HHS Awards $1.3M Firm-Fixed-Price Contract for Terraform Software Licenses and Support to GovSmart, Inc

Contract Overview

Contract Amount: $131,140 ($131.1K)

Contractor: Govsmart, Inc.

Awarding Agency: Department of the Interior

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $360/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS IS A FIRM-FIXED-PRICE DELIVERY ORDER THAT REQUIRES TERRAFORM ENTERPRISE INFRASTRUCTURE AS CODE (IAC) SELF-SERVICE SOFTWARE LICENSES AND SUPPORT SERVICES. THIS REQUIREMENT IS ON BEHALF OF DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), ADMINISTRAT

Place of Performance

Location: CHARLOTTESVILLE, CHARLOTTESVILLE CITY County, VIRGINIA, 22903

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $131,139.62 to GOVSMART, INC. for work described as: THIS IS A FIRM-FIXED-PRICE DELIVERY ORDER THAT REQUIRES TERRAFORM ENTERPRISE INFRASTRUCTURE AS CODE (IAC) SELF-SERVICE SOFTWARE LICENSES AND SUPPORT SERVICES. THIS REQUIREMENT IS ON BEHALF OF DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), ADMINISTRAT Key points: 1. GovSmart, Inc. secured a $1.3M contract for Terraform Enterprise Infrastructure as Code (IAC) software and support. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. 3. The firm-fixed-price structure shifts risk to the contractor, ensuring cost certainty for the government. 4. This spending falls under 'Other Computer Related Services' (NAICS 541519), a common area for IT infrastructure tools.

Value Assessment

Rating: good

The firm-fixed-price (FFP) contract type is generally favorable for the government, as it caps costs and shifts performance risk to the contractor. The total award amount of $1.3M for software licenses and support appears reasonable for enterprise-level IAC solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'Full and Open Competition After Exclusion of Sources,' suggesting that while multiple sources were considered, some were excluded, potentially impacting the breadth of competition. However, the 'full and open' designation implies a competitive process was still followed.

Taxpayer Impact: The firm-fixed-price contract provides cost certainty for taxpayers. The competitive award process aims to secure the best value, minimizing potential overspending.

Public Impact

HHS will gain access to essential Infrastructure as Code software, potentially improving IT infrastructure management and deployment efficiency. The use of Terraform can lead to more consistent, repeatable, and auditable infrastructure configurations. Taxpayers benefit from a competitive bidding process designed to achieve cost-effectiveness for critical software and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential impact of 'exclusion of sources' on ultimate price competitiveness.
Need to ensure ongoing support services meet HHS's technical requirements throughout the contract period.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded to a single vendor, potentially streamlining acquisition and support.
Supports modern IT infrastructure management practices.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on software licensing and support for Infrastructure as Code (IAC) tools. Spending in this area is crucial for modernizing government IT operations and ensuring efficient cloud and on-premise infrastructure management.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific award or subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Interior acted as the contracting agency for HHS. Oversight will involve monitoring contract performance, adherence to terms, and delivery of software and support services as specified.

Related Government Programs

Other Computer Related Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Reliance on vendor for critical software and support.
Need for robust performance monitoring to ensure value.
Ensuring effective knowledge transfer to internal HHS staff.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $131,139.62 to GOVSMART, INC.. THIS IS A FIRM-FIXED-PRICE DELIVERY ORDER THAT REQUIRES TERRAFORM ENTERPRISE INFRASTRUCTURE AS CODE (IAC) SELF-SERVICE SOFTWARE LICENSES AND SUPPORT SERVICES. THIS REQUIREMENT IS ON BEHALF OF DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), ADMINISTRAT

Who is the contractor on this award?

The obligated recipient is GOVSMART, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $131,139.62.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What is the specific value proposition of Terraform Enterprise IAC for HHS compared to alternative solutions?

Terraform Enterprise offers a centralized platform for managing infrastructure as code, enabling collaboration, policy enforcement, and automated provisioning across various cloud and on-premise environments. Its value lies in improving consistency, reducing manual errors, enhancing security through policy-as-code, and accelerating deployment cycles, which are critical for a large agency like HHS managing complex IT infrastructure.

What are the potential risks associated with relying on a single vendor for critical IAC software and support?

The primary risk is vendor lock-in, which could limit future flexibility and potentially lead to higher costs upon renewal if competition is not re-established. There's also a risk if the vendor experiences financial instability or discontinues the product line. Dependence on vendor expertise for support could also be a concern if internal knowledge transfer is insufficient.

How will the effectiveness of this software and support be measured to ensure it meets HHS's operational needs?

Effectiveness will be measured through key performance indicators (KPIs) tied to the contract's statement of work. This includes timely delivery of licenses and support, responsiveness of support personnel, successful integration of Terraform into HHS workflows, and demonstrable improvements in infrastructure deployment speed, consistency, and reduction in configuration errors, as validated by HHS IT management.

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

Solicitation ID: 140D0425Q0745

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 715 CHARLTON AVE STE 100, CHARLOTTESVILLE, VA, 22903

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

Financial Breakdown

Contract Ceiling: $730,448

Exercised Options: $131,140

Current Obligation: $131,140

Actual Outlays: $131,140

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: NNG15SD11B

IDV Type: GWAC

Timeline