DHS Awards $5.8M for Cloud Migration Interconnection Services to Equinix, Inc
Contract Overview
Contract Amount: $5,800,514 ($5.8M)
Contractor: Equinix, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2025-08-16
End Date: 2027-01-05
Contract Duration: 507 days
Daily Burn Rate: $11.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INTER CONNECTION POINT SERVICES TO SUPPORT THE REQUIREMENT OF THE CLOUD MIGRATION EFFORT, CBP ALSO IMPLEMENTED THE CLOUD ACCESS POINT (CAP) AT THE COLOCATION FACILITIES FOR CONNECTIVITY TO CLOUD SERVICE PROVIDERS (CSPS) AND CLOUD SERVICES.
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Homeland Security obligated $5.8 million to EQUINIX, INC. for work described as: INTER CONNECTION POINT SERVICES TO SUPPORT THE REQUIREMENT OF THE CLOUD MIGRATION EFFORT, CBP ALSO IMPLEMENTED THE CLOUD ACCESS POINT (CAP) AT THE COLOCATION FACILITIES FOR CONNECTIVITY TO CLOUD SERVICE PROVIDERS (CSPS) AND CLOUD SERVICES. Key points: 1. Spending supports critical cloud migration for CBP. 2. Equinix, Inc. is the sole awardee. 3. Contract duration is 507 days. 4. Firm Fixed Price contract type. 5. No small business participation noted.
Value Assessment
Rating: fair
The contract value of $5.8M for interconnection services over approximately 1.7 years appears reasonable given the scope of supporting cloud migration. Benchmarking against similar IT infrastructure contracts is difficult without more granular detail on service levels and bandwidth.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award is a delivery order, and the details of the competition for this specific order are not fully elaborated.
Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure upgrades to support cloud migration, which could lead to long-term cost efficiencies for CBP.
Public Impact
Enhances U.S. Customs and Border Protection's ability to migrate to cloud services. Supports critical national security and border operations through improved IT infrastructure. Potential for increased efficiency and data accessibility for CBP personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Limited detail on competition for this specific delivery order.
Positive Signals
- Supports critical cloud migration effort.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending on cloud migration and associated infrastructure is a significant trend across government agencies seeking modernization and efficiency.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor, Equinix, Inc., did not subcontract with small businesses for this particular delivery order.
Oversight & Accountability
The contract is a delivery order under a larger contract, implying some level of pre-award oversight. Further oversight would involve monitoring performance and adherence to the firm fixed price terms throughout the contract duration.
Related Government Programs
- Other Computer Related Services
- Department of Homeland Security Contracting
- U.S. Customs and Border Protection Programs
Risk Flags
- No small business participation.
- Limited detail on specific services and performance metrics.
- Potential for vendor lock-in with specialized interconnection services.
- Reliance on a single provider (Equinix) for critical connectivity.
Tags
other-computer-related-services, department-of-homeland-security, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $5.8 million to EQUINIX, INC.. INTER CONNECTION POINT SERVICES TO SUPPORT THE REQUIREMENT OF THE CLOUD MIGRATION EFFORT, CBP ALSO IMPLEMENTED THE CLOUD ACCESS POINT (CAP) AT THE COLOCATION FACILITIES FOR CONNECTIVITY TO CLOUD SERVICE PROVIDERS (CSPS) AND CLOUD SERVICES.
Who is the contractor on this award?
The obligated recipient is EQUINIX, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $5.8 million.
What is the period of performance?
Start: 2025-08-16. End: 2027-01-05.
What specific interconnection services are included in this $5.8M award, and how do they compare to industry standards for cloud migration support?
The provided data lacks specificity regarding the exact interconnection services. It mentions 'INTER CONNECTION POINT SERVICES' to support cloud migration and the 'CLOUD ACCESS POINT (CAP)'. Without details on bandwidth, latency, security protocols, and service level agreements, a direct comparison to industry standards or pricing benchmarks for similar cloud migration support contracts is not feasible.
Given the full and open competition, what was the competitive landscape for this specific delivery order, and were there other viable providers of interconnection services?
While the contract is categorized under 'FULL AND OPEN COMPETITION', the data does not reveal the number of bids received or the specific competitive dynamics for this particular delivery order. It's possible that Equinix was the most competitive bidder or offered unique capabilities required by CBP for their cloud migration strategy.
What are the projected long-term cost savings or operational efficiencies expected from this cloud migration effort supported by these interconnection services?
The data does not quantify the projected long-term cost savings or operational efficiencies. The contract's purpose is to support the migration, implying that the benefits will be realized post-migration. A follow-up analysis would be needed to assess the actual realized benefits against the initial investment in interconnection services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
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: Equinix LLC
Address: 1 LAGOON DR, REDWOOD CITY, CA, 94065
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,188,865
Exercised Options: $14,875,307
Current Obligation: $5,800,514
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F401BA
IDV Type: FSS
Timeline
Start Date: 2025-08-16
Current End Date: 2027-01-05
Potential End Date: 2028-01-05 11:45:08
Last Modified: 2026-01-21
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