FDA Renews Veritas Maintenance for Data Centers for $5.86M, Extending Through March 2027

Contract Overview

Contract Amount: $5,857,423 ($5.9M)

Contractor: Paragon Micro Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2023-04-05

End Date: 2027-03-30

Contract Duration: 1,455 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE OBJECTIVE OF THIS ORDER IS TO RENEW VERITAS MAINTENANCE FOR FDA?S EXISTING NETBACKUP AND INFOSCALE PRODUCTS AT THE WHITE OAK, MARYLAND (WODC) AND ASHBURN, VIRGINIA DATA CENTER (ADC) LOCATIONS.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.9 million to PARAGON MICRO INC for work described as: THE OBJECTIVE OF THIS ORDER IS TO RENEW VERITAS MAINTENANCE FOR FDA?S EXISTING NETBACKUP AND INFOSCALE PRODUCTS AT THE WHITE OAK, MARYLAND (WODC) AND ASHBURN, VIRGINIA DATA CENTER (ADC) LOCATIONS. Key points: 1. This order renews maintenance for Veritas NetBackup and InfoScale products, crucial for FDA's data center operations. 2. The contract was awarded to Paragon Micro Inc. under full and open competition. 3. The total value is $5.86 million over approximately four years. 4. The spending is categorized under 'Other Computer Related Services'.

Value Assessment

Rating: good

The pricing appears reasonable given the duration and scope of the maintenance renewal for critical data center infrastructure. Benchmarking against similar enterprise software maintenance contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources, indicating a competitive process. This method generally supports price discovery and ensures fair market value.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure essential IT maintenance services at a reasonable cost for the FDA's data operations.

Public Impact

Ensures continuity of FDA's data backup and storage management systems. Supports critical IT infrastructure at two key data center locations. Maintains operational readiness for vital public health data. Potential for service disruptions if maintenance is not secured.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single vendor (Veritas) for maintenance.
Potential for price increases in future renewals.
Cybersecurity risks associated with data center operations.

Positive Signals

Secures essential IT services for a critical government agency.
Competitive award process likely yielded fair pricing.
Long-term contract provides budget stability for maintenance.

Sector Analysis

This spending falls within the IT services sector, specifically focusing on software maintenance and support for data management solutions. Benchmarks for similar enterprise software maintenance contracts typically range from 15-25% of the software's perpetual license cost annually.

Small Business Impact

The contract was awarded to Paragon Micro Inc., a large business. There is no explicit indication of small business participation in this specific delivery order, which is common for specialized IT maintenance contracts.

Oversight & Accountability

The contract is a delivery order under a larger agreement, suggesting it has undergone initial review. Ongoing oversight by the Department of Health and Human Services and the FDA will be crucial to ensure service delivery and value.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Financial Resources Programs

Risk Flags

Vendor lock-in with Veritas products.
Potential for unaddressed cybersecurity vulnerabilities if patches are delayed.
Dependence on a single contractor for critical IT support.
Risk of scope creep or price increases in future renewals.
Ensuring adequate technical expertise within FDA for oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.9 million to PARAGON MICRO INC. THE OBJECTIVE OF THIS ORDER IS TO RENEW VERITAS MAINTENANCE FOR FDA?S EXISTING NETBACKUP AND INFOSCALE PRODUCTS AT THE WHITE OAK, MARYLAND (WODC) AND ASHBURN, VIRGINIA DATA CENTER (ADC) LOCATIONS.

Who is the contractor on this award?

The obligated recipient is PARAGON MICRO INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $5.9 million.

What is the period of performance?

Start: 2023-04-05. End: 2027-03-30.

What is the specific scope of Veritas maintenance covered by this order, and how does it align with FDA's current data management needs?

This order renews maintenance for Veritas NetBackup and InfoScale products, which are essential for data backup, recovery, and storage management. The scope likely includes software updates, patches, and technical support. Alignment with FDA's needs is assumed given the renewal, but a detailed review of the Statement of Work (SOW) would confirm if it addresses evolving data security and management requirements.

What are the potential risks if this maintenance contract is not renewed or is inadequately managed?

Failure to renew or adequately manage this maintenance could lead to significant risks, including data loss due to unpatched vulnerabilities, inability to recover data in case of system failure, extended downtime impacting critical FDA operations, and potential non-compliance with data retention and security regulations. This could jeopardize public health information and agency functions.

How does the cost of this maintenance contract compare to industry standards for similar enterprise data management solutions?

While specific benchmarks are difficult without knowing the exact Veritas product versions and support levels, enterprise software maintenance typically costs between 15-25% of the initial license fee annually. The $5.86M over ~4 years for FDA's data centers suggests a substantial deployment. A detailed comparison would require knowing the original license costs and the specific support tiers included in this renewal.

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 901 DEERFIELD PARKWAY, BUFFALO GROVE, IL, 60089

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

Financial Breakdown

Contract Ceiling: $6,467,276

Exercised Options: $5,857,423

Current Obligation: $5,857,423

Actual Outlays: $5,709,871

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD91B

IDV Type: GWAC

Timeline