GSA awards $1.2M for New Relic software licenses to Govplace, LLC, with 4 years of coverage

Contract Overview

Contract Amount: $1,215,024 ($1.2M)

Contractor: Govplace, LLC

Awarding Agency: General Services Administration

Start Date: 2024-04-14

End Date: 2027-04-13

Contract Duration: 1,094 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NEW RELIC SOFTWARE LICENSES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $1.2 million to GOVPLACE, LLC for work described as: NEW RELIC SOFTWARE LICENSES Key points: 1. Value for money assessed through competitive bidding and market benchmarking. 2. Competition dynamics indicate a healthy market for software licensing solutions. 3. Risk indicators include contract duration and reliance on a single vendor for software. 4. Performance context relies on successful delivery and support of software functionalities. 5. Sector positioning within IT services, specifically software licensing and support.

Value Assessment

Rating: good

The contract value of $1.2 million for a 4-year term for New Relic software licenses appears reasonable given the typical costs associated with enterprise software subscriptions. Benchmarking against similar government contracts for software licenses of this nature would provide a more precise value assessment. The firm fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 4 bidders suggests a competitive environment, which generally leads to better pricing and terms for the government. The level of competition is sufficient to ensure fair market price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process that likely drove down the price compared to a sole-source award, ensuring efficient use of public funds.

Public Impact

Federal agencies utilizing New Relic software for application performance monitoring and observability will benefit. Services delivered include software licenses and potentially associated support and maintenance. Geographic impact is national, as GSA serves agencies across the United States. Workforce implications may involve IT professionals who will use and manage the software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if alternative solutions are not considered in the future.
Reliance on a single software provider for critical IT operations.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract provides cost certainty for the government.
Long-term contract (4 years) allows for stable planning and budgeting.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on software licensing and related services. The market for application performance monitoring and observability tools is robust, with significant government spending in this area. Comparable spending benchmarks for enterprise software licenses can vary widely based on the specific product, features, and user base, but this award appears to be within a typical range for such solutions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Govplace, LLC may be a small business itself, the award was made under full and open competition. There is no explicit information on subcontracting requirements for small businesses within this specific award notice. Further analysis would be needed to determine the overall impact on the small business IT ecosystem.

Oversight & Accountability

Oversight for this contract is primarily managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified software licenses. Transparency is provided through public contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Software and Information Technology
IT Operations and Support
Application Performance Monitoring Tools
Cloud Computing Services

Risk Flags

Contract Duration
Software Licensing Dependency
Limited Public Performance Data

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $1.2 million to GOVPLACE, LLC. NEW RELIC SOFTWARE LICENSES

Who is the contractor on this award?

The obligated recipient is GOVPLACE, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $1.2 million.

What is the period of performance?

Start: 2024-04-14. End: 2027-04-13.

What is the track record of Govplace, LLC in fulfilling federal contracts, particularly for software licensing?

A review of federal procurement data would be necessary to fully assess Govplace, LLC's track record. However, as a recipient of this award, they have demonstrated the capability to win competitive bids. Further investigation into their past performance ratings, contract history, and any reported issues or successes with similar government agencies would provide a more comprehensive understanding of their reliability and expertise in delivering software licenses and related services. Understanding their experience with New Relic specifically would also be beneficial.

How does the awarded price compare to market rates for New Relic software licenses?

Direct comparison to market rates requires access to New Relic's public pricing or quotes obtained by other entities. However, the contract's 'full and open competition' award with 4 bidders suggests that the pricing achieved is likely competitive. The firm fixed-price nature of the contract provides cost certainty. To definitively benchmark, one would need to compare the per-user or per-feature cost against New Relic's standard commercial price lists or quotes from other resellers, adjusting for any volume discounts or specific government contract vehicles that might be in play.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential vendor lock-in, where agencies become heavily reliant on New Relic, making future transitions to alternative solutions difficult or costly. There's also a risk of the software not meeting evolving agency needs or performance expectations. Mitigation strategies include the competitive nature of the award, which encourages the vendor to perform well, and the firm fixed-price structure, which caps financial exposure. The 4-year duration allows for planning but also necessitates proactive management to ensure continued value and explore alternatives towards the end of the term.

How effective is New Relic software in meeting the needs of federal agencies for application performance monitoring?

The effectiveness of New Relic software is generally considered high within the industry for application performance monitoring (APM) and observability. Federal agencies utilize such tools to ensure the reliability, performance, and availability of their critical IT systems and applications. Success metrics would typically involve improvements in application uptime, faster issue resolution times, enhanced user experience, and better resource utilization. The continued procurement of these licenses by agencies suggests perceived value and effectiveness, though specific performance outcomes would vary by agency and implementation.

What are the historical spending patterns for New Relic software licenses within the federal government?

Analyzing historical spending patterns for New Relic licenses within the federal government would require a broader data query across multiple agencies and contract vehicles over several years. This specific award represents a single data point. However, the increasing reliance on cloud-native architectures and complex application ecosystems within federal IT likely drives demand for APM and observability tools like New Relic. Trends may show increased spending in this category as agencies modernize their infrastructure and seek better insights into application performance and user experience.

What is the potential impact of this contract on the broader IT services market, particularly for competitors?

This contract award signifies a portion of the federal IT services market allocated to New Relic software, procured through Govplace, LLC. For competitors offering similar APM or observability solutions, this represents a lost opportunity for direct contract revenue. However, the fact that it was competed suggests a healthy market where multiple vendors are vying for government business. The success of this award could also incentivize competitors to refine their offerings and pricing strategies to better align with federal procurement requirements and demonstrate superior value propositions in future competitions.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QPCA24Q0040

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7315 WISCONSIN AVE STE 400E, BETHESDA, MD, 20814

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,810,584

Exercised Options: $1,215,024

Current Obligation: $1,215,024

Actual Outlays: $897,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC37B

IDV Type: GWAC

Timeline