SEC Awards $11M Data Center Colocation to Iron Mountain for 3 Years

Contract Overview

Contract Amount: $11,039,288 ($11.0M)

Contractor: Iron Mountain Information Management LLC

Awarding Agency: Securities and Exchange Commission

Start Date: 2023-08-28

End Date: 2026-12-21

Contract Duration: 1,211 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DATA CENTER COLOCATION SERVICES

Place of Performance

Location: BOSTON, SUFFOLK County, MASSACHUSETTS, 02110

State: Massachusetts Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $11.0 million to IRON MOUNTAIN INFORMATION MANAGEMENT LLC for work described as: DATA CENTER COLOCATION SERVICES Key points: 1. Significant contract for essential data center services. 2. Iron Mountain is a major player in information management. 3. Potential for cost savings through competitive bidding. 4. Sector: IT infrastructure and data management.

Value Assessment

Rating: good

The contract value of $11.04M over approximately 3 years suggests a reasonable annual spend for colocation services. Benchmarking against similar government contracts for data center space and power would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, which is ideal for price discovery and ensuring the government receives competitive pricing. This method allows all qualified vendors to bid, fostering a market-driven outcome.

Taxpayer Impact: The use of full and open competition is expected to yield taxpayer savings by driving down costs through a competitive bidding process.

Public Impact

Ensures continuity of government operations by securing critical data storage. Supports SEC's mission by providing reliable and secure IT infrastructure. Potential for job creation within the IT and data management sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration may exceed actual need, leading to potential overspending.
Reliance on a single vendor for critical infrastructure.
Potential for price increases in future contract renewals.

Positive Signals

Competitive award process likely secured favorable pricing.
Established vendor with a proven track record.
Clear contract terms and duration.

Sector Analysis

This contract falls within the IT and data management sector, specifically data center colocation. Spending benchmarks for similar services vary widely based on location, size, and required services, but $11M over three years for a federal agency is a substantial but not necessarily excessive amount.

Small Business Impact

The awardee, Iron Mountain Information Management LLC, is a large business. There is no indication in the provided data that small businesses were involved in this specific award, which could be an area for future consideration.

Oversight & Accountability

The Securities and Exchange Commission is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure accountability and proper execution of the services.

Related Government Programs

General Warehousing and Storage
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Potential for vendor lock-in.
Dependence on a single provider for critical infrastructure.
Risk of price escalation in future contract actions.
Need for ongoing monitoring of service delivery and performance.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $11.0 million to IRON MOUNTAIN INFORMATION MANAGEMENT LLC. DATA CENTER COLOCATION SERVICES

Who is the contractor on this award?

The obligated recipient is IRON MOUNTAIN INFORMATION MANAGEMENT LLC.

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2023-08-28. End: 2026-12-21.

What specific data center services are included in this contract, and how do they align with the SEC's current and future needs?

The provided data specifies 'DATA CENTER COLOCATION SERVICES.' This typically includes physical space, power, cooling, and physical security for IT equipment. A detailed review of the contract's statement of work would clarify the exact services, service level agreements (SLAs), and ensure they meet the SEC's evolving technological requirements and operational demands.

How does the awarded price compare to industry benchmarks for similar colocation services, considering the scale and location?

Without specific details on the square footage, power density (kW per rack), bandwidth, and geographic location within Massachusetts, a precise benchmark is difficult. However, $11.04M over 3 years ($3.68M annually) for a federal agency suggests a significant footprint. Comparing this to GSA schedules or other government-wide contracts for colocation would reveal if the pricing is competitive or if there's potential for cost optimization.

What are the contingency plans if Iron Mountain fails to meet the service level agreements or experiences an outage?

The contract likely includes Service Level Agreements (SLAs) with defined uptime guarantees, performance metrics, and penalties for non-compliance. The SEC should have business continuity and disaster recovery plans that account for potential vendor failures, possibly including pre-identified alternative providers or redundant systems to ensure data integrity and operational continuity.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Iron Mountain Incorporated

Address: 85 NEW HAMPSHIRE AVE STE 150, PORTSMOUTH, NH, 03801

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,225,369

Exercised Options: $11,039,288

Current Obligation: $11,039,288

Actual Outlays: $6,626,656

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F049GA

IDV Type: FSS

Timeline