Education's $14M Data Center Hosting Contract Extended with General Dynamics

Contract Overview

Contract Amount: $14,043,105 ($14.0M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Department of Education

Start Date: 2008-02-26

End Date: 2008-07-31

Contract Duration: 156 days

Daily Burn Rate: $90.0K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONTINUATION OF DATA CENTER HOSTING SERVICES

Place of Performance

Location: MERIDEN, NEW HAVEN County, CONNECTICUT, 06450

State: Connecticut Government Spending

Plain-Language Summary

Department of Education obligated $14.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CONTINUATION OF DATA CENTER HOSTING SERVICES Key points: 1. Contract value: $14,043,105.29 for 156 days. 2. General Dynamics Information Technology, Inc. is the incumbent. 3. This is a follow-on to a competed action, suggesting prior competition. 4. The sector is Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (NAICS 518210).

Value Assessment

Rating: fair

The contract value of $14M for approximately 5 months of service appears high for data center hosting. Benchmarking against similar contracts for computing infrastructure is needed to assess if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

Described as a 'FOLLOW ON TO COMPETED ACTION', this implies the initial award was competed, but the follow-on may have limited competition. The pricing discovery mechanism is not detailed, but the 'FIRM FIXED PRICE' type suggests a defined cost structure.

Taxpayer Impact: The cost of $14M for a short-term extension raises questions about long-term value for taxpayers, especially if not aggressively benchmarked.

Public Impact

Students and educators rely on stable data center services for educational platforms and resources. Potential for service disruption if hosting is not maintained effectively. Taxpayer funds are allocated for essential IT infrastructure supporting the Department of Education's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services sector is critical for government operations. Spending benchmarks vary widely based on scale and services, but $14M for 5 months warrants scrutiny.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small business participation was considered or if opportunities were missed.

Oversight & Accountability

The 'FOLLOW ON TO COMPETED ACTION' status suggests some level of prior oversight. However, the details of the current follow-on justification and pricing review are not provided, necessitating further examination.

Related Government Programs

Risk Flags

Tags

computing-infrastructure-providers-data-, department-of-education, ct, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Education awarded $14.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CONTINUATION OF DATA CENTER HOSTING SERVICES

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Education (Department of Education).

What is the total obligated amount?

The obligated amount is $14.0 million.

What is the period of performance?

Start: 2008-02-26. End: 2008-07-31.

What was the competitive landscape for the original contract, and why was this follow-on action not fully competed?

The original contract was competed, as indicated by 'FOLLOW ON TO COMPETED ACTION'. However, the specific reasons for limiting competition on this follow-on action are not detailed in the provided data. This could be due to factors like specialized knowledge, transition costs, or specific performance requirements that made full and open competition impractical or disadvantageous at this juncture.

How does the per-day cost of this contract compare to industry benchmarks for similar data center hosting services?

The contract costs approximately $90,020 per day ($14,043,105.29 / 156 days). This daily rate appears high when compared to typical industry benchmarks for data center hosting, which can range significantly but often fall below this figure for standard services. A detailed comparison with specific service level agreements and infrastructure details is necessary for a precise assessment.

What is the justification for the short 156-day duration of this contract extension, given its substantial value?

The short duration of 156 days (approximately 5 months) for a $14M contract suggests this may be a bridging action. Potential reasons include awaiting a new full-term contract award, addressing an urgent operational need, or completing a transition phase. The specific strategic or operational driver for this short-term, high-value extension requires further clarification from the agency.

Industry Classification

NAICS: InformationComputing Infrastructure Providers, Data Processing, Web Hosting, and Related ServicesComputing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Computer Sciences Corporation (UEI: 009581091)

Address: 7700 HUBBLE DR, LANHAM, MD, 04

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

Financial Breakdown

Contract Ceiling: $14,043,105

Exercised Options: $14,043,105

Current Obligation: $14,043,105

Timeline

Start Date: 2008-02-26

Current End Date: 2008-07-31

Potential End Date: 2008-07-31 00:00:00

Last Modified: 2012-06-26

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