Treasury's $22.6M license for traffic generator software awarded to GovSmart, Inc. with full and open competition

Contract Overview

Contract Amount: $22,561 ($22.6K)

Contractor: Govsmart, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2025-07-15

End Date: 2026-07-14

Contract Duration: 364 days

Daily Burn Rate: $62/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SPIRENT TRAFFIC GENERATOR LICENSE AND MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $22,561.36 to GOVSMART, INC. for work described as: SPIRENT TRAFFIC GENERATOR LICENSE AND MAINTENANCE Key points: 1. The contract value of $22.6 million over one year suggests a significant investment in network testing capabilities. 2. Full and open competition after exclusion of sources indicates a deliberate process to ensure fair market access. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of 364 days aligns with typical annual software licensing and maintenance cycles. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad category of computer-related services. 6. The award to GovSmart, Inc. warrants a review of their performance on similar government contracts. 7. The geographic location in Washington D.C. may indicate a concentration of federal IT infrastructure in the region.

Value Assessment

Rating: fair

The contract value of $22.6 million for a one-year license and maintenance of a traffic generator appears substantial. Benchmarking this against similar software licenses for network simulation and testing tools is crucial. Without specific details on the software's capabilities and the number of users or nodes it supports, a precise value-for-money assessment is difficult. However, given the fixed-price nature, the government has a defined cost, but the underlying value proposition needs further scrutiny to ensure it aligns with market rates for comparable enterprise-level network testing solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was open, there might have been prior specific circumstances or a previous sole-source justification that led to this method. The presence of four bids (no) suggests a reasonable level of competition was achieved, which is generally positive for price discovery. However, the 'after exclusion of sources' phrasing warrants a deeper look into why certain sources might have been excluded initially.

Taxpayer Impact: A competitive process, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to offer their best pricing and terms. The fact that four bids were received indicates that the market had sufficient interest and capability to respond, likely leading to a more favorable price than a sole-source award.

Public Impact

The Office of the Comptroller of the Currency (OCC) within the Department of the Treasury is the primary beneficiary, likely using the software for network performance testing and security analysis. The services delivered include licensing and maintenance for a critical network traffic generation tool, essential for simulating network conditions and stress-testing infrastructure. The geographic impact is centered in Washington D.C., where the OCC is headquartered, suggesting the primary use case is for federal IT infrastructure located or managed from this area. Workforce implications may include IT professionals within the OCC who will operate and utilize the software for network management, security, and development testing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'after exclusion of sources' clause in the competition type requires further investigation to understand potential limitations on market access.
The substantial contract value necessitates rigorous performance monitoring to ensure the software meets all specified requirements and delivers expected value.
Without detailed specifications of the traffic generator's capabilities, it's difficult to ascertain if this is the most cost-effective solution available on the market.

Positive Signals

The contract was awarded under full and open competition, indicating a broad solicitation and multiple bids received.
The firm fixed-price contract type provides cost certainty for the government, mitigating the risk of budget overruns.
The award to GovSmart, Inc. suggests they possess the necessary qualifications and capabilities to meet the government's requirements for this specialized software.

Sector Analysis

The market for network simulation and traffic generation software is a specialized segment within the broader IT services sector. This contract falls under computer-related services, specifically focusing on tools used for network testing, performance analysis, and security validation. The size of this niche market can vary, but it is critical for organizations managing complex and high-stakes network infrastructures, such as federal agencies. Comparable spending benchmarks would involve looking at other large federal or enterprise-level procurements for similar network testing solutions, which often involve significant licensing and support costs.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This suggests the procurement was not targeted towards small businesses, and GovSmart, Inc. is likely a larger entity. There is no explicit mention of subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem for this specific contract appears minimal, unless GovSmart, Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury and the Office of the Comptroller of the Currency. Standard contract management processes, including performance reviews, acceptance of deliverables, and financial oversight, would be in place. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Network Infrastructure Services
Software Licensing and Maintenance
IT Professional Services
Cybersecurity Tools
Network Performance Monitoring

Risk Flags

Competition Type Nuance
Value for Money Assessment
Contractor Performance History

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $22,561.36 to GOVSMART, INC.. SPIRENT TRAFFIC GENERATOR LICENSE AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is GOVSMART, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $22,561.36.

What is the period of performance?

Start: 2025-07-15. End: 2026-07-14.

What is the specific type and capability of the 'SPIRENT TRAFFIC GENERATOR LICENSE AND MAINTENANCE' being procured?

The provided data identifies the item as 'SPIRENT TRAFFIC GENERATOR LICENSE AND MAINTENANCE.' Spirent is a known provider of testing equipment and solutions for networks and communications. This likely refers to software licenses and ongoing support for a platform used to generate and analyze network traffic. Such tools are critical for simulating real-world network conditions, stress-testing infrastructure, validating performance, and identifying potential security vulnerabilities before deployment or under load. The exact capabilities would depend on the specific Spirent product suite, which could range from basic packet generation to complex emulation of various network protocols and application behaviors.

How does the $22.6 million contract value compare to typical annual spending on similar network testing software by federal agencies?

The $22.6 million contract value for a one-year license and maintenance is substantial. Federal agencies often invest heavily in network testing tools, especially those managing critical infrastructure. However, without knowing the specific Spirent product, its scale of deployment (e.g., number of users, virtual instances, throughput capacity), and the specific features licensed, a direct comparison is challenging. Generally, enterprise-level network simulation and traffic generation platforms from leading vendors can range from hundreds of thousands to millions of dollars annually, depending on the scope. This contract appears to be at the higher end, suggesting a comprehensive solution or a large deployment within the OCC or Treasury.

What are the potential risks associated with a firm fixed-price contract for software licensing and maintenance?

Firm Fixed Price (FFP) contracts are generally preferred by the government for cost control. For software licensing and maintenance, the primary risk is that the government might overpay if the vendor's costs are significantly lower than the fixed price, or if the software's value diminishes rapidly due to obsolescence or better alternatives emerging. Another risk is vendor lock-in; if the software is highly integrated, switching vendors could be costly and disruptive. While FFP limits cost overrun risk for the government, it places the profit risk on the contractor. Ensuring the Statement of Work (SOW) is precise and the vendor's performance is adequately monitored is crucial to mitigate risks related to value and functionality.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the procurement process?

This contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' is a specific procurement method. It means that after an initial determination or circumstance that might have led to excluding certain sources (e.g., a previous sole-source justification, a specific technology requirement, or a protest resolution), the agency then opened the competition broadly to all responsible sources. The 'after exclusion' part suggests a preceding step where limitations were considered or applied. The fact that it ultimately resulted in full and open competition with four bidders indicates that the agency aimed for maximum market participation after addressing initial considerations, which is generally a positive sign for achieving fair market value.

What is the track record of GovSmart, Inc. in fulfilling federal contracts, particularly for IT services?

The provided data indicates GovSmart, Inc. is the contractor for this $22.6 million award. To assess their track record, one would need to examine their past performance on federal contracts, accessible through databases like the Federal Procurement Data System (FPDS). Key areas to review would include the types of services previously provided, contract values, performance ratings (if available), and any history of contract disputes or terminations. For an IT services contract of this magnitude, it's important to verify if GovSmart, Inc. has successfully managed similar-sized software licensing and maintenance agreements, demonstrating technical expertise and reliable delivery.

What are the implications of the NAICS code 541519 ('Other Computer Related Services') for this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not specifically classified under other codes. This includes services like computer systems integration design, computer disaster recovery services, and computer virus protection services, as well as software installation and troubleshooting. For this contract, it signifies that the procurement is for computer services that fall outside more specific categories like software development (541511) or computer facilities management (541512). It suggests the Spirent traffic generator license and maintenance involves significant service components beyond just the software itself, potentially including setup, configuration, integration, or specialized support.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › 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: 2031JW25Q00088

Offers Received: 4

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: $45,123

Exercised Options: $22,561

Current Obligation: $22,561

Actual Outlays: $22,561

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD11B

IDV Type: GWAC

Timeline