DHS awards $24.5M for Content Delivery Network services to Akamai Technologies Inc
Contract Overview
Contract Amount: $24,490,548 ($24.5M)
Contractor: Akamai Technologies Inc
Awarding Agency: Department of Homeland Security
Start Date: 2020-08-11
End Date: 2025-06-29
Contract Duration: 1,783 days
Daily Burn Rate: $13.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CONTENT DELIVERY NET(CDN)SERVICES
Place of Performance
Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142
Plain-Language Summary
Department of Homeland Security obligated $24.5 million to AKAMAI TECHNOLOGIES INC for work described as: CONTENT DELIVERY NET(CDN)SERVICES Key points: 1. Akamai Technologies Inc. is a dominant player in the CDN market, indicating potential for competitive pricing. 2. The contract's duration of nearly 5 years suggests a need for stable, long-term content delivery solutions. 3. Potential risks include vendor lock-in and the need for continuous monitoring of service performance and cost-effectiveness. 4. The IT sector, specifically cloud and network services, is experiencing significant growth and demand.
Value Assessment
Rating: good
The contract value of $24.5M over approximately 5 years appears reasonable for CDN services, especially considering Akamai's market position. Benchmarking against similar large-scale CDN contracts 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, suggesting a robust price discovery process. The use of a BPA Call indicates a streamlined procurement method within an existing framework.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple bids and driving down costs.
Public Impact
Ensures reliable and fast delivery of digital content for Department of Homeland Security operations. Supports critical government functions by providing robust internet infrastructure. Facilitates communication and data sharing across various DHS components.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases upon contract renewal.
- Dependence on a single vendor for critical infrastructure.
- Need for ongoing performance monitoring to ensure service level agreements are met.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability for critical services.
- Utilizes an existing Blanket Purchase Agreement (BPA) Call, suggesting efficient procurement.
Sector Analysis
This contract falls within the IT sector, specifically focusing on network infrastructure and data delivery. Spending benchmarks for CDN services vary widely based on scale and specific requirements, but $24.5M over 5 years for a federal agency is substantial.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large federal IT contracts are often dominated by major players, but opportunities for subcontracting may exist.
Oversight & Accountability
The contract's oversight would typically fall under the Department of Homeland Security's procurement and IT management divisions, ensuring compliance with terms and performance standards.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Vendor lock-in potential.
- Reliance on a single provider for critical infrastructure.
- Need for continuous performance monitoring.
- Potential for price escalation in future contract periods.
- Cybersecurity risks associated with third-party service providers.
Tags
computing-infrastructure-providers-data-, department-of-homeland-security, ma, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $24.5 million to AKAMAI TECHNOLOGIES INC. CONTENT DELIVERY NET(CDN)SERVICES
Who is the contractor on this award?
The obligated recipient is AKAMAI TECHNOLOGIES INC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $24.5 million.
What is the period of performance?
Start: 2020-08-11. End: 2025-06-29.
What is the specific breakdown of services included in the CDN contract and how do they align with DHS's current and future needs?
The provided data does not detail the specific CDN services. A comprehensive analysis would require examining the Statement of Work (SOW) to understand if it covers content caching, traffic management, security features, and geographic distribution, and how these map to DHS's mission-critical applications and data dissemination requirements.
How does Akamai's pricing compare to other major CDN providers for similar government contracts, considering the full and open competition?
While the contract was awarded under full and open competition, direct price comparisons are difficult without access to all bids. Akamai's established market presence suggests competitive pricing, but a detailed analysis would involve benchmarking against anonymized pricing data from similar government contracts awarded to competitors like Cloudflare or Amazon CloudFront.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to ensure the effectiveness and reliability of the CDN services?
The provided data does not specify the KPIs or SLAs. Effective oversight requires clearly defined metrics for uptime, latency, throughput, and security incident response times, along with penalties for non-compliance, to ensure the CDN services meet DHS's stringent operational demands.
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 - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 70RTAC20Q00000119
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 145 BROADWAY, CAMBRIDGE, MA, 02142
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,619,519
Exercised Options: $24,490,548
Current Obligation: $24,490,548
Actual Outlays: $15,911,074
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 70RTAC20A00000001
IDV Type: BPA
Timeline
Start Date: 2020-08-11
Current End Date: 2025-06-29
Potential End Date: 2025-06-29 00:00:00
Last Modified: 2025-05-16
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