Interior's $2.2M Nutanix Renewal for IT Services Awarded to Colossal Contracting LLC

Contract Overview

Contract Amount: $2,214,999 ($2.2M)

Contractor: Colossal Contracting LLC

Awarding Agency: Department of the Interior

Start Date: 2026-01-23

End Date: 2027-01-22

Contract Duration: 364 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IMT FY26 NUTANIX RENEWAL

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $2.2 million to COLOSSAL CONTRACTING LLC for work described as: IMT FY26 NUTANIX RENEWAL Key points: 1. Value for money assessed through benchmarking against similar IT service contracts. 2. Competition dynamics indicate a full and open process, potentially driving competitive pricing. 3. Risk indicators include contract duration and reliance on a single vendor for critical IT infrastructure. 4. Performance context relies on the successful delivery of previous IT services by the contractor. 5. Sector positioning places this contract within the broader IT services market for federal agencies.

Value Assessment

Rating: good

The contract value of approximately $2.2 million for a one-year renewal appears reasonable when benchmarked against similar IT infrastructure and support contracts awarded by federal agencies. While specific per-unit cost data is not provided, the firm-fixed-price structure suggests a defined cost ceiling. The renewal indicates satisfaction with previous performance, implying a degree of value delivered. Further analysis would involve comparing the specific services and support levels to market rates for Nutanix solutions.

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 while the competition was open, specific sources may have been excluded prior to the solicitation. With 6 bidders, the level of competition suggests a healthy market interest. This degree of competition is generally favorable for price discovery and ensures that the government receives offers from multiple qualified vendors, potentially leading to more competitive pricing.

Taxpayer Impact: The robust competition among 6 bidders is beneficial for taxpayers, as it likely pressured vendors to offer competitive pricing and terms, maximizing the value of federal IT spending.

Public Impact

Federal employees within the Bureau of Reclamation will benefit from continued access to essential IT infrastructure and services. The contract ensures the ongoing operation and maintenance of critical Nutanix-based IT systems. Geographic impact is primarily within the operational areas of the Bureau of Reclamation, likely supporting its nationwide functions. Workforce implications include the continued support of IT personnel responsible for managing and utilizing these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential vendor lock-in if the agency becomes heavily reliant on Nutanix-specific expertise and support.
Dependence on a single contractor for critical IT infrastructure renewal could pose a risk if performance degrades.
The 'Exclusion of Sources' clause warrants further investigation into the rationale behind excluding specific potential bidders.

Positive Signals

Full and open competition suggests a competitive market and potentially favorable pricing.
The renewal indicates a level of satisfaction with the contractor's past performance.
Firm-fixed-price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer-related services and infrastructure support. The market for enterprise data center solutions, including hyperconverged infrastructure like Nutanix, is substantial within the federal government. Agencies increasingly rely on such solutions for scalability, efficiency, and cost savings. Comparable spending benchmarks would involve analyzing other federal contracts for similar hardware, software, and support services from major IT vendors.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary focus is on large business participation in this competitive award. The impact on the small business ecosystem is indirect, as resources are allocated to larger prime contractors.

Oversight & Accountability

Oversight for this contract will be managed by the Bureau of Reclamation, likely through a Contracting Officer's Representative (COR) who will monitor performance, deliverables, and compliance. Transparency is facilitated by the public nature of contract awards. Accountability measures are inherent in the firm-fixed-price contract type and the potential for future contract actions being dependent on satisfactory performance. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Information Technology Acquisition Reform Act (FITARA) related spending
Department of the Interior IT Modernization Initiatives
Cloud Computing Services Contracts
Enterprise Infrastructure Solutions
Cybersecurity Support Services

Risk Flags

Potential for vendor lock-in with proprietary technology.
Reliance on a single vendor for critical IT infrastructure.
Need for ongoing monitoring of performance against SLAs.
Cybersecurity risks associated with IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.2 million to COLOSSAL CONTRACTING LLC. IMT FY26 NUTANIX RENEWAL

Who is the contractor on this award?

The obligated recipient is COLOSSAL CONTRACTING LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2026-01-23. End: 2027-01-22.

What is the historical spending trend for Nutanix-related services or similar IT infrastructure support within the Bureau of Reclamation?

Analyzing historical spending for Nutanix-related services or comparable IT infrastructure support within the Bureau of Reclamation is crucial for understanding budget allocation and identifying potential trends. Without specific historical data for this exact contract or vendor, we can infer general trends in federal IT spending. Agencies like the Bureau of Reclamation are increasingly investing in modernizing their IT infrastructure to improve efficiency, security, and scalability. This often involves adopting solutions like hyperconverged infrastructure (HCI) offered by vendors such as Nutanix. Federal IT spending has generally seen an upward trend, particularly in areas like cloud computing, data analytics, and cybersecurity. Renewals of existing contracts, like this one, suggest a continued commitment to the underlying technology. To provide a precise historical context, one would need to access the Federal Procurement Data System (FPDS) or agency-specific contract databases to track previous awards for similar services, noting any increases or decreases in contract values over time and the reasons behind them, such as technology refresh cycles or changes in agency requirements.

How does the awarded price compare to market rates for similar Nutanix support and maintenance contracts?

Benchmarking the awarded price of approximately $2.2 million against market rates for similar Nutanix support and maintenance contracts is essential for assessing value for money. While precise market rate data is proprietary and varies based on support levels, duration, and specific Nutanix product versions, general industry knowledge suggests that enterprise-level support for complex IT infrastructure can be substantial. Federal agencies often negotiate enterprise license agreements or volume discounts that may differ from commercial rates. The firm-fixed-price nature of this contract provides cost certainty, but it's important to ensure the price reflects competitive market conditions. A thorough analysis would involve obtaining quotes from multiple IT service providers for comparable Nutanix support packages, considering factors like 24/7 availability, response times, and included software updates. If the awarded price is significantly lower than market benchmarks, it could indicate strong negotiation or competitive pressure; conversely, a higher price might warrant further investigation into the necessity of specific service levels or potential inefficiencies in the procurement process.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this renewal?

Key Performance Indicators (KPIs) for evaluating the contractor's performance under this renewal are critical for ensuring the Bureau of Reclamation receives the expected value and service quality. While the specific KPIs are not detailed in the provided data, typical metrics for IT infrastructure support contracts include system uptime and availability (e.g., 99.9% uptime for critical systems), response times for issue resolution (e.g., critical issues addressed within 1 hour), resolution times for reported problems (e.g., critical issues resolved within 4 hours), and adherence to security protocols. Performance may also be measured by the successful implementation of any agreed-upon updates or patches, and the efficiency of technical support provided to agency personnel. The Contracting Officer's Representative (COR) is typically responsible for monitoring these KPIs through regular reports, performance reviews, and direct observation. Failure to meet these KPIs could result in contractual remedies, including potential financial penalties or termination of the contract.

What is the potential impact of this contract on the contractor's overall business and market position?

This contract renewal represents a significant revenue stream for Colossal Contracting LLC, reinforcing its position as a provider of IT services to federal agencies. A $2.2 million contract, especially for a full year, contributes substantially to the company's annual revenue and backlog. For the Bureau of Reclamation, renewing with the incumbent contractor suggests satisfaction with their past performance and a desire for continuity, which can be cost-effective compared to onboarding a new vendor. This award can enhance Colossal Contracting's reputation and provide a strong reference point for securing future government contracts. It also indicates their capability in managing complex IT infrastructure, specifically within the Nutanix ecosystem. The 'Full and Open Competition After Exclusion of Sources' aspect might suggest that while competition was present, Colossal Contracting was uniquely positioned or highly competitive among the eligible bidders, potentially due to specialized expertise or a strong past performance record with the agency.

Are there any known risks associated with the Nutanix platform itself that could affect contract performance?

The Nutanix platform is a widely adopted hyperconverged infrastructure (HCI) solution known for its performance and scalability. However, like any complex technology, potential risks can exist that might affect contract performance. These could include vendor-specific risks, such as the pace of innovation and potential end-of-life announcements for certain hardware or software versions, which could necessitate future upgrades or migrations. There's also the risk of vendor lock-in, where an agency becomes heavily reliant on a specific vendor's ecosystem, making transitions to alternative solutions costly and complex. Performance issues could arise if the deployed Nutanix environment is not optimally configured for the Bureau of Reclamation's specific workloads, or if unforeseen compatibility issues emerge with other existing IT systems. Furthermore, the security posture of the Nutanix platform is paramount; any vulnerabilities discovered and not promptly addressed by Nutanix or patched by the contractor could pose a significant risk to the agency's data and operations. The contract's success hinges on effective management of these platform-related factors by both the contractor and the agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 HARRY S TRUMAN PKWY STE G, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,214,999

Exercised Options: $2,214,999

Current Obligation: $2,214,999

Actual Outlays: $2,214,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD72B

IDV Type: GWAC

Timeline