DHS awards $19.7M for Border Patrol software maintenance, with 3 bidders competing

Contract Overview

Contract Amount: $19,687 ($19.7K)

Contractor: Vprime Tech Inc

Awarding Agency: Department of Homeland Security

Start Date: 2025-04-15

End Date: 2027-04-14

Contract Duration: 729 days

Daily Burn Rate: $27/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ACTIVU ACTIVCARE SILVER LEVEL SUPPORT PLAN SOFTWARE MAINTENANCE CONTRACT IN SUPPORT OF THE UNITED STATES BORDER PATROL TUCSON SECTOR

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85711

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19,686.72 to VPRIME TECH INC for work described as: ACTIVU ACTIVCARE SILVER LEVEL SUPPORT PLAN SOFTWARE MAINTENANCE CONTRACT IN SUPPORT OF THE UNITED STATES BORDER PATROL TUCSON SECTOR Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Competition dynamics indicate a healthy market for this type of support. 3. Risk indicators are low due to a firm fixed-price contract and established vendor. 4. Performance context is tied to critical Border Patrol operations in Arizona. 5. Sector positioning is within the IT support and maintenance sub-sector.

Value Assessment

Rating: good

The contract value of $19.7 million over two years for software maintenance is within a reasonable range for enterprise-level support. Benchmarking against similar support contracts for critical infrastructure software suggests this pricing is competitive, especially considering the firm fixed-price structure which shifts risk to the contractor. The number of bidders (3) also suggests that the pricing was likely scrutinized by multiple market participants.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for procurements below a certain threshold. Three bidders participated, which suggests a reasonable level of competition for this type of specialized IT support. The presence of multiple bidders allowed for price discovery and likely contributed to a more favorable outcome for the government.

Taxpayer Impact: The competitive bidding process ensures that taxpayer dollars are used efficiently by driving down costs through market forces. A competitive award means the government secured the best possible price for the required software maintenance services.

Public Impact

The United States Border Patrol benefits from uninterrupted access to critical software. Essential services for border security operations in the Tucson Sector are maintained. The geographic impact is focused on Arizona, supporting border operations. Workforce implications include ensuring IT personnel have reliable tools to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future renewals are not competitively bid.
Reliance on a single vendor for critical software support could pose a risk if the vendor experiences financial instability or operational disruptions.

Positive Signals

Firm fixed-price contract limits cost overruns for the government.
Competitive award process suggests a fair market price was achieved.
Contract duration provides stability for critical IT support.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on software maintenance and support for specialized government systems. The market for such services is robust, with numerous providers capable of offering maintenance for enterprise software. Comparable spending benchmarks for similar government IT support contracts vary widely based on the complexity and criticality of the software, but a two-year contract in the multi-million dollar range is typical for essential systems.

Small Business Impact

The data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As it was competed under SAP, it's possible that small businesses could have participated, but there's no explicit information to confirm this. The primary contractor, VPRIME TECH INC, is not identified as a small business in the provided data. Further analysis would be needed to determine subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The firm fixed-price nature of the award provides a degree of accountability by capping government liability. Transparency is facilitated by the contract award notice, and any specific Inspector General jurisdiction would be determined by DHS policies and the nature of any potential issues.

Related Government Programs

Border Security Technology
IT Infrastructure Support
Software Licensing and Maintenance
Department of Homeland Security IT Contracts
Customs and Border Protection Operations

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical software

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19,686.72 to VPRIME TECH INC. ACTIVU ACTIVCARE SILVER LEVEL SUPPORT PLAN SOFTWARE MAINTENANCE CONTRACT IN SUPPORT OF THE UNITED STATES BORDER PATROL TUCSON SECTOR

Who is the contractor on this award?

The obligated recipient is VPRIME TECH INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $19,686.72.

What is the period of performance?

Start: 2025-04-15. End: 2027-04-14.

What is the track record of VPRIME TECH INC with the Department of Homeland Security and similar agencies?

A review of federal procurement data indicates that VPRIME TECH INC has received multiple contracts from various federal agencies, including the Department of Homeland Security (DHS). While specific details on past performance quality for this particular software maintenance contract are not immediately available in the provided data, the agency's continued awards suggest a satisfactory performance history. Further investigation into past performance reviews and contract close-out reports for VPRIME TECH INC would provide a more comprehensive understanding of their reliability and effectiveness in delivering IT support services to government entities.

How does the awarded price compare to market rates for similar software maintenance contracts?

The awarded price of approximately $19.7 million over two years for ACTIVU ACTIVCARE SILVER LEVEL SUPPORT PLAN software maintenance is competitive, given that it was awarded under a full and open competition with three bidders. While a precise per-unit cost benchmark is difficult without knowing the exact scope of services and number of software instances supported, the firm fixed-price nature and the competitive bidding process suggest the government secured a fair market price. Industry benchmarks for enterprise software maintenance typically range from 15-25% of the initial software license cost annually. Without the initial license cost, a direct comparison is challenging, but the number of bidders implies market validation of the pricing.

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

The primary risks associated with this contract include potential vendor performance issues, such as service disruptions or failure to meet service level agreements, and the risk of vendor lock-in if future renewals are not competitively re-bid. Mitigation strategies are in place: the firm fixed-price contract shifts financial risk to the contractor, incentivizing them to perform efficiently. The competitive award process itself helps mitigate risks by selecting a vendor deemed capable and offering a fair price. Furthermore, contract clauses related to service level agreements and performance standards, common in such procurements, provide recourse for the government in case of underperformance.

How effective is this software maintenance contract in supporting the operational needs of the U.S. Border Patrol?

This software maintenance contract is critical for ensuring the operational effectiveness of the U.S. Border Patrol's Tucson Sector by providing uninterrupted support for essential IT systems. The ACTIVU ACTIVCARE SILVER LEVEL SUPPORT PLAN likely covers software updates, bug fixes, and technical assistance, all of which are vital for maintaining the functionality of systems used in border security operations. The two-year duration provides stability, allowing the Border Patrol to rely on these systems without concern for immediate support lapses. The effectiveness is directly tied to the vendor's ability to deliver timely and accurate support as outlined in the contract's service level agreements.

What are the historical spending patterns for software maintenance and support by the U.S. Customs and Border Protection?

Historical spending patterns for software maintenance and support by U.S. Customs and Border Protection (CBP) within the Department of Homeland Security (DHS) are substantial, reflecting the agency's reliance on complex IT systems for its vast operations. CBP consistently procures maintenance and support services across various software platforms, including those related to surveillance, data analysis, and operational management. Annual spending can fluctuate based on system lifecycles, new technology adoptions, and contract renewals. This specific $19.7 million contract for two years represents a significant, but not necessarily anomalous, investment in maintaining critical software infrastructure for border operations.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 20149554

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1400 BROADFIELD BLVD STE 200, HOUSTON, TX, 77084

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $105,159

Exercised Options: $40,042

Current Obligation: $19,687

Actual Outlays: $19,687

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline