Smithsonian Institution awards $7.9M software license contract to GovSmart, Inc. for 358 days

Contract Overview

Contract Amount: $79,262 ($79.3K)

Contractor: Govsmart, Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2026-04-01

End Date: 2027-03-25

Contract Duration: 358 days

Daily Burn Rate: $221/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE LICENSING

Place of Performance

Location: CHARLOTTESVILLE, CHARLOTTESVILLE CITY County, VIRGINIA, 22903

State: Virginia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $79,262 to GOVSMART, INC. for work described as: SOFTWARE LICENSING Key points: 1. Contract value of $7.9M for a 358-day period suggests a moderate annual spend for software licensing. 2. The contract was competed under SAP, indicating a streamlined procurement process for smaller value contracts. 3. GovSmart, Inc. is the sole awardee, raising questions about the extent of competition. 4. The firm fixed price contract type provides cost certainty for the Smithsonian Institution. 5. Virginia is the place of performance, potentially indicating local economic impact. 6. The contract falls under the 'Computer and Computer Peripheral Equipment and Software Merchant Wholesalers' NAICS code.

Value Assessment

Rating: fair

The total contract value of $7.9 million over approximately one year (358 days) translates to an estimated annual spend of roughly $8.2 million. Benchmarking this against similar software licensing contracts is challenging without specific software details. However, the value appears to be within a typical range for enterprise-level software solutions. The firm fixed price structure is generally favorable for the government, locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under SAP (Simplified Acquisition Procedures), which typically allows for a broader range of competition than sole-source but may not reach the same level as full and open competition for larger contracts. The data indicates 3 bidders participated. While 3 bidders is better than a sole source, it's a limited pool and may not represent the full market potential, potentially impacting price discovery.

Taxpayer Impact: A limited competition means taxpayers may not be benefiting from the lowest possible price achievable through maximum market participation. The government might be paying a premium due to fewer vendors vying for the contract.

Public Impact

Federal employees within the Smithsonian Institution will benefit from access to necessary software. The services delivered include the provision of software licenses, crucial for operational efficiency. The primary geographic impact is within Virginia, where the contract is performed. The contract supports the IT infrastructure and operational needs of a major federal cultural institution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (3 bidders) may lead to suboptimal pricing for taxpayers.
Lack of specific software details hinders a thorough value-for-money assessment.
The contract duration of 358 days is relatively short, suggesting potential for frequent re-competition and associated administrative effort.

Positive Signals

Firm fixed price contract provides cost certainty.
Procurement under SAP suggests an efficient process for this contract value.
Award to a single vendor, GovSmart, Inc., simplifies contract management.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on software licensing. The market for software licensing is vast and highly competitive, with numerous vendors offering a wide array of products. Federal spending on software is substantial, driven by the need for modern IT infrastructure across all agencies. This contract represents a small fraction of overall federal IT spending but is critical for the Smithsonian Institution's operational capabilities.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside. Given the nature of software licensing, it's possible that larger vendors dominate this space. Further analysis would be needed to determine if subcontracting opportunities were mandated or if small businesses were involved in the bidding process.

Oversight & Accountability

The Smithsonian Institution is responsible for the oversight of this contract. As a purchase order, it likely falls under standard agency procurement regulations and internal controls. Transparency is generally maintained through public contract databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Software Licensing
IT Procurement
General Services Administration (GSA) Schedules
Agency IT Modernization

Risk Flags

Limited Competition
Lack of Specific Software Details
Unknown Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $79,262 to GOVSMART, INC.. SOFTWARE LICENSING

Who is the contractor on this award?

The obligated recipient is GOVSMART, INC..

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $79,262.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-25.

What specific software is being licensed under this contract?

The provided data does not specify the exact software being licensed. This information is crucial for a comprehensive analysis of the contract's value and necessity. Without knowing the software title, version, and intended use, it is impossible to benchmark pricing against market rates or assess if the selected software aligns with the Smithsonian Institution's strategic IT goals. Future analysis should seek to identify the specific software to enable a more granular evaluation of its cost-effectiveness and performance.

How does the per-unit cost of this software compare to market rates?

Determining the per-unit cost is not feasible with the current data, as the specific software and the number of licenses or users are not provided. To benchmark per-unit costs, we would need to know the software's name, the licensing model (e.g., per user, per device, perpetual, subscription), and the quantity purchased. Without this granular detail, any comparison to market rates would be speculative. It is recommended to obtain a breakdown of the software components and their associated costs to facilitate a proper per-unit cost analysis.

What is GovSmart, Inc.'s track record with federal software licensing contracts?

GovSmart, Inc. has been awarded this $7.9 million contract for software licensing by the Smithsonian Institution. Further investigation into GovSmart, Inc.'s contract history with federal agencies, particularly for similar software products and contract types, would be beneficial. Understanding their past performance, including any issues or successes on previous contracts, can provide insights into their reliability and capability to fulfill this current award. A review of contract databases and performance evaluations would be necessary for a complete assessment.

What is the historical spending pattern for software licensing at the Smithsonian Institution?

The provided data focuses on a single contract award and does not offer historical spending patterns for software licensing at the Smithsonian Institution. To establish a historical context, one would need to analyze spending data over several fiscal years, identifying trends in contract values, types of software procured, and the vendors utilized. This would help determine if the current $7.9 million award is consistent with past expenditures or represents a significant deviation, potentially indicating changes in IT strategy or needs.

What are the key performance indicators (KPIs) for this software licensing contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) established for this software licensing contract. Typically, KPIs for such contracts might include software uptime, availability, vendor support response times, and successful delivery of license keys or access. The firm fixed price nature suggests that the primary performance expectation is the delivery of the licensed software as specified. Without explicit KPIs, assessing the contractor's performance beyond basic delivery is challenging.

How does the competition level (3 bidders) impact the value for taxpayers?

A competition involving only three bidders, while better than a sole-source award, suggests a potentially limited market response. This reduced competition can lead to less aggressive pricing from vendors, as they may face less pressure to offer their most competitive rates. Consequently, taxpayers might not be receiving the best possible value for their money compared to a scenario with a larger number of interested and competing firms. The Smithsonian Institution should ensure that the pricing is still justified and competitive within the known market constraints.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $79,262

Exercised Options: $79,262

Current Obligation: $79,262

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Timeline