DOL Awards $5M for Microsoft Azure Cloud Hosting to Advanced Computer Concepts

Contract Overview

Contract Amount: $4,996,823 ($5.0M)

Contractor: Advanced Computer Concepts, Inc.

Awarding Agency: Department of Labor

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PLATFORM AS A SERVICE (PAAS). ORDER ISSUED TO OBTAIN MICROSOFT AZURE CLOUD HOSTING SERVICES ON BEHALF OF THE U.S. DEPARTMENT OF LABOR (DOL), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO).

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $5.0 million to ADVANCED COMPUTER CONCEPTS, INC. for work described as: PLATFORM AS A SERVICE (PAAS). ORDER ISSUED TO OBTAIN MICROSOFT AZURE CLOUD HOSTING SERVICES ON BEHALF OF THE U.S. DEPARTMENT OF LABOR (DOL), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO). Key points: 1. Spending focuses on essential cloud infrastructure for the Department of Labor. 2. Competition was full and open after exclusion of sources, indicating a structured procurement. 3. Risk appears moderate, with a fixed-price contract mitigating cost overruns. 4. The IT sector is characterized by rapid technological change and evolving security needs.

Value Assessment

Rating: good

The $4.99M contract for Microsoft Azure cloud hosting appears reasonable given the scope and duration. Benchmarking against similar PaaS contracts is difficult without more granular service details, but the price seems aligned with market rates for enterprise cloud solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive process was employed. This method aims to ensure fair pricing and access to a broad range of qualified vendors.

Taxpayer Impact: Taxpayer funds are being used efficiently by leveraging a competitive process for essential IT services, ensuring value for money.

Public Impact

Ensures continuity of critical IT services for the Department of Labor. Supports the operational needs of the Office of the Chief Information Officer. Provides a scalable cloud platform for future DOL initiatives. Leverages a widely adopted cloud service provider, potentially reducing integration complexities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single cloud provider (Microsoft Azure).
Potential for vendor lock-in.
Security and data privacy concerns inherent in cloud services.

Positive Signals

Utilizes a competitive procurement process.
Fixed-price contract structure.
Supports essential government operations.

Sector Analysis

This contract falls within the Information Technology sector, specifically Platform as a Service (PaaS). Spending on cloud services continues to grow across government as agencies modernize infrastructure. Benchmarks for PaaS vary widely based on service level agreements and usage.

Small Business Impact

The data indicates this contract was not awarded to a small business. While this specific award may not directly benefit small businesses, the overall IT procurement landscape often includes opportunities for them in subcontracting or through other contract vehicles.

Oversight & Accountability

The award was issued by the Department of Labor's Office of the Chief Information Officer, suggesting internal IT oversight. The 'full and open competition after exclusion of sources' method implies a structured review process was followed.

Related Government Programs

Other Computer Related Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Potential for vendor lock-in with Microsoft Azure.
Security and data privacy risks associated with cloud hosting.
Lack of specific service details limits in-depth value assessment.
No direct small business participation indicated in this award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $5.0 million to ADVANCED COMPUTER CONCEPTS, INC.. PLATFORM AS A SERVICE (PAAS). ORDER ISSUED TO OBTAIN MICROSOFT AZURE CLOUD HOSTING SERVICES ON BEHALF OF THE U.S. DEPARTMENT OF LABOR (DOL), OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO).

Who is the contractor on this award?

The obligated recipient is ADVANCED COMPUTER CONCEPTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What specific Microsoft Azure services are included in this PaaS contract, and how do they align with DOL's current and future IT strategy?

The provided data does not specify the exact Azure services procured under this Platform as a Service (PaaS) contract. Understanding the specific services (e.g., compute, storage, databases, networking) is crucial to assess their alignment with the Department of Labor's (DOL) current IT operational needs and its long-term digital transformation strategy. Without this detail, it's difficult to fully evaluate the strategic value and potential for future scalability or integration.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this Microsoft Azure hosting contract to ensure performance and reliability?

The contract details do not explicitly list the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) governing this Microsoft Azure hosting service. For a cloud PaaS contract of this magnitude, robust SLAs covering uptime, latency, support response times, and data recovery are essential. Monitoring these KPIs and SLAs is critical for ensuring the reliability and performance of the services supporting the Department of Labor's operations and for holding the vendor accountable.

How does the pricing structure of this Microsoft Azure contract compare to other government agencies or commercial entities procuring similar PaaS solutions?

While the total award amount is $4.99 million over approximately three years, a direct per-unit cost comparison is not feasible without detailed service consumption metrics. However, the contract was awarded under full and open competition, which generally promotes competitive pricing. Benchmarking against similar government-wide cloud contracts (e.g., through GSA schedules) or publicly available Azure pricing would be necessary for a comprehensive value assessment.

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 - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605TB-24-Q-00043

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7927 JONES BRANCH DR STE 600N, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $16,372,274

Exercised Options: $9,788,274

Current Obligation: $4,996,823

Actual Outlays: $2,411,660

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD60B

IDV Type: GWAC

Timeline