Carahsoft, a major government IT distributor, is exploiting its unique market position to undermine fair competition in federal procurement. As a master government aggregator, Carahsoft controls pricing for many vendors and requires resellers to go through them. However, Carahsoft also directly competes with these same resellers—creating an unfair advantage and a clear conflict of interest.

Why This Matters

 • Conflicted Competition: Carahsoft sees and controls reseller pricing while bidding against them, giving itself an unfair edge in contract awards.

 • Market Manipulation: With access to internal reseller pricing data, Carahsoft can undercut resellers or influence vendor pricing to favor itself.

 • Violation of Procurement Integrity: Federal regulations are designed to prevent insider access to competitor pricing—yet Carahsoft’s structure violates this principle.

 • Harm to Small Businesses & VARs: Value-added resellers (VARs) rely on Carahsoft for pricing, only to find themselves competing against them in government contracts.

Potential Legal Violations

• Sherman Act Section 2: Carahsoft's practices may constitute monopolization or attempted monopolization under Section 2 of the Sherman Act, which prohibits the use of exclusionary conduct to maintain or acquire monopoly power. By leveraging its position as a master aggregator to disadvantage competitors in the reseller market, Carahsoft may be engaging in anticompetitive conduct to maintain market dominance.
• Federal Acquisition Regulation (FAR) Violations: Carahsoft's dual role potentially violates FAR 3.101-1, which requires government business to be conducted with complete impartiality and preferential treatment for none. Their access to competitor pricing information while competing against those same entities may violate procurement integrity provisions.
• Small Business Act Concerns: These practices may violate the Small Business Act's mandate to maintain and strengthen the overall economy of the Nation by ensuring small businesses receive a "fair proportion" of government purchases and contracts (15 U.S.C. § 631).

If the Department of Government Efficiency (DOGE) is serious about their mission to prevent fraud, waste, and abuse, they should investigate this distributor's practices and their impact on federal procurement integrity.

What Needs to Change?

We demand that government agencies and oversight bodies take immediate action to:

1. Investigate Carahsoft’s procurement conflicts and hold them accountable for anti-competitive practices.
2. Enforce stricter firewall regulations to separate aggregators from competitors.
3. Ensure transparency in government IT contracts so resellers and small businesses get a fair chance to compete.
4. Review potential violations of Section 2 of the Sherman Act and other federal competition laws.
5. Assess compliance with FAR requirements regarding procurement integrity and fair competition.

How You Can Help

Sign this petition to demand fair procurement practices and stop Carahsoft’s monopolistic control over the federal IT marketplace. Resellers, small businesses, and taxpayers deserve a level playing field—not a system where one company holds all the power.

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