DHS awards $47.2M cloud hosting BPA call to Govplace, LLC for USCIS IT services

Contract Overview

Contract Amount: $47,188,941 ($47.2M)

Contractor: Govplace, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2024-11-01

End Date: 2025-10-31

Contract Duration: 364 days

Daily Burn Rate: $129.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: USCIS CLOUD HOSTING BPA II BPA CALL 2

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $47.2 million to GOVPLACE, LLC for work described as: USCIS CLOUD HOSTING BPA II BPA CALL 2 Key points: 1. Contract value represents a significant investment in cloud infrastructure for a critical immigration agency. 2. The BPA call was awarded under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The contract duration of one year with potential for extensions indicates a need for ongoing cloud services. 5. The specific NAICS code (541519) points to a broad range of computer-related services, requiring careful performance monitoring. 6. The award to a single vendor, Govplace, LLC, warrants scrutiny of the competitive landscape and pricing.

Value Assessment

Rating: good

The contract value of $47.2 million for a one-year period for cloud hosting services appears reasonable given the scope of supporting USCIS operations. Benchmarking against similar large-scale cloud service contracts for federal agencies suggests this falls within expected spending ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator for value. However, without detailed service level agreements and usage metrics, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This BPA call was awarded under full and open competition, indicating that all responsible sources were permitted to submit an offer. The data does not specify the number of bidders, but the designation suggests a robust competitive process. Full and open competition generally leads to better price discovery and potentially lower costs for the government as vendors vie for the contract.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value through an open process, rather than being limited to a restricted set of vendors.

Public Impact

USCIS will benefit from enhanced and reliable cloud hosting services, crucial for processing immigration applications and managing citizen data. The contract supports essential IT infrastructure, ensuring the continuity and efficiency of critical government functions. The geographic impact is national, as USCIS operates across the United States, requiring scalable cloud solutions. Workforce implications are indirect, primarily supporting IT professionals managing and utilizing the cloud services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed carefully, despite initial open competition.
Dependence on a single vendor for critical cloud infrastructure could pose a risk if the vendor experiences performance issues or financial instability.
The broad NAICS code may lead to scope creep if not precisely defined and monitored.
Ensuring ongoing cost-effectiveness as cloud usage evolves will require diligent contract management.

Positive Signals

Awarded under full and open competition, suggesting a competitive market for these services.
Firm fixed-price contract type provides cost predictability.
The contract supports a vital government function (USCIS operations), indicating a clear need and purpose.
The vendor, Govplace, LLC, is likely experienced in providing government IT services.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on cloud computing services. The market for cloud hosting is highly competitive and rapidly evolving, with major players and specialized providers. Federal agencies are increasingly migrating to cloud solutions to enhance scalability, reduce costs, and improve agility. Spending benchmarks for similar federal cloud contracts can range from tens to hundreds of millions of dollars annually, depending on the agency's size and requirements. This BPA call represents a specific procurement within the larger trend of federal cloud adoption.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary focus will be on the prime contractor's performance. While not a set-aside, large contracts can sometimes create opportunities for small businesses as subcontractors if the prime contractor chooses to engage them, though this is not guaranteed.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security (DHS) and specifically the U.S. Citizenship and Immigration Services (USCIS) contracting and program management offices. Accountability measures will be tied to the performance standards and service level agreements outlined in the BPA call and its underlying BPA. Transparency is generally facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would typically fall under the DHS OIG, which investigates waste, fraud, and abuse in DHS programs and contracts.

Related Government Programs

USCIS Cloud Hosting Services
DHS IT Modernization Efforts
Federal Cloud Computing Strategy
General Services Administration (GSA) Cloud Contracts
IT Services for Law Enforcement and Immigration Agencies

Risk Flags

Potential for scope creep due to broad NAICS code.
Dependence on a single vendor for critical infrastructure.
Need for continuous monitoring of performance and security.
Ensuring long-term cost-effectiveness beyond the initial contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $47.2 million to GOVPLACE, LLC. USCIS CLOUD HOSTING BPA II BPA CALL 2

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 $47.2 million.

What is the period of performance?

Start: 2024-11-01. End: 2025-10-31.

What is Govplace, LLC's track record with federal cloud hosting contracts?

Govplace, LLC has a history of securing federal contracts, often related to IT services and software licensing. While specific details on their extensive cloud hosting experience require deeper analysis of past performance reports and contract vehicles, their presence in the federal market suggests a level of established capability. It is important to review their past performance on similar scale cloud infrastructure projects, including uptime guarantees, security compliance, and customer satisfaction ratings. Examining awards and task orders under previous BPA vehicles or direct contracts would provide a clearer picture of their expertise and reliability in delivering cloud solutions to government agencies.

How does the $47.2 million value compare to similar cloud hosting contracts for federal agencies of USCIS's size?

The $47.2 million award for a one-year cloud hosting BPA call for USCIS appears to be within a reasonable range when compared to similar federal procurements. Large agencies often spend tens of millions annually on cloud services, especially for critical functions like immigration processing. For context, other agencies like the Social Security Administration or the Department of Justice have awarded contracts in similar or higher value brackets for comparable cloud infrastructure and services. The firm fixed-price nature of this contract also suggests a degree of cost control, which is a positive factor in value assessment. However, a precise comparison would necessitate detailed knowledge of the specific services, service levels, and data volumes involved.

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

Primary risks include potential vendor performance issues, security vulnerabilities in cloud infrastructure, and the possibility of cost increases if usage exceeds projections (though mitigated by fixed-price). Vendor lock-in is another concern. Mitigation strategies likely involve robust Service Level Agreements (SLAs) with defined penalties, stringent security compliance requirements (e.g., FedRAMP authorization), regular performance monitoring, and clear contract management to ensure adherence to scope. The firm fixed-price structure inherently mitigates cost overrun risks for the base service, but careful management of any potential add-ons or changes is crucial. The government's ability to transition services if performance is unsatisfactory is also a key consideration.

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

The 'full and open competition' approach is generally considered highly effective in ensuring value for government services, including cloud hosting. By allowing all responsible vendors to bid, it fosters a competitive environment that drives down prices and encourages innovation. This process allows USCIS to solicit proposals from a wide range of providers, compare technical capabilities and pricing, and select the offer that represents the best overall value. While the specific number of bidders isn't provided, the open nature of the competition suggests that USCIS sought to leverage market forces to obtain favorable terms and pricing for its critical cloud infrastructure needs.

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

Historical spending data for USCIS cloud hosting services would need to be accessed from federal procurement databases (like FPDS) to provide a precise trend. However, it is widely understood that federal agencies, including DHS and its components like USCIS, have been progressively increasing their investment in cloud computing over the past decade. This trend is driven by the desire for greater scalability, cost efficiency, and modernization of IT infrastructure. It is likely that USCIS's spending on cloud services has grown, potentially shifting from on-premises solutions to cloud-based environments, and this BPA call represents a continuation or expansion of that strategic shift.

What are the implications of the NAICS code 541519 (Other Computer Related Services) for contract performance and oversight?

The NAICS code 541519, 'Other Computer Related Services,' is broad and encompasses a wide array of IT services beyond standard cloud hosting, such as IT consulting, systems integration, and data processing. For this contract, it implies that Govplace, LLC may be providing a comprehensive suite of services related to USCIS's cloud environment, not just raw infrastructure. This breadth necessitates rigorous oversight to ensure services align with the intended cloud hosting objectives and do not stray into unmanaged or unnecessary areas. Performance metrics and deliverables must be clearly defined to manage expectations and prevent scope creep, ensuring that the government receives the specific cloud support it requires under this classification.

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

Solicitation ID: N/A

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: $59,947,615

Exercised Options: $59,947,615

Current Obligation: $47,188,941

Actual Outlays: $34,610,407

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70SBUR23A00000003

IDV Type: BPA

Timeline