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
- Ambiguity in 'EXCLUSION OF SOURCES' despite 'FULL AND OPEN COMPETITION'.
- Renewal of maintenance contract may indicate limited alternatives or vendor lock-in.
- Lack of specific per-unit cost benchmark for comparison.
Positive Signals
- Contract addresses critical IT infrastructure maintenance.
- Procurement process aimed for full and open competition.
- Fixed-price contract provides cost certainty.
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
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Food and Drug Administration Programs
Risk Flags
- Ambiguous contract award description ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES').
- Potential for vendor lock-in with specialized F5 hardware.
- Renewal of maintenance contract may lead to price increases over time.
- Lack of clear per-unit cost benchmark for validation.
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 Services › Computer Systems Design and Related Services › Other 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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