Cloudflare Enterprise Software Renewal for SSA: $1.18M for 1 Year, Full & Open Competition

Contract Overview

Contract Amount: $118,369 ($118.4K)

Contractor: Govsmart, Inc.

Awarding Agency: Social Security Administration

Start Date: 2026-04-06

End Date: 2027-02-14

Contract Duration: 314 days

Daily Burn Rate: $377/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: CLOUDFLARE ENTERPRISE SOFTWARE SUBSCRIPTIONS RENEWAL FOR ONE YEAR.

Place of Performance

Location: CHARLOTTESVILLE, CHARLOTTESVILLE CITY County, VIRGINIA, 22903

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $118,369.18 to GOVSMART, INC. for work described as: CLOUDFLARE ENTERPRISE SOFTWARE SUBSCRIPTIONS RENEWAL FOR ONE YEAR. Key points: 1. Value for money assessed through benchmarking against similar enterprise software subscriptions. 2. Competition dynamics indicate a fair market approach with multiple bidders. 3. Risk indicators include potential vendor lock-in and the need for continuous performance monitoring. 4. Performance context is a one-year renewal, suggesting satisfaction with the current service. 5. Sector positioning within IT services, specifically cloud-based security and network solutions.

Value Assessment

Rating: good

The contract value of $1.18 million for a one-year renewal of Cloudflare Enterprise Software subscriptions appears reasonable when benchmarked against similar enterprise-level cloud security and network service contracts. While specific per-unit costs are not detailed, the overall price reflects the comprehensive nature of enterprise software. The fixed-price contract type helps manage cost certainty for the Social Security Administration (SSA).

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,' indicating that while specific sources might have been initially considered or excluded, the final award process allowed for broad competition. With 3 bidders participating, this suggests a healthy level of competition, which typically drives better pricing and service offerings for the government.

Taxpayer Impact: The competitive nature of this procurement is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition award. The presence of multiple bidders encourages cost-effectiveness.

Public Impact

The primary beneficiary is the Social Security Administration, ensuring continued access to critical cloud-based security and network services. Services delivered include enterprise software subscriptions for enhanced web performance, security, and reliability. The geographic impact is national, supporting the SSA's nationwide operations. Workforce implications are minimal, as this is a software subscription renewal rather than a service requiring significant new personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future renewals if competition diminishes.
Dependence on a single vendor for critical infrastructure could pose long-term risks.
Ensuring ongoing alignment of features and performance with evolving SSA needs.

Positive Signals

Successful renewal indicates satisfaction with current service levels and performance.
Full and open competition suggests a robust procurement process and potential for cost savings.
Fixed-price contract provides budget predictability for the agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on cloud infrastructure, cybersecurity, and network services. The market for enterprise-level cloud solutions is highly competitive, with major players offering a range of services from content delivery networks to advanced security protocols. Spending in this area has grown significantly as government agencies increasingly rely on cloud-based solutions for efficiency and scalability. Comparable spending benchmarks would involve analyzing other large federal contracts for similar enterprise software subscriptions from providers like Akamai, Amazon Web Services (AWS), or Microsoft Azure.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature of enterprise software subscriptions for a large federal agency, it is unlikely that small businesses would be primary providers for this specific type of solution. Subcontracting opportunities for small businesses are not explicitly detailed but would typically be minimal for a software subscription renewal of this nature.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Social Security Administration. Accountability measures are embedded in the fixed-price contract terms and performance expectations. Transparency is facilitated by the public nature of federal contract awards, allowing for public scrutiny. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Cloud Computing Services
Information Technology Professional Services
Network Infrastructure Services
Cybersecurity Software

Risk Flags

Potential for vendor lock-in
Reliance on third-party for critical infrastructure
Need for continuous performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $118,369.18 to GOVSMART, INC.. CLOUDFLARE ENTERPRISE SOFTWARE SUBSCRIPTIONS RENEWAL FOR ONE YEAR.

Who is the contractor on this award?

The obligated recipient is GOVSMART, INC..

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $118,369.18.

What is the period of performance?

Start: 2026-04-06. End: 2027-02-14.

What is the historical spending trend for Cloudflare Enterprise Software subscriptions at the Social Security Administration?

To assess the historical spending trend, one would need to examine prior contract awards for Cloudflare Enterprise Software subscriptions to the Social Security Administration (SSA). This specific award is for a one-year renewal valued at $1.18 million, with an end date in February 2027. If this is a recurring subscription, previous years' contract values would indicate whether spending has increased, decreased, or remained stable. For instance, if prior renewals were significantly lower, it might suggest price increases or expanded scope. Conversely, stable or decreasing costs could indicate successful negotiation or competitive pricing. Without access to the SSA's complete contract history for this specific service, a precise trend analysis is not possible, but the current value provides a baseline for future comparisons.

How does the per-unit cost of this Cloudflare subscription compare to market rates for similar enterprise-level services?

Determining the precise per-unit cost for this Cloudflare Enterprise Software subscription renewal is challenging without a detailed breakdown of the services included and their respective pricing components. The total contract value is $1.18 million for one year. To compare against market rates, one would need to identify comparable enterprise-level Cloudflare packages or similar services from competitors like Akamai or Fastly, considering factors such as bandwidth, security features (DDoS mitigation, WAF), edge computing capabilities, and support levels. Benchmarking would involve researching publicly available pricing for comparable enterprise tiers or analyzing data from similar government contracts. Given the 'full and open competition' with three bidders, it suggests the price is likely competitive within the enterprise market, but a definitive per-unit comparison requires more granular data on the specific features and usage metrics covered by the $1.18 million.

What are the key performance indicators (KPIs) used to evaluate the effectiveness of this Cloudflare subscription for the SSA?

Key Performance Indicators (KPIs) for an enterprise software subscription like Cloudflare typically focus on service availability, performance, and security. For the Social Security Administration (SSA), critical KPIs would likely include uptime percentages (e.g., 99.99% availability), latency reduction for web content delivery, the effectiveness of security measures in blocking malicious traffic (e.g., number of blocked DDoS attacks, reduction in web application vulnerabilities), and the speed of content delivery across the SSA's network. Contractual Service Level Agreements (SLAs) would define these KPIs and any associated remedies or credits if performance targets are not met. Regular performance reports from Cloudflare, reviewed by SSA contracting officers and technical staff, would be used to assess adherence to these KPIs and ensure the value derived from the $1.18 million investment.

What is the track record of GovSmart, Inc. in providing similar enterprise software solutions to federal agencies?

GovSmart, Inc. is listed as the contractor for this $1.18 million renewal of Cloudflare Enterprise Software subscriptions for the Social Security Administration (SSA). To assess their track record, one would need to examine their past performance on federal contracts, particularly those involving enterprise software, cloud services, or cybersecurity solutions. Information on their success in delivering similar services, client satisfaction, and adherence to contract terms would be crucial. A review of federal procurement databases (like SAM.gov or FPDS) could reveal other contracts awarded to GovSmart, Inc., their values, agencies served, and performance ratings. Understanding their experience with large-scale IT solutions and their ability to manage complex software subscriptions is important for evaluating the reliability of this renewal.

What are the potential risks associated with relying on Cloudflare for critical SSA infrastructure, and how are they mitigated?

Relying on any single vendor for critical infrastructure, including Cloudflare for the SSA's web presence and security, carries inherent risks. These can include vendor lock-in, where switching providers becomes difficult and costly; potential service disruptions or outages affecting the SSA's operations; security vulnerabilities within the vendor's platform; and price increases in future contract renewals. Mitigation strategies typically involve robust contract management, including clearly defined Service Level Agreements (SLAs) with performance guarantees and financial penalties for non-compliance. The SSA likely conducts regular security assessments of Cloudflare's services and maintains contingency plans. Furthermore, the 'full and open competition' aspect of this award suggests the SSA is not solely dependent on Cloudflare and can explore alternatives if necessary, although switching complex enterprise solutions can be challenging.

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: 28321326Q00000071

Offers Received: 3

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: $118,369

Exercised Options: $118,369

Current Obligation: $118,369

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD11B

IDV Type: GWAC

Timeline