Forest Service awarded $22.4M for server hardware and enterprise software maintenance to Glacier Technologies LLC

Contract Overview

Contract Amount: $22,356,316 ($22.4M)

Contractor: Glacier Technologies LLC

Awarding Agency: Department of Agriculture

Start Date: 2008-04-01

End Date: 2010-09-30

Contract Duration: 912 days

Daily Burn Rate: $24.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVER HARDWARE AND ENTERPRISE SOFTWARE MAINTENANCE SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $22.4 million to GLACIER TECHNOLOGIES LLC for work described as: SERVER HARDWARE AND ENTERPRISE SOFTWARE MAINTENANCE SERVICES Key points: 1. The contract value of $22.4M over its period of performance represents a significant investment in IT infrastructure. 2. The 'NOT AVAILABLE FOR COMPETITION' award raises questions about the justification for limited competition. 3. The contract duration of 912 days suggests a need for sustained support for critical systems. 4. The firm-fixed-price contract type indicates that the price was set at the time of award, potentially limiting cost overruns but also the benefit of potential savings. 5. The award was made to a single vendor, Glacier Technologies LLC, highlighting a lack of broader market engagement. 6. The contract's primary purpose is for server hardware and enterprise software maintenance, a crucial but often costly aspect of IT operations.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without specific details on the hardware and software covered, and the services provided. However, a $22.4 million award for maintenance over approximately two and a half years suggests a substantial per-year cost. Without comparable contract data or market research, it's difficult to definitively assess if this represents excellent value for money. The lack of competition further complicates a thorough value assessment, as there was no market pressure to drive down prices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that the Forest Service did not conduct a competitive bidding process. This typically occurs when a specific justification, such as the proprietary nature of the software or hardware, or the need for continuity of services from a specialized vendor, is presented. The lack of competition means that price discovery through market forces was absent, and the government did not benefit from multiple offers.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing offers, there is less assurance that the government secured the best possible price for these essential IT maintenance services.

Public Impact

The primary beneficiaries are the Forest Service IT departments and personnel who rely on the supported server hardware and enterprise software for their daily operations. The services delivered include maintenance for critical server hardware and enterprise software, ensuring the stability and functionality of IT systems. The geographic impact is likely nationwide, supporting the Forest Service's distributed operations across various regions. Workforce implications include ensuring IT staff have reliable systems to perform their duties, potentially impacting efficiency and productivity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
The 'NOT AVAILABLE FOR COMPETITION' status requires strong justification to ensure it was truly the only viable option.
Without detailed service level agreements (SLAs) and performance metrics, it's difficult to assess the quality and effectiveness of the maintenance provided.
The contract duration of over two years without re-competition could lead to vendor lock-in.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government, assuming the scope of work is well-defined.
The award to a single vendor, Glacier Technologies LLC, suggests they may possess specialized expertise or capabilities required by the Forest Service.
The contract addresses essential IT maintenance, which is critical for the operational continuity of the agency.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on hardware and software maintenance. The IT services market is vast and highly competitive, with numerous vendors offering maintenance and support for enterprise software and hardware. However, specialized maintenance for specific systems can sometimes lead to limited competition. The total federal spending on IT services is in the billions annually, with a significant portion allocated to maintenance and support contracts to ensure the operational readiness of government systems.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The award was made to Glacier Technologies LLC, and without further information on their size classification or subcontracting plans, the direct impact on the small business ecosystem is unclear. If Glacier Technologies is a large business, there may be missed opportunities for small businesses to participate in subcontracting roles, depending on the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Agriculture's Forest Service. Accountability measures would be defined in the contract's terms and conditions, including performance standards and payment schedules. Transparency is limited by the 'NOT AVAILABLE FOR COMPETITION' award, as the justification and selection process are not publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Hardware Maintenance Services
Enterprise Software Support
IT Services Contracts
Department of Agriculture IT Spending
Forest Service Technology Procurement

Risk Flags

Sole-source award requires strong justification.
Lack of competition may lead to higher costs.
Performance metrics and SLAs not detailed.
Potential for vendor lock-in due to contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $22.4 million to GLACIER TECHNOLOGIES LLC. SERVER HARDWARE AND ENTERPRISE SOFTWARE MAINTENANCE SERVICES

Who is the contractor on this award?

The obligated recipient is GLACIER TECHNOLOGIES LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $22.4 million.

What is the period of performance?

Start: 2008-04-01. End: 2010-09-30.

What specific hardware and software are covered under this maintenance contract, and what is the justification for awarding it on a sole-source basis?

The provided data indicates the contract is for 'SERVER HARDWARE AND ENTERPRISE SOFTWARE MAINTENANCE SERVICES.' However, the specific makes, models, or types of hardware and software are not detailed. The award was made on a 'NOT AVAILABLE FOR COMPETITION' basis. This classification typically requires a justification from the agency, such as the proprietary nature of the technology, the need for specialized skills only available from a single source, or the existence of a critical infrastructure requirement that necessitates continuity of service from the incumbent provider. Without the agency's justification document, the precise reasons for the sole-source award remain unknown, making it difficult to assess the validity of the sole-source determination.

How does the total contract value of $22.4 million compare to industry benchmarks for similar IT maintenance services over a 912-day period?

Comparing the $22.4 million contract value for 912 days (approximately 2.5 years) requires detailed information about the specific hardware and software being maintained, the scope of services (e.g., 24/7 support, response times, patching, upgrades), and the number of units covered. General industry benchmarks for IT maintenance can vary widely. For enterprise-level hardware maintenance, costs can range from 10-20% of the original hardware purchase price annually. Software maintenance is often a percentage of the software license cost. Given the lack of specifics, it's impossible to provide a precise benchmark. However, for a contract of this magnitude and duration, it suggests a substantial IT infrastructure is being supported. The absence of competition makes a direct value-for-money comparison difficult, as market forces were not leveraged to establish a competitive price.

What performance metrics or service level agreements (SLAs) were established to ensure the effectiveness of Glacier Technologies LLC's maintenance services?

The provided data does not include details on specific performance metrics or Service Level Agreements (SLAs) associated with this contract. Typically, IT maintenance contracts include clauses that define expected performance, such as guaranteed uptime for systems, maximum response times for technical support, and timely application of patches and updates. The effectiveness of Glacier Technologies LLC's services would be measured against these predefined metrics. Without access to the contract's full terms and conditions, it is not possible to assess whether robust performance standards were set or how compliance was monitored and enforced by the Forest Service.

What is Glacier Technologies LLC's track record with the federal government, particularly in providing similar IT maintenance services?

The provided data indicates that Glacier Technologies LLC was awarded this contract by the Department of Agriculture's Forest Service. The contract number is DCA, and it was awarded in 2008, with an end date in 2010. This suggests Glacier Technologies has prior experience with federal contracts. However, the data does not provide details on their overall track record, past performance evaluations, or the specific nature of previous contracts they may have held with the federal government. A comprehensive assessment of their track record would require reviewing their contract history, any available past performance information, and potentially their financial stability and technical capabilities relevant to this specific service requirement.

Given the sole-source nature of this award, what steps were taken to mitigate potential risks associated with relying on a single vendor for critical IT maintenance?

When a contract is awarded on a sole-source basis, agencies typically implement specific risk mitigation strategies. These can include rigorous contract oversight, detailed performance monitoring, and clear escalation procedures for issues. The Forest Service would likely have ensured that Glacier Technologies LLC possessed the unique qualifications and capabilities necessary, and that the contract terms clearly defined responsibilities and liabilities. Furthermore, they might have established contingency plans in case of vendor failure or performance degradation. Regular reviews and communication channels with the vendor are crucial to proactively identify and address potential risks throughout the contract's lifecycle. The firm-fixed-price nature of the contract also shifts some risk to the contractor regarding cost overruns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ALTERNATIVE SOURCES

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bristol BAY Native Corporation (UEI: 060036357)

Address: 1200 GOLDEN KEY CIRCLE, STE. 400, EL PASO, TX, 16

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Federally Funded Research and Development Corp, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,356,316

Exercised Options: $22,356,316

Current Obligation: $22,356,316

Timeline