NASA awards $21.1M for Advanced Supercomputing Services to Inuteq, LLC, focusing on Maryland facilities

Contract Overview

Contract Amount: $21,130,040 ($21.1M)

Contractor: Inuteq, LLC

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $58.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: NASA ADVANCED SUPER COMPUTING (NACS) GSFC PROCUREMENT TASK ORDER (OY7/CY8)

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20771

State: Maryland Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $21.1 million to INUTEQ, LLC for work described as: NASA ADVANCED SUPER COMPUTING (NACS) GSFC PROCUREMENT TASK ORDER (OY7/CY8) Key points: 1. Value for money assessed through cost-plus award fee structure, incentivizing performance. 2. Full and open competition suggests a competitive market for these specialized services. 3. Risk indicators include reliance on a single awardee for critical computing infrastructure. 4. Performance context is tied to the duration of the task order and fee structure. 5. Sector positioning within IT services, specifically computer facilities management. 6. The contract's duration of one year requires ongoing monitoring for sustained value.

Value Assessment

Rating: good

The contract utilizes a Cost Plus Award Fee (CPAF) structure, which allows for performance-based incentives. This structure is generally considered good for services where performance can be objectively measured and rewarded, aligning contractor goals with agency objectives. Benchmarking against similar contracts for supercomputing facilities management is difficult without more granular data on specific services and infrastructure managed. However, the total award amount of $21.1M for a one-year period for advanced supercomputing services appears within a reasonable range for specialized IT infrastructure support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This method typically fosters a competitive environment, potentially leading to better pricing and service quality. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was sought. This approach is ideal for ensuring the government receives the best value by leveraging market forces.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to the pressure of multiple bidders vying for the contract.

Public Impact

Scientists and researchers at NASA's Goddard Space Flight Center (GSFC) will benefit from continued access to advanced supercomputing resources. Essential services include the management and operation of complex computing facilities, supporting critical scientific missions. The geographic impact is primarily focused on Maryland, where the GSFC is located. Workforce implications may involve specialized IT and high-performance computing personnel employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on Computer Facilities Management Services (NAICS 541513). The market for high-performance computing (HPC) and supercomputing services is specialized and growing, driven by advancements in AI, scientific research, and data analytics. NASA's spending in this area is crucial for maintaining its leadership in space exploration and scientific discovery. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of supercomputing infrastructure, but large federal agencies often invest tens to hundreds of millions annually in HPC resources.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a task order under a larger procurement, it's possible that subcontracting opportunities may exist, but this is not explicitly detailed. The focus on specialized supercomputing services might limit the scope for broad small business participation unless specific components or support functions are outsourced.

Oversight & Accountability

Oversight for this contract will likely be managed by NASA's Goddard Space Flight Center contracting and program officials. The Cost Plus Award Fee (CPAF) structure necessitates diligent performance monitoring and evaluation to determine the award fee. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Risk Flags

Tags

it-services, computer-facilities-management, nasa, goddard-space-flight-center, maryland, cost-plus-award-fee, full-and-open-competition, task-order, supercomputing, high-performance-computing

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $21.1 million to INUTEQ, LLC. NASA ADVANCED SUPER COMPUTING (NACS) GSFC PROCUREMENT TASK ORDER (OY7/CY8)

Who is the contractor on this award?

The obligated recipient is INUTEQ, LLC.

Which agency awarded this contract?

Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).

What is the total obligated amount?

The obligated amount is $21.1 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the track record of Inuteq, LLC in providing similar advanced supercomputing services to federal agencies?

Information regarding Inuteq, LLC's specific track record in providing advanced supercomputing services, particularly to federal agencies, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client references. Federal procurement databases and agency performance information portals would be the primary sources for this analysis. Without this data, it is difficult to definitively assess their experience and capability in managing complex, high-performance computing environments critical for agencies like NASA. Further investigation into their past awards and performance reviews is recommended.

How does the $21.1M award compare to historical spending on similar NASA supercomputing contracts?

The $21.1 million award for a one-year period represents a significant investment in advanced supercomputing services. To compare this to historical spending, one would need to analyze NASA's budget allocations and contract awards for supercomputing facilities management over previous fiscal years. This includes looking at contracts with similar scope, duration, and technical requirements. Factors such as inflation, technological advancements, and changes in computing needs would need to be considered for a fair comparison. Without access to NASA's historical procurement data for supercomputing, a precise benchmark is challenging, but this amount suggests a substantial commitment to maintaining cutting-edge computational capabilities.

What are the primary risks associated with relying on a single contractor for critical supercomputing infrastructure?

Relying on a single contractor for critical supercomputing infrastructure presents several risks. Firstly, there's a risk of vendor lock-in, making it difficult and costly to switch providers if performance declines or needs change. Secondly, a single point of failure exists; if the contractor experiences financial instability, operational issues, or personnel shortages, it could directly impact NASA's research and mission continuity. Thirdly, reduced competition can lead to complacency and potentially higher costs over time, as the incentive to innovate or offer competitive pricing diminishes. Robust contract management, clear performance metrics, and contingency planning are essential to mitigate these risks.

How effectively does the Cost Plus Award Fee (CPAF) structure incentivize performance for supercomputing services?

The Cost Plus Award Fee (CPAF) structure is designed to incentivize contractor performance by linking a portion of the total compensation to the achievement of specific, measurable performance objectives. For supercomputing services, these objectives could include uptime, processing speed, energy efficiency, or response times for user support. When well-defined and rigorously evaluated, CPAF can align the contractor's efforts with the agency's goals, encouraging efficiency and quality. However, the effectiveness hinges on the clarity and objectivity of the award criteria and the diligence of the government's performance evaluation. Poorly defined criteria or subjective evaluations can undermine the incentive structure.

What are the potential implications of this contract for the broader supercomputing market and technological advancement?

This contract signifies continued federal investment in advanced computing capabilities, which can stimulate innovation within the supercomputing market. By awarding this contract through full and open competition, NASA signals demand for high-performance solutions, potentially encouraging vendors to invest in research and development. The specific requirements of the contract, such as the need for efficient management of complex facilities, could drive advancements in areas like cooling technologies, power management, and system optimization. Furthermore, the success of Inuteq, LLC under this contract could influence future procurement strategies and technological adoption across other federal agencies and the private sector.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - COMPUTE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,974,080

Exercised Options: $22,974,080

Current Obligation: $21,130,040

Actual Outlays: $796,962

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $796,292

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 80ARC018D0010

IDV Type: IDC

Timeline

Start Date: 2025-07-01

Current End Date: 2026-06-30

Potential End Date: 2026-06-30 00:00:00

Last Modified: 2026-03-17

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