Executive Summary
The single contract analyzed totals $294,589,912 in obligations, entirely civilian with zero defense exposure, centered on Department of Agriculture's enterprise-wide Salesforce software and support services via Carahsoft Technology Corp.
This firm fixed-price delivery order, fully obligated and outlayed under full and open competition, provides a bullish signal for Carahsoft with high materiality (9/10) and strength (8/10), representing an estimated $58.9M in annual revenue through its 5-year performance period ending June 19, 2025. The dominant theme is USDA Office of the Chief Financial Officer's sustained IT modernization investment in NAICS 541519 and PSC 7030 categories. Highest-conviction signal is revenue visibility for Carahsoft in civilian federal IT reselling. Key watch item is the contract's performance end date of 2025-06-19 for potential follow-on opportunities amid high pricing execution risk.
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Investment Signals (1)
- Carahsoft Technology Corp Awarded $294,589,912 USDA Salesforce Delivery Order (HIGH)▲
Carahsoft Technology Corp received a fully obligated $294,589,912 firm fixed-price delivery order from the Department of Agriculture's Office of the Chief Financial Officer on 2020-06-19 for enterprise-wide Salesforce software and support services, with base + all options exercised and fully outlayed over a 5-year period ending 2025-06-19 under full and open competition. This equates to an estimated $58,917,982 in annual revenue, signaling durable civilian IT revenue stream.
Risk Flags (1)
- Execution [HIGH RISK]▼
High pricing risk on Carahsoft Technology Corp's $294,589,912 firm fixed-price delivery order with Department of Agriculture, as full obligation and outlay under fixed pricing exposes the contractor to cost overruns without reimbursement.
Opportunities (1)
- ◆
Potential follow-on award for Carahsoft Technology Corp post-expiration of its $294,589,912 USDA Salesforce contract, given full execution through 2025-06-19 and USDA's ongoing enterprise IT needs.
Sector Themes (1)
- ◆
Department of Agriculture's Office of the Chief Financial Officer invested $294,589,912 in Carahsoft Technology Corp for DISC enterprise-wide Salesforce software and support under PSC 7030 and NAICS 541519, fully obligated over 5 years ending 2025-06-19.
Watch List (1)
- 👁
{"entity"=>"Carahsoft Technology Corp", "reason"=>"Expiration of $294,589,912 fully outlayed USDA Salesforce delivery order signals follow-on potential amid high pricing risk.", "trigger"=>"Performance end date 2025-06-19 for re-compete or modifications"}
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