Tuesday Insight – July 8, 2025: DHS Terminates Two Contracts, Moving Work to GSA

Jul 24, 2025

The Department of Homeland Security pulled the plug on two major acquisition programs, and to several observers, it may be just the beginning.

DHS on Friday announced the cancellation of the Program Management, Administrative, Clerical, and Technical Services III (PACTS III) departmentwide contract vehicle solicitation.

At the same time, the agency decided not to go forward with its FirstSource III contract vehicle, which has a $10 billion ceiling. It is canceling awards under the IT value added resellers (ITVAR) functional category and not making new awards under its software category. DHS said it’s terminating both for convenience.

DHS has been pursuing FirstSource III since 2021 and had made initial awards in September to 30 small businesses in the ITVAR category.

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