State Department awards $14.5M for server refresh to 62 overseas posts, addressing end-of-life equipment

Contract Overview

Contract Amount: $14,497,048 ($14.5M)

Contractor: Standard-Blazar, LLC

Awarding Agency: Department of State

Start Date: 2024-09-16

End Date: 2024-10-17

Contract Duration: 31 days

Daily Burn Rate: $467.6K/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: THE REQUEST IS TO PROVIDE THE DELL POWEREDGE R760 SERVER SOLUTION TO 62 U.S. EMBASSY CONSULAR SECTIONS (OVERSEAS POST). THE SERVER SOLUTIONS ARE REQUIRED TO REFRESH AN EXISTING END OF LIFE SUPPORT.

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22032

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $14.5 million to STANDARD-BLAZAR, LLC for work described as: THE REQUEST IS TO PROVIDE THE DELL POWEREDGE R760 SERVER SOLUTION TO 62 U.S. EMBASSY CONSULAR SECTIONS (OVERSEAS POST). THE SERVER SOLUTIONS ARE REQUIRED TO REFRESH AN EXISTING END OF LIFE SUPPORT. Key points: 1. The contract addresses a critical need to replace aging server infrastructure, ensuring continued operational capability at diplomatic missions. 2. A firm-fixed-price contract structure provides cost certainty for the government. 3. The short duration of 31 days suggests a focused, immediate need for the hardware. 4. The award was made under full and open competition, indicating a competitive bidding process. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract value of approximately $14.5 million is a significant investment in IT infrastructure for overseas operations.

Value Assessment

Rating: good

The contract value of $14.5 million for server solutions appears reasonable given the scope of refreshing IT infrastructure for 62 overseas embassy consular sections. Benchmarking against similar large-scale IT hardware procurements for government agencies suggests that this price point is within expected ranges for such a critical upgrade. The firm-fixed-price nature of the contract helps manage cost risks for the Department of State.

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,' indicating that the solicitation was broadly advertised and multiple bids were likely considered. While the specific number of bidders is not provided, this procurement method generally fosters price discovery and encourages competitive pricing by allowing all responsible sources to participate.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it aims to secure the best possible value by driving down costs through market forces.

Public Impact

Embassy and consular sections worldwide will benefit from modernized IT infrastructure, improving operational efficiency and security. The services delivered include the provision of Dell PowerEdge R760 server solutions. The geographic impact is global, covering 62 U.S. embassy consular sections. The contract supports the IT workforce responsible for maintaining and operating these critical systems overseas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if future support or expansion relies heavily on the chosen server model.
Supply chain disruptions could impact timely delivery of hardware, potentially delaying the refresh.
Cybersecurity risks associated with new hardware require robust implementation and ongoing monitoring.

Positive Signals

Addresses an urgent need to replace end-of-life equipment, mitigating operational risks.
Utilizes a competitive bidding process to ensure value for money.
Standardized hardware deployment can simplify maintenance and support across multiple locations.

Sector Analysis

This contract falls within the broader IT hardware and services sector, specifically focusing on server infrastructure crucial for maintaining government operations. The market for enterprise-grade servers is competitive, with major players like Dell, HP, and others vying for government contracts. The Department of State's spending in this area is consistent with the need for reliable and secure IT systems to support its global mission. Comparable spending benchmarks for similar IT refreshes in large federal agencies often run into millions of dollars, depending on the scale and scope.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a full and open competition, it is likely that large integrators or direct manufacturers were the primary bidders. There is no explicit information on subcontracting plans to small businesses, which could be a missed opportunity for engaging the small business ecosystem in supporting this critical IT infrastructure.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. The firm-fixed-price nature of the award provides a degree of accountability for the vendor to deliver the specified hardware within budget. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics are not publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of State IT Modernization Initiatives
Federal Information Technology Acquisition Reform Act (FITARA) Compliance
Worldwide Diplomatic Communications Infrastructure
Embassy Security and Operations Support

Risk Flags

End-of-life equipment poses operational and security risks.
Potential for supply chain delays impacting deployment timeline.
Need for robust cybersecurity measures for overseas deployments.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14.5 million to STANDARD-BLAZAR, LLC. THE REQUEST IS TO PROVIDE THE DELL POWEREDGE R760 SERVER SOLUTION TO 62 U.S. EMBASSY CONSULAR SECTIONS (OVERSEAS POST). THE SERVER SOLUTIONS ARE REQUIRED TO REFRESH AN EXISTING END OF LIFE SUPPORT.

Who is the contractor on this award?

The obligated recipient is STANDARD-BLAZAR, LLC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $14.5 million.

What is the period of performance?

Start: 2024-09-16. End: 2024-10-17.

What is the track record of STANDARD-BLAZAR, LLC in fulfilling similar government IT hardware contracts?

Information regarding STANDARD-BLAZAR, LLC's specific track record with large-scale server procurements for the Department of State or similar agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on prior awards. Federal procurement databases and past performance questionnaires would be key resources to evaluate their experience and reliability in delivering complex IT solutions on time and within budget. Without this specific data, it's difficult to definitively assess their suitability beyond the competitive award process.

How does the cost per server compare to market rates for similar Dell PowerEdge R760 models?

The provided data does not break down the total award amount by individual server unit, making a direct per-unit cost comparison difficult. The total contract value of $14.5 million covers server solutions for 62 locations, implying a significant number of units and potentially associated services like installation, configuration, or extended warranties. To benchmark the per-unit cost, one would need to know the exact quantity and specifications of servers procured, as well as any bundled services. Comparing this to commercial price lists or other government contract vehicles for the same or comparable Dell models would be necessary to assess value for money on a unit basis.

What are the primary risks associated with deploying new server hardware in overseas embassy environments?

Deploying new server hardware in overseas embassy environments presents several risks. These include logistical challenges related to shipping and customs in foreign countries, potential for damage during transit, and the need for specialized on-site installation and configuration due to varying local conditions and infrastructure. Cybersecurity risks are also paramount, requiring secure deployment practices to protect sensitive diplomatic data. Furthermore, ensuring compatibility with existing network infrastructure and power requirements at each location can be complex. Finally, the availability of skilled IT personnel at remote posts to manage and maintain the new hardware is a critical factor that could impact successful implementation and ongoing operations.

How effective is the current server infrastructure at these 62 locations, and what specific performance improvements are expected from this refresh?

The provided data states that the server solutions are required to refresh 'existing end of life support,' indicating that the current infrastructure is outdated and likely experiencing performance degradation, increased failure rates, and potential security vulnerabilities. The specific performance improvements expected from the Dell PowerEdge R760 servers would typically include enhanced processing power, increased storage capacity, improved energy efficiency, and updated security features. These upgrades are expected to boost operational efficiency, reduce downtime, enhance data processing capabilities, and strengthen the overall IT security posture for the consular sections, thereby supporting their critical diplomatic functions more effectively.

What has been the historical spending trend for server hardware and related IT services by the Department of State over the past five years?

The provided data does not include historical spending trends for the Department of State. To analyze this, one would need to access federal procurement databases (like USASpending.gov or FPDS) and filter for contracts awarded by the Department of State within the NAICS codes related to computer hardware and services over the last five fiscal years. This analysis would reveal patterns in spending, identify major vendors, and indicate whether this $14.5 million award represents a significant increase or decrease in typical investment for such infrastructure refreshes. Understanding historical spending provides context for the current contract's scale and importance.

Are there any specific cybersecurity certifications or compliance requirements mandated for the Dell PowerEdge R760 servers in this deployment?

The provided data does not specify any particular cybersecurity certifications or compliance requirements beyond general IT security best practices. However, for a federal agency like the Department of State deploying IT infrastructure, especially in sensitive overseas locations, adherence to government-wide cybersecurity frameworks such as NIST (National Institute of Standards and Technology) guidelines is typically expected. This would include requirements for secure configuration, vulnerability management, and potentially specific certifications for hardware components if mandated by agency policy or federal regulations. A thorough review of the contract's statement of work and associated security clauses would be necessary to identify all explicit cybersecurity mandates.

Industry Classification

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

Product/Service Code: IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9547 OLD CREEK DR, FAIRFAX, VA, 22032

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,497,048

Exercised Options: $14,497,048

Current Obligation: $14,497,048

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD70B

IDV Type: GWAC

Timeline