DHS awards $44.3M for cloud hosting, with 12 months of performance and a firm-fixed-price contract

Contract Overview

Contract Amount: $44,274,978 ($44.3M)

Contractor: Govplace, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-11-05

End Date: 2026-10-31

Contract Duration: 360 days

Daily Burn Rate: $123.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS REQUIREMENT PROVIDES COMMERCIAL CLOUD HOSTING SERVICES FOR USCIS MISSION-CRITICAL SYSTEMS, FOR INFRASTRUCTURE AS A SERVICE (IAAS), PLATFORM AS A SERVICE (PAAS) AND SOFTWARE AS A SERVICE (SAAS). POP 11/1/2025-10/31/2026.

Place of Performance

Location: CAMP SPRINGS, HOWARD County, MARYLAND, 20588

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $44.3 million to GOVPLACE, LLC for work described as: THIS REQUIREMENT PROVIDES COMMERCIAL CLOUD HOSTING SERVICES FOR USCIS MISSION-CRITICAL SYSTEMS, FOR INFRASTRUCTURE AS A SERVICE (IAAS), PLATFORM AS A SERVICE (PAAS) AND SOFTWARE AS A SERVICE (SAAS). POP 11/1/2025-10/31/2026. Key points: 1. The contract leverages a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework for services. 2. The firm-fixed-price structure shifts cost risk to the contractor, potentially stabilizing expenses. 3. Performance is scheduled for one year, suggesting a focus on immediate or short-term needs. 4. The award falls under 'Other Computer Related Services,' a broad category for IT support. 5. The contractor, GOVPLACE, LLC, is tasked with providing Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS). 6. The contract is for mission-critical systems, highlighting its importance to USCIS operations.

Value Assessment

Rating: good

The contract value of $44.3 million for a 12-month period for cloud hosting services appears reasonable given the scope of providing IaaS, PaaS, and SaaS for mission-critical systems. Benchmarking against similar large-scale cloud service contracts is challenging without more granular data on specific service levels and usage. However, the firm-fixed-price nature suggests that the government has negotiated a set price for the defined services, which can be advantageous for budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was utilized. This approach generally leads to better price discovery and a wider range of potential solutions.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple vendors to offer competitive pricing and innovative solutions, ultimately driving down costs and improving service quality.

Public Impact

USCIS mission-critical systems will benefit from reliable cloud hosting, ensuring continuity of operations. Immigrants and the public will experience uninterrupted access to essential immigration services. The contract supports the IT infrastructure necessary for processing immigration applications and managing citizen data. The workforce within USCIS will have access to the necessary technological resources to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed carefully, despite competitive initial award.
Reliance on a single vendor for critical infrastructure could pose risks if the vendor experiences outages or security breaches.
The scope of 'commercial cloud hosting services' needs clear definition to prevent scope creep and ensure value for money.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract provides cost certainty for the government.
Use of a BPA Call indicates leveraging existing contract vehicles for efficiency.
Focus on mission-critical systems underscores the importance of reliable service delivery.

Sector Analysis

The federal IT services market, particularly cloud computing, is a rapidly growing sector. Agencies are increasingly migrating to cloud environments (IaaS, PaaS, SaaS) to enhance scalability, flexibility, and cost-efficiency. This contract fits within the broader trend of federal agencies adopting commercial cloud solutions to modernize their IT infrastructure and support mission objectives. Spending benchmarks for similar cloud hosting contracts vary widely based on scale, service level agreements, and specific cloud offerings.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As it was awarded under full and open competition, the primary focus was likely on obtaining the best value from the overall market. Further analysis would be needed to determine if small businesses were involved as subcontractors or if there are any indirect impacts on the small business IT ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Homeland Security (DHS) and U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight activities are typically internal.

Related Government Programs

Federal Cloud Computing Strategy
IT Modernization Initiatives
Infrastructure as a Service (IaaS) Contracts
Platform as a Service (PaaS) Contracts
Software as a Service (SaaS) Contracts
Department of Homeland Security IT Spending

Risk Flags

Potential for vendor lock-in
Security of mission-critical systems
Service availability and performance
Contract scope management

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $44.3 million to GOVPLACE, LLC. THIS REQUIREMENT PROVIDES COMMERCIAL CLOUD HOSTING SERVICES FOR USCIS MISSION-CRITICAL SYSTEMS, FOR INFRASTRUCTURE AS A SERVICE (IAAS), PLATFORM AS A SERVICE (PAAS) AND SOFTWARE AS A SERVICE (SAAS). POP 11/1/2025-10/31/2026.

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 $44.3 million.

What is the period of performance?

Start: 2025-11-05. End: 2026-10-31.

What is the track record of GOVPLACE, LLC in delivering similar cloud hosting services to federal agencies?

Assessing the track record of GOVPLACE, LLC requires a review of their past performance on federal contracts, particularly those involving Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS) for mission-critical systems. Information on past performance, including customer satisfaction, adherence to schedules, and quality of service, is typically available through sources like the Federal Procurement Data System (FPDS) or contractor performance assessment reporting tools. A positive track record would indicate a lower risk for this current contract. Conversely, any history of performance issues, contract disputes, or failures to meet requirements would raise concerns about GOVPLACE, LLC's ability to successfully execute this $44.3 million award.

How does the per-unit cost or overall value of this contract compare to similar federal cloud hosting agreements?

Directly comparing the value of this $44.3 million contract for a 12-month period to similar federal cloud hosting agreements is challenging without detailed service level agreements (SLAs), usage metrics, and specific cloud technologies deployed. However, the firm-fixed-price structure suggests that the government has negotiated a defined cost for a defined set of services. To benchmark effectively, one would need to analyze contracts for comparable cloud services (IaaS, PaaS, SaaS) awarded to other agencies or for similar mission-critical functions. Factors such as the number of users, data storage requirements, processing power, and security certifications significantly influence pricing. A preliminary assessment suggests the value is within a reasonable range for large-scale cloud services, but a deeper dive into specific service components would be necessary for a definitive comparison.

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

Key risks associated with this cloud hosting contract include potential vendor lock-in, security vulnerabilities, service disruptions, and performance issues. Vendor lock-in can occur if the chosen cloud platform and services are highly proprietary, making future transitions difficult and costly. Security is paramount, as mission-critical systems house sensitive data; any breach could have severe consequences. Service disruptions could impact USCIS operations and public access to services. Mitigation strategies typically involve robust security protocols, clearly defined SLAs with penalties for non-performance, contingency planning, and regular performance monitoring. The firm-fixed-price nature also mitigates cost overrun risks for the government. The full and open competition process itself helps mitigate risks by selecting a vendor with a strong capability and competitive pricing.

How effective is the chosen cloud service model (IaaS, PaaS, SaaS) in meeting the specific needs of USCIS mission-critical systems?

The effectiveness of the chosen cloud service model (IaaS, PaaS, SaaS) hinges on how well it aligns with the technical requirements and operational demands of USCIS's mission-critical systems. IaaS provides foundational computing resources, PaaS offers a platform for developing and deploying applications, and SaaS delivers ready-to-use software. By offering all three, the contract provides flexibility to host diverse systems. The key to effectiveness lies in the detailed architecture and configuration within each service model. For instance, mission-critical systems requiring high availability and scalability might benefit most from robust IaaS and PaaS solutions, while user-facing applications could leverage SaaS. USCIS's technical teams, in collaboration with GOVPLACE, LLC, must ensure the selected services are optimized for performance, security, and cost-efficiency to meet their specific mission objectives.

What are the historical spending patterns for cloud hosting services at DHS or USCIS, and how does this award fit within them?

Analyzing historical spending patterns for cloud hosting at DHS or USCIS is crucial to contextualize this $44.3 million award. Federal agencies, including DHS and USCIS, have been progressively increasing their cloud spending over the past decade as part of broader IT modernization efforts. This trend reflects a strategic shift from on-premises data centers to more flexible, scalable, and often cost-effective cloud solutions. This specific contract, covering a 12-month period, represents a significant investment but should be viewed within the agency's overall IT budget and its ongoing cloud adoption roadmap. Understanding previous investments in cloud infrastructure, migration projects, and managed services will help determine if this award represents a continuation, expansion, or a new strategic direction in USCIS's cloud strategy.

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: $64,130,275

Exercised Options: $64,130,275

Current Obligation: $44,274,978

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70SBUR23A00000003

IDV Type: BPA

Timeline