vendors to bid, potentially driving down costs and ensuring fair market value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the CRM software and services.
Public Impact
Ensures critical CRM functionality for the Department of the Navy. Supports ongoing digital transformation efforts within the DoD. Provides a stable platform for managing customer relationships and data.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with a specific CRM platform.
- Need for ongoing training and support costs.
- Data security and privacy considerations for sensitive information.
Positive Signals
- Utilizes a competitive bidding process.
- Long-term contract provides stability.
- Supports a widely adopted and robust CRM solution.
Sector Analysis
The IT sector, particularly software procurement, is a significant area of federal spending. This contract for CRM software aligns with the trend of agencies investing in modernizing their IT infrastructure to improve efficiency and data management.
Small Business Impact
While this specific award went to Carahsoft Technology Corp, it's important to assess if subcontracting opportunities were made available to small businesses for implementation or support services.
Oversight & Accountability
The use of a delivery order under a larger contract structure implies that oversight mechanisms are in place. Regular performance reviews and adherence to contract terms are crucial for accountability.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns if scope expands.
- Dependence on a single software vendor.
- Risk of data breaches if security is not maintained.
- Challenges in user adoption and training.
Tags
electronic-computer-manufacturing, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $68.7 million to CARAHSOFT TECHNOLOGY CORP. CRM SALESFORCE SOFTWARE
Who is the contractor on this award?
The obligated recipient is CARAHSOFT TECHNOLOGY CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $68.7 million.
What is the period of performance?
Start: 2020-01-31. End: 2023-01-31.
What is the total cost of ownership for this Salesforce CRM implementation over its lifecycle, including licensing, customization, training, and support?
The total cost of ownership extends beyond the initial award amount. It encompasses recurring licensing fees, potential customization expenses for specific Navy requirements, comprehensive user training programs, and ongoing technical support. A detailed lifecycle cost analysis is necessary to fully understand the financial commitment and ensure long-term value realization for the Department of the Navy.
How does the performance of this Salesforce CRM implementation compare to industry benchmarks and the agency's own key performance indicators for user adoption and data accuracy?
Assessing performance against industry benchmarks and internal KPIs is crucial. This includes metrics like user adoption rates, data entry accuracy, system uptime, and the efficiency of CRM-driven processes. Regular performance reviews should track these indicators to identify areas for improvement and ensure the software is effectively meeting the Department of the Navy's operational needs and strategic goals.
What measures are in place to ensure data security and compliance with federal regulations (e.g., FedRAMP) for this cloud-based CRM solution?
Robust security measures are paramount for cloud-based CRM systems handling sensitive data. This includes ensuring the platform meets stringent federal security standards like FedRAMP authorization, implementing access controls, data encryption, regular security audits, and incident response plans. Continuous monitoring and adherence to evolving cybersecurity best practices are essential to protect government data.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0003920Q0002
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: $68,711,596
Exercised Options: $68,711,596
Current Obligation: $68,711,596
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: NNG15SC03B
IDV Type: GWAC
Timeline
Start Date: 2020-01-31
Current End Date: 2023-01-31
Potential End Date: 2023-01-31 00:00:00
Last Modified: 2023-01-20
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