DoD's $20M software maintenance contract with Carahsoft Technology Corp. awarded under full and open competition

Contract Overview

Contract Amount: $19,993,468 ($20.0M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2012-03-29

End Date: 2013-03-31

Contract Duration: 367 days

Daily Burn Rate: $54.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE MAINTENANCE

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 $20.0 million to CARAHSOFT TECHNOLOGY CORP for work described as: SOFTWARE MAINTENANCE Key points: 1. Value for money assessed through competitive bidding, indicating potential for favorable pricing. 2. Competition dynamics suggest a robust market for software publishers, benefiting price discovery. 3. Risk indicators appear low given the firm-fixed-price structure and established contractor. 4. Performance context is a single delivery order for software maintenance, a common federal need. 5. Sector positioning within IT, specifically software publishers, aligns with standard government procurement.

Value Assessment

Rating: good

The contract's value of approximately $20 million for software maintenance appears reasonable within the context of federal IT spending. Benchmarking against similar software maintenance contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs and shifts risk to the contractor. However, without specific details on the software and services provided, a definitive value comparison is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 6 bidders suggests a healthy level of competition for this software maintenance requirement. This broad competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified vendors.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. It also ensures that taxpayer funds are used efficiently by leveraging market forces.

Public Impact

The Department of the Army benefits from continued access to essential software. Software maintenance services ensure the operational readiness and security of critical IT systems. The contract's impact is primarily within the federal government's IT infrastructure. Workforce implications are likely minimal, as this contract focuses on software support rather than direct personnel augmentation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software is proprietary and maintenance is bundled.
Reliance on a single contractor for maintenance could pose a risk if performance degrades.
The specific software's criticality to operations warrants close monitoring of maintenance quality.

Positive Signals

Awarded through full and open competition, indicating a competitive pricing environment.
Firm-fixed-price contract type limits cost overruns for the government.
The contractor, Carahsoft Technology Corp., is a well-established vendor in the federal IT space.

Sector Analysis

This contract falls within the Information Technology sector, specifically the software publishers' sub-sector. The federal government is a significant consumer of software licenses and maintenance, with annual spending in the billions. This contract represents a portion of that spending, focused on ensuring the continued functionality and support of existing software assets. Comparable spending benchmarks would involve analyzing other software maintenance contracts across various agencies and for different types of software.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the contractor, Carahsoft Technology Corp., is a large business. There is no explicit information on subcontracting plans for small businesses within this specific award. Therefore, the direct impact on the small business ecosystem from this particular contract appears limited, though Carahsoft may engage small businesses in its broader operations.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified maintenance services. Transparency is provided through federal procurement databases like FPDS-NG, where contract award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules
IT Software Licenses and Maintenance
Department of Defense IT Procurement
Software Publishers Industry

Risk Flags

Lack of specific software details limits value assessment.
Absence of defined KPIs/SLAs hinders performance evaluation.
Potential for vendor lock-in with proprietary software.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to CARAHSOFT TECHNOLOGY CORP. SOFTWARE MAINTENANCE

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 Army).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2012-03-29. End: 2013-03-31.

What specific software product(s) does this maintenance contract cover, and what is their criticality to the Department of the Army's operations?

The provided data does not specify the exact software product(s) covered by this maintenance contract. This information is crucial for a comprehensive understanding of the contract's value and risk. Criticality would depend on the software's role in supporting essential military functions, command and control, logistics, or administrative processes. Without this detail, assessing the true impact and necessity of the $20 million expenditure is difficult. Further investigation into the contract line item details or associated documentation would be required to identify the specific software and its operational significance.

How does the awarded price of $19,993,467.93 compare to market rates for similar software maintenance agreements for comparable products?

Benchmarking this contract's price against market rates requires detailed knowledge of the specific software product, its vendor, and the scope of maintenance services. Carahsoft Technology Corp. often leverages government-wide acquisition contracts (GWACs) and other contract vehicles to provide software and services. The firm-fixed-price nature of this award suggests that the price was determined competitively at the time of award. To perform a robust comparison, one would need to identify similar maintenance contracts for the same or comparable software, considering factors like the number of users, service level agreements (SLAs), and the duration of the maintenance period. Without this granular data, a precise market rate comparison is not feasible from the provided summary.

What is Carahsoft Technology Corp.'s track record with the Department of Defense and other federal agencies for software maintenance contracts?

Carahsoft Technology Corp. is a prominent reseller and solutions provider in the federal IT market, frequently awarded contracts across various agencies, including the Department of Defense (DoD). Their track record generally involves facilitating the procurement of software licenses and related maintenance services from numerous software publishers. While they are known for their extensive contract vehicles and ability to serve the government market, the specific performance history on individual maintenance contracts, including this $20 million award, would require a deeper dive into contract performance reports, past performance evaluations, and any documented issues or successes. Their business model often relies on strong partnerships with software vendors and efficient contract administration.

What were the key performance indicators (KPIs) or service level agreements (SLAs) established for this software maintenance contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, software maintenance contracts would define metrics related to response times for issues, resolution times for critical bugs, availability of support personnel, and potentially uptime guarantees for associated services. The effectiveness of the maintenance provided and the value derived by the Department of the Army would be directly tied to the rigor and enforceability of these KPIs/SLAs. Without this information, it's challenging to assess the quality of service delivered beyond the contractor fulfilling the basic terms of the firm-fixed-price agreement.

How has the Department of Defense's spending on software maintenance, particularly through large resellers like Carahsoft, evolved over the past five years?

The Department of Defense's spending on software maintenance has generally been substantial and consistent, reflecting the critical role of IT in modern military operations. Spending through large resellers like Carahsoft has also been significant, as these companies often hold master contracts and possess the expertise to navigate complex government procurement requirements for a wide array of software products. Over the past five years, there has been a continued trend towards cloud adoption and software-as-a-service (SaaS) models, which can alter the nature of maintenance spending, shifting it towards subscription fees. However, traditional perpetual license maintenance remains a significant expenditure, especially for legacy systems and specialized defense software. Analyzing aggregate spending data from sources like FPDS would reveal trends in overall IT maintenance budgets and the proportion allocated through various contract vehicles and resellers.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

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, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,980,404

Exercised Options: $19,993,468

Current Obligation: $19,993,468

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0119Y

IDV Type: FSS

Timeline