NOAA Awards $15M Managed HPC Services Contract to Mississippi State University

Contract Overview

Contract Amount: $15,000,000 ($15.0M)

Contractor: Mississippi State University

Awarding Agency: Department of Commerce

Start Date: 2025-09-25

End Date: 2027-09-24

Contract Duration: 729 days

Daily Burn Rate: $20.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HIGH PERFORMANCE COMPUTING AS A MANAGED SERVICE TO

Place of Performance

Location: STARKVILLE, OKTIBBEHA County, MISSISSIPPI, 39759

State: Mississippi Government Spending

Plain-Language Summary

Department of Commerce obligated $15.0 million to MISSISSIPPI STATE UNIVERSITY for work described as: HIGH PERFORMANCE COMPUTING AS A MANAGED SERVICE TO Key points: 1. Contract awarded for High Performance Computing as a Managed Service. 2. Mississippi State University is the sole awardee. 3. The contract has a duration of approximately two years. 4. This award falls under Computer Facilities Management Services.

Value Assessment

Rating: fair

The contract value of $15 million for two years suggests a significant investment in HPC services. Without specific performance metrics or comparable contract data, it's difficult to definitively assess value. However, the fixed-price nature provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces competitive pressure, which could lead to a higher price than if multiple vendors had bid.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these HPC services.

Public Impact

Supports critical NOAA research and weather forecasting capabilities. Leverages university expertise in high-performance computing. Ensures continuity of essential computational resources for scientific endeavors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT and R&D sectors, specifically focusing on specialized computing infrastructure. Spending benchmarks for managed HPC services can vary widely based on scale and complexity, but $15 million over two years for a university-based solution is substantial.

Small Business Impact

The data indicates this contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Oversight will be crucial to ensure Mississippi State University delivers the contracted HPC services effectively and within budget, especially given the sole-source nature of the award. The Department of Commerce's National Oceanic and Atmospheric Administration is responsible for monitoring performance.

Related Government Programs

Risk Flags

Tags

computer-facilities-management-services, department-of-commerce, ms, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $15.0 million to MISSISSIPPI STATE UNIVERSITY. HIGH PERFORMANCE COMPUTING AS A MANAGED SERVICE TO

Who is the contractor on this award?

The obligated recipient is MISSISSIPPI STATE UNIVERSITY.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2025-09-25. End: 2027-09-24.

What specific HPC capabilities are being provided under this managed service agreement, and how do they align with NOAA's mission-critical requirements?

The contract specifies 'High Performance Computing as a Managed Service.' While the exact capabilities are not detailed, it implies the provision and management of advanced computing resources essential for NOAA's scientific research, data analysis, and modeling, likely including weather forecasting, climate studies, and environmental monitoring. The alignment with mission-critical needs is assumed given the agency and service type.

Given the sole-source nature, what justification was provided for not competing this requirement, and how was the price determined to be fair and reasonable?

The justification for a sole-source award is not provided in the data. Typically, such justifications might include unique capabilities, existing infrastructure integration, or urgent needs. The determination of a fair and reasonable price for sole-source contracts often relies on historical pricing, independent government cost estimates, or certified cost or pricing data from the contractor.

What performance metrics and service level agreements (SLAs) are in place to ensure the effectiveness and reliability of the managed HPC services provided by Mississippi State University?

Specific performance metrics and SLAs are not detailed in the provided data. However, for a managed service contract of this nature, it is expected that NOAA has established clear benchmarks for uptime, processing speed, data throughput, and response times. Effective oversight would involve regular reviews of these metrics to ensure the university is meeting its contractual obligations.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1305M425R0072

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 245 BARR AVE, MISSISSIPPI STATE, MS, 39762

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $15,000,000

Exercised Options: $15,000,000

Current Obligation: $15,000,000

Actual Outlays: $416,667

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1305M425D0026

IDV Type: IDC

Timeline

Start Date: 2025-09-25

Current End Date: 2027-09-24

Potential End Date: 2027-09-24 00:00:00

Last Modified: 2025-12-22

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