DoD awards $10.8M for Joint Warfighting Cloud, Google Public Sector to provide computing infrastructure

Contract Overview

Contract Amount: $10,852,118 ($10.9M)

Contractor: Google Public Sector LLC

Awarding Agency: Department of Defense

Start Date: 2022-12-08

End Date: 2026-12-07

Contract Duration: 1,460 days

Daily Burn Rate: $7.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: JOINT WARFIGHTING CLOUD CAPABILITY PROGAM MANAGEMENT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.9 million to GOOGLE PUBLIC SECTOR LLC for work described as: JOINT WARFIGHTING CLOUD CAPABILITY PROGAM MANAGEMENT Key points: 1. Value for money is difficult to assess without a competitive benchmark. 2. The contract was awarded on a sole-source basis, limiting price discovery. 3. Risk indicators are moderate, with performance dependent on contractor delivery. 4. This contract supports the critical Defense Information Systems Agency's cloud strategy. 5. The sector is dominated by a few large cloud providers, with Google being a significant player.

Value Assessment

Rating: fair

The total award amount of $10.8 million for the Joint Warfighting Cloud Capability Program Management is a relatively small initial investment for a program of this scope. Without a competitive bidding process, it is challenging to benchmark the pricing against market rates or similar contracts. The fixed-price nature of the contract provides some cost certainty, but the overall value for money hinges on the successful delivery of the specified computing infrastructure and related services over the contract period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This approach is typically used when only one vendor can provide the required goods or services, or in cases of urgent need. The lack of competition means that the Department of Defense did not benefit from a range of proposals and pricing strategies that would typically emerge from a full and open competition.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive pressure. The government's negotiating position is weakened without alternative sources.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which will gain access to enhanced cloud computing capabilities. The services delivered include computing infrastructure, data processing, and web hosting, crucial for modern military operations. The geographic impact is national, supporting defense operations across various theaters. Workforce implications may include the need for personnel trained in cloud technologies and cybersecurity to manage and utilize the new infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential cost savings.
Dependence on a single contractor for critical warfighting capabilities introduces vendor lock-in risk.
Performance metrics and success criteria are not detailed, posing a risk to effective oversight.

Positive Signals

Award to a major cloud provider like Google Public Sector suggests access to advanced technology.
Fixed-price contract provides cost predictability for the initial award.
The contract duration allows for phased implementation and potential scaling.

Sector Analysis

The cloud computing market is a rapidly growing sector, essential for digital transformation across all industries, including defense. This contract falls within the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' NAICS code. The defense sector is increasingly reliant on cloud solutions for data storage, processing, and advanced analytics to maintain a technological edge. Spending in this area is substantial, with major cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud competing for significant government contracts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. There is no information provided regarding subcontracting plans for small businesses. The focus on a large sole-source award to a major provider suggests limited direct opportunities for small businesses within this specific contract, though they may be involved in the broader cloud ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Information Systems Agency (DISA) Contracting Office and relevant program managers within the Department of Defense. Accountability measures will be tied to the performance deliverables outlined in the contract. Transparency is limited due to the sole-source nature of the award, but contract modifications and performance reports may be subject to review. The Inspector General of the Department of Defense would have jurisdiction over any investigations into fraud, waste, or abuse related to this contract.

Related Government Programs

Joint All-Domain Command and Control (JADC2)
Cloud Computing Services
Defense Information Technology Modernization

Risk Flags

Sole-source award may limit cost-effectiveness.
Lack of detailed performance metrics could hinder oversight.
Vendor lock-in risk due to single-provider dependency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to GOOGLE PUBLIC SECTOR LLC. JOINT WARFIGHTING CLOUD CAPABILITY PROGAM MANAGEMENT

Who is the contractor on this award?

The obligated recipient is GOOGLE PUBLIC SECTOR LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2022-12-08. End: 2026-12-07.

What is the track record of Google Public Sector in delivering similar large-scale cloud infrastructure contracts for the Department of Defense?

Google Public Sector, while a relatively newer entity focused on government clients, leverages the extensive experience and technological capabilities of Google Cloud. Google Cloud has a significant track record in providing cloud infrastructure, data analytics, and AI/ML services to various commercial enterprises and has been increasingly awarded contracts with U.S. federal agencies, including the Department of Defense. While specific large-scale, sole-source warfighting cloud contracts might be less common publicly documented for Google compared to competitors with longer established government arms, their underlying technology and operational experience are substantial. The success of this specific contract will depend on Google Public Sector's ability to tailor these capabilities to the unique security and operational requirements of the DoD's Joint Warfighting Cloud Capability program.

How does the pricing of this contract compare to similar cloud computing services procured by the DoD or other federal agencies?

Direct price comparison is difficult for this contract due to its sole-source nature and the specific scope of 'Joint Warfighting Cloud Capability Program Management.' Typically, sole-source awards do not undergo the same price scrutiny as competitively bid contracts. However, the Department of Defense often negotiates pricing based on established commercial cloud pricing models, volume discounts, and specific service level agreements. Benchmarking would require access to pricing data from other DoD cloud procurements, particularly those that were competitively awarded, to understand if the rates negotiated with Google Public Sector are in line with market expectations for similar services and commitment levels.

What are the primary risks associated with awarding a sole-source contract for critical warfighting cloud capabilities?

The primary risks associated with a sole-source award for critical warfighting cloud capabilities include a lack of competitive pricing, potentially leading to higher costs for taxpayers. It can also limit innovation by not exploring alternative solutions from other vendors. Furthermore, it creates a dependency on a single provider, increasing vendor lock-in risks and potentially reducing the government's leverage in future negotiations or contract modifications. Ensuring robust performance standards and oversight is crucial to mitigate the risks of inadequate service delivery or security vulnerabilities when competition is absent.

How effective is the 'Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' category in capturing the full scope of cloud capabilities?

The NAICS code '518210 - Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services' broadly captures the core elements of cloud computing, including infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS) components, along with data processing and hosting. However, modern cloud capabilities extend beyond these basic definitions to include advanced analytics, artificial intelligence/machine learning services, specialized cybersecurity solutions, and edge computing. While this NAICS code provides a foundational classification, it may not fully encompass the sophisticated, integrated, and mission-specific cloud solutions required for advanced warfighting capabilities, potentially necessitating broader contract vehicles or specialized classifications.

What is the historical spending trend for cloud computing services within the Department of Defense?

Historical spending on cloud computing services within the Department of Defense has shown a consistent and significant upward trend over the past decade. As the DoD increasingly recognizes the strategic importance of cloud for data management, operational agility, and technological superiority, investments have grown substantially. This includes spending on infrastructure, platform, and software services across various agencies and commands. The trend reflects a broader government-wide push towards cloud adoption, driven by the desire for cost savings, scalability, enhanced security, and improved mission effectiveness. Specific figures vary year to year, but the overall trajectory indicates a sustained commitment to leveraging cloud technologies.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ003421R0327

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1900 RESTON METRO PLAZA, STE 1600, RESTON, VA, 20190

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

Financial Breakdown

Contract Ceiling: $16,843,627

Exercised Options: $13,216,056

Current Obligation: $10,852,118

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003423D0017

IDV Type: IDC

Timeline