DOE Awards $3.16M AWS Task Order for Computing Infrastructure
Contract Overview
Contract Amount: $3,156,675 ($3.2M)
Contractor: Amazon WEB Services, Inc.
Awarding Agency: Department of Energy
Start Date: 2024-10-01
End Date: 2026-09-30
Contract Duration: 729 days
Daily Burn Rate: $4.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AWS TASK ORDER FOR NA-11
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $3.2 million to AMAZON WEB SERVICES, INC. for work described as: AWS TASK ORDER FOR NA-11 Key points: 1. Significant award to Amazon Web Services for essential computing services. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on cloud computing infrastructure highlights a growing government IT trend. 4. Long-term contract duration suggests a need for sustained cloud support.
Value Assessment
Rating: fair
The $3.16 million award for computing infrastructure is a substantial investment. Benchmarking against similar AWS contracts for comparable services would be necessary to assess value, especially given the lack of competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Amazon Web Services. This limits price discovery and may result in higher costs compared to a competitive procurement.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, potentially leading to a less optimal price for the services rendered.
Public Impact
Ensures continued access to critical cloud computing resources for the Department of Energy. Supports the operational needs of government agencies reliant on cloud infrastructure. Highlights the government's increasing reliance on major cloud service providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for overpayment
Positive Signals
- Essential service provision
- Long-term support
Sector Analysis
The award falls under the Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services NAICS code. Government spending in this sector is substantial and growing, with major cloud providers like AWS dominating the market.
Small Business Impact
This award was made directly to Amazon Web Services, Inc., a large business. There is no indication of subcontracting opportunities for small businesses within this specific task order.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure the services are necessary and priced appropriately. Further review of the justification for not competing the award is recommended.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for higher costs compared to competitive bids.
- Lack of transparency in the procurement process.
- No small business participation noted.
Tags
computing-infrastructure-providers-data-, department-of-energy, dc, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $3.2 million to AMAZON WEB SERVICES, INC.. AWS TASK ORDER FOR NA-11
Who is the contractor on this award?
The obligated recipient is AMAZON WEB SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $3.2 million.
What is the period of performance?
Start: 2024-10-01. End: 2026-09-30.
What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves specific circumstances such as the urgency of the need, the unavailability of the service from other sources, or the existence of unique capabilities possessed by the awarded vendor. Without the specific justification document, it's impossible to determine the precise reasoning, but it likely relates to AWS's dominant market position and specialized services.
How does the pricing of this task order compare to similar cloud computing contracts awarded competitively?
Direct comparison is difficult without detailed service level agreements and usage metrics. However, sole-source awards generally carry a higher risk of suboptimal pricing due to the absence of competitive pressure. A thorough analysis would require benchmarking against other government or commercial contracts for comparable AWS services, considering volume discounts and contract terms.
What is the potential impact on the Department of Energy's budget if these cloud services are not procured at the most cost-effective rate?
If the services are not procured at the most cost-effective rate due to the sole-source nature, the Department of Energy's budget could be negatively impacted through overspending. This could divert funds from other critical programs or necessitate future budget increases. The $3.16 million represents a significant commitment, making cost efficiency crucial.
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 › IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 89233124QNA000374
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 410 TERRY AVE N, SEATTLE, WA, 98109
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,649,373
Exercised Options: $7,106,675
Current Obligation: $3,156,675
Actual Outlays: $129,846
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2024-10-01
Current End Date: 2026-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-01-01
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