Interior Department awards $2.7M for Nutanix data processing, highlighting IT modernization needs

Contract Overview

Contract Amount: $269,830 ($269.8K)

Contractor: Govsmart, Inc.

Awarding Agency: Department of the Interior

Start Date: 2024-07-18

End Date: 2026-07-17

Contract Duration: 729 days

Daily Burn Rate: $370/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: NUTANIX DATA PROCESSING PLATFORM

Place of Performance

Location: CHARLOTTESVILLE, CHARLOTTESVILLE CITY County, VIRGINIA, 22903

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $269,829.57 to GOVSMART, INC. for work described as: NUTANIX DATA PROCESSING PLATFORM Key points: 1. Value for money assessed through competitive bidding and fixed-price structure. 2. Competition dynamics indicate a robust market for IT data processing services. 3. Risk indicators include contract duration and reliance on a single vendor for specific services. 4. Performance context is tied to the ongoing need for efficient data management within the agency. 5. Sector positioning reflects the broader trend of government IT infrastructure upgrades.

Value Assessment

Rating: good

The contract's fixed-price nature provides cost certainty for the Department of the Interior. Benchmarking against similar IT data processing contracts is challenging without specific service details, but the overall value appears reasonable given the 2-year duration. The award to GovSmart, Inc. suggests a competitive selection process that likely yielded a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely considered. The presence of 5 bidders suggests a healthy level of competition for this IT service requirement. This competitive environment generally leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.

Public Impact

Federal agencies benefit from improved data processing capabilities, leading to more efficient operations. The contract delivers essential IT services for data management and processing. Geographic impact is primarily within the Department of the Interior's operational areas. Workforce implications may include the need for IT specialists to manage and utilize the Nutanix platform.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT services sector is a significant area of federal spending, with agencies continually investing in modernizing their data processing and management capabilities. This contract for the Nutanix Data Processing Platform fits within the broader market for cloud and data infrastructure solutions, which is experiencing substantial growth. Comparable spending benchmarks for similar IT modernization efforts vary widely based on scope and complexity, but this award represents a moderate investment in enhancing departmental IT infrastructure.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to GovSmart, Inc. does not provide immediate insight into its size category. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. Accountability measures are embedded in the firm fixed-price structure, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports would require deeper investigation.

Related Government Programs

Risk Flags

Tags

it-services, data-processing, nutanix, department-of-the-interior, firm-fixed-price, full-and-open-competition, delivery-order, govsmart-inc, virginia, it-modernization

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $269,829.57 to GOVSMART, INC.. NUTANIX DATA PROCESSING PLATFORM

Who is the contractor on this award?

The obligated recipient is GOVSMART, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $269,829.57.

What is the period of performance?

Start: 2024-07-18. End: 2026-07-17.

What is GovSmart, Inc.'s track record with federal IT contracts, particularly those involving data processing platforms?

GovSmart, Inc. has a history of securing federal contracts, primarily within the IT services domain. While specific details on their experience with the Nutanix Data Processing Platform require deeper investigation into past awards and performance reports, their ability to win this contract suggests they possess the necessary qualifications and competitive edge. Analyzing their past performance on similar contracts, including client satisfaction and adherence to delivery schedules, would provide a more comprehensive understanding of their reliability and expertise in managing complex IT solutions for government agencies.

How does the $2.7 million award compare to the typical cost of similar data processing platform implementations in the federal government?

Benchmarking the $2.7 million award for the Nutanix Data Processing Platform requires a detailed comparison with contracts of similar scope, duration, and service level agreements within the federal government. Factors such as the number of users, data volume, required features, and implementation complexity significantly influence costs. Without these specifics, a precise comparison is difficult. However, given the 2-year duration and the nature of enterprise-level data platforms, this figure appears to be within a reasonable range for a federal agency's IT modernization efforts, especially considering the competitive bidding process that likely contributed to price discovery.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks associated with this contract include potential vendor lock-in due to the specific platform, integration challenges with existing agency IT infrastructure, and performance issues if the platform does not meet the Department of the Interior's evolving data processing needs. Mitigation strategies likely involve clearly defined service level agreements (SLAs), robust testing and validation phases before full deployment, and contingency planning for interoperability. The fixed-price nature of the contract also incentivizes the contractor to manage costs and deliver effectively. Furthermore, the competitive award process suggests a vetting of potential risks by the agency.

How effective is the Nutanix Data Processing Platform in meeting the Department of the Interior's stated objectives for IT modernization?

The effectiveness of the Nutanix Data Processing Platform in meeting the Department of the Interior's IT modernization objectives hinges on how well its capabilities align with the agency's specific requirements for data management, scalability, and performance. Nutanix is known for its hyper-converged infrastructure solutions, which can simplify data center operations and improve efficiency. However, its effectiveness is context-dependent. A thorough assessment would involve examining the agency's detailed requirements, the platform's specific features deployed under this contract, and post-implementation performance metrics. The competitive nature of the award suggests the agency selected a solution believed to be effective.

What are the historical spending patterns for data processing and IT services within the Department of the Interior, and how does this award fit in?

Historical spending patterns for data processing and IT services within the Department of the Interior typically show a consistent and significant investment in maintaining and upgrading its technological infrastructure. Agencies like the Interior Department rely heavily on robust IT systems to manage vast amounts of data related to land management, resource conservation, and public services. This $2.7 million award for the Nutanix platform represents a specific investment within this broader category, likely aimed at modernizing a particular aspect of their data processing capabilities. It fits into a pattern of ongoing IT modernization efforts, reflecting the continuous need to adapt to new technologies and enhance operational efficiency.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 20346224Q00006

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 715 CHARLTON AVE STE 100, CHARLOTTESVILLE, VA, 22903

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $269,830

Exercised Options: $269,830

Current Obligation: $269,830

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD11B

IDV Type: GWAC

Timeline

Start Date: 2024-07-18

Current End Date: 2026-07-17

Potential End Date: 2026-07-17 00:00:00

Last Modified: 2026-04-03

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