GSA awards $3M+ for Login.gov source issuer verification, a sole-source contract for IT services

Contract Overview

Contract Amount: $3,002,670 ($3.0M)

Contractor: American Association of Motor Vehicle Administrators, the

Awarding Agency: General Services Administration

Start Date: 2025-09-01

End Date: 2026-08-31

Contract Duration: 364 days

Daily Burn Rate: $8.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LOGIN.GOV SOURCE ISSUER VERIFICATION SOLUTION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $3.0 million to AMERICAN ASSOCIATION OF MOTOR VEHICLE ADMINISTRATORS, THE for work described as: LOGIN.GOV SOURCE ISSUER VERIFICATION SOLUTION Key points: 1. The contract's sole-source nature raises questions about potential overpayment and lack of competitive pressure. 2. Limited competition may hinder innovation and prevent the government from accessing potentially better or more cost-effective solutions. 3. The fixed-price contract type offers some cost certainty, but the absence of competition limits benchmarking opportunities. 4. Performance duration of one year suggests a need for ongoing services, but the lack of competition is a recurring concern. 5. The contract falls under 'Other Computer Related Services,' a broad category that warrants closer examination of specific deliverables. 6. The awarding agency, GSA, is responsible for managing federal IT infrastructure, making this a critical service area.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging due to the lack of comparable bids. The total award of over $3 million for a one-year period for 'Other Computer Related Services' requires scrutiny. Without competitive proposals, it's difficult to ascertain if the pricing reflects fair market value or if taxpayers are potentially overpaying for the services provided. The absence of competition means there's no direct comparison to other vendors' pricing structures or service offerings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors submitting proposals. The rationale for a sole-source award often relates to unique capabilities, urgent needs, or the unavailability of other sources. However, it significantly limits price discovery and the government's ability to negotiate the best possible terms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they forgo the benefits of competition, such as lower prices and innovative solutions that emerge from a bidding process.

Public Impact

Federal agencies and their employees benefit from secure and reliable identity verification services for accessing government systems. The contract supports the critical function of verifying the identity of users accessing federal digital services through Login.gov. The geographic impact is nationwide, as Login.gov serves as a common access point for various federal digital services. Workforce implications are minimal in terms of direct job creation from this specific contract, but it supports the IT workforce managing and securing these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to complacency and reduced incentive for innovation.
Sole-source awards can mask inefficiencies and potentially higher costs compared to competitive procurements.
The broad 'Other Computer Related Services' category could obscure the specific value and necessity of the services rendered.
Limited transparency into the justification for sole-source award makes it difficult to assess necessity.
Absence of performance metrics or benchmarks makes it hard to evaluate contractor effectiveness post-award.

Positive Signals

The contract supports a critical government function (Login.gov identity verification), enhancing digital service security.
The firm-fixed-price contract type provides cost predictability for the government.
The contract is managed by the General Services Administration (GSA), an agency with established procurement expertise.
The contract has a defined period of performance, allowing for future re-evaluation and potential competition.
The services provided are essential for the functioning of numerous federal digital platforms.

Sector Analysis

The IT services sector, particularly identity and access management solutions, is a rapidly evolving market. Federal spending in this area is substantial as agencies modernize and enhance cybersecurity. This contract for Login.gov source issuer verification fits within the broader category of IT professional services, specifically focusing on identity solutions. Comparable spending benchmarks are difficult to establish precisely due to the sole-source nature, but the overall federal IT services market is valued in the tens of billions annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans for small businesses. The lack of set-aside suggests that opportunities for small businesses to participate in this specific procurement are limited, potentially concentrating the award with a larger entity.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA has established procurement regulations and contract administration processes. Transparency regarding the sole-source justification and performance monitoring would be key oversight elements. While no specific Inspector General is mentioned, the GSA's Office of Inspector General would have jurisdiction over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Login.gov
Federal Identity, Credential, and Access Management (ICAM)
GSA IT Schedule
Cybersecurity Services
Digital Identity Solutions

Risk Flags

Sole-source award bypasses competition
Lack of performance metrics in summary data
Broad service category ('Other Computer Related Services')
Limited public information on justification for sole-source award

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.0 million to AMERICAN ASSOCIATION OF MOTOR VEHICLE ADMINISTRATORS, THE. LOGIN.GOV SOURCE ISSUER VERIFICATION SOLUTION

Who is the contractor on this award?

The obligated recipient is AMERICAN ASSOCIATION OF MOTOR VEHICLE ADMINISTRATORS, THE.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-08-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified when only one responsible source is available or capable of meeting the government's needs. This could be due to unique technical capabilities, proprietary technology, or urgent and compelling circumstances. Without the official justification document, it is impossible to verify the necessity and appropriateness of bypassing the competitive bidding process. Further investigation into GSA's procurement records would be required to obtain this critical information and assess if it aligns with federal acquisition regulations.

How does the $3M+ award compare to historical spending on Login.gov verification services?

The provided data indicates a single award of $3,002,670.12 with a performance period from September 1, 2025, to August 31, 2026 (364 days). To compare this to historical spending, one would need access to past contract awards for Login.gov verification services. This data point alone does not provide historical context. Analyzing previous contract values, durations, and the number of bidders for similar services would be necessary to determine if this award represents an increase, decrease, or stable level of spending. Without historical data, assessing value-for-money trends is not possible.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not specify the key performance indicators (KPIs) or the methods for measuring contractor performance. For a contract supporting a critical service like Login.gov identity verification, KPIs would likely include metrics related to system uptime, response times, security incident rates, and accuracy of verification processes. The absence of this information in the summary data makes it difficult to assess how the government will ensure the contractor is meeting its obligations and delivering the required services effectively. Contract award documents and performance work statements would typically detail these KPIs.

What specific 'Other Computer Related Services' are included under this contract?

The contract is categorized under NAICS code 541519, 'Other Computer Related Services.' This is a broad classification that can encompass a wide range of IT services beyond software development or hardware support. For this specific contract, it likely includes services related to the operation, maintenance, security, and potentially enhancement of the Login.gov source issuer verification system. Examples could include identity proofing, multifactor authentication support, data management for verification, and compliance monitoring. A detailed review of the contract's Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary to understand the precise scope of services.

Are there any known risks associated with the contractor, AMERICAN ASSOCIATION OF MOTOR VEHICLE ADMINISTRATORS, THE, in performing these services?

The provided data does not contain information regarding the contractor's track record or any specific risks associated with AMERICAN ASSOCIATION OF MOTOR VEHICLE ADMINISTRATORS, THE, in performing these services. To assess contractor risk, one would typically look at past performance reviews, any history of contract disputes, financial stability, and relevant experience in identity verification and IT services. Given this is a sole-source award, a thorough vetting process by GSA should have occurred, but details are not publicly available in this data snippet. Independent research into the contractor's history would be needed.

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 - SECURITY AND COMPLIANCE

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QPCA25R0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4401 WILSON BLVD, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,507,066

Exercised Options: $3,002,670

Current Obligation: $3,002,670

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline