DFC awards $8.3M for CO-TERM Software Renewal to GovSmart, Inc. under full and open competition

Contract Overview

Contract Amount: $8,292,697 ($8.3M)

Contractor: Govsmart, Inc.

Awarding Agency: U.S. International Development Finance Corporation

Start Date: 2024-04-10

End Date: 2027-04-14

Contract Duration: 1,099 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CO-TERM SOFTWARE RENEWAL

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20527

State: District of Columbia Government Spending

Plain-Language Summary

U.S. International Development Finance Corporation obligated $8.3 million to GOVSMART, INC. for work described as: CO-TERM SOFTWARE RENEWAL Key points: 1. The contract represents a significant investment in essential IT infrastructure for the agency. 2. GovSmart, Inc. secured this award through a competitive process, indicating potential value for money. 3. The renewal term of nearly three years suggests a stable, ongoing need for the software. 4. The fixed-price contract type helps mitigate cost overrun risks for the agency. 5. This spending falls within the 'Other Computer Related Services' NAICS code, a common area for IT procurement. 6. The contract's value is moderate within the context of large federal IT expenditures.

Value Assessment

Rating: good

The contract value of approximately $8.3 million over three years for a software renewal appears reasonable, especially given it was awarded under full and open competition. Benchmarking against similar CO-TERM software renewals for federal agencies of comparable size and mission would provide a more precise value assessment. However, the fixed-price nature of the contract suggests that the agency has negotiated a set cost, which is generally favorable for predictable budgeting. The absence of extensive modifications or change orders in the contract history (if available) would further support its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was open, specific sources may have been initially excluded before a broader solicitation. The presence of 4 bids indicates a healthy level of competition for this software renewal. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie to offer the most competitive terms.

Taxpayer Impact: The competitive bidding process for this software renewal is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. This ensures that government funds are used efficiently.

Public Impact

The U.S. International Development Finance Corporation (DFC) benefits directly through the continued availability of critical software. The services delivered are essential for the agency's operational continuity and IT infrastructure management. The primary geographic impact is within the District of Columbia, where the agency is headquartered. The contract supports the IT workforce by ensuring access to necessary tools and potentially involving contractor personnel for support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the software is highly specialized and difficult to replace.
Risk of price increases in future renewals if competition diminishes.
Dependence on a single vendor for critical software functionality.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for this service.
Fixed-price contract type limits the government's exposure to cost overruns.
The contract duration provides stability for the agency's IT operations.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services.' The market for CO-TERM software renewals is substantial within the federal government, with agencies consistently procuring licenses and support for essential software. The value of this contract, approximately $8.3 million, is moderate for federal IT procurements, which can range into the hundreds of millions or billions for large-scale systems. This specific award contributes to the overall spending on IT maintenance and support services.

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 stemming from a set-aside requirement. The primary focus of this award is on the prime contractor, GovSmart, Inc. The impact on the small business ecosystem is indirect, as larger prime contractors may engage small businesses for various support roles, though this is not mandated by the contract terms.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The U.S. International Development Finance Corporation (DFC) is responsible for managing and overseeing this contract to ensure compliance with terms and conditions. Transparency is facilitated through public contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to this procurement.

Related Government Programs

IT Software Licensing and Support
CO-TERM Renewals
Computer Related Services
Agency IT Infrastructure

Risk Flags

Potential for vendor lock-in
Reliance on specific software vendor
Cybersecurity risks associated with software

Frequently Asked Questions

What is this federal contract paying for?

U.S. International Development Finance Corporation awarded $8.3 million to GOVSMART, INC.. CO-TERM SOFTWARE RENEWAL

Who is the contractor on this award?

The obligated recipient is GOVSMART, INC..

Which agency awarded this contract?

Awarding agency: U.S. International Development Finance Corporation (U.S. International Development Finance Corporation).

What is the total obligated amount?

The obligated amount is $8.3 million.

What is the period of performance?

Start: 2024-04-10. End: 2027-04-14.

What is the track record of GovSmart, Inc. with federal contracts, particularly for software renewals?

GovSmart, Inc. has a history of receiving federal contracts, primarily within the IT services domain. Analyzing their past performance on similar CO-TERM software renewals would be crucial. This includes examining contract values, durations, agencies served, and any reported performance issues or successes. A review of their contract history in FPDS can reveal patterns of successful delivery or potential red flags. For this specific contract, the award itself suggests they met the agency's requirements during the solicitation process. Further due diligence would involve looking at past performance evaluations and any debriefings from previous solicitations they participated in.

How does the $8.3 million value compare to similar software renewal contracts at DFC or other agencies?

Benchmarking the $8.3 million value against similar CO-TERM software renewals is essential for assessing value for money. This comparison should ideally be made with contracts for comparable software (e.g., enterprise resource planning, cybersecurity suites) awarded by agencies of similar size and complexity to DFC. Factors such as the number of users, scope of services (maintenance, support, upgrades), and contract duration significantly influence pricing. Without specific comparable data, it's difficult to definitively state if $8.3 million is high or low. However, given it was awarded under full and open competition with four bidders, it suggests a competitive market price was likely achieved.

What are the primary risks associated with this software renewal contract?

Key risks include potential vendor lock-in, where the agency becomes heavily reliant on GovSmart's specific software and support, making future transitions costly and complex. There's also a risk of price escalation in subsequent renewals if competition decreases or if the software vendor increases its own licensing fees. Operational risks involve potential disruptions if the software experiences outages or if support is inadequate. Furthermore, cybersecurity vulnerabilities within the software itself, even if managed by the vendor, pose a risk to DFC's data and operations. Ensuring robust service level agreements (SLAs) and contingency plans can mitigate some of these risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach for this type of procurement?

The 'Full and Open Competition After Exclusion of Sources' (FACA) approach is a nuanced method. It allows for broad competition but acknowledges that certain sources might be excluded initially, perhaps due to specific technical requirements or prior unsatisfactory performance. For a software renewal, this could mean excluding vendors whose software is not compatible or has historically failed to meet agency needs. The effectiveness hinges on whether the exclusions were justified and did not unduly limit competition. With four bidders participating, it suggests that the exclusions did not stifle the overall competitive landscape significantly, allowing for price discovery and a reasonable selection.

What are the historical spending patterns for IT services at the U.S. International Development Finance Corporation?

Analyzing DFC's historical spending on IT services, particularly software licensing, maintenance, and related computer services (NAICS 541519), would provide context for this $8.3 million award. Understanding trends in IT procurement, such as the proportion of spending on renewals versus new systems, the average contract values, and the primary contractors utilized, can reveal strategic priorities and potential areas for cost savings or efficiency improvements. This specific contract represents a portion of their ongoing investment in maintaining and upgrading their technological capabilities to support their mission.

What is the significance of the contract duration (1099 days) in relation to the total value?

The contract duration of 1099 days, approximately three years, is significant as it provides a stable period for the DFC to utilize the software and receive support without immediate procurement uncertainty. This duration, coupled with the total value of $8.3 million, allows for an annualized cost calculation of roughly $2.7 million per year. This figure is useful for comparing the ongoing operational cost against potential alternatives or for budgeting future renewals. A longer duration can sometimes offer better value if prices are locked in, but it also increases the risk of the technology becoming outdated or the agency's needs evolving.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 77344424Q0090

Offers Received: 4

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: $14,681,754

Exercised Options: $8,292,697

Current Obligation: $8,292,697

Actual Outlays: $5,362,575

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD11B

IDV Type: GWAC

Timeline