GSA awards $44.35M contract to Cray Inc. for electronic computer manufacturing, highlighting technology insertion

Contract Overview

Contract Amount: $44,350,000 ($44.4M)

Contractor: Cray Inc.

Awarding Agency: General Services Administration

Start Date: 2010-02-19

End Date: 2011-02-23

Contract Duration: 369 days

Daily Burn Rate: $120.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TECHNOLOGY INSERTION 11/12

Place of Performance

Location: LORTON, FAIRFAX County, VIRGINIA, 22079

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $44.4 million to CRAY INC. for work described as: TECHNOLOGY INSERTION 11/12 Key points: 1. The contract value of $44.35 million is significant for technology insertion in electronic computer manufacturing. 2. Cray Inc. is a known entity in high-performance computing, suggesting specialized capabilities. 3. The primary risk lies in the rapid obsolescence of technology within this sector. 4. Spending in the IT hardware manufacturing sector can vary widely based on technological advancements.

Value Assessment

Rating: good

The contract value of $44.35 million for a 369-day duration appears reasonable given the specialized nature of Cray Inc.'s products. Benchmarking against similar high-performance computing contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The specific impact on price discovery is difficult to ascertain without knowing the number of bids received.

Taxpayer Impact: The use of competitive bidding aims to ensure taxpayer funds are used efficiently for necessary technology upgrades.

Public Impact

Federal agencies gain access to advanced computing technology for critical operations. Taxpayers benefit from competitive pricing achieved through an open bidding process. The contract supports innovation in the high-performance computing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Technology obsolescence risk
Potential for cost overruns if scope changes

Positive Signals

Awarded via full and open competition
Utilizes a firm fixed price contract type

Sector Analysis

This contract falls within the IT sector, specifically electronic computer manufacturing. Spending in this area is driven by the need for advanced processing power for research, data analysis, and complex simulations, with benchmarks varying significantly based on system scale and capabilities.

Small Business Impact

There is no specific indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract, ensuring adherence to federal acquisition regulations. Accountability is maintained through contract performance monitoring and reporting requirements.

Related Government Programs

Electronic Computer Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Rapid technology obsolescence
Potential for vendor lock-in
Dependence on specialized vendor expertise
Cybersecurity risks associated with advanced systems

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $44.4 million to CRAY INC.. TECHNOLOGY INSERTION 11/12

Who is the contractor on this award?

The obligated recipient is CRAY INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $44.4 million.

What is the period of performance?

Start: 2010-02-19. End: 2011-02-23.

What specific technological advancements does this contract enable for the VA?

This contract likely enables the Department of Veterans Affairs (VA) to upgrade its computing infrastructure with advanced technology from Cray Inc. This could translate to faster data processing for medical research, improved analytics for patient care, or enhanced simulation capabilities for operational planning, ultimately supporting the VA's mission more effectively.

What are the long-term risks associated with relying on a single vendor for advanced computing technology?

Long-term reliance on a single vendor like Cray Inc. can lead to vendor lock-in, potentially limiting future flexibility and increasing costs if the vendor's pricing or technology roadmap becomes unfavorable. It also poses a risk if the vendor experiences financial instability or discontinues product lines, forcing the agency to undertake a costly and disruptive transition.

How does this technology insertion impact the VA's overall IT effectiveness and efficiency?

The technology insertion is expected to enhance the VA's IT effectiveness by providing superior processing power and capabilities, enabling more complex analyses and faster results. This can lead to improved decision-making, more efficient research outcomes, and better service delivery. The efficiency gains would stem from reduced processing times and potentially lower operational costs compared to older systems.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 4QCF97101402

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 411 1ST AVE S STE 600, SEATTLE, WA, 98104

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,350,000

Exercised Options: $44,350,000

Current Obligation: $44,350,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0196R

IDV Type: FSS

Timeline