Navy awards $37.7M for XC30 Base System and TDS to Cray Inc., highlighting electronic computer manufacturing
Contract Overview
Contract Amount: $37,668,750 ($37.7M)
Contractor: Cray Inc.
Awarding Agency: Department of Defense
Start Date: 2014-12-09
End Date: 2020-01-09
Contract Duration: 1,857 days
Daily Burn Rate: $20.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NAVY XC30 BASE SYSTEM AND TDS
Place of Performance
Location: SEATTLE, KING County, WASHINGTON, 98164
Plain-Language Summary
Department of Defense obligated $37.7 million to CRAY INC. for work described as: NAVY XC30 BASE SYSTEM AND TDS Key points: 1. Spending on electronic computer manufacturing reached $37.7 million. 2. Cray Inc. secured the contract, indicating potential market concentration. 3. The contract duration of 1857 days suggests a long-term need. 4. The award was made under full and open competition.
Value Assessment
Rating: good
The contract value of $37.7 million for the XC30 Base System and TDS appears reasonable given the specialized nature of high-performance computing systems. Benchmarking against similar advanced 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 a robust price discovery process. This method allows multiple vendors to bid, potentially leading to more competitive pricing.
Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value for money in acquiring advanced computing capabilities for the Navy.
Public Impact
Enhances Navy's computational capabilities for critical operations. Supports advanced research and development in defense technology. Potential for technological advancements in electronic computer manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to technology obsolescence.
- Reliance on a single vendor for critical systems.
- Potential for cost overruns in long-term fixed-price contracts.
Positive Signals
- Awarded through full and open competition.
- Supports advanced technological development.
- Clear definition of goods and services.
Sector Analysis
This contract falls within the Electronic Computer Manufacturing sector, specifically for high-performance computing systems. Spending benchmarks in this niche area are difficult to establish due to the specialized nature of the equipment and its applications.
Small Business Impact
The data does not indicate any specific involvement or benefit to small businesses in this contract award. Further analysis would be needed to determine if small businesses were subcontracted.
Oversight & Accountability
The contract was awarded by the Department of the Army for the Navy, indicating inter-service collaboration. Oversight would focus on delivery timelines, system performance, and adherence to the firm fixed-price agreement.
Related Government Programs
- Electronic Computer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration.
- Potential for technological obsolescence.
- Reliance on a single vendor.
- Firm fixed-price contract risks.
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 $37.7 million to CRAY INC.. NAVY XC30 BASE SYSTEM 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 $37.7 million.
What is the period of performance?
Start: 2014-12-09. End: 2020-01-09.
What is the specific operational advantage gained by the Navy through the acquisition of the XC30 Base System and TDS?
The XC30 Base System and TDS likely provide the Navy with enhanced computational power for complex simulations, data analysis, and modeling. This could translate to improved strategic planning, faster intelligence processing, and more effective development of advanced defense technologies, ultimately bolstering national security capabilities.
What are the primary risks associated with a long-duration (1857 days) firm fixed-price contract for advanced computing hardware?
The primary risks include technological obsolescence, as computing technology advances rapidly, potentially rendering the system outdated before the contract ends. There's also a risk of the contractor facing unforeseen cost increases, which, under a firm fixed-price contract, could lead to reduced quality or contractor financial distress. Furthermore, the long duration might limit the government's flexibility to adapt to changing requirements.
How does the firm fixed-price contract structure ensure cost-effectiveness and value for the taxpayer in this specific procurement?
A firm fixed-price contract shifts the risk of cost overruns to the contractor, incentivizing them to manage expenses efficiently. For the taxpayer, this structure provides cost certainty, as the final price is predetermined. However, the effectiveness relies on the initial price being set competitively and accurately reflecting market value for the specified system and services.
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: 3
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: $37,668,750
Exercised Options: $37,668,750
Current Obligation: $37,668,750
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY13G0022
IDV Type: BOA
Timeline
Start Date: 2014-12-09
Current End Date: 2020-01-09
Potential End Date: 2020-01-09 00:00:00
Last Modified: 2019-07-03
More Contracts from Cray Inc.
- Technology Insertion 11/12 — $44.4M (General Services Administration)
- TI-08 — $29.5M (General Services Administration)
- Cray XC40 Base System and TDS — $28.5M (Department of Defense)
- ARL XC30 Base System and TDS — $26.8M (Department of Defense)
- Afrl XC30 Base System and TDS — $21.8M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)