Guam VSCP contract awarded for $50.4M for computing infrastructure services by HHS CDC

Contract Overview

Contract Amount: $50,376 ($50.4K)

Contractor: Government of Guam- Department of Administration

Awarding Agency: Department of Health and Human Services

Start Date: 2023-03-02

End Date: 2024-05-01

Contract Duration: 426 days

Daily Burn Rate: $118/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GUAM VSCP

Place of Performance

Location: HAGATNA, GUAM County, GUAM, 96932

Plain-Language Summary

Department of Health and Human Services obligated $50,376 to GOVERNMENT OF GUAM- DEPARTMENT OF ADMINISTRATION for work described as: GUAM VSCP Key points: 1. The contract is for computing infrastructure, data processing, and web hosting services. 2. It was awarded to the Government of Guam - Department of Administration. 3. The contract value is $50.4 million over 426 days. 4. This is a delivery order under an existing contract. 5. No small business participation was noted.

Value Assessment

Rating: questionable

The contract value of $50.4 million for computing infrastructure services appears high for a 426-day period, especially given the lack of competition. Benchmarking against similar federal contracts for cloud hosting and data processing is necessary to determine fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was not competed, indicating a limited source selection. This approach may not have resulted in the best possible price or terms for the government, as competitive pressures were absent.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best value for this significant expenditure.

Public Impact

Citizens in Guam will benefit from improved computing infrastructure and related services. The contract supports the operational needs of the Centers for Disease Control and Prevention. Potential for increased efficiency in data processing and web hosting services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing due to no-bid award
Limited transparency in award process

Positive Signals

Supports critical public health agency operations
Provides necessary computing infrastructure

Sector Analysis

The IT services sector, particularly cloud computing and data hosting, is a significant area of federal spending. Benchmarks for similar contracts vary widely based on scope and provider, but a $50.4M award for 426 days warrants scrutiny for cost-effectiveness.

Small Business Impact

The contract did not specify any set-asides for small businesses, and the awardee is a government entity, not a small business. This suggests a missed opportunity to support small business participation in federal contracting.

Oversight & Accountability

The limited competition and lack of a clear justification for not competing this contract raise questions about oversight. Further review is needed to ensure accountability and adherence to procurement regulations.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Lack of competition
Potential for inflated pricing
No small business participation
Limited transparency in award justification
High contract value for the duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $50,376 to GOVERNMENT OF GUAM- DEPARTMENT OF ADMINISTRATION. GUAM VSCP

Who is the contractor on this award?

The obligated recipient is GOVERNMENT OF GUAM- DEPARTMENT OF ADMINISTRATION.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $50,376.

What is the period of performance?

Start: 2023-03-02. End: 2024-05-01.

What is the justification for awarding this contract on a limited, non-competed basis?

The provided data does not include the justification for the limited, non-competed award. Typically, such awards require a documented justification, such as a sole-source procurement or a specific exception to full and open competition. Without this justification, it is difficult to assess the necessity and fairness of the procurement process.

How does the per-unit cost of these computing services compare to industry benchmarks?

A precise per-unit cost benchmark is not available without more granular data on the services provided (e.g., storage per TB, compute hours, bandwidth). However, the total contract value of $50.4 million over 426 days suggests a high daily or monthly cost. A detailed cost analysis comparing specific service components to market rates is essential to determine if the pricing is competitive.

What is the potential impact on public health if these computing services are disrupted?

Disruption of these computing services could significantly impact the Centers for Disease Control and Prevention's ability to collect, analyze, and disseminate critical public health data. This could delay responses to health emergencies, hinder disease surveillance, and impede research efforts, ultimately affecting public health outcomes.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 590 S MARINE CORPS DRIVE STE 219 ITC BUILDING, TAMUNING, GU, 96913

Business Categories: U.S. Government Authorities, Category Business, Council of Governments, Government, U.S. Interstate Government Entity, U.S. Local Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $50,376

Exercised Options: $50,376

Current Obligation: $50,376

Actual Outlays: $50,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75D30122D13033

IDV Type: IDC

Timeline