DoD Awards $28.5M for CRAY XC40 Supercomputer System, High-Performance Computing Needs Met

Contract Overview

Contract Amount: $28,496,365 ($28.5M)

Contractor: Cray Inc.

Awarding Agency: Department of Defense

Start Date: 2016-10-26

End Date: 2019-05-18

Contract Duration: 934 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF CRAY XC40 BASE SYSTEM AND TDS

Place of Performance

Location: VICKSBURG, WARREN County, MISSISSIPPI, 39180

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $28.5 million to CRAY INC. for work described as: IGF::OT::IGF CRAY XC40 BASE SYSTEM AND TDS Key points: 1. The contract value of $28.5 million addresses a significant investment in advanced computing capabilities. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The duration of 934 days indicates a long-term deployment and support requirement for the supercomputer. 4. The sector is IT, specifically electronic computer manufacturing, crucial for research and development.

Value Assessment

Rating: good

The award amount of $28.5 million for a CRAY XC40 base system and TDS appears reasonable given the specialized nature of high-performance computing hardware. Benchmarking against similar supercomputer procurements would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a wide range of potential bidders. This method aims to ensure the government receives the best value through market forces.

Taxpayer Impact: The use of full and open competition is intended to maximize taxpayer value by driving down costs through a robust bidding process for this significant IT procurement.

Public Impact

Enhances national security research and development capabilities through advanced computational power. Supports complex simulations and data analysis for military strategic planning. Potential for technological advancements in areas like AI and climate modeling.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized supercomputing hardware.
Long-term maintenance and upgrade costs could exceed initial purchase price.
Dependence on a single system for critical research may pose a risk if downtime occurs.

Positive Signals

Investment in cutting-edge technology for critical national defense missions.
Full and open competition suggests a commitment to achieving best value.
The system's capabilities can accelerate scientific discovery and innovation.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on high-performance computing (HPC) systems. Spending in this area is critical for defense agencies to maintain a technological edge, with HPC procurements often representing substantial investments due to the specialized nature of the equipment.

Small Business Impact

The data does not indicate specific participation or subcontracting by small businesses. Given the specialized nature of supercomputing, it is possible that primary contracts are awarded to large, specialized manufacturers, with small businesses potentially involved in ancillary services or component supply.

Oversight & Accountability

The contract was awarded via a delivery order under a larger contract vehicle, suggesting that some level of pre-qualification and oversight may have already occurred. Further oversight would focus on performance, delivery timelines, and adherence to specifications.

Related Government Programs

Electronic Computer Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

High cost of specialized hardware.
Potential for long-term maintenance and upgrade expenses.
Dependence on a single vendor for critical components or support.
Cybersecurity vulnerabilities inherent in high-performance computing.
Risk of technological obsolescence over the system's lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.5 million to CRAY INC.. IGF::OT::IGF CRAY XC40 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 $28.5 million.

What is the period of performance?

Start: 2016-10-26. End: 2019-05-18.

What is the projected return on investment for this supercomputer system in terms of accelerated research or improved operational efficiency?

Quantifying the precise ROI for a supercomputer is complex, as it involves intangible benefits like accelerated discovery and enhanced strategic capabilities. However, the system's ability to process vast datasets and run complex simulations can significantly reduce research timelines and improve the accuracy of predictive models, indirectly leading to cost savings and enhanced mission effectiveness over its operational lifespan.

What are the specific cybersecurity risks associated with housing and operating such a powerful computing system within the Department of Defense?

Cybersecurity risks include potential breaches targeting sensitive research data, intellectual property, or classified information processed by the supercomputer. The system's high connectivity and processing power could also make it a target for sophisticated cyberattacks aimed at disruption or espionage. Robust security protocols, regular patching, access controls, and continuous monitoring are essential to mitigate these risks.

How effectively will this CRAY XC40 system be integrated with existing DoD computational infrastructure to maximize its utility and avoid redundancy?

Effective integration depends on the DoD's existing HPC ecosystem, data management strategies, and interoperability standards. Successful integration requires careful planning to ensure seamless data flow, compatibility with existing software and workflows, and adequate training for personnel. Avoiding redundancy involves assessing current capabilities and ensuring the new system addresses unique or unmet computational needs.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

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: $31,086,939

Exercised Options: $28,496,365

Current Obligation: $28,496,365

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY13G0022

IDV Type: BOA

Timeline