AFRL Awards $36.8M for High-Performance Computing Systems to HPE Government, LLC

Contract Overview

Contract Amount: $36,842,395 ($36.8M)

Contractor: HPE Government, LLC

Awarding Agency: Department of Defense

Start Date: 2014-12-08

End Date: 2020-03-08

Contract Duration: 1,917 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BALANCED, COMMERCIALLY AVAILABLE, PRODUCTION-GRADE HIGH PERFORMANCE COMPUTING SYSTEMS (WHICH CONTAIN AN APPROPRIATE COMBINATION OF PROCESSOR,MEMORY, DISK INPUT/OUTPUT [I/O], INTERCONNECT, AND OPERATING SYSTEM [OS] CAPABILITIES) IN ORDER TO CONDUCT COMPLEX, TIGHTLYCOUPLED, LARGE-SCALE, SCIENTIFIC CALCULATIONS AT THE AIR FORCE RESEARCH LABORATORY (AFRL) DOD SUPERCOMPUTING RESOURCE CENTER (DSRC).

Place of Performance

Location: ANNAPOLIS JUNCTION, ANNE ARUNDEL County, MARYLAND, 20701

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $36.8 million to HPE GOVERNMENT, LLC for work described as: BALANCED, COMMERCIALLY AVAILABLE, PRODUCTION-GRADE HIGH PERFORMANCE COMPUTING SYSTEMS (WHICH CONTAIN AN APPROPRIATE COMBINATION OF PROCESSOR,MEMORY, DISK INPUT/OUTPUT [I/O], INTERCONNECT, AND OPERATING SYSTEM [OS] CAPABILITIES) IN ORDER TO CONDUCT COMPLEX, TIGHTLYCOUPLED, LARGE-S… Key points: 1. The contract focuses on acquiring production-grade, commercially available high-performance computing (HPC) systems. 2. HPE Government, LLC is the sole awardee, indicating a specific market position or solution. 3. The spending is for complex scientific calculations at the AFRL DSRC, supporting critical research. 4. This represents a significant investment in advanced computational capabilities for the Air Force.

Value Assessment

Rating: good

The award amount of $36.8 million for HPC systems appears reasonable given the specialized nature and performance requirements. Benchmarking against similar large-scale HPC procurements would provide further context on value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair market prices.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure advanced computing resources at a fair price for critical Air Force research.

Public Impact

Enables advanced scientific research and complex simulations for the Air Force. Supports national security objectives through enhanced computational power. Drives innovation in areas requiring massive data processing and analysis. Provides critical infrastructure for the DOD Supercomputing Resource Center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with specialized HPC solutions.
Dependence on a single supplier for critical computing infrastructure.

Positive Signals

Awarded through full and open competition.
Acquisition of commercially available, production-grade systems.
Supports critical Air Force research and development.

Sector Analysis

The acquisition falls within the IT sector, specifically focusing on high-performance computing. Spending benchmarks for similar large-scale HPC procurements are typically in the tens to hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not awarded to small businesses. The focus on large-scale, specialized HPC systems often favors established prime contractors with extensive capabilities.

Oversight & Accountability

The contract was a delivery order under a larger agreement, suggesting existing oversight mechanisms. Further review of the parent contract and delivery order details would be needed to assess specific oversight and accountability measures.

Related Government Programs

Electronic Computer Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole awardee may limit future competitive pricing.
Long contract duration could lead to technology obsolescence.
Lack of explicit small business participation.
Potential for high maintenance and operational costs associated with HPC.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.8 million to HPE GOVERNMENT, LLC. BALANCED, COMMERCIALLY AVAILABLE, PRODUCTION-GRADE HIGH PERFORMANCE COMPUTING SYSTEMS (WHICH CONTAIN AN APPROPRIATE COMBINATION OF PROCESSOR,MEMORY, DISK INPUT/OUTPUT [I/O], INTERCONNECT, AND OPERATING SYSTEM [OS] CAPABILITIES) IN ORDER TO CONDUCT COMPLEX, TIGHTLYCOUPLED, LARGE-SCALE, SCIENTIFIC CALCULATIONS AT THE AIR FORCE RESEARCH LABORATORY (AFRL) DOD SUPERCOMPUTING RESOURCE CENTER (DSRC).

Who is the contractor on this award?

The obligated recipient is HPE GOVERNMENT, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $36.8 million.

What is the period of performance?

Start: 2014-12-08. End: 2020-03-08.

What is the expected lifespan and upgrade path for these HPC systems to ensure continued technological relevance?

The expected lifespan for high-performance computing systems is typically 3-5 years before significant upgrades or replacements are needed due to rapid technological advancements. The contract duration of 1917 days (approximately 5.25 years) suggests the systems are intended to serve for a substantial period. However, the specific upgrade path and provisions for future technology integration are not detailed in this data, which could impact long-term value and effectiveness.

How does the performance of these awarded HPC systems compare to other commercially available, state-of-the-art systems at the time of award?

The data specifies 'production-grade' and 'high performance' systems, implying they meet rigorous standards for scientific calculations. However, without specific performance metrics (e.g., FLOPS, benchmark results) or a comparative analysis against other leading HPC solutions available in late 2014, it's difficult to definitively assess if this was the most performant or cost-effective option. The 'full and open competition' suggests a basis for comparison was established during the bidding process.

What are the key performance indicators (KPIs) used to measure the effectiveness of these HPC systems in supporting AFRL's scientific calculations?

The effectiveness of these HPC systems is likely measured by their ability to successfully execute complex, tightly-coupled, large-scale scientific calculations within specified timeframes and with high reliability. Key performance indicators could include job completion rates, processing speeds achieved for specific scientific workloads, system uptime, and the successful completion of research projects that rely on these computational resources. The 'balanced' nature of the system implies a focus on overall capability rather than a single metric.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Hewlett Packard Enterprise CO (UEI: 079834910)

Address: 420 NATIONAL BUSINESS PKWY STE 180, ANNAPOLIS JUNCTION, MD, 20701

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

Financial Breakdown

Contract Ceiling: $36,906,457

Exercised Options: $36,906,457

Current Obligation: $36,842,395

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY13G0025

IDV Type: BOA

Timeline