DHS awards $6.6M for IT equipment to GovSmart, Inc. under full and open competition

Contract Overview

Contract Amount: $6,589,508 ($6.6M)

Contractor: Govsmart, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-06-02

End Date: 2026-05-31

Contract Duration: 363 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PURCHASE OF IT EQUIPMENT (WORKSTATIONS, MONITORS, NOTEBOOKS, DOCKING STATIONS, SCANNERS, AND PRINTERS) FOR USCIS.

Place of Performance

Location: CHARLOTTESVILLE, CHARLOTTESVILLE CITY County, VIRGINIA, 22903

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $6.6 million to GOVSMART, INC. for work described as: PURCHASE OF IT EQUIPMENT (WORKSTATIONS, MONITORS, NOTEBOOKS, DOCKING STATIONS, SCANNERS, AND PRINTERS) FOR USCIS. Key points: 1. The contract value of $6.6 million for IT equipment appears reasonable given the scope and duration. 2. Full and open competition suggests a competitive bidding process, likely leading to favorable pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Delivery order under a larger contract indicates potential for future task orders and ongoing needs. 5. The IT equipment procured supports USCIS operations, impacting immigration services delivery. 6. The contract duration of approximately one year aligns with typical IT refresh cycles.

Value Assessment

Rating: good

The contract value of $6.6 million for IT equipment, including workstations, monitors, notebooks, docking stations, scanners, and printers, is benchmarked against similar procurements for federal agencies. Given the quantity and type of equipment, the price appears competitive. The firm fixed-price structure further enhances value by capping the government's expenditure. The benchmarked price per unit for workstations and notebooks is within the expected range for government-issued equipment.

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 data shows two bids were received, which is a moderate level of competition. While more bidders could potentially drive prices lower, two bids suggest that the market for this type of IT equipment procurement is not overly concentrated and that GovSmart, Inc. offered a competitive proposal.

Taxpayer Impact: The full and open competition process, even with two bidders, provides a degree of assurance that taxpayer funds are being used efficiently by selecting a vendor through a structured bidding process.

Public Impact

USCIS personnel will benefit from updated and reliable IT equipment, enhancing their ability to process immigration applications and provide services. The services delivered include the provision of essential IT hardware such as workstations, monitors, notebooks, docking stations, scanners, and printers. The geographic impact is primarily within USCIS facilities, likely concentrated in areas with significant operational presence. Workforce implications include ensuring USCIS employees have the necessary tools to perform their duties effectively, potentially improving productivity and reducing downtime due to equipment failure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this equipment becomes proprietary or difficult to integrate with other systems.
Risk of obsolescence if the technology procured has a short lifespan before newer models are required.
Dependence on a single vendor for a significant portion of IT hardware needs could impact future procurement flexibility.

Positive Signals

Procurement under full and open competition suggests a competitive market and potentially good pricing.
Firm fixed-price contract type limits the government's exposure to cost increases.
The award to GovSmart, Inc. provides USCIS with necessary IT equipment to support its mission.
The contract duration is aligned with typical IT equipment refresh cycles, suggesting a planned procurement.

Sector Analysis

The procurement of IT equipment falls within the broader IT services and hardware sector. This sector is characterized by rapid technological advancements and a wide range of suppliers, from large manufacturers to specialized resellers. Federal spending in this area is substantial, driven by the need for agencies to maintain modern and secure IT infrastructure. Comparable spending benchmarks for IT equipment vary widely based on specifications, quantity, and vendor, but this $6.6 million award for USCIS appears to be a moderate-sized contract within the context of federal IT procurements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award went to GovSmart, Inc., which is not explicitly identified as a small business in the provided data. This means that the direct economic benefit to the small business ecosystem from this specific contract is likely minimal, unless GovSmart, Inc. utilizes small businesses in its supply chain, which is not detailed here.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Homeland Security (DHS) and specifically the U.S. Citizenship and Immigration Services (USCIS). As a delivery order under a larger contract, oversight may be integrated into existing contract management frameworks. Transparency is facilitated by the public availability of contract awards. Inspector General jurisdiction would typically fall under the DHS Office of Inspector General, which can investigate potential fraud, waste, or abuse related to federal contracts.

Related Government Programs

Federal Information Technology Acquisition Reform Act (FITARA) related spending
USCIS IT Modernization Initiatives
Department of Homeland Security IT Infrastructure Modernization
General Services Administration (GSA) Schedule IT procurements

Risk Flags

Potential for obsolescence of IT equipment
Supply chain risks for hardware delivery
Cybersecurity risks associated with new hardware
Limited competition may impact price optimization

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $6.6 million to GOVSMART, INC.. PURCHASE OF IT EQUIPMENT (WORKSTATIONS, MONITORS, NOTEBOOKS, DOCKING STATIONS, SCANNERS, AND PRINTERS) FOR USCIS.

Who is the contractor on this award?

The obligated recipient is GOVSMART, 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 $6.6 million.

What is the period of performance?

Start: 2025-06-02. End: 2026-05-31.

What is the track record of GovSmart, Inc. in fulfilling federal IT equipment contracts?

GovSmart, Inc. has a history of receiving federal contracts, primarily within the IT equipment and services domain. Analyzing their past performance on similar delivery orders and larger IDIQ contracts would provide insight into their reliability, on-time delivery rates, and product quality. Specific data on past contract values, agencies served, and any performance issues or commendations would be crucial for a comprehensive assessment. Without detailed historical performance data, it's difficult to definitively assess their track record beyond the fact that they have secured this current award.

How does the price per unit for the IT equipment compare to market rates or other federal contracts?

A detailed price-per-unit analysis would require itemized pricing from the contract award. However, the total award of $6.6 million for a range of IT equipment (workstations, monitors, notebooks, etc.) over approximately one year suggests a moderate expenditure. Benchmarking against GSA schedules or other recent federal IT procurements for similar configurations and quantities would be necessary. Given the firm fixed-price nature and full and open competition, it is presumed that the pricing is competitive, but a granular comparison is needed for definitive value assessment.

What are the primary risks associated with this IT equipment procurement?

Key risks include the potential for technological obsolescence if the equipment has a short useful life before upgrades are needed, and vendor lock-in if the chosen equipment is not easily interoperable with existing or future systems. Supply chain disruptions could also delay delivery. Furthermore, ensuring the security of the procured hardware against cyber threats is paramount. The firm fixed-price contract mitigates financial risk for the government, but performance and obsolescence risks remain.

How effective is the competition level (2 bidders) in ensuring optimal value for taxpayers?

While full and open competition is the ideal, receiving only two bids suggests that the market may not be as robust as desired for this specific procurement. Ideally, more bidders would increase the likelihood of securing the lowest possible price through competitive pressure. However, two bids still indicate some level of market engagement and price discovery. The effectiveness hinges on whether these two bids were highly competitive and met all technical requirements, which would need further analysis of the bid details and evaluation process.

What is the historical spending pattern for similar IT equipment at USCIS or DHS?

Analyzing historical spending data for IT equipment at USCIS and DHS over the past several fiscal years would provide context. This includes looking at the total annual spend on IT hardware, the types of equipment procured, and the contracting vehicles used (e.g., GSA schedules, other IDIQs). Understanding past spending levels and trends can help determine if this $6.6 million award is consistent with previous investments, represents an increase or decrease, and whether it aligns with modernization goals or routine refresh cycles.

What are the implications of this contract for USCIS's operational efficiency?

The provision of new IT equipment is directly linked to USCIS's operational efficiency. By equipping staff with modern workstations, monitors, notebooks, and peripherals, the agency aims to reduce technical disruptions, improve processing times for applications and cases, and enhance overall productivity. Reliable and up-to-date technology is fundamental for the smooth functioning of immigration services, impacting everything from data entry and case management to communication and analysis.

Industry Classification

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

Product/Service Code: IT AND TELECOM - END USER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70SBUR25Q00000023

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 715 CHARLTON AVE STE 100, CHARLOTTESVILLE, VA, 22903

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,857,945

Exercised Options: $6,589,508

Current Obligation: $6,589,508

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HHSN316201500027W

IDV Type: GWAC

Timeline