Education's $14M Data Center Hosting Contract Extended with General Dynamics
Contract Overview
Contract Amount: $14,043,105 ($14.0M)
Contractor: General Dynamics Information Technology, Inc.
Awarding Agency: Department of Education
Start Date: 2008-02-26
End Date: 2008-07-31
Contract Duration: 156 days
Daily Burn Rate: $90.0K/day
Competition Type: FOLLOW ON TO COMPETED ACTION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CONTINUATION OF DATA CENTER HOSTING SERVICES
Place of Performance
Location: MERIDEN, NEW HAVEN County, CONNECTICUT, 06450
Plain-Language Summary
Department of Education obligated $14.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: CONTINUATION OF DATA CENTER HOSTING SERVICES Key points: 1. Contract value: $14,043,105.29 for 156 days. 2. General Dynamics Information Technology, Inc. is the incumbent. 3. This is a follow-on to a competed action, suggesting prior competition. 4. The sector is Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services (NAICS 518210).
Value Assessment
Rating: fair
The contract value of $14M for approximately 5 months of service appears high for data center hosting. Benchmarking against similar contracts for computing infrastructure is needed to assess if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
Described as a 'FOLLOW ON TO COMPETED ACTION', this implies the initial award was competed, but the follow-on may have limited competition. The pricing discovery mechanism is not detailed, but the 'FIRM FIXED PRICE' type suggests a defined cost structure.
Taxpayer Impact: The cost of $14M for a short-term extension raises questions about long-term value for taxpayers, especially if not aggressively benchmarked.
Public Impact
Students and educators rely on stable data center services for educational platforms and resources. Potential for service disruption if hosting is not maintained effectively. Taxpayer funds are allocated for essential IT infrastructure supporting the Department of Education's mission.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-day cost
- Short duration for a significant value
- Limited competition for follow-on action
Positive Signals
- Follow-on to a competed action
- Firm Fixed Price contract type
Sector Analysis
The Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services sector is critical for government operations. Spending benchmarks vary widely based on scale and services, but $14M for 5 months warrants scrutiny.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small business participation was considered or if opportunities were missed.
Oversight & Accountability
The 'FOLLOW ON TO COMPETED ACTION' status suggests some level of prior oversight. However, the details of the current follow-on justification and pricing review are not provided, necessitating further examination.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Education Contracting
- Department of Education Programs
Risk Flags
- High cost relative to duration
- Potential for limited competition
- Lack of detailed pricing justification
- Short contract duration for significant expenditure
Tags
computing-infrastructure-providers-data-, department-of-education, ct, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Education awarded $14.0 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. CONTINUATION OF DATA CENTER HOSTING SERVICES
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: Department of Education (Department of Education).
What is the total obligated amount?
The obligated amount is $14.0 million.
What is the period of performance?
Start: 2008-02-26. End: 2008-07-31.
What was the competitive landscape for the original contract, and why was this follow-on action not fully competed?
The original contract was competed, as indicated by 'FOLLOW ON TO COMPETED ACTION'. However, the specific reasons for limiting competition on this follow-on action are not detailed in the provided data. This could be due to factors like specialized knowledge, transition costs, or specific performance requirements that made full and open competition impractical or disadvantageous at this juncture.
How does the per-day cost of this contract compare to industry benchmarks for similar data center hosting services?
The contract costs approximately $90,020 per day ($14,043,105.29 / 156 days). This daily rate appears high when compared to typical industry benchmarks for data center hosting, which can range significantly but often fall below this figure for standard services. A detailed comparison with specific service level agreements and infrastructure details is necessary for a precise assessment.
What is the justification for the short 156-day duration of this contract extension, given its substantial value?
The short duration of 156 days (approximately 5 months) for a $14M contract suggests this may be a bridging action. Potential reasons include awaiting a new full-term contract award, addressing an urgent operational need, or completing a transition phase. The specific strategic or operational driver for this short-term, high-value extension requires further clarification from the agency.
Industry Classification
NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FOLLOW ON TO COMPETED ACTION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Computer Sciences Corporation (UEI: 009581091)
Address: 7700 HUBBLE DR, LANHAM, MD, 04
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,043,105
Exercised Options: $14,043,105
Current Obligation: $14,043,105
Timeline
Start Date: 2008-02-26
Current End Date: 2008-07-31
Potential End Date: 2008-07-31 00:00:00
Last Modified: 2012-06-26
More Contracts from General Dynamics Information Technology, Inc.
- Global Security Engineering&supply Chain Services — $1.5B (Department of State)
- THE Purpose of This Action IS to Establish a NEW Contract With General Dynamics Information Technology for Global Supply Chain Management, Logistics and Technology Development Services to Support the Department of State. the Initial Funding Associated With This Contract IS $22,304,578.00. the Overall Contract Value IS $2,200,000,000.00 — $1.2B (Department of State)
- Cloud Products&tools (CPT) — $902.0M (Department of Health and Human Services)
- Beneficiary Contact Center Operations — $879.1M (Department of Health and Human Services)
- Award of Task Order 47qfca210051-Nawcad Wolf Ship and AIR C5isr Systems Support — $832.3M (General Services Administration)
View all General Dynamics Information Technology, Inc. federal contracts →
Other Department of Education Contracts
- Administrative Action — $2.2B (Conduent Education Solutions, LLC)
- - Tivod Supports the Origination, Disbursement, and Reporting of Title IV Federal Student AID Programs, Including - BUT NOT Limited to - Direct Loans, Pell Grants, and the Teacher Education Assistance for College and Higher Education Grants. the Title IV Solution Shall Also Provide Ongoing Support for the Discontinued Title IV Federal Student AID Programs, Including - BUT NOT Limited to - Academic Competitiveness Grants and National Science and Mathematics Access to Retain Talent Grants — $1.5B (Accenture Federal Services LLC)
- Federal Student AID Common Origination and Disbursement Services — $1.1B (Accenture LLP)
- Provide Direct Loan Services Such AS Call Center and Financial Reporting - Nelnet From 12/15/2019 Through 12/14/2020 — $983.7M (Nelnet Servicing LLC)
- Debt Management and Collections System (dmcs) Igf::ct::igf — $906.9M (Maximus Federal Services, Inc.)