Department of State spent $21.5M on virtualization software licenses via GSA SmartBuy BPA

Contract Overview

Contract Amount: $21,552,864 ($21.6M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of State

Start Date: 2010-09-28

End Date: 2015-09-28

Contract Duration: 1,826 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VIRTUALIZATION SOFTWARE ENTERPRISE LICENSE: THIS BPA CALL IS ISSUED AGAINST CARAHSOFT'S GSA SMARTBUY BLANKET PURCHASE AGREEMENT, W91QUZ09A0003, PURSUANT TO ITS GSA FSS CONTRACT GS35F0131R.

Place of Performance

Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22150, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $21.6 million to CARAHSOFT TECHNOLOGY CORP for work described as: VIRTUALIZATION SOFTWARE ENTERPRISE LICENSE: THIS BPA CALL IS ISSUED AGAINST CARAHSOFT'S GSA SMARTBUY BLANKET PURCHASE AGREEMENT, W91QUZ09A0003, PURSUANT TO ITS GSA FSS CONTRACT GS35F0131R. Key points: 1. Contract awarded through a GSA SmartBuy Blanket Purchase Agreement (BPA), leveraging existing GSA Schedule. 2. The contract utilized a firm-fixed-price structure, providing cost certainty for the government. 3. Awarded to Carahsoft Technology Corp, a known reseller of enterprise software. 4. The contract duration was 5 years, indicating a long-term need for virtualization software. 5. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of computer-related services. 6. This BPA call was competed under full and open competition, allowing all eligible vendors to bid.

Value Assessment

Rating: good

The total value of $21.5 million over five years for enterprise virtualization software licenses appears reasonable, especially considering it was procured through a GSA Schedule BPA. This method typically offers pre-negotiated pricing and streamlined acquisition. Benchmarking against similar enterprise software licenses is challenging without specific product details, but the per-year cost of approximately $4.3 million falls within expected ranges for large government deployments. The firm-fixed-price nature of the award helps control costs and manage budget expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a GSA SmartBuy BPA, which itself was established through full and open competition. The specific BPA call was also issued under full and open competition, meaning all responsible vendors with a GSA Schedule contract for relevant products could compete. While the data does not specify the number of bids received for this particular BPA call, the 'full and open' designation suggests a competitive environment that should drive favorable pricing.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from the widest possible range of offers, leading to potentially lower prices and better value for the government's investment in virtualization software.

Public Impact

The Department of State is the primary beneficiary, gaining access to essential virtualization software. This software likely supports the department's IT infrastructure, enabling efficient data management and application hosting. The contract supports the operational needs of the Department of State across its various functions. Workforce implications are indirect, supporting IT personnel who manage and utilize the virtualized environment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific product details makes it difficult to assess if the most cost-effective virtualization solution was chosen.
The long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single BPA call, even if competed, might limit access to newer or alternative virtualization technologies.

Positive Signals

Procurement through GSA SmartBuy leverages existing government-wide agreements, implying a degree of pre-vetted value.
Firm-fixed-price contract provides budget certainty for the Department of State.
Full and open competition suggests a robust process for selecting the vendor and pricing.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on software licensing for virtualization. Virtualization is a foundational technology for modern IT infrastructure, enabling cloud computing, data center consolidation, and improved resource utilization. The market for enterprise virtualization software is dominated by a few major players, and government procurement often leverages GSA Schedules and BPAs to access these solutions efficiently. Spending in this area is significant across federal agencies as they modernize their IT systems.

Small Business Impact

The data indicates this contract was awarded to Carahsoft Technology Corp, a large reseller. There is no explicit information regarding small business set-asides or subcontracting plans for this specific BPA call. As a reseller, Carahsoft may work with various manufacturers, some of which could be small businesses, but this is not detailed in the provided data. The primary focus appears to be on fulfilling the enterprise software needs of the Department of State.

Oversight & Accountability

The contract was issued against a GSA SmartBuy BPA, which is managed by GSA. Oversight would involve GSA's contract management processes and the Department of State's internal procurement and IT asset management. Transparency is facilitated by the public nature of GSA Schedule contracts and BPA awards. Inspector General oversight would apply to potential fraud, waste, or abuse related to the contract's execution and spending.

Related Government Programs

GSA SmartBuy Program
GSA Federal Supply Schedule (FSS)
Enterprise Software Licensing
IT Infrastructure Modernization
Department of State IT Spending

Risk Flags

Potential for vendor lock-in due to long-term enterprise license.
Lack of specific product details hinders precise value assessment.
Reliance on reseller may obscure direct manufacturer relationship and pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $21.6 million to CARAHSOFT TECHNOLOGY CORP. VIRTUALIZATION SOFTWARE ENTERPRISE LICENSE: THIS BPA CALL IS ISSUED AGAINST CARAHSOFT'S GSA SMARTBUY BLANKET PURCHASE AGREEMENT, W91QUZ09A0003, PURSUANT TO ITS GSA FSS CONTRACT GS35F0131R.

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2010-09-28. End: 2015-09-28.

What specific virtualization software product(s) were procured under this BPA call?

The provided data does not specify the exact virtualization software product(s) procured under this BPA call. It only indicates 'VIRTUALIZATION SOFTWARE ENTERPRISE LICENSE'. Carahsoft Technology Corp is a reseller for major virtualization vendors like VMware, Microsoft, and Red Hat. Without the specific product, it is difficult to perform a precise technical or cost comparison against market alternatives. However, the procurement through a GSA Schedule BPA suggests that the chosen solution met specific government requirements and was likely a widely adopted enterprise-grade product.

How does the total contract value of $21.5 million compare to similar enterprise virtualization software procurements by other federal agencies?

Comparing the $21.5 million total contract value over five years (approximately $4.3 million annually) requires context on the scope and scale of the Department of State's virtualization needs. Large federal agencies often spend millions on enterprise software licenses. For instance, other large departments like Defense or HHS might have similar or higher annual expenditures depending on their user base, data center size, and specific virtualization strategy. The value appears within a reasonable range for an enterprise-wide deployment, especially considering it was procured via a GSA BPA, which typically offers competitive pricing. However, a precise benchmark would necessitate knowing the specific software and the number of endpoints or servers licensed.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, enterprise software license agreements, especially for critical infrastructure like virtualization, would include terms related to software availability, support response times, patch management, and potentially performance metrics. The Department of State would have internal requirements and expectations for the software's reliability and the vendor's support. These would usually be outlined in the BPA call document or the underlying GSA Schedule contract terms.

What is Carahsoft Technology Corp's track record with the Department of State for similar IT procurements?

Carahsoft Technology Corp is a major government IT reseller and has a significant track record of awards across various federal agencies, including the Department of State. While this specific data point is for virtualization software, Carahsoft frequently wins contracts for software, cybersecurity solutions, and cloud services. Their business model relies on strong relationships with both government agencies and software manufacturers. The Department of State has awarded numerous contracts to Carahsoft over the years, indicating a consistent and established relationship for fulfilling IT needs through various contract vehicles like GSA Schedules and BPAs.

Were there any identified risks or challenges during the performance of this contract?

The provided data does not explicitly list any risks or challenges encountered during the performance of this contract. However, common risks associated with large enterprise software procurements include potential cost overruns if not managed tightly (though mitigated by firm-fixed-price), vendor lock-in, integration issues with existing systems, and the need for ongoing training and support. Given the contract's duration and the nature of enterprise software, ensuring continuous alignment with evolving technological needs and security requirements would have been an ongoing consideration for the Department of State.

How has the Department of State's spending on virtualization software evolved over time, and does this contract represent a significant shift?

This contract, spanning from 2010 to 2015 with a value of $21.5 million, represents a substantial investment in virtualization software during that period. Without historical spending data prior to 2010 or subsequent data, it's difficult to definitively state if it represents a 'shift'. However, the early 2010s were a period of significant IT modernization and cloud adoption for many federal agencies, where virtualization was a key enabler. This contract likely reflects the Department of State's strategic move to consolidate data centers, improve efficiency, and enhance IT agility through virtualization, aligning with broader government IT trends of the time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12369 SUNRISE VALLEY DR,STE. D2, RESTON, VA, 20191

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $24,657,162

Exercised Options: $21,552,864

Current Obligation: $21,552,864

Parent Contract

Parent Award PIID: GS35F0131R

IDV Type: FSS

Timeline