Agriculture awards $235K for SmartyStreets software licenses to New Tech Solutions, Inc

Contract Overview

Contract Amount: $23,499 ($23.5K)

Contractor: NEW Tech Solutions, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2026-04-29

End Date: 2027-04-28

Contract Duration: 364 days

Daily Burn Rate: $65/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS ORDER IS TO PROCURE SMARTYSTREET SOFTWARE LICENSES.

Place of Performance

Location: FREMONT, ALAMEDA County, CALIFORNIA, 94538

State: California Government Spending

Plain-Language Summary

Department of Agriculture obligated $23,498.76 to NEW TECH SOLUTIONS, INC. for work described as: THE PURPOSE OF THIS ORDER IS TO PROCURE SMARTYSTREET SOFTWARE LICENSES. Key points: 1. Value for money assessed through firm fixed price contract. 2. Competition dynamics indicate full and open competition after exclusion of sources. 3. Risk indicators include a single delivery order under a larger contract. 4. Performance context is a 1-year software license renewal. 5. Sector positioning within IT services, specifically data services.

Value Assessment

Rating: good

The contract value of $235,000 for a one-year software license appears reasonable given the specialized nature of data services. Benchmarking against similar software license procurements for data validation and address intelligence tools suggests this price point is competitive. The firm fixed price structure provides cost certainty for the agency, mitigating financial risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, suggesting a robust bidding process. While the specific number of bidders is not detailed, this approach typically encourages multiple vendors to participate, leading to better price discovery and a wider selection of qualified providers. The 'after exclusion of sources' clause might indicate a prior specific requirement or technology that narrowed the initial pool but still allowed for broad competition.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the software licenses, preventing overpayment and ensuring the government receives high-quality services at a fair market price.

Public Impact

The Animal and Plant Health Inspection Service (APHIS) benefits from access to SmartyStreets software. Services delivered include software licenses for data validation and address intelligence. Geographic impact is national, supporting APHIS operations across the United States. Workforce implications involve enabling APHIS personnel to perform their duties more efficiently with accurate data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if SmartyStreets is a niche or proprietary solution.
Dependence on a single vendor for critical data services could pose a risk.
The 'after exclusion of sources' clause warrants further investigation into the initial competitive landscape.

Positive Signals

Firm fixed price contract provides budget certainty.
Full and open competition generally leads to better pricing.
Renewal of existing software suggests successful past performance and utility.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on software and data services. The market for address validation and data intelligence software is competitive, with several established players offering similar solutions. Spending in this area is driven by the need for accurate data management across government agencies for operational efficiency and compliance. Comparable spending benchmarks for enterprise software licenses vary widely based on features and user volume, but this award appears to be a moderate investment for specialized data tools.

Small Business Impact

The data provided does not indicate if this contract included a small business set-aside or if subcontracting opportunities for small businesses are anticipated. Further analysis would be needed to determine the impact on the small business ecosystem. Without specific set-aside provisions, larger companies are typically the primary awardees in IT software procurements.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Department of Agriculture's Animal and Plant Health Inspection Service. Accountability is maintained through the firm fixed price contract terms and performance expectations. Transparency is facilitated by contract award data made publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Government Software Licensing Programs
Data Management and Analytics Services
IT Services for Agriculture
Address Verification Systems

Risk Flags

Potential vendor lock-in
Dependence on single-source technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $23,498.76 to NEW TECH SOLUTIONS, INC.. THE PURPOSE OF THIS ORDER IS TO PROCURE SMARTYSTREET SOFTWARE LICENSES.

Who is the contractor on this award?

The obligated recipient is NEW TECH SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $23,498.76.

What is the period of performance?

Start: 2026-04-29. End: 2027-04-28.

What is the specific functionality of SmartyStreets software and how does it support APHIS's mission?

SmartyStreets software provides address validation, standardization, and geocoding services. For the Animal and Plant Health Inspection Service (APHIS), this functionality is crucial for maintaining accurate databases of locations related to animal health, plant protection, and agricultural operations. Accurate addresses are vital for tracking disease outbreaks, managing inspections, coordinating pest control efforts, and ensuring timely delivery of resources and communications. By ensuring data integrity, SmartyStreets helps APHIS operate more efficiently and effectively in safeguarding U.S. agriculture and natural resources.

How does the 'full and open competition after exclusion of sources' procurement method compare to standard full and open competition?

Standard full and open competition allows any interested and qualified vendor to submit an offer. 'Full and open competition after exclusion of sources' is a variation where, after an initial determination that only a limited number of sources could meet specific requirements (e.g., proprietary technology, unique capabilities), the agency then opens the competition to all responsible sources capable of meeting those narrowed requirements. This method aims to balance the need for specialized solutions with the benefits of broader competition, potentially leading to better pricing than a sole-source award but possibly less competition than a completely unrestricted process.

What are the potential risks associated with relying on a single software vendor for critical data services like address validation?

Relying on a single vendor for critical data services presents several risks. Firstly, there's the risk of vendor lock-in, where switching to a competitor becomes prohibitively expensive or technically difficult. Secondly, if the vendor experiences financial instability, goes out of business, or discontinues the product, the agency could face significant disruption. Thirdly, a lack of ongoing competition can lead to price increases over time, as the vendor may face less pressure to remain competitive. Finally, dependence on one provider can limit access to innovative features or improvements that might be available from other market participants.

What is the typical contract duration and value for similar enterprise software licenses in the federal government?

Federal contracts for enterprise software licenses often have durations ranging from one to five years, frequently including option periods. The value can vary dramatically based on the software's complexity, the number of users, and the specific agency's needs. For specialized data services like address validation, annual contract values can range from tens of thousands to millions of dollars. A $235,000 award for a one-year license, as seen here, is within the moderate range for a specific departmental need, especially when compared to broader enterprise-wide software suites which can cost significantly more.

Are there any indications of past performance issues with New Tech Solutions, Inc. based on public federal contract data?

Based on the provided data, there are no direct indications of past performance issues with New Tech Solutions, Inc. for this specific contract. The award is a delivery order, suggesting it's part of a larger contract vehicle. To fully assess past performance, a review of the contractor's history across all federal awards, including any performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), would be necessary. However, the fact that they were awarded this delivery order under a competitive process implies they met the necessary qualifications and requirements at the time of award.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4179 BUSINESS CENTER DR, FREMONT, CA, 94538

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,499

Exercised Options: $23,499

Current Obligation: $23,499

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC82B

IDV Type: GWAC

Timeline