DHS awards $40.2M for Cloud Hosting, with Govplace LLC securing the BPA Call

Contract Overview

Contract Amount: $40,218,788 ($40.2M)

Contractor: Govplace, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2023-11-01

End Date: 2024-10-31

Contract Duration: 365 days

Daily Burn Rate: $110.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CLOUD HOSTING IAAS, PAAS, SAAS (CHIPS)

Place of Performance

Location: WILLISTON, CHITTENDEN County, VERMONT, 05495

State: Vermont Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.2 million to GOVPLACE, LLC for work described as: CLOUD HOSTING IAAS, PAAS, SAAS (CHIPS) Key points: 1. Value for money assessed through competitive bidding and firm fixed-price structure. 2. Competition dynamics indicate a robust market for cloud hosting services. 3. Risk indicators are low due to established contractor and fixed-price terms. 4. Performance context is within the scope of IT infrastructure support. 5. Sector positioning is within the government's broader cloud adoption strategy.

Value Assessment

Rating: good

The contract's value is benchmarked against similar cloud hosting agreements. The firm fixed-price structure provides cost certainty. While specific per-unit cost data is not provided, the competitive award suggests a reasonable market price was achieved.

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 offers. The specific number of bidders is not detailed, but the competitive nature suggests a healthy market for these services, likely leading to better price discovery.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

U.S. Citizenship and Immigration Services benefits from enhanced cloud infrastructure. Services delivered include Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). Geographic impact is national, supporting federal IT operations. Workforce implications include potential reliance on specialized IT personnel for cloud management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type limits cost uncertainty.
Contractor is Govplace, LLC, an established entity in government IT.
Supports critical immigration services IT infrastructure.

Sector Analysis

The government's adoption of cloud services, including IaaS, PaaS, and SaaS, is a significant trend across federal agencies. This contract for cloud hosting falls within the broader IT services sector, which is a substantial portion of federal IT spending. Comparable spending benchmarks for cloud services indicate a growing market, with agencies increasingly migrating workloads to cloud environments for scalability and cost-efficiency.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Govplace, LLC, may engage small businesses for subcontracting. The overall impact on the small business ecosystem depends on Govplace's subcontracting strategy and opportunities within the cloud hosting domain.

Oversight & Accountability

Oversight for this contract will be managed by the U.S. Citizenship and Immigration Services within the Department of Homeland Security. Accountability measures are inherent in the firm fixed-price structure and performance expectations. Transparency is facilitated through federal contract databases where award details are published.

Related Government Programs

Cloud Computing Services
IT Infrastructure Support
Department of Homeland Security IT Contracts
General Services Administration (GSA) Schedules (potential vehicle)

Risk Flags

Potential for vendor lock-in
Data security and privacy concerns
Service availability and performance risks
Complexity of managing multi-cloud or hybrid environments (if applicable)

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.2 million to GOVPLACE, LLC. CLOUD HOSTING IAAS, PAAS, SAAS (CHIPS)

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 $40.2 million.

What is the period of performance?

Start: 2023-11-01. End: 2024-10-31.

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

Govplace, LLC has a history of providing IT solutions and services to the federal government. While specific details on their cloud hosting performance for this particular contract are not yet available due to its recent award, their presence in the government contracting space suggests experience. Further analysis would require examining past performance evaluations and contract history with agencies like DHS or others requiring similar cloud services. Their ability to win competitive bids indicates a level of capability and market acceptance.

How does the $40.2 million award compare to similar cloud hosting contracts awarded by DHS or other agencies?

The $40.2 million award for cloud hosting services by USCIS is a significant but not unprecedented figure within the federal IT landscape. Cloud hosting contracts can range widely in value depending on scope, duration, and service levels (IaaS, PaaS, SaaS). To benchmark effectively, one would compare this to other large-scale cloud procurements by agencies like GSA, DoD, or HHS. The firm fixed-price nature and 365-day duration (implied by the award date and end date) provide a basis for comparison against contracts with similar terms, suggesting a moderate to large investment in cloud infrastructure for USCIS's needs.

What are the primary risks associated with this cloud hosting contract for USCIS?

The primary risks for USCIS with this cloud hosting contract include potential vendor lock-in, data security and privacy breaches, service disruptions, and cost overruns if not managed effectively, despite the firm fixed-price structure. Vendor lock-in can occur if the chosen cloud provider's proprietary services make it difficult to migrate to another provider. Data security is paramount, especially given the sensitive nature of immigration data. Service disruptions could impact critical USCIS operations. While the contract is fixed-price, scope creep or unforeseen technical challenges could still pose budget risks if not meticulously managed through change control processes.

How effective is the 'full and open competition' strategy in ensuring value for money for cloud services?

The 'full and open competition' strategy is generally considered highly effective in ensuring value for money for cloud services. By allowing all responsible vendors to bid, it fosters a competitive environment that drives down prices and encourages innovation. This approach maximizes the pool of potential offerors, increasing the likelihood of finding a provider that offers the best combination of price, performance, and features. For cloud services, where market offerings can be diverse and rapidly evolving, broad competition helps ensure that the government is not overpaying and is leveraging the most cost-effective and technologically advanced solutions available.

What is the historical spending trend for cloud hosting services within the Department of Homeland Security?

Historical spending trends for cloud hosting services within the Department of Homeland Security (DHS) have shown a consistent increase over the past decade, mirroring the broader federal government's push towards cloud adoption. DHS, managing a vast array of critical national security and immigration functions, relies heavily on robust IT infrastructure. As agencies migrate from on-premises data centers to cloud environments, spending on IaaS, PaaS, and SaaS has grown significantly. This $40.2 million award represents a component of that ongoing investment, reflecting DHS's strategic shift towards more scalable, flexible, and potentially cost-efficient cloud-based solutions to support its diverse mission requirements.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $48,488,962

Exercised Options: $40,218,788

Current Obligation: $40,218,788

Actual Outlays: $40,218,788

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70SBUR23A00000003

IDV Type: BPA

Timeline