Agriculture Department awards $36.2M data sharing agreement to Utah State Library for computing infrastructure

Contract Overview

Contract Amount: $36,200 ($36.2K)

Contractor: Utah State Government Library Division Utah State Library

Awarding Agency: Department of Agriculture

Start Date: 2025-04-07

End Date: 2027-04-06

Contract Duration: 729 days

Daily Burn Rate: $50/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UTAH SPHO DATA SHARING AGREEMENT

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116

State: Utah Government Spending

Plain-Language Summary

Department of Agriculture obligated $36,200 to UTAH STATE GOVERNMENT LIBRARY DIVISION UTAH STATE LIBRARY for work described as: UTAH SPHO DATA SHARING AGREEMENT Key points: 1. The contract value of $36.2 million over two years represents a significant investment in data infrastructure. 2. The sole-source award raises questions about the availability of competitive alternatives and potential cost savings. 3. The duration of the contract (729 days) suggests a need for sustained data sharing and processing capabilities. 4. The service category, 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services,' is broad and critical for modern government operations. 5. The contract's focus on data sharing highlights the increasing importance of inter-agency and state-federal data collaboration.

Value Assessment

Rating: fair

Benchmarking the value of this specific data sharing agreement is challenging due to its unique nature and the specific needs of the Utah State Library. However, the $36.2 million price tag over two years, averaging $18.1 million annually, warrants scrutiny. Without competitive bids, it's difficult to ascertain if this represents a fair market price for the computing infrastructure, data processing, and web hosting services provided. Comparisons to similar large-scale data infrastructure contracts across federal agencies could offer more insight, but the specific data sharing component makes direct parallels difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that potential alternative providers were not considered, and the government did not benefit from a bidding process that could drive down prices. The rationale for this sole-source award needs to be clearly documented to ensure it was justified.

Taxpayer Impact: Taxpayers may not be receiving the best possible value when contracts are not competed. A lack of competition can lead to higher prices and potentially less innovation compared to an open bidding process.

Public Impact

The primary beneficiaries are likely the Utah State Library and the Department of Agriculture, enabling enhanced data sharing and processing capabilities. The services delivered include computing infrastructure, data processing, and web hosting, crucial for managing and analyzing large datasets. The geographic impact is centered in Utah, supporting state-level data initiatives and federal data integration efforts. Workforce implications may include the need for specialized IT personnel within the Utah State Library to manage and leverage this infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition raises concerns about whether the most innovative or cost-effective solutions were considered.
The significant dollar amount requires robust oversight to ensure funds are used efficiently and effectively.

Positive Signals

The contract supports critical data sharing and processing infrastructure, essential for modern government functions.
The partnership with a state entity (Utah State Library) could foster intergovernmental collaboration.
The fixed-price contract type provides cost certainty for the government over the contract duration.

Sector Analysis

The 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' sector is a rapidly growing and essential component of government operations. Federal spending in this area is substantial, supporting everything from cloud services to data analytics platforms. This contract, valued at $36.2 million, fits within this broad category, focusing specifically on enabling data sharing. Comparable spending benchmarks in this sector often involve multi-year cloud service agreements or large-scale data center contracts, which can range from millions to billions of dollars depending on scope and scale.

Small Business Impact

This contract does not appear to involve a small business set-aside. As a sole-source award to a state government entity, there are no direct subcontracting opportunities for small businesses specified within this award notice. The focus is on providing infrastructure to the state library, rather than procuring services that would typically be broken down into smaller, subcontractable components for small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's contracting and financial management offices. Given the sole-source nature and significant value, enhanced scrutiny from program managers and potentially the Inspector General's office would be appropriate to ensure compliance and value for money. Transparency regarding the justification for the sole-source award and detailed reporting on service delivery and costs will be key accountability measures.

Related Government Programs

Federal Data Strategy
State-Federal Data Sharing Initiatives
Cloud Computing Services Contracts
IT Infrastructure Modernization Programs

Risk Flags

Sole-source award without clear justification.
Potential for uncompetitive pricing.
Lack of transparency on specific data being shared.
Limited information on contractor's federal IT contract experience.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $36,200 to UTAH STATE GOVERNMENT LIBRARY DIVISION UTAH STATE LIBRARY. UTAH SPHO DATA SHARING AGREEMENT

Who is the contractor on this award?

The obligated recipient is UTAH STATE GOVERNMENT LIBRARY DIVISION UTAH STATE LIBRARY.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Under Secretary for Farm and Foreign Agricultural Services).

What is the total obligated amount?

The obligated amount is $36,200.

What is the period of performance?

Start: 2025-04-07. End: 2027-04-06.

What is the specific justification for awarding this contract on a sole-source basis to the Utah State Library?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source is available, or in cases of urgent and compelling need. For this contract, the justification would need to detail why the Utah State Library was the only entity capable of providing the required computing infrastructure, data processing, and web hosting services for the Department of Agriculture's data sharing needs, and why a competitive process was not feasible or appropriate. Without this detailed justification, it is difficult to fully assess the procurement's compliance and potential value.

How does the annual cost of $18.1 million compare to similar data sharing or cloud infrastructure contracts?

Directly comparing the annual cost of $18.1 million for this specific data sharing agreement to other federal contracts is challenging due to its unique nature and the sole-source award. However, federal agencies spend billions annually on cloud computing, data processing, and IT infrastructure. For instance, large-scale cloud service agreements with major providers can have similar or higher annual costs, but these are typically competed and involve a broader range of services. Contracts focused solely on data sharing between state and federal entities are less common and harder to benchmark. The value proposition here hinges on the specific data sets, the criticality of the sharing, and the unique capabilities provided by the Utah State Library, which are not detailed in the provided data.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. For a contract of this magnitude and criticality, robust KPIs and SLAs are essential to measure the performance and effectiveness of the computing infrastructure, data processing, and web hosting services. These would typically include metrics related to system uptime, data processing speed, data security, response times for technical support, and successful data transfer rates. The absence of this information in the award notice makes it difficult to assess how the government will ensure the contractor meets its obligations and delivers the expected value.

What is the track record of the Utah State Library in managing large-scale federal IT contracts?

The provided data does not offer information on the Utah State Library's track record in managing large-scale federal IT contracts. As a state government entity, its primary focus is typically on serving the needs of the state of Utah. While state agencies often collaborate with federal agencies, managing federal IT contracts of this size ($36.2 million) requires specific expertise in federal procurement regulations, compliance, and reporting. Further investigation would be needed to determine if the Utah State Library has prior experience with similar federal contracts and its performance history in such engagements.

What specific data will be shared under this agreement, and what is its significance?

The provided data does not specify the exact nature of the data to be shared under this agreement. The contract is categorized under 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' and awarded to the 'UTAH STATE GOVERNMENT LIBRARY DIVISION UTAH STATE LIBRARY' by the 'Department of Agriculture.' This suggests the data likely pertains to agricultural activities, research, or resources relevant to both federal and state levels. The significance could range from supporting agricultural policy development, monitoring crop yields, managing natural resources, or facilitating research. Understanding the specific data types and their sensitivity is crucial for assessing the contract's purpose and risks.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 12FPC225Q0019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 250 N 1950 W STE A, SALT LAKE CITY, UT, 84116

Business Categories: Category Business, Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $98,000

Exercised Options: $36,200

Current Obligation: $36,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline