DHS awards $18.2M Databricks renewal to Snap, Inc. for critical IT services

Contract Overview

Contract Amount: $18,182,849 ($18.2M)

Contractor: Snap, Inc

Awarding Agency: Department of Homeland Security

Start Date: 2024-07-27

End Date: 2026-08-31

Contract Duration: 765 days

Daily Burn Rate: $23.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATABRICKS SOFTWARE RENEWAL

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.2 million to SNAP, INC for work described as: DATABRICKS SOFTWARE RENEWAL Key points: 1. Contract value represents a significant investment in data analytics capabilities. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The contract duration of over two years indicates a need for sustained service delivery. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services.

Value Assessment

Rating: fair

The contract value of $18.2 million for a two-year renewal appears substantial for software and related services. Benchmarking this against similar large-scale data analytics platform renewals is challenging without more specific service details. However, the fixed-price nature suggests an attempt to manage costs. Further analysis would require comparing the per-unit cost of licenses or support against market rates or previous contract pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This specific designation implies that while the competition was intended to be broad, certain sources may have been excluded based on predefined criteria. The number of bidders is not specified, but the 'full and open' aspect suggests an effort to solicit a wide range of potential offerors.

Taxpayer Impact: The 'full and open' competition, even with exclusions, generally benefits taxpayers by encouraging competitive pricing and potentially leading to better value. However, the specific exclusion criteria warrant scrutiny to ensure they did not unduly limit competition.

Public Impact

U.S. Customs and Border Protection (CBP) will benefit from enhanced data analytics capabilities. Services delivered likely support critical functions in border security and immigration enforcement. The geographic impact is primarily national, supporting federal agency operations. Workforce implications may include the need for personnel skilled in data analysis and management of the Databricks platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a specific software provider.
Complexity of managing large data platforms can lead to cost overruns if not properly overseen.
Reliance on a single vendor for critical IT infrastructure poses a risk.

Positive Signals

Renewal indicates satisfaction with the current service provider and platform.
Fixed-price contract provides cost predictability.
Full and open competition, even with exclusions, aims for market-driven pricing.

Sector Analysis

The contract falls within the broader Information Technology (IT) sector, specifically focusing on data analytics and cloud-based software solutions. The market for data analytics platforms is highly competitive, with numerous vendors offering sophisticated tools. This contract represents a significant expenditure within the federal government's IT spending, which is increasingly focused on leveraging data for operational efficiency and decision-making. Comparable spending benchmarks would typically involve analyzing IT service contracts for similar data platforms across federal agencies.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the nature of enterprise-level software and services, it is common for such contracts to be awarded to larger prime contractors. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific requirements of the work.

Oversight & Accountability

Oversight of this contract would typically be managed by the U.S. Customs and Border Protection contracting officer and their representatives. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Data Analytics Services
Cloud Computing Services
Software Licenses and Maintenance
Information Technology Support Services

Risk Flags

Potential for limited competition due to source exclusion criteria.
Lack of specific performance metrics makes value assessment difficult.
Reliance on a single vendor for critical data analytics infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.2 million to SNAP, INC. DATABRICKS SOFTWARE RENEWAL

Who is the contractor on this award?

The obligated recipient is SNAP, INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $18.2 million.

What is the period of performance?

Start: 2024-07-27. End: 2026-08-31.

What specific Databricks functionalities are being procured under this renewal, and how do they align with CBP's strategic data initiatives?

The provided data does not specify the exact Databricks functionalities being procured. However, Databricks is a unified data analytics platform that typically offers capabilities for data engineering, data science, machine learning, and business analytics. For CBP, these functionalities likely support critical missions such as threat detection, border security analytics, intelligence analysis, and operational efficiency improvements. Aligning these capabilities with strategic data initiatives would involve leveraging advanced analytics to process vast amounts of data for actionable insights, thereby enhancing national security and border management.

How does the $18.2 million contract value compare to previous spending on Databricks software and services by CBP or DHS?

Without historical spending data for this specific contract or similar Databricks procurements by CBP or DHS, a direct comparison is not possible. The provided data only includes the current renewal amount. To assess value trends, one would need to examine past contract awards for Databricks products and services, looking at both the total dollar value and the duration of those contracts. Significant year-over-year increases or decreases could indicate changes in scope, pricing, or market conditions. A consistent or escalating cost might suggest increasing reliance or potentially rising prices.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure effective service delivery?

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for IT service contracts of this nature, SLAs would define metrics related to system availability, response times for support, data processing speeds, and security compliance. KPIs would likely focus on the successful implementation of new features, user adoption rates, and the achievement of specific analytical outcomes that support CBP's mission objectives. The effectiveness of service delivery would be measured against these predefined benchmarks, with potential penalties or incentives tied to performance.

What is the rationale behind the 'Full and Open Competition After Exclusion of Sources' procurement method, and were there specific technical or security requirements that necessitated this approach?

The 'Full and Open Competition After Exclusion of Sources' method suggests that while the procurement was intended to be competitive, certain vendors or solutions were excluded based on specific, justifiable criteria. This could stem from requirements for compatibility with existing DHS infrastructure, stringent security certifications, unique technical capabilities, or prior performance issues with certain vendors. The exclusion of sources must be documented and justified to ensure it does not unduly restrict competition. The rationale is often to ensure that the selected solution meets highly specialized needs or integrates seamlessly with the agency's existing technology stack, thereby mitigating risks associated with interoperability and security.

What is the potential impact of this contract on the broader data analytics market, particularly concerning competition and innovation?

This contract, representing a significant investment by a major federal agency like DHS, signals continued demand for advanced data analytics platforms. The 'Full and Open Competition After Exclusion of Sources' approach, while competitive, might limit the immediate market entry for vendors not meeting specific exclusion criteria. However, it also validates the market position of the awarded vendor, Databricks, and potentially encourages other platform providers to meet similar high standards for federal adoption. The overall impact on innovation depends on whether the contract terms incentivize the vendor to continuously improve their offerings or if it leads to a period of stable, albeit potentially less dynamic, service delivery.

Industry Classification

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

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70B04C24Q00000286

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4080 LAFAYETTE CENTER DR, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,182,849

Exercised Options: $18,182,849

Current Obligation: $18,182,849

Actual Outlays: $18,182,849

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSHQDC13D00025

IDV Type: IDC

Timeline