NSF awards $11.4M for Cloud Services to Strategic Communications LLC, highlighting IT infrastructure needs

Contract Overview

Contract Amount: $11,410,353 ($11.4M)

Contractor: Strategic Communications LLC

Awarding Agency: National Science Foundation

Start Date: 2024-05-01

End Date: 2026-04-30

Contract Duration: 729 days

Daily Burn Rate: $15.7K/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: CLOUD SERVICES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

National Science Foundation obligated $11.4 million to STRATEGIC COMMUNICATIONS LLC for work described as: CLOUD SERVICES Key points: 1. Contract value of $11.4M over two years suggests significant investment in cloud capabilities. 2. Awarded to Strategic Communications LLC, indicating a specific vendor chosen for specialized services. 3. The contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', implies a competitive process with specific criteria. 4. Delivery Order under a larger contract framework points to phased or modular service delivery. 5. The 'Other Computer Related Services' NAICS code suggests a broad scope within IT infrastructure. 6. Firm Fixed Price contract type offers cost certainty for the agency. 7. The duration of 729 days aligns with typical project lifecycles for IT services.

Value Assessment

Rating: fair

Benchmarking the $11.4M contract value for cloud services requires more granular data on the specific services rendered. However, given the two-year duration, the annual spend is approximately $5.7M. This figure needs comparison against similar cloud service contracts awarded by agencies of NSF's size and scope. Without specific performance metrics or detailed service breakdowns, assessing the value-for-money is challenging. The firm fixed price structure provides budget predictability, which is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the competition was initially open, certain sources may have been excluded based on specific requirements or prior agreements. The number of bidders (5) indicates a moderate level of competition. This competition level is generally sufficient to drive reasonable pricing, but may not achieve the lowest possible prices compared to a truly unrestricted full and open competition.

Taxpayer Impact: Taxpayers benefit from a competitive process that likely prevents excessive pricing, though the exclusion of some sources might mean slightly higher costs than if all potential vendors could participate.

Public Impact

The National Science Foundation (NSF) is the primary beneficiary, gaining enhanced cloud computing capabilities. Services delivered likely include cloud infrastructure management, data storage, processing, and potentially specialized software deployment. The geographic impact is primarily within the operational sphere of the NSF, supporting its research and administrative functions. Workforce implications may involve IT specialists managing and utilizing these cloud services, both within the NSF and at the contractor's end.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition type warrants further investigation to ensure no viable, cost-effective vendors were unfairly barred.
Lack of detailed service scope makes it difficult to assess if the $11.4M is competitive for the specific cloud services procured.
The contract's reliance on a single delivery order structure could indicate a lack of flexibility if needs evolve significantly.

Positive Signals

The firm fixed price contract provides cost certainty and budget predictability for the NSF.
A competitive bidding process, even with exclusions, suggests an effort to secure fair market value.
The contract duration of two years allows for sustained support and development of cloud capabilities.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on cloud services. The market for cloud computing services is vast and highly competitive, with major players like AWS, Azure, and Google Cloud, alongside numerous specialized providers. The NSF's spending on cloud services is part of a government-wide trend towards modernizing IT infrastructure and leveraging scalable, on-demand computing resources. Comparable spending benchmarks would depend on the specific cloud services (e.g., IaaS, PaaS, SaaS) and the scale of data and processing required.

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 or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, Strategic Communications LLC, is not identified as a small business in this data snippet. Opportunities for small businesses would likely arise if they are part of the supply chain for the prime contractor or if they participate in future, potentially smaller, competitive bids.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Science Foundation's contracting officers and program managers. Accountability measures are embedded in the firm fixed price contract terms, requiring delivery of specified services. Transparency is facilitated by the public nature of federal contract awards, allowing for review. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

General Services Administration (GSA) Cloud IT Schedule
NASA SEWP (Solutions for Enterprise-Wide Procurement)
Department of Defense (DoD) Cloud Computing Strategy
Federal Risk and Authorization Management Program (FedRAMP)

Risk Flags

Potential for vendor lock-in if specific proprietary cloud technologies are utilized.
Risk associated with data security and privacy in a cloud environment.
Dependency on contractor performance for critical IT infrastructure.
Potential for cost overruns if usage exceeds projections under fixed-price, though less likely than cost-plus.

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $11.4 million to STRATEGIC COMMUNICATIONS LLC. CLOUD SERVICES

Who is the contractor on this award?

The obligated recipient is STRATEGIC COMMUNICATIONS LLC.

Which agency awarded this contract?

Awarding agency: National Science Foundation (National Science Foundation).

What is the total obligated amount?

The obligated amount is $11.4 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-04-30.

What specific cloud services are being procured under this $11.4M contract, and how do they align with NSF's strategic IT goals?

The provided data indicates the contract is for 'CLOUD SERVICES' under NAICS code '541519 - Other Computer Related Services'. This broad classification suggests the services could encompass a range of cloud offerings, potentially including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), or Software as a Service (SaaS), along with associated management, support, and integration. To align with NSF's strategic IT goals, these services would likely support research computing, data analytics, scientific collaboration platforms, and administrative functions. A detailed statement of work (SOW) or contract line item numbers (CLINs) would be necessary to specify the exact services and their strategic relevance. Without this, it's presumed the contract aims to enhance NSF's agility, scalability, and cost-efficiency in its IT operations, supporting its mission to foster scientific discovery.

How does the pricing of this contract compare to similar cloud service contracts awarded by other federal agencies of comparable size?

Comparing the $11.4M contract value for 729 days (approx. 2 years) requires a detailed breakdown of the specific cloud services procured (e.g., compute hours, storage volume, data transfer rates, managed services). The annual value is approximately $5.7M. Benchmarking this against similar contracts necessitates identifying awards with comparable service scopes, performance levels, and contract types (Firm Fixed Price). Agencies like the National Institutes of Health (NIH) or the Department of Energy (DOE), which also support large scientific endeavors, might offer relevant comparisons. Without access to the detailed SOW and specific service metrics, a precise price-per-unit or value-for-money assessment relative to market rates is difficult. However, the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' with 5 bidders suggests a moderately competitive environment that should yield reasonable, though perhaps not the absolute lowest, pricing.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this cloud services contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, cloud service contracts of this magnitude would include detailed SLAs covering aspects such as uptime guarantees (e.g., 99.9% availability), response times for support requests, data recovery objectives (RPO/RTO), security compliance adherence, and performance metrics for compute and storage resources. The absence of this information in the summary prevents a thorough assessment of the contractor's performance obligations and the potential penalties or remedies for non-compliance. These KPIs and SLAs are crucial for ensuring the NSF receives the expected level of service quality, reliability, and security from Strategic Communications LLC.

What is the track record of Strategic Communications LLC in delivering federal cloud services contracts of similar scope and value?

Information regarding the specific track record of Strategic Communications LLC in delivering federal cloud services contracts of similar scope and value is not detailed in the provided summary data. To assess their capability, one would need to examine their past performance on federal contracts, particularly those involving cloud infrastructure, IT services, and large-scale deployments. Key areas to investigate would include their history of meeting deadlines, staying within budget, adhering to SLAs, and receiving positive past performance ratings from government agencies. The fact that they were awarded this $11.4M contract suggests they possess the necessary qualifications and experience, but a deeper dive into their contract history and client feedback would provide a more robust understanding of their reliability and expertise in this domain.

How does the $11.4M spending on cloud services compare to NSF's historical IT spending patterns over the last five fiscal years?

The provided data focuses solely on this specific $11.4M contract award and does not offer historical spending patterns for the National Science Foundation (NSF). To analyze this, one would need to access NSF's historical IT budgets and contract databases (e.g., FPDS-NG, USASpending.gov) for the past five fiscal years. This analysis would involve identifying total IT expenditures, specifically the portion allocated to cloud services, and tracking trends in cloud adoption and spending. Comparing this $11.4M award against the historical baseline would reveal whether this represents a significant increase, a continuation of existing investment levels, or a shift in strategy towards greater reliance on cloud solutions. Understanding this context is crucial for evaluating the significance and potential impact of this particular contract award.

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

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: $38,805,900

Exercised Options: $11,410,353

Current Obligation: $11,410,353

Actual Outlays: $8,485,123

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC90B

IDV Type: GWAC

Timeline