AWS Cloud Services contract awarded to Strategic Communications LLC for $12.86M in FY24

Contract Overview

Contract Amount: $12,861,015 ($12.9M)

Contractor: Strategic Communications LLC

Awarding Agency: Federal Communications Commission

Start Date: 2024-09-01

End Date: 2026-08-31

Contract Duration: 729 days

Daily Burn Rate: $17.6K/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: AMAZON WEB SERVICES CLOUD SERVICES FY24

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40243

State: Kentucky Government Spending

Plain-Language Summary

Federal Communications Commission obligated $12.9 million to STRATEGIC COMMUNICATIONS LLC for work described as: AMAZON WEB SERVICES CLOUD SERVICES FY24 Key points: 1. Value for money appears fair given the scale of cloud services, but detailed benchmarking is needed. 2. Competition was full and open after exclusion of sources, indicating a deliberate procurement process. 3. Risk indicators are moderate, with a long duration and firm fixed-price contract type. 4. Performance context is within IT services, specifically cloud infrastructure. 5. Sector positioning is within the broader IT services market, with cloud computing as a key sub-sector.

Value Assessment

Rating: fair

The contract value of $12.86 million for cloud services over two years represents a significant investment. Benchmarking against similar AWS contracts for federal agencies of comparable size and service needs would provide a clearer picture of value. The firm fixed-price structure suggests cost certainty for the government, but the absence of detailed cost breakdowns makes a precise value-for-money assessment challenging without further data.

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.' This suggests that while the competition was broad, certain sources may have been excluded based on specific criteria prior to the main bidding process. The number of bidders is not explicitly stated, but the 'full and open' nature implies multiple potential participants were considered.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service offerings. The exclusion of sources, however, warrants scrutiny to ensure it did not unduly limit competition and potentially increase costs.

Public Impact

The Federal Communications Commission (FCC) is the primary beneficiary, gaining access to essential cloud computing resources. Services delivered include the provision of cloud infrastructure, likely supporting various FCC IT operations and data management. The geographic impact is primarily within Kentucky (ST, SN), where the contractor is based, but the services support a federal agency's national operations. Workforce implications are indirect, potentially supporting IT roles within the FCC and the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a major cloud provider like AWS.
The duration of the contract (729 days) could limit flexibility in adopting newer technologies.
Reliance on a single contractor for critical cloud services presents a concentration risk.

Positive Signals

Leveraging established AWS infrastructure can provide scalability and reliability.
Firm fixed-price contract offers budget predictability.
The procurement process was 'full and open,' suggesting a structured approach to selecting the best offer.

Sector Analysis

The IT services sector, particularly cloud computing, is a rapidly growing segment of federal spending. Agencies increasingly rely on cloud solutions for flexibility, scalability, and cost-efficiency. This contract falls within the broader category of IT services, specifically focusing on Infrastructure as a Service (IaaS) or Platform as a Service (PaaS) through AWS. Comparable spending benchmarks would involve analyzing other federal cloud service contracts, especially those utilizing AWS.

Small Business Impact

There is no indication that this contract was a small business set-aside. The primary contractor, Strategic Communications LLC, is not specified as a small business in the provided data. Subcontracting opportunities for small businesses are not detailed but are possible within the execution of such a large cloud services contract.

Oversight & Accountability

Oversight mechanisms would typically involve contract officers, program managers within the FCC, and potentially the agency's Inspector General. Transparency is facilitated through contract databases like FPDS. Accountability rests with Strategic Communications LLC to deliver services as per the contract terms and with the FCC to monitor performance and ensure compliance.

Related Government Programs

AWS Government Cloud Services
Federal Civilian IT Modernization Programs
Cloud Computing Services Contracts
IT Infrastructure Support Services

Risk Flags

Long contract duration may limit agility.
Potential for vendor lock-in.
Competition process involved source exclusion, requiring justification.
Limited public data on contractor's specific cloud experience.

Frequently Asked Questions

What is this federal contract paying for?

Federal Communications Commission awarded $12.9 million to STRATEGIC COMMUNICATIONS LLC. AMAZON WEB SERVICES CLOUD SERVICES FY24

Who is the contractor on this award?

The obligated recipient is STRATEGIC COMMUNICATIONS LLC.

Which agency awarded this contract?

Awarding agency: Federal Communications Commission (Federal Communications Commission).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2024-09-01. End: 2026-08-31.

What is the track record of Strategic Communications LLC in delivering federal IT services, particularly cloud solutions?

Information regarding Strategic Communications LLC's specific track record in delivering federal IT services, especially cloud solutions, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client feedback from federal agencies. Understanding their experience with AWS or similar cloud platforms is crucial for evaluating their capability to fulfill this contract's requirements effectively. Without this historical data, it's difficult to gauge their reliability and expertise in this specialized area.

How does the pricing of this AWS cloud services contract compare to similar federal procurements?

The provided data does not include specific pricing details beyond the total contract value ($12.86 million). To compare pricing, one would need access to unit costs, service tiers, and volume discounts offered to the FCC versus those offered to other federal agencies for comparable AWS services. Benchmarking against publicly available contract data for similar AWS deployments within the federal government would be necessary. Factors like the specific AWS services utilized (e.g., EC2, S3, RDS), the duration of the contract, and the level of support required all influence pricing and make direct comparisons complex without granular data.

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

Key risks include potential vendor lock-in with AWS, limiting future flexibility; the long contract duration (729 days) potentially hindering adoption of newer technologies; and concentration risk if Strategic Communications LLC is the sole provider of these critical cloud services. Mitigation strategies are not explicitly detailed but would typically involve robust performance monitoring, clear service level agreements (SLAs), contingency planning, and regular reviews of the contract's continued necessity and value. The 'full and open competition' aspect, even with source exclusion, suggests an effort to ensure a competitive selection process initially.

How effective is the Federal Communications Commission in managing its cloud service contracts to ensure optimal performance and cost-efficiency?

The effectiveness of the FCC's management of this specific contract cannot be determined from the provided data alone. Effective management typically involves strong contract oversight, regular performance reviews against SLAs, proactive risk management, and ensuring the services align with evolving agency needs. The FCC's overall IT governance structure, procurement policies, and the expertise of its contract management personnel would influence this effectiveness. Further analysis would require examining FCC's internal processes and performance metrics related to this and other IT contracts.

What is the historical spending pattern for cloud services at the Federal Communications Commission?

The provided data focuses solely on the FY24 contract. To understand historical spending patterns, one would need to analyze the FCC's IT budgets and contract awards over multiple fiscal years, specifically looking for expenditures on cloud services, AWS, and similar IT infrastructure. This would reveal trends in cloud adoption, spending levels, and the types of cloud services procured. Comparing current spending to past expenditures would indicate whether cloud adoption is increasing, decreasing, or stable, and whether the FCC is consolidating or diversifying its cloud providers.

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: 273FCC24Q0026

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 310 EVERGREEN RD # 100, LOUISVILLE, KY, 40243

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Joint Venture Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $50,403,666

Exercised Options: $25,148,114

Current Obligation: $12,861,015

Actual Outlays: $9,822,168

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC90B

IDV Type: GWAC

Timeline