Commerce Department's $35.6M Data Center Relocation Contract Awarded to Iron Mountain

Contract Overview

Contract Amount: $35,651,261 ($35.7M)

Contractor: Iron Mountain Information Management LLC

Awarding Agency: Department of Commerce

Start Date: 2021-05-14

End Date: 2028-05-13

Contract Duration: 2,556 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA CENTER RELOCATION REVISED SOO AND DOCUMENTS BASED ON OPTION PERIOD #1 NOT BEING EXECUTED IN TIME ACQ-21-1400 PID:404 POP: DOA-12 M AFTER AWA'

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02110

State: Massachusetts Government Spending

Plain-Language Summary

Department of Commerce obligated $35.7 million to IRON MOUNTAIN INFORMATION MANAGEMENT LLC for work described as: DATA CENTER RELOCATION REVISED SOO AND DOCUMENTS BASED ON OPTION PERIOD #1 NOT BEING EXECUTED IN TIME ACQ-21-1400 PID:404 POP: DOA-12 M AFTER AWA' Key points: 1. Contract value of $35.6M over a 7-year period suggests significant investment in data center infrastructure. 2. The award was made under full and open competition, indicating a potentially competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The duration of 2556 days (7 years) points to a long-term need for these services. 5. The primary service involves warehousing and storage, likely supporting data center operations. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger framework agreement.

Value Assessment

Rating: fair

The contract value of $35.6 million over seven years for data center relocation and warehousing services appears substantial. Benchmarking this against similar large-scale IT infrastructure projects is difficult without more specific service details. However, the firm fixed-price structure suggests an attempt to control costs, but the overall value-for-money depends heavily on the scope and efficiency of the services provided by Iron Mountain. Further analysis would require comparing unit costs for storage, relocation, and any associated services against industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, which typically involves soliciting bids from all responsible sources. The number of bidders is not specified, but this approach generally fosters price discovery and encourages competitive pricing. The fact that it was competed openly suggests that the government sought the best value through a broad market solicitation, rather than restricting it to a select few vendors.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and better value for the government's investment.

Public Impact

The U.S. Patent and Trademark Office (USPTO) is the primary beneficiary, receiving essential data center relocation and storage services. This contract supports the critical function of maintaining and relocating vital data infrastructure for a key government agency. The services provided ensure the continuity and security of sensitive government data. The contract's impact on the workforce is likely indirect, primarily affecting IT and logistics personnel involved in the relocation and ongoing management of data centers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The revised Statement of Objectives (SOO) and documents suggest potential complexities or changes in requirements, as indicated by the mention of Option Period #1 not being executed in time.
The specific nature of 'General Warehousing and Storage' for a data center relocation needs further clarification to fully assess the scope and potential risks.
The long duration of the contract (7 years) could lead to vendor lock-in or challenges in adapting to rapidly evolving data center technologies if not managed carefully.

Positive Signals

Awarded under full and open competition, which typically leads to better pricing and vendor selection.
The Firm Fixed Price contract type shifts cost overrun risks to the contractor, providing budget certainty for the government.
Iron Mountain Information Management LLC is an established provider in the information management and storage sector, suggesting a degree of experience.

Sector Analysis

This contract falls within the IT services and infrastructure sector, specifically focusing on data center operations, relocation, and warehousing. The NAICS code 493110 (General Warehousing and Storage) is somewhat broad for a data center-specific service, suggesting the contract may encompass more than just physical storage. The market for data center services, including colocation, cloud, and managed hosting, is substantial and highly competitive. This contract represents a portion of the government's spending on maintaining and modernizing its IT infrastructure.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside. This suggests the contract was not specifically targeted towards small businesses. Consequently, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed here. Without specific subcontracting plans, it's difficult to assess the extent to which small businesses might benefit from this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Patent and Trademark Office (USPTO) within the Department of Commerce. Contract administration, performance monitoring, and invoice approval would fall under their purview. Transparency is generally facilitated through contract award databases like FPDS. The effectiveness of oversight depends on the agency's contract management capabilities and the clarity of the contract's performance work statement. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Data Center Modernization Programs
IT Infrastructure Services
Cloud Computing Services
Information Technology Professional Services
General Warehousing and Storage Services

Risk Flags

Potential for technological obsolescence over the 7-year contract term.
Scope definition clarity for 'General Warehousing and Storage' in a data center context.
Impact of revised SOO and unexecuted option period on project execution.
Ensuring consistent vendor performance over a long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $35.7 million to IRON MOUNTAIN INFORMATION MANAGEMENT LLC. DATA CENTER RELOCATION REVISED SOO AND DOCUMENTS BASED ON OPTION PERIOD #1 NOT BEING EXECUTED IN TIME ACQ-21-1400 PID:404 POP: DOA-12 M AFTER AWA'

Who is the contractor on this award?

The obligated recipient is IRON MOUNTAIN INFORMATION MANAGEMENT LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $35.7 million.

What is the period of performance?

Start: 2021-05-14. End: 2028-05-13.

What is the specific nature of the 'General Warehousing and Storage' services provided under this contract, and how do they relate to data center relocation?

The NAICS code 493110, 'General Warehousing and Storage,' typically covers facilities for storing goods. In the context of a data center relocation, this likely includes temporary or long-term storage of IT equipment (servers, networking gear, storage arrays), associated infrastructure components, and potentially physical media. It could also encompass staging areas for equipment before installation at the new site, or secure storage for decommissioned hardware. The 'revised SOO and documents' suggest that the precise definition and scope of these services may have evolved, potentially to better align with the complexities of moving sensitive and critical data center infrastructure, ensuring equipment is protected from environmental factors and physical security threats during transit and storage.

How does the 'revised SOO and documents based on Option Period #1 not being executed in time' impact the overall contract value and performance?

The mention of a revised Statement of Objectives (SOO) and documents due to an unexecuted Option Period #1 indicates a potential disruption or adjustment to the original contract plan. This could mean that the scope of work, timeline, or pricing associated with Option Period #1 was either modified, removed, or deferred. If Option Period #1 was intended to cover a significant phase of the data center relocation or subsequent operations, its non-execution could lead to a phased approach, potentially extending the overall project timeline or requiring separate procurements later. The revised SOO would detail the adjusted requirements, and the contract value of $35.6M reflects the current agreement, possibly excluding elements originally planned for the unexecuted option, or incorporating revised estimates based on the new plan.

What is Iron Mountain Information Management LLC's track record with similar government contracts, particularly in data center services?

Iron Mountain Information Management LLC is a well-established company with extensive experience in information management, storage, and logistics solutions. They hold numerous government contracts across various agencies, often related to records management, secure storage, and data protection. While their core expertise lies in secure physical and digital information storage, their involvement in data center relocation suggests they are leveraging their logistical capabilities and infrastructure management experience. Assessing their specific track record for large-scale, complex data center relocations for the federal government would require examining past performance evaluations and contract histories beyond this single award. However, their general reputation and existing government presence suggest a capacity to handle such requirements.

How does the $35.6 million contract value compare to historical spending on data center services by the Department of Commerce or USPTO?

Without specific historical spending data for the Department of Commerce or the U.S. Patent and Trademark Office (USPTO) on data center relocation and warehousing, a direct comparison is challenging. However, $35.6 million over seven years ($~5.1 million annually) for a contract supporting a significant agency like USPTO is within the expected range for major IT infrastructure projects. Federal agencies are increasingly investing in modernizing their data centers, consolidating facilities, and migrating to cloud or hybrid environments. Large-scale relocations and the associated warehousing needs can be substantial undertakings. This contract's value should be viewed in the context of the agency's overall IT budget and its strategic goals for data center infrastructure resilience and modernization.

What are the key performance indicators (KPIs) likely used to measure the success of this data center relocation contract?

Key performance indicators (KPIs) for this contract would likely focus on the successful and secure relocation of data center assets, minimizing downtime, and ensuring the integrity of data. Specific KPIs could include: 1) On-time completion of relocation milestones according to the project schedule. 2) Equipment integrity: measuring the rate of damage or loss of hardware during transit and storage. 3) Uptime/Downtime: tracking the duration and impact of service interruptions during the transition. 4) Security compliance: ensuring all physical and data security protocols are maintained throughout the process. 5) Cost adherence: managing the project within the firm fixed-price budget. 6) Storage environment conditions: monitoring temperature, humidity, and security within any warehousing facilities used.

What are the potential risks associated with a 7-year contract for data center relocation and warehousing services?

A 7-year duration for a data center relocation and warehousing contract presents several potential risks. Firstly, technological obsolescence is a significant concern; data center hardware and best practices evolve rapidly, and a long-term contract might lock the government into older technologies or less efficient solutions. Secondly, vendor performance drift is possible, where initial high performance may decline over time. Thirdly, market prices for storage and related services could decrease significantly over seven years, potentially making the fixed-price contract less advantageous for the government if market rates fall substantially. Lastly, changes in the agency's strategic IT direction or requirements could make the contracted services less relevant or necessitate costly modifications.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Iron Mountain Incorporated

Address: 85 NEW HAMPSHIRE AVE STE 150, PORTSMOUTH, NH, 03801

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,662,634

Exercised Options: $35,651,261

Current Obligation: $35,651,261

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F049GA

IDV Type: FSS

Timeline