Glacier Technologies LLC awarded $25.3M for USDA Forest Service data center migration expertise

Contract Overview

Contract Amount: $25,311,585 ($25.3M)

Contractor: Glacier Technologies LLC

Awarding Agency: Department of Agriculture

Start Date: 2011-12-30

End Date: 2014-11-30

Contract Duration: 1,066 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE PURPOSE OF THIS FIRM-FIXED PRICE TYPE TASK ORDER IS TO PROVIDE EXPERTISE FOR THE USDA FOREST SERVICE CHIEF INFORMATION OFFICE DATA CENTER SERVICES (DCS) PROGRAM TO MANAGE DATA AND BUSINESS APPLICATION MIGRATION ACTIVITIES. DATA CENTER SERVICES COMPRISES THE FUNCTIONAL AREAS SUCH AS APPLICATION HOSTING, ARCHITECTURE, AND ENTERPRISE OPERATIONS.

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79925

State: Texas Government Spending

Plain-Language Summary

Department of Agriculture obligated $25.3 million to GLACIER TECHNOLOGIES LLC for work described as: THE PURPOSE OF THIS FIRM-FIXED PRICE TYPE TASK ORDER IS TO PROVIDE EXPERTISE FOR THE USDA FOREST SERVICE CHIEF INFORMATION OFFICE DATA CENTER SERVICES (DCS) PROGRAM TO MANAGE DATA AND BUSINESS APPLICATION MIGRATION ACTIVITIES. DATA CENTER SERVICES COMPRISES THE FUNCTIONAL AREAS … Key points: 1. Contract focuses on managing data and business application migration for the USDA Forest Service's Data Center Services (DCS) program. 2. The DCS program encompasses critical functions like application hosting, architecture, and enterprise operations. 3. This task order was awarded under a firm-fixed-price contract, indicating a defined scope and cost. 4. The contract duration of 1066 days (approximately 2.9 years) suggests a medium-term project. 5. The award was made through full and open competition, implying a robust bidding process. 6. The North American Industry Classification System (NAICS) code 423430 points to wholesale trade of computer equipment and software, which may indicate the nature of services or related hardware management.

Value Assessment

Rating: good

The contract value of $25.3 million for a nearly three-year duration for data center migration expertise appears reasonable given the scope of managing critical IT infrastructure for a large agency like the USDA Forest Service. Benchmarking against similar large-scale IT migration projects within federal agencies suggests that costs can vary widely, but this award falls within a typical range for specialized IT management services. The firm-fixed-price structure helps control costs, though the specific value-for-money depends on the successful execution and efficiency of the migration activities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised and multiple bidders were likely considered. The presence of 6 bids suggests a healthy level of competition for this specialized IT service. A competitive bidding process generally leads to better price discovery and encourages contractors to offer competitive terms and pricing to win the award.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition award. It ensures that taxpayer funds are used efficiently by selecting the most cost-effective and capable solution.

Public Impact

The primary beneficiaries are the USDA Forest Service's Chief Information Office, which will receive expert support for its data center operations. The services delivered will ensure the smooth migration of data and business applications, enhancing the efficiency and reliability of the Forest Service's IT infrastructure. The geographic impact is national, as the Forest Service operates across the United States, and its data center services support all its functions. Workforce implications may include the need for specialized IT personnel to manage and execute the migration, potentially creating opportunities for skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if migration activities are not precisely defined and managed.
Dependence on contractor expertise could pose a risk if key personnel depart.
Integration challenges with existing or future IT systems could arise.
Cybersecurity risks associated with data migration activities require robust mitigation.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a strong pool of qualified bidders.
Focus on data center services and application migration addresses a critical IT need.
Experienced contractor (assuming Glacier Technologies LLC has relevant past performance) can bring valuable expertise.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and diverse. This contract falls under the category of IT management and support services, specifically focusing on data center operations and migration. The federal government is a significant spender in this area, with numerous contracts awarded annually for similar services. Comparable spending benchmarks for data center migration and management can vary significantly based on the complexity, scale, and duration of the project, as well as the specific technologies involved.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, Glacier Technologies LLC, may choose to subcontract portions of the work to small businesses as part of their overall project execution strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the USDA Forest Service's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specific outcomes within a set budget. Transparency is generally facilitated through contract award databases and reporting requirements. The specific Inspector General jurisdiction would be that of the USDA Office of Inspector General, which oversees all USDA spending.

Related Government Programs

USDA Forest Service IT Modernization Efforts
Federal Data Center Consolidation Initiative
Cloud Migration Services for Government Agencies
Enterprise IT Management Support Contracts

Risk Flags

Potential for vendor lock-in if not managed carefully.
Risk of data loss or corruption during migration.
Dependency on contractor's specialized knowledge.
Cybersecurity vulnerabilities during transition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $25.3 million to GLACIER TECHNOLOGIES LLC. THE PURPOSE OF THIS FIRM-FIXED PRICE TYPE TASK ORDER IS TO PROVIDE EXPERTISE FOR THE USDA FOREST SERVICE CHIEF INFORMATION OFFICE DATA CENTER SERVICES (DCS) PROGRAM TO MANAGE DATA AND BUSINESS APPLICATION MIGRATION ACTIVITIES. DATA CENTER SERVICES COMPRISES THE FUNCTIONAL AREAS SUCH AS APPLICATION HOSTING, ARCHITECTURE, AND ENTERPRISE OPERATIONS.

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 $25.3 million.

What is the period of performance?

Start: 2011-12-30. End: 2014-11-30.

What is the track record of Glacier Technologies LLC in managing federal IT migration projects of similar scale and complexity?

Assessing the track record of Glacier Technologies LLC is crucial for understanding their capability to successfully execute this $25.3 million data center migration task order. A review of their past performance on federal contracts, particularly those involving large-scale IT infrastructure, application hosting, and data migration, would provide insight into their project management skills, technical expertise, and ability to meet deadlines and budget constraints. Specific details on previous projects, including their scope, duration, client agency, and outcomes, would be necessary to evaluate their suitability. Without this specific performance data, it is difficult to definitively assess their experience level for this particular contract.

How does the awarded price of $25.3 million compare to market rates for similar data center migration services?

The awarded price of $25.3 million for a nearly three-year contract for data center migration expertise needs to be benchmarked against current market rates for similar services. This comparison should consider the scope of work, including application hosting, architecture, and enterprise operations management, as well as the specific technologies and security requirements involved. Factors such as the number of bids received (6 in this case) and the competitive nature of the award can provide some indication of price reasonableness. However, a more detailed analysis would involve comparing the estimated labor hours, skill sets required, and overhead costs against industry benchmarks for IT consulting and managed services in the federal sector. The firm-fixed-price nature of the contract suggests that the government has negotiated a definitive price for the defined scope.

What are the primary risks associated with this data center migration project, and how are they being mitigated?

Primary risks associated with this data center migration project include potential technical challenges during the migration of complex applications, data integrity issues, cybersecurity threats during transit and at the new location, and the risk of service disruptions impacting USDA Forest Service operations. Schedule delays and cost overruns are also inherent risks in large IT projects. Mitigation strategies would typically involve detailed planning, phased migration approaches, rigorous testing protocols, robust cybersecurity measures, contingency planning for potential disruptions, and close oversight by the Forest Service's program managers. The firm-fixed-price contract structure incentivizes the contractor to manage these risks effectively to stay within budget.

How effective is the Data Center Services (DCS) program in supporting the USDA Forest Service's mission, and how will this contract enhance its effectiveness?

The effectiveness of the DCS program is critical for supporting the USDA Forest Service's mission, which involves managing vast natural resources and providing services across the nation. This contract aims to enhance DCS effectiveness by providing specialized expertise for managing data and business application migration activities. Successful migration can lead to improved system performance, enhanced data accessibility, better security, and potentially cost savings through consolidation or modernization. The contract's focus on managing these migration activities directly addresses the need for a robust and efficient IT infrastructure that can support the Forest Service's operational and strategic goals. The ultimate effectiveness will be measured by the seamless transition of services and the improved capabilities of the IT environment post-migration.

What has been the historical spending pattern for data center services and IT migration within the USDA Forest Service?

Understanding the historical spending patterns for data center services and IT migration within the USDA Forest Service is essential for contextualizing this $25.3 million award. Analyzing past expenditures on similar contracts, including their value, duration, and the types of services procured, can reveal trends in IT investment and modernization efforts. This historical data can help determine if current spending aligns with previous levels, indicates an increase or decrease in investment, or reflects a shift in strategy, such as a move towards cloud computing or consolidation. It also provides a basis for evaluating whether the current contract represents a significant deviation or a continuation of established spending patterns for critical IT infrastructure management.

Industry Classification

NAICS: Wholesale Trade › Professional and Commercial Equipment and Supplies Merchant Wholesalers › Computer and Computer Peripheral Equipment and Software Merchant Wholesalers

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bristol BAY Native Corporation

Address: 1200 GOLDEN KEY CIR STE 400, EL PASO, TX, 79925

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

Financial Breakdown

Contract Ceiling: $25,311,585

Exercised Options: $25,311,585

Current Obligation: $25,311,585

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AG7604C100001

IDV Type: IDC

Timeline