DHS awards $23.1M for Cisco hardware and software, impacting USCIS system upgrades and support

Contract Overview

Contract Amount: $23,130,891 ($23.1M)

Contractor: Anacapa Micro Products, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-02-19

End Date: 2027-02-13

Contract Duration: 724 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CISCO EA - CISCO HARDWARE AND SOFTWARE PROVIDES FOR SYSTEM UPGRADES, SERVICE CALLS AND ACCESS TO THE TECHNICAL SUPPORT FOR TROUBLESHOOTING AS WELL AS PROVIDING USCIS WITH ACCESS TO AN ONLINE KNOWLEDGE BASE. POP 2/19/25 TO 2/13/26.

Place of Performance

Location: CAMP SPRINGS, HOWARD County, MARYLAND, 20588

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.1 million to ANACAPA MICRO PRODUCTS, INC. for work described as: CISCO EA - CISCO HARDWARE AND SOFTWARE PROVIDES FOR SYSTEM UPGRADES, SERVICE CALLS AND ACCESS TO THE TECHNICAL SUPPORT FOR TROUBLESHOOTING AS WELL AS PROVIDING USCIS WITH ACCESS TO AN ONLINE KNOWLEDGE BASE. POP 2/19/25 TO 2/13/26. Key points: 1. Contract provides essential hardware, software, and technical support for USCIS systems. 2. Duration of 724 days ensures continuity of critical IT services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. This award represents a significant investment in maintaining USCIS's technological infrastructure. 5. The contract's scope includes system upgrades, service calls, and knowledge base access. 6. Performance period extends into early 2027, indicating long-term IT needs.

Value Assessment

Rating: good

The contract value of $23.1 million for a period of approximately two years appears reasonable for comprehensive IT hardware, software, and support services. Benchmarking against similar enterprise agreements for major IT vendors like Cisco would provide a more precise value-for-money assessment. However, given the breadth of services including upgrades, troubleshooting, and knowledge base access, the pricing seems aligned with market expectations for such comprehensive support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while a competitive process occurred, specific circumstances led to the exclusion of certain potential bidders. The exact number of bidders and the rationale for exclusions are not detailed, but the 'full and open' designation suggests a broad initial solicitation. This competitive approach is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple vendors to bid, which can drive down costs and improve service quality.

Public Impact

USCIS benefits from enhanced system reliability and access to up-to-date technology. Immigration services operations are supported through robust IT infrastructure. Workforce productivity is maintained through reliable access to systems and support. Citizens and residents interacting with USCIS services indirectly benefit from improved system performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with Cisco ecosystem.
Reliance on a single vendor for critical IT infrastructure.
Need for ongoing vigilance to ensure competitive pricing in future renewals.

Positive Signals

Contract ensures continuity of essential IT services for USCIS.
Fixed-price structure provides cost predictability.
Access to technical support and knowledge base aids in rapid issue resolution.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on hardware and software maintenance and support for enterprise-level systems. The market for IT infrastructure and support services is highly competitive, with major players like Cisco dominating a significant share of the enterprise market. Spending in this area is crucial for government agencies to maintain operational efficiency and security. Comparable spending benchmarks would involve analyzing other large-scale IT enterprise agreements within federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large enterprise agreement likely involving significant resources and established vendor relationships, it may not be conducive to small business participation directly. However, the prime contractor, Anacapa Micro Products, Inc., may engage small businesses for subcontracting opportunities, though this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on the subcontracting plan, if any.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, requiring the contractor to deliver specified goods and services. Transparency is facilitated by the contract's public availability through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USCIS IT Modernization Initiatives
DHS Enterprise IT Services
Federal Civilian Agency IT Procurement
Cisco Systems Federal Contracts
IT Hardware and Software Maintenance Contracts

Risk Flags

Potential for vendor lock-in
Reliance on single-source technology provider
Need for ongoing price competitiveness assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.1 million to ANACAPA MICRO PRODUCTS, INC.. CISCO EA - CISCO HARDWARE AND SOFTWARE PROVIDES FOR SYSTEM UPGRADES, SERVICE CALLS AND ACCESS TO THE TECHNICAL SUPPORT FOR TROUBLESHOOTING AS WELL AS PROVIDING USCIS WITH ACCESS TO AN ONLINE KNOWLEDGE BASE. POP 2/19/25 TO 2/13/26.

Who is the contractor on this award?

The obligated recipient is ANACAPA MICRO PRODUCTS, INC..

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 $23.1 million.

What is the period of performance?

Start: 2025-02-19. End: 2027-02-13.

What is the historical spending pattern for Cisco hardware and software support at USCIS?

Analyzing historical spending for Cisco hardware and software support at USCIS is crucial for understanding trends and ensuring current pricing is competitive. Without specific historical data for this contract or similar previous agreements, it's difficult to provide a precise pattern. However, federal agencies typically engage in multi-year contracts for enterprise IT solutions due to the long lifecycle of such systems. Spending often increases over time due to inflation, new product releases, and expanded service needs. A review of past solicitations, awards, and contract modifications for USCIS's IT infrastructure would reveal if this $23.1 million award represents an increase, decrease, or stable level of investment compared to previous periods. Understanding this historical context helps in assessing whether the current award offers good value for money and aligns with long-term IT strategic planning.

How does the per-unit cost of Cisco products and services under this contract compare to market rates?

Determining the precise per-unit cost comparison for Cisco products and services under this $23.1 million contract requires detailed line-item data that is not provided. Federal agencies often negotiate enterprise agreements that offer volume discounts, which can make direct per-unit comparisons challenging without access to the contractor's pricing structure and standard commercial price lists. However, the 'full and open competition' aspect suggests that multiple vendors had the opportunity to bid, which should theoretically drive pricing towards market competitiveness. Agencies typically benchmark against GSA schedules, other government contracts, or commercial price lists to ensure fair and reasonable pricing. If specific product SKUs and service hours were available, they could be cross-referenced with publicly available Cisco pricing or reseller quotes to assess value. The absence of a specific per-unit cost benchmark in the provided data necessitates a broader assessment based on the overall contract value and competitive process.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are critical components of any IT support contract, ensuring the contractor meets defined performance standards. While not explicitly detailed in the provided summary data, contracts of this nature typically include SLAs related to system uptime, response times for service calls, resolution times for technical issues, and availability of technical support personnel. KPIs would likely measure the contractor's adherence to these SLAs, such as the percentage of uptime achieved, average time to resolve critical incidents, and customer satisfaction ratings. The firm-fixed-price nature of this contract implies that the contractor is obligated to meet these performance standards to receive full payment. USCIS contracting officers would monitor these metrics throughout the contract period, with potential remedies or penalties for non-performance.

What is the track record of Anacapa Micro Products, Inc. in fulfilling similar federal IT contracts?

Anacapa Micro Products, Inc.'s track record in fulfilling similar federal IT contracts is a significant factor in assessing the risk and potential success of this $23.1 million award. As a prime contractor, their past performance provides insights into their ability to manage complex IT projects, deliver hardware and software solutions, and provide reliable technical support within government environments. Information regarding their past performance, including client satisfaction, adherence to schedules and budgets, and overall quality of deliverables, would typically be available through federal procurement databases like the Contractor Performance Assessment Reporting System (CPARS). A review of CPARS reports and other contract history data would indicate whether Anacapa has a history of successful contract completion, any performance issues, or disputes. This assessment is crucial for USCIS to have confidence in the contractor's capability to meet the requirements of this new agreement.

What are the potential risks associated with relying on a single vendor for critical Cisco IT infrastructure?

Relying on a single vendor, even a major one like Cisco, for critical IT infrastructure presents several potential risks. Firstly, there's the risk of vendor lock-in, where switching to a different vendor becomes prohibitively expensive or technically complex due to proprietary technologies and integrated systems. Secondly, pricing power can shift towards the vendor over time, potentially leading to higher costs in future renewals if competition is limited. Thirdly, the vendor's strategic direction or financial stability could impact the availability of support or future product development, posing a risk to the agency's long-term IT strategy. Lastly, security vulnerabilities discovered in the vendor's products could have widespread implications across the agency's network. Mitigating these risks often involves careful contract negotiation, exploring multi-vendor strategies where feasible, and maintaining strong oversight of the vendor's performance and market position.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR25Q00000025

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Anacapa Micro Products Inc.

Address: 1901 SOLAR DR STE 150, OXNARD, CA, 93036

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

Financial Breakdown

Contract Ceiling: $34,696,336

Exercised Options: $23,130,891

Current Obligation: $23,130,891

Actual Outlays: $11,577,332

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD08B

IDV Type: GWAC

Timeline