DOJ's $3.28M AWS Cloud Services BPA Call to Amazon Web Services, Inc. for Computer Systems Design

Contract Overview

Contract Amount: $3,282,942 ($3.3M)

Contractor: Amazon WEB Services, Inc.

Awarding Agency: Department of Justice

Start Date: 2024-10-01

End Date: 2026-09-30

Contract Duration: 729 days

Daily Burn Rate: $4.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PURCHASE: UFMS AWS CLOUD SERVICES PRICING: IAW BPA DELIVERY: IAW BPA

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98109

State: Washington Government Spending

Plain-Language Summary

Department of Justice obligated $3.3 million to AMAZON WEB SERVICES, INC. for work described as: PURCHASE: UFMS AWS CLOUD SERVICES PRICING: IAW BPA DELIVERY: IAW BPA Key points: 1. Value for money is benchmarked against existing BPA terms, suggesting adherence to pre-negotiated rates. 2. Competition dynamics are limited as this is a BPA Call under an existing agreement, not a new competition. 3. Risk indicators are moderate, with contract duration and firm fixed-price terms providing some predictability. 4. Performance context relies on the established AWS cloud services framework and the existing BPA. 5. Sector positioning places this within the IT services sector, specifically cloud computing infrastructure.

Value Assessment

Rating: good

The pricing for this BPA Call is governed by the terms of the existing BPA with Amazon Web Services, Inc. Without direct access to the underlying BPA's pricing structure, a precise value-for-money assessment is challenging. However, the use of an established BPA implies that rates have been previously vetted and are likely competitive within the market for cloud services. The firm fixed-price nature of the award provides cost certainty for the Department of Justice.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was issued as a BPA Call under an existing Blanket Purchase Agreement (BPA). The original BPA was likely competed, but this specific call leverages the pre-established agreement. The limited competition arises from the nature of a BPA call, which typically restricts new bidding to the parties already awarded under the parent BPA. This approach prioritizes efficiency and existing relationships over broad market solicitation for this specific task order.

Taxpayer Impact: Leveraging an existing BPA limits direct taxpayer exposure to a new, potentially more expensive, competitive bidding process for this specific call. However, it also means taxpayers may not benefit from the potentially lower prices that could emerge from a fresh, open competition.

Public Impact

The Department of Justice (DOJ) is the primary beneficiary, gaining access to essential cloud computing services. Services delivered include computer systems design and cloud infrastructure support, crucial for modern government operations. The geographic impact is primarily within Washington D.C., where the Offices, Boards and Divisions are located. Workforce implications are minimal, as this contract supports existing IT infrastructure rather than directly creating new roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single vendor (AWS) for critical cloud infrastructure can lead to vendor lock-in.
The limited competition for this BPA Call means potential cost savings from broader market engagement are foregone.
The contract duration of two years could be extended, potentially increasing long-term reliance on AWS.
The specific services within 'Computer Systems Design Services' are broad and could encompass areas with evolving cost structures.

Positive Signals

Utilizing an established BPA with AWS likely ensures access to reliable and scalable cloud services.
The firm fixed-price contract provides budget certainty for the DOJ.
The contract leverages existing infrastructure and agreements, promoting efficiency and potentially faster deployment.
The use of cloud services aligns with modernizing government IT infrastructure.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on cloud computing services. The market for cloud services is highly competitive, dominated by major providers like Amazon Web Services, Microsoft Azure, and Google Cloud. Government spending on cloud services has been steadily increasing as agencies seek to modernize their IT infrastructure, improve scalability, and reduce costs associated with on-premises data centers. Comparable spending benchmarks would involve analyzing other federal contracts for similar AWS services or general cloud infrastructure procurements.

Small Business Impact

This contract was not competed under SAP and the data indicates no specific small business set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications or immediate impacts on the small business ecosystem stemming from this specific award. The primary contractor, Amazon Web Services, Inc., is a large business, and the contract does not appear to have provisions for small business participation at the task order level.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Justice's contracting officers and program managers. Accountability is established through the firm fixed-price terms and the performance expectations outlined within the BPA. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

General Services Administration (GSA) Cloud Computing Services
Department of Defense (DoD) Cloud Computing
NASA Solutions for Enterprise-Wide Procurement (SEWP)
IT Schedule 70 (now IT Professional Services)

Risk Flags

Limited Competition
Vendor Lock-in Potential
Reliance on Existing BPA Terms

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.3 million to AMAZON WEB SERVICES, INC.. PURCHASE: UFMS AWS CLOUD SERVICES PRICING: IAW BPA DELIVERY: IAW BPA

Who is the contractor on this award?

The obligated recipient is AMAZON WEB SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2024-10-01. End: 2026-09-30.

What is the specific performance history of Amazon Web Services, Inc. with the Department of Justice on similar cloud service contracts?

Amazon Web Services, Inc. (AWS) has a significant track record of providing cloud services to various U.S. federal agencies, including the Department of Justice (DOJ). While specific performance data for this exact BPA Call is not publicly detailed, AWS is a primary cloud service provider for the government, often utilized through large-scale agreements like GWACs or customized BPAs. The DOJ, like many agencies, relies on cloud solutions for data storage, processing, and application hosting. Past performance is typically evaluated during the initial BPA competition. For this BPA Call, the performance is expected to align with the established service level agreements (SLAs) and terms within the parent BPA. Any issues would typically be addressed through the established contract management and dispute resolution processes outlined in the BPA.

How does the pricing of this BPA Call compare to other federal contracts for similar AWS cloud services?

The pricing for this BPA Call is dictated by the terms of the existing Blanket Purchase Agreement (BPA) with Amazon Web Services, Inc. Without direct access to the specific rates negotiated within that BPA, a direct comparison to other federal contracts is challenging. However, BPAs are generally established to leverage pre-negotiated, often discounted, rates for specific services. If the parent BPA was competitively awarded, its pricing should be considered benchmarked against market rates at the time of its establishment. Agencies often use BPAs to ensure cost-effectiveness for recurring needs by locking in favorable terms. To assess true value, one would need to compare the BPA's rates against current market offerings for comparable AWS services or against other agency-specific cloud agreements.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential vendor lock-in due to reliance on a single cloud provider (AWS), and the possibility of not achieving the best possible pricing due to the limited competition inherent in a BPA Call. Mitigation strategies include the firm fixed-price contract type, which provides cost certainty for the duration of the call. The established BPA itself implies that AWS has met certain performance and security requirements, reducing operational risk. Furthermore, the Department of Justice likely has internal IT governance and cloud strategy policies in place to manage vendor relationships and ensure alignment with broader agency objectives. Regular performance reviews and adherence to SLAs within the BPA also serve as mitigation measures against service delivery risks.

How effective is the current cloud services strategy of the Department of Justice in meeting its mission objectives?

The effectiveness of the Department of Justice's (DOJ) cloud services strategy in meeting its mission objectives is multifaceted. By leveraging cloud services like those provided by AWS, the DOJ can enhance its agility, scalability, and data processing capabilities, which are crucial for its diverse missions ranging from law enforcement to policy development. Cloud adoption generally allows agencies to focus more on their core functions rather than IT infrastructure management. However, effectiveness also depends on robust security protocols, data governance, and efficient resource management within the cloud environment. The specific impact of this BPA Call contributes to the overall effectiveness by ensuring access to necessary cloud resources. A comprehensive assessment would require analyzing the DOJ's overall IT modernization efforts and the specific outcomes achieved through its cloud investments.

What are the historical spending patterns of the Department of Justice on cloud computing services over the past five years?

Historical spending patterns of the Department of Justice (DOJ) on cloud computing services have likely shown a consistent upward trend over the past five years, mirroring broader federal government adoption of cloud technologies. Agencies are increasingly migrating workloads to the cloud to benefit from scalability, cost-efficiency, and enhanced capabilities. Specific figures for the DOJ would require detailed analysis of FPDS data, breaking down spending by cloud service providers (like AWS, Azure, Google Cloud) and service types (IaaS, PaaS, SaaS). This $3.28 million BPA Call represents a portion of that ongoing investment. Understanding these patterns helps in forecasting future needs, identifying potential areas for cost optimization, and assessing the agency's strategic shift towards cloud-native solutions.

Industry Classification

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

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 410 TERRY AVE N, SEATTLE, WA, 98109

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

Financial Breakdown

Contract Ceiling: $10,160,929

Exercised Options: $4,965,621

Current Obligation: $3,282,942

Actual Outlays: $2,654,988

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15JPSS21A00000237

IDV Type: BPA

Timeline