Navy awards $21.8M for XC30 Base Systems to Cray Inc. under full and open competition
Contract Overview
Contract Amount: $21,800,000 ($21.8M)
Contractor: Cray Inc.
Awarding Agency: Department of Defense
Start Date: 2014-02-05
End Date: 2015-06-30
Contract Duration: 510 days
Daily Burn Rate: $42.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NAVY XC30 BASE SYSTEMS #1 AND #2 AND TDS
Place of Performance
Location: SEATTLE, KING County, WASHINGTON, 98164
Plain-Language Summary
Department of Defense obligated $21.8 million to CRAY INC. for work described as: NAVY XC30 BASE SYSTEMS #1 AND #2 AND TDS Key points: 1. The contract value of $21.8 million is for high-performance computing systems. 2. Cray Inc. is the sole awardee, indicating a competitive bidding process. 3. The firm fixed price contract type suggests price certainty for the government. 4. This spending falls within the IT sector, specifically electronic computer manufacturing.
Value Assessment
Rating: good
The award amount of $21.8 million for advanced computing systems appears reasonable given the specialized nature of the technology and the provider. Benchmarking against similar high-performance computing procurements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. This method is expected to drive competitive pricing and ensure the government receives best value.
Taxpayer Impact: The competitive nature of this award is likely to result in efficient use of taxpayer funds for critical defense computing infrastructure.
Public Impact
Enhances Navy's computational capabilities for research and development. Supports advanced modeling and simulation for defense applications. Procurement of specialized hardware impacts the high-performance computing market.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized hardware.
- Long-term maintenance and upgrade costs not detailed.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Supports critical national defense missions.
Sector Analysis
This procurement is within the Information Technology sector, specifically focusing on the manufacturing of high-performance electronic computers. Spending benchmarks for similar supercomputing acquisitions by defense agencies would be relevant for comparison.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The award to Cray Inc., a large corporation, suggests that small businesses were likely not primary participants in this specific competition.
Oversight & Accountability
The award was made by the Department of the Army on behalf of the Navy, indicating established procurement channels. Oversight would involve ensuring delivery and performance align with contract terms.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for vendor lock-in.
- Long-term support and upgrade costs.
- Dependence on specialized hardware.
- Limited small business participation.
Tags
electronic-computer-manufacturing, department-of-defense, wa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.8 million to CRAY INC.. NAVY XC30 BASE SYSTEMS #1 AND #2 AND TDS
Who is the contractor on this award?
The obligated recipient is CRAY INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $21.8 million.
What is the period of performance?
Start: 2014-02-05. End: 2015-06-30.
What specific computational tasks will these XC30 base systems support for the Navy, and how do they align with current defense priorities?
These XC30 base systems are likely intended for demanding computational tasks such as complex simulations, data analysis, and modeling crucial for advanced defense applications. Their alignment with defense priorities would depend on the specific research and development initiatives or operational requirements they are designed to fulfill, potentially including areas like cybersecurity, intelligence analysis, or weapons system development.
What are the potential risks associated with relying on a single vendor, Cray Inc., for these critical computing systems over their lifecycle?
Reliance on a single vendor like Cray Inc. for critical computing systems carries risks of vendor lock-in, potentially leading to higher long-term costs for maintenance, upgrades, and support. It could also limit flexibility in adopting newer technologies if Cray's roadmap diverges from evolving needs. Furthermore, a disruption to Cray's operations could directly impact the Navy's ability to maintain and utilize these essential systems.
How does the performance and cost-effectiveness of these XC30 systems compare to alternative high-performance computing solutions available in the market?
The performance and cost-effectiveness comparison would require detailed technical specifications and pricing benchmarks against other supercomputing providers. Given the full and open competition, it's implied that Cray's offering was deemed the most advantageous at the time of award. However, ongoing monitoring of technological advancements and market prices is essential to ensure continued value.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 901 5TH AVE STE 1000, SEATTLE, WA, 98164
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,800,000
Exercised Options: $21,800,000
Current Obligation: $21,800,000
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY13G0022
IDV Type: BOA
Timeline
Start Date: 2014-02-05
Current End Date: 2015-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2018-10-17
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