Commerce awards $120M for WCOSS2 supercomputing operations, with General Dynamics leading Phase 1 facilities and utilities

Contract Overview

Contract Amount: $119,741,831 ($119.7M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Commerce

Start Date: 2024-10-14

End Date: 2028-02-13

Contract Duration: 1,217 days

Daily Burn Rate: $98.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO ACQUIRE THE PHASE 1 CONTINUED OPERATIONS, PART 1: FACILITIES AND UTILITIES FOR PHASE 1 MANAGED SERVICE SOLUTION FOR WEATHER AND CLIMATE OPERATIONAL SUPERCOMPUTING (WCOSS2) IN ACCORDANCE WITH THE ATTACHED PERFORMANCE WORK STATEMENT (PWS), DATED SEP

Place of Performance

Location: COLLEGE PARK, PRINCE GEORGES County, MARYLAND, 20740

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $119.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: TO ACQUIRE THE PHASE 1 CONTINUED OPERATIONS, PART 1: FACILITIES AND UTILITIES FOR PHASE 1 MANAGED SERVICE SOLUTION FOR WEATHER AND CLIMATE OPERATIONAL SUPERCOMPUTING (WCOSS2) IN ACCORDANCE WITH THE ATTACHED PERFORMANCE WORK STATEMENT (PWS), DATED SEP Key points: 1. Contract focuses on essential facilities and utilities for critical weather and climate supercomputing. 2. The firm-fixed-price structure aims to control costs for the multi-year effort. 3. Competition was full and open, suggesting a robust market for these specialized services. 4. The contract duration spans over three years, indicating a significant operational commitment. 5. This award is part of a larger initiative to modernize weather and climate operational supercomputing. 6. Performance is tied to a detailed Performance Work Statement (PWS) for clear deliverables.

Value Assessment

Rating: good

The contract value of approximately $120 million over roughly four years for supercomputing facilities and utilities appears reasonable given the critical nature of the services. Benchmarking against similar large-scale IT infrastructure and managed services contracts suggests this falls within expected ranges for complex government operations. The firm-fixed-price contract type provides cost certainty for the government, although it places more risk on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This approach typically fosters a competitive environment, driving down prices and encouraging innovation. The specific number of bidders is not provided, but the designation suggests a broad solicitation process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for receiving the best value through a wide range of offers and competitive pricing.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) benefits directly through the continued operation of its Weather and Climate Operational Supercomputing System (WCOSS2). This contract ensures the delivery of essential facilities and utilities, supporting the high-performance computing necessary for weather forecasting and climate modeling. The geographic impact is national, as accurate weather and climate data are crucial for public safety, economic planning, and disaster preparedness across the United States. Workforce implications include the potential for employment within General Dynamics Information Technology and its subcontractors, particularly in specialized IT and facilities management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen facility or utility issues arise, despite the fixed-price nature.
Dependence on a single contractor for critical infrastructure could pose a risk if performance falters.
Ensuring continued technological relevance and upgrade paths for facilities over the contract term.

Positive Signals

Clear performance work statement provides defined expectations and metrics for success.
Firm-fixed-price contract offers budget predictability for the government.
Awarded through full and open competition, suggesting a competitive market and potential for value.
Long-term contract duration allows for stable operations and planning for critical national services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services for high-performance computing infrastructure. The market for such specialized IT services supporting large-scale government operations is significant, with a few key players capable of managing complex, mission-critical systems. Comparable spending benchmarks would include other large managed services contracts for federal data centers and supercomputing facilities, often running into hundreds of millions of dollars over several years.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While General Dynamics Information Technology, Inc. is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific needs outlined in the PWS, but it is not a primary focus of this award's structure.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers, ensuring adherence to the Performance Work Statement (PWS). Accountability measures are built into the firm-fixed-price contract through defined deliverables and performance standards. Transparency is facilitated by the public nature of federal contract awards, though specific operational details may remain sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Weather and Climate Operational Supercomputing (WCOSS)
NOAA IT Infrastructure Modernization
High-Performance Computing Services
Federal Data Center Operations
National Weather Service Systems

Risk Flags

Critical Infrastructure Dependency
Long-Term Operational Reliance
Performance Metric Adherence
Cost Control in Fixed-Price Environment

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $119.7 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. TO ACQUIRE THE PHASE 1 CONTINUED OPERATIONS, PART 1: FACILITIES AND UTILITIES FOR PHASE 1 MANAGED SERVICE SOLUTION FOR WEATHER AND CLIMATE OPERATIONAL SUPERCOMPUTING (WCOSS2) IN ACCORDANCE WITH THE ATTACHED PERFORMANCE WORK STATEMENT (PWS), DATED SEP

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $119.7 million.

What is the period of performance?

Start: 2024-10-14. End: 2028-02-13.

What is the track record of General Dynamics Information Technology, Inc. in managing large-scale federal IT infrastructure contracts, particularly those involving supercomputing or mission-critical o

General Dynamics Information Technology, Inc. (GDIT) has a substantial track record in managing complex IT infrastructure and mission-critical systems for various federal agencies. They are known for providing a wide range of services, including cloud computing, cybersecurity, data center operations, and enterprise IT modernization. GDIT has held numerous large contracts with agencies like the Department of Defense, NASA, and the Department of Health and Human Services. Their experience often includes managing high-performance computing environments, which is directly relevant to the WCOSS2 contract. While specific performance metrics for past contracts are not detailed here, their consistent presence as a prime contractor on significant government IT programs suggests a demonstrated capability to meet demanding requirements and manage large budgets.

How does the awarded amount of approximately $120 million compare to previous spending on WCOSS or similar supercomputing infrastructure by NOAA?

The awarded amount of approximately $120 million for Phase 1 continued operations of WCOSS2 facilities and utilities represents a significant investment. To provide a precise comparison, historical spending data for previous WCOSS phases or comparable NOAA supercomputing infrastructure contracts would be needed. However, given the scale and criticality of weather and climate modeling, multi-year contracts in the tens to hundreds of millions of dollars are typical for such high-performance computing infrastructure. This figure suggests a substantial commitment to maintaining and operating the advanced computing capabilities required for NOAA's mission, likely aligning with or exceeding previous investments in comparable systems, especially considering potential inflation and technological advancements.

What are the primary risks associated with the 'facilities and utilities' aspect of this supercomputing contract, and how are they being mitigated?

The primary risks associated with the 'facilities and utilities' aspect of this supercomputing contract revolve around ensuring continuous, reliable power, cooling, and physical security for highly sensitive and expensive supercomputing hardware. Potential risks include power outages, HVAC failures, natural disasters impacting facilities, and physical security breaches. Mitigation strategies are likely embedded within the Performance Work Statement (PWS) and the firm-fixed-price contract structure. This includes requirements for redundant power and cooling systems, robust environmental controls, disaster recovery and business continuity plans, and stringent physical security protocols. The contractor, GDIT, assumes significant financial risk under the fixed-price model if these systems fail, incentivizing proactive maintenance and robust design.

What is the expected impact of this contract on the accuracy and timeliness of weather and climate forecasts provided to the public?

This contract is crucial for ensuring the accuracy and timeliness of weather and climate forecasts. The WCOSS2 system relies on state-of-the-art supercomputing capabilities, which in turn depend on reliable and robust facilities and utilities for their operation. By securing continued operations for these essential components, the contract directly supports the high-performance computing power needed to run complex weather models, analyze vast datasets, and generate forecasts. Improved computing infrastructure translates to higher resolution models, more sophisticated analyses, and ultimately, more accurate and timely predictions of weather events and climate trends, benefiting public safety, emergency management, and various economic sectors.

Are there any specific performance metrics or Key Performance Indicators (KPIs) mentioned in the contract that will be used to evaluate GDIT's performance regarding facilities and utilities?

While the provided data does not list specific Key Performance Indicators (KPIs), the contract references a Performance Work Statement (PWS). Typically, PWS documents for such critical infrastructure contracts detail specific performance metrics. For facilities and utilities supporting supercomputing, these KPIs commonly include uptime percentages for power and cooling systems (e.g., 99.999% availability), response times for addressing system alerts or failures, adherence to environmental control standards (temperature, humidity), and successful completion of preventative maintenance schedules. Failure to meet these KPIs would likely result in contractual remedies, potentially including financial penalties or corrective action requests, as stipulated in the contract terms.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp

Address: 3150 FAIRVIEW PARK DR STE 100, FALLS CHURCH, VA, 22042

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $119,741,831

Exercised Options: $119,741,831

Current Obligation: $119,741,831

Actual Outlays: $41,993,718

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $25,438,046

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1305M420DNWWX0076

IDV Type: IDC

Timeline