HHS FDA Spends $733K on F5 Load Balancer Maintenance Renewal with Colossal Contracting LLC

Contract Overview

Contract Amount: $733,389 ($733.4K)

Contractor: Colossal Contracting LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-01-15

End Date: 2027-04-05

Contract Duration: 810 days

Daily Burn Rate: $905/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ACQUIRE F5 LOAD BALANCER RENEWAL MAINTENANCE FOR 10 F5 LOAD BALANCERS.

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21401

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $733,389.18 to COLOSSAL CONTRACTING LLC for work described as: ACQUIRE F5 LOAD BALANCER RENEWAL MAINTENANCE FOR 10 F5 LOAD BALANCERS. Key points: 1. Spending focuses on essential network infrastructure maintenance for F5 load balancers. 2. Colossal Contracting LLC is the incumbent provider, suggesting potential for vendor lock-in. 3. The contract is a renewal, indicating ongoing need and potential for price escalation. 4. The 'Other Computer Related Services' NAICS code covers a broad range of IT services.

Value Assessment

Rating: fair

The price of $733,389.18 for 10 load balancer renewals over approximately 2.7 years appears reasonable given the specialized nature of F5 hardware and software maintenance. Benchmarking against similar F5 maintenance contracts would provide a more definitive assessment.

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,' which is unusual. This suggests a competitive process occurred, but the specific reason for excluding other sources needs clarification to understand the impact on price discovery.

Taxpayer Impact: Taxpayer funds are used for essential IT infrastructure maintenance. The competitive process, despite its unusual description, aims to secure fair pricing.

Public Impact

Ensures continued operation of critical network services managed by F5 load balancers. Supports the FDA's mission by maintaining the underlying IT infrastructure. Potential for increased costs if competition was truly limited or if renewal prices rise significantly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

The IT services sector, particularly specialized hardware maintenance like F5 load balancers, often involves high costs due to proprietary technology and limited vendor options. Spending benchmarks for similar maintenance contracts are crucial for evaluating value.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract was awarded via a Delivery Order under a larger contract. Oversight should focus on ensuring the competitive nature of the original award and the justification for any source exclusions, as well as monitoring performance and pricing during the contract period.

Related Government Programs

Risk Flags

Tags

other-computer-related-services, department-of-health-and-human-services, md, delivery-order, 100k-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $733,389.18 to COLOSSAL CONTRACTING LLC. ACQUIRE F5 LOAD BALANCER RENEWAL MAINTENANCE FOR 10 F5 LOAD BALANCERS.

Who is the contractor on this award?

The obligated recipient is COLOSSAL CONTRACTING LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $733,389.18.

What is the period of performance?

Start: 2025-01-15. End: 2027-04-05.

What was the specific justification for excluding sources in a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

The description 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is contradictory and requires clarification. Typically, full and open competition means all responsible sources are permitted to compete without restriction. If sources were excluded, the justification for such exclusions must be documented and legally sound, often involving specific technical requirements or prior performance evaluations that limit the pool of eligible contractors.

How does the per-unit cost of this F5 load balancer maintenance compare to industry benchmarks for similar hardware and support levels?

Without specific details on the F5 models, software versions, and support tiers included in this renewal, a precise per-unit cost benchmark is difficult. However, F5 maintenance is generally considered premium. A comparison would involve identifying comparable contracts for similar F5 appliances and support packages, factoring in the number of devices and duration of the contract to assess if the $73,338.92 average annual cost per load balancer is competitive.

What is the risk of vendor lock-in with F5 load balancers, and how does this renewal impact that risk?

F5 load balancers, like many specialized hardware solutions, carry a significant risk of vendor lock-in due to proprietary software and hardware integration. Renewing maintenance with the incumbent provider, Colossal Contracting LLC, reinforces this lock-in. The risk is that the FDA may face escalating costs in the future with limited ability to switch to alternative, potentially more cost-effective solutions without substantial re-engineering efforts.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesOther Computer Related Services

Product/Service Code: IT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 304 HARRY S TRUMAN PKWY STE G, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,098,509

Exercised Options: $733,389

Current Obligation: $733,389

Actual Outlays: $368,269

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD72B

IDV Type: GWAC

Timeline

Start Date: 2025-01-15

Current End Date: 2027-04-05

Potential End Date: 2028-04-05 00:00:00

Last Modified: 2026-04-02

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