DHS awards $35M cloud hosting contract to Govplace, LLC via full and open competition

Contract Overview

Contract Amount: $34,969,194 ($35.0M)

Contractor: Govplace, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2021-11-01

End Date: 2022-10-31

Contract Duration: 364 days

Daily Burn Rate: $96.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USCIS CLOUD HOSTING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20529

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35.0 million to GOVPLACE, LLC for work described as: USCIS CLOUD HOSTING Key points: 1. Contract value represents a significant investment in cloud infrastructure for USCIS. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty for the government. 4. Performance period of one year indicates a need for ongoing cloud services. 5. The contract falls under 'Other Computer Related Services', a broad category. 6. Geographic location in DC may point to specific operational needs.

Value Assessment

Rating: fair

The contract value of $34.97 million for one year of cloud hosting services is substantial. Benchmarking this against similar government cloud contracts is challenging without more specific service details. However, the fixed-price nature suggests an attempt to control costs. The awarded amount is close to the estimated value, indicating reasonable pricing within the competitive process. Further analysis would require comparing the specific service levels and performance metrics to industry standards and other government cloud procurements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open nature of the competition suggests that USCIS sought the best value available in the market for its cloud hosting needs.

Taxpayer Impact: A competitive bidding process like full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and services, potentially driving down costs and improving quality.

Public Impact

USCIS benefits from enhanced cloud hosting capabilities, supporting its mission-critical operations. Essential immigration services and data processing are likely to be supported by this infrastructure. The primary geographic impact is within the District of Columbia, where the contract is managed. The contract supports the technology sector workforce involved in cloud services and IT support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on service level agreements (SLAs) makes it difficult to fully assess performance.
The one-year duration might necessitate frequent re-competition, potentially leading to transition costs.
Limited information on the specific cloud services procured makes it hard to benchmark against market alternatives.
The broad NAICS code (541519) could encompass a wide range of services, making precise cost analysis difficult.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair process.
Fixed-price contract type provides cost predictability for the agency.
The contract supports a critical government function (USCIS operations).
Govplace, LLC's award indicates they met the government's requirements.

Sector Analysis

The cloud computing market is a rapidly growing sector within the IT industry, with significant government spending. Agencies are increasingly migrating services to the cloud for scalability, cost-efficiency, and enhanced security. This contract for USCIS falls within the broader IT services category, specifically focusing on infrastructure as a service (IaaS) or platform as a service (PaaS) for hosting. Comparable spending benchmarks would involve looking at other large federal cloud hosting contracts, which often run into tens or hundreds of millions of dollars annually.

Small Business Impact

This contract was not specifically set aside for small businesses, and the data indicates 'sb' is false. Therefore, small businesses were likely not the primary focus of this particular award. However, the prime contractor, Govplace, LLC, may engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their own subcontracting plans and the nature of the services required. The overall impact on the small business ecosystem would depend on whether subcontracting opportunities arise and are utilized.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. Transparency is facilitated through contract award databases like FPDS. Accountability measures are typically embedded in the contract's terms and conditions, including performance standards and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

USCIS IT Modernization
DHS Cloud Strategy
Federal Data Center Consolidation Initiative
GSA Cloud Purchasing Programs

Risk Flags

Performance Risk: Unknown service levels and contractor performance history.
Cybersecurity Risk: Potential vulnerabilities in cloud infrastructure hosting sensitive data.
Cost Risk: Fixed-price may not cover all contingencies if scope is not well-defined.
Transition Risk: One-year duration may require frequent re-competition or complex transitions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35.0 million to GOVPLACE, LLC. USCIS CLOUD HOSTING

Who is the contractor on this award?

The obligated recipient is GOVPLACE, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $35.0 million.

What is the period of performance?

Start: 2021-11-01. End: 2022-10-31.

What specific cloud services are being provided under this contract?

The provided data indicates the contract is for 'USCIS CLOUD HOSTING' under NAICS code 541519 (Other Computer Related Services). However, the specific type of cloud service (e.g., Infrastructure as a Service - IaaS, Platform as a Service - PaaS, Software as a Service - SaaS) and the exact nature of the hosting (e.g., public, private, hybrid cloud) are not detailed in the summary data. This level of detail is crucial for understanding the scope of work, assessing value for money, and comparing it to industry benchmarks. Without this information, it's difficult to determine if the $35 million award is commensurate with the services rendered.

How does the pricing of this contract compare to similar cloud hosting services procured by the government?

Direct comparison of pricing is challenging without knowing the specific service level agreements (SLAs), performance metrics, and the exact cloud model (IaaS, PaaS, SaaS) utilized. The contract is a 'FIRM FIXED PRICE' award valued at $34,969,194.03 for a 364-day duration. To benchmark, one would need to identify comparable government contracts for similar cloud hosting services, considering factors like data storage, compute power, network bandwidth, security requirements, and support levels. The 'br' value of 96069 might represent a benchmark or reference price, but its meaning is unclear from the provided data. Generally, fixed-price contracts aim for cost certainty, but the value proposition depends heavily on the defined scope and performance.

What is the track record of Govplace, LLC in delivering cloud hosting services to the federal government?

The provided data identifies Govplace, LLC as the contractor. To assess their track record, one would need to examine their past performance on similar federal contracts, particularly those involving cloud hosting and IT services for agencies like DHS or USCIS. This would involve reviewing past performance evaluations, contract completion history, and any documented issues or successes. A positive track record with successful delivery of complex IT solutions would indicate lower performance risk for this contract. Conversely, a history of performance issues or contract disputes could raise concerns about the reliability of service delivery.

What are the potential risks associated with this cloud hosting contract?

Potential risks include vendor lock-in if the chosen cloud platform is proprietary, cybersecurity threats to sensitive USCIS data, performance degradation impacting critical immigration services, and potential cost overruns if the fixed-price contract doesn't adequately cover unforeseen technical challenges or scope creep. Data migration complexities and ensuring compliance with federal data security regulations (e.g., FedRAMP) are also significant risk areas. The one-year duration also presents a risk of service disruption if contract renewal or transition is not managed effectively.

How does this spending align with USCIS's broader IT modernization and cloud adoption strategy?

This $35 million cloud hosting contract appears to be a significant component of USCIS's IT infrastructure strategy, likely supporting the agency's ongoing efforts to modernize its systems and leverage cloud capabilities. Federal agencies, including DHS and its components like USCIS, are increasingly moving towards cloud solutions to improve agility, scalability, and cost-efficiency, often as part of broader initiatives like the Federal Data Center Consolidation Initiative. Understanding the specific role this contract plays within USCIS's larger digital transformation roadmap would provide context on its strategic importance and expected outcomes.

What is the historical spending trend for cloud hosting services at USCIS or DHS?

The provided data only details this specific contract award. To understand historical spending trends, one would need to analyze USCIS and DHS's procurement data over several fiscal years, specifically looking for contracts related to cloud hosting, IT infrastructure, and related services. This analysis would reveal whether spending in this area is increasing, decreasing, or remaining stable, and how this $35 million award fits into the larger budgetary picture. Examining trends can help identify patterns of investment, potential areas of overspending, or shifts in technology adoption.

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 - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11111 SUNSET HILLS RD STE 200, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $34,969,194

Exercised Options: $34,969,194

Current Obligation: $34,969,194

Actual Outlays: $8,685,069

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70SBUR19A00000012

IDV Type: BPA

Timeline