HHS Renews BeyondTrust License for $1.22M, Awarded to DH Technologies, Inc

Contract Overview

Contract Amount: $122,493 ($122.5K)

Contractor: DH Technologies, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-01

End Date: 2027-04-30

Contract Duration: 394 days

Daily Burn Rate: $311/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), OFFICE OF THE ASSISTANT SECRETARY FOR FINANCIAL RESOURCES, OFFICE OF FINANCIAL SYSTEMS POLICY & OVERSIGHT (OFSPO), IS RENEWING THEIR BEYONDTRUST LICENSE.

Place of Performance

Location: LEESBURG, LOUDOUN County, VIRGINIA, 20176

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $122,493.13 to DH TECHNOLOGIES, INC. for work described as: THE DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), OFFICE OF THE ASSISTANT SECRETARY FOR FINANCIAL RESOURCES, OFFICE OF FINANCIAL SYSTEMS POLICY & OVERSIGHT (OFSPO), IS RENEWING THEIR BEYONDTRUST LICENSE. Key points: 1. The renewal focuses on cybersecurity software licensing, a critical area for government data protection. 2. DH Technologies, Inc. is the incumbent provider, suggesting a potential lack of new market entrants. 3. The contract's fixed-price nature provides cost certainty, but the renewal method warrants scrutiny. 4. Spending in IT services, particularly cybersecurity, remains a significant government expenditure.

Value Assessment

Rating: good

The price of $1.22M for a 13-month renewal appears reasonable for enterprise-level cybersecurity software. Benchmarking against similar multi-year licenses for advanced endpoint security and privilege management solutions would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition scenario. This method may restrict price discovery and potentially lead to higher costs compared to a truly open competition.

Taxpayer Impact: Taxpayers are impacted by the cost of this renewal, which is justified by the need for continued cybersecurity. The limited competition aspect means a thorough review is needed to ensure value for money.

Public Impact

Ensures continued protection of sensitive health data managed by HHS. Maintains operational continuity for critical IT systems reliant on BeyondTrust software. Supports federal cybersecurity mandates and data breach prevention efforts. Provides access to essential security features for government employees and contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpricing.
Lack of detailed justification for excluding other sources.
Renewal without a clear competitive process.

Positive Signals

Addresses critical cybersecurity needs.
Maintains essential security infrastructure.
Fixed-price contract offers budget predictability.

Sector Analysis

This contract falls within the IT services sector, specifically cybersecurity software licensing. Government spending on cybersecurity solutions has been steadily increasing due to evolving threats and the digitization of government services.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation or opportunities missed.

Oversight & Accountability

The award justification and details surrounding the 'exclusion of sources' will be crucial for oversight. Agencies must ensure that limited competition is properly documented and justified to maintain accountability.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Financial Resources Programs

Risk Flags

Limited competition may lead to inflated costs.
Potential lack of market research to identify alternative solutions.
Insufficient justification for excluding other sources.
Risk of vendor lock-in with continued sole-source renewals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $122,493.13 to DH TECHNOLOGIES, INC.. THE DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS), OFFICE OF THE ASSISTANT SECRETARY FOR FINANCIAL RESOURCES, OFFICE OF FINANCIAL SYSTEMS POLICY & OVERSIGHT (OFSPO), IS RENEWING THEIR BEYONDTRUST LICENSE.

Who is the contractor on this award?

The obligated recipient is DH TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $122,493.13.

What is the period of performance?

Start: 2026-04-01. End: 2027-04-30.

What specific justification was provided for excluding other sources, and was this exclusion properly documented and approved?

The justification for excluding other sources is critical for understanding the limited competition. Proper documentation typically involves demonstrating that only one source could meet the requirement, or that a compelling reason existed to limit competition, such as urgent need or unique capabilities. Without this documentation, it's difficult to assess if the government received fair value.

How does the per-unit cost of this renewal compare to previous years or similar government contracts for BeyondTrust licenses?

Comparing the per-unit cost is essential for assessing value. If the cost has increased significantly without a corresponding increase in features or services, it could indicate an issue with price discovery. Benchmarking against other agencies or similar cybersecurity software contracts can reveal if HHS is paying a competitive rate for this essential security tool.

What is the long-term strategy for cybersecurity licensing at HHS, and does this renewal align with it?

Understanding the long-term strategy is key to evaluating effectiveness. If HHS aims to consolidate vendors or transition to different solutions, this renewal might be a short-term measure. However, if BeyondTrust remains a strategic platform, the focus should be on ensuring future competitive procurements to drive better pricing and innovation.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 FORT EVANS RD NE STE 255, LEESBURG, VA, 20176

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

Financial Breakdown

Contract Ceiling: $122,493

Exercised Options: $122,493

Current Obligation: $122,493

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC70B

IDV Type: GWAC

Timeline