DOE Awards $10M AWS Contract for Genesis Demonstrator, Lacking Competition
Contract Overview
Contract Amount: $10,000,000 ($10.0M)
Contractor: Amazon WEB Services, Inc.
Awarding Agency: Department of Energy
Start Date: 2026-01-05
End Date: 2027-01-04
Contract Duration: 364 days
Daily Burn Rate: $27.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AWS GENESIS DEMONSTRATOR
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $10.0 million to AMAZON WEB SERVICES, INC. for work described as: AWS GENESIS DEMONSTRATOR Key points: 1. Significant investment in cloud computing infrastructure for the Department of Energy. 2. Sole-source award to Amazon Web Services raises questions about market competition. 3. Potential for cost savings and innovation through cloud adoption. 4. Focus on computing infrastructure highlights a key sector for government modernization.
Value Assessment
Rating: fair
The contract value of $10 million for a 1-year duration appears reasonable for cloud computing services. However, without competitive bidding, it's difficult to ascertain if this represents the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor was considered. This limits price discovery and may not leverage the full competitive landscape of cloud providers.
Taxpayer Impact: Taxpayer funds are being spent without exploring potentially lower-cost alternatives from other cloud service providers.
Public Impact
Enhances Department of Energy's computing capabilities for critical research and operations. Potential for improved data processing and analysis through advanced cloud services. Supports modernization efforts within a key federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Supports critical agency functions
- Utilizes modern cloud infrastructure
Sector Analysis
The Department of Energy is investing in computing infrastructure, a sector critical for data-intensive research and operations. Benchmarks for similar cloud service contracts vary widely based on specific services and usage.
Small Business Impact
This contract does not appear to involve small business participation, as it is a sole-source award to a large technology provider.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the price is fair and reasonable and that future needs are competitively sourced.
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 competition.
- Potential for vendor lock-in.
- Lack of transparency in price discovery.
- Dependence on a single provider for critical services.
Tags
computing-infrastructure-providers-data-, department-of-energy, dc, purchase-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $10.0 million to AMAZON WEB SERVICES, INC.. AWS GENESIS DEMONSTRATOR
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 $10.0 million.
What is the period of performance?
Start: 2026-01-05. End: 2027-01-04.
What is the specific purpose of the 'Genesis Demonstrator' and how does it align with the DOE's mission?
The 'Genesis Demonstrator' likely refers to a pilot program or a new initiative within the Department of Energy aimed at showcasing or testing advanced computing capabilities. Its alignment with the DOE's mission would depend on whether it supports energy research, grid modernization, national security, or other core objectives. Further details on the demonstrator's function are needed for a complete assessment.
What efforts were made to justify the sole-source award and ensure fair pricing?
Justification for a sole-source award typically involves demonstrating that only one vendor can meet the specific requirements, often due to unique capabilities, existing infrastructure integration, or urgent needs. The agency should have conducted a price reasonableness analysis, comparing the proposed cost to historical data or market research for similar services, to ensure fair pricing despite the lack of competition.
What are the long-term implications of relying on a single cloud provider for critical infrastructure?
Long-term reliance on a single cloud provider can lead to vendor lock-in, making it difficult and costly to switch providers later. It also concentrates risk, as any service disruptions or policy changes by that provider could significantly impact the agency's operations. Diversifying cloud usage or maintaining multi-cloud strategies can mitigate these risks and potentially improve negotiating power.
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 - COMPUTE
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $30,695,000
Exercised Options: $10,426,927
Current Obligation: $10,000,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-01-05
Current End Date: 2027-01-04
Potential End Date: 2029-01-04 00:00:00
Last Modified: 2026-01-20
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