DoD's $19M VCF Renewal for VMware: Special Ops Extends Enterprise Services with Blue Tech Inc
Contract Overview
Contract Amount: $19,032,020 ($19.0M)
Contractor: Blue Tech Inc.
Awarding Agency: Department of Defense
Start Date: 2024-06-28
End Date: 2026-06-30
Contract Duration: 732 days
Daily Burn Rate: $26.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VMWARE VCF RENEWAL - ENTERPRISE
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $19.0 million to BLUE TECH INC. for work described as: VMWARE VCF RENEWAL - ENTERPRISE Key points: 1. Significant contract value of $19M for enterprise software renewal. 2. Competition was full and open after exclusion of sources, suggesting a structured procurement process. 3. Risk is moderate, tied to vendor lock-in and the critical nature of the software for Special Operations Command. 4. Sector is IT, specifically computer-related services, a common area for large enterprise software investments.
Value Assessment
Rating: fair
The contract value of $19M for a 2-year renewal of VMware VCF suggests a substantial investment. Benchmarking against similar enterprise software renewals is difficult without specific feature comparisons, but the price appears consistent with large-scale, mission-critical software licensing and support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while other sources were initially considered or excluded, the final award was made through a competitive process. This approach aims to ensure fair pricing and access to the best value, though the initial exclusion might warrant further scrutiny.
Taxpayer Impact: Taxpayers are impacted by the $19M expenditure, which is intended to support critical U.S. Special Operations Command functions through essential enterprise software.
Public Impact
Ensures continuity of critical IT infrastructure for U.S. Special Operations Command. Supports advanced virtualization and cloud foundation capabilities essential for modern military operations. Potential for cost savings through competitive bidding, even after initial source exclusions. Highlights reliance on commercial off-the-shelf software for national security functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential vendor lock-in with VMware products.
- Reliance on a single vendor for critical enterprise software.
- Complexity of managing enterprise software renewals.
Positive Signals
- Competitive bidding process ensures some level of price discovery.
- Contract supports a vital national security agency.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
The IT sector, particularly enterprise software and services, represents a significant portion of government spending. This contract for VMware's Virtual Cloud Foundation (VCF) aligns with trends of agencies leveraging commercial solutions for complex IT infrastructure. Benchmarks for similar large-scale renewals are highly variable based on specific software versions and support levels.
Small Business Impact
This contract does not appear to directly benefit small businesses, as it is awarded to Blue Tech Inc., a prime contractor. There is no explicit mention of small business subcontracting goals or participation in the provided data.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a structured oversight process was followed. However, the effectiveness of this oversight in maximizing value and minimizing risk depends on the details of the source exclusion and the competitive evaluation.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- U.S. Special Operations Command Programs
Risk Flags
- Potential for vendor lock-in.
- Reliance on a single vendor for critical infrastructure.
- Complexity and cost of enterprise software renewals.
- Need for detailed justification of source exclusions in competitive bids.
Tags
other-computer-related-services, department-of-defense, fl, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.0 million to BLUE TECH INC.. VMWARE VCF RENEWAL - ENTERPRISE
Who is the contractor on this award?
The obligated recipient is BLUE TECH INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $19.0 million.
What is the period of performance?
Start: 2024-06-28. End: 2026-06-30.
What was the rationale for excluding certain sources prior to the full and open competition, and did this exclusion impact the final price or vendor selection?
The rationale for excluding sources prior to full and open competition is often based on specific technical requirements, existing infrastructure compatibility, or prior performance. Understanding this exclusion is crucial to assess if it limited the competitive landscape unnecessarily, potentially impacting the final price or the range of vendors considered. Without this information, it's difficult to definitively state if the best possible value was achieved.
How does the per-unit cost or total cost of this VMware VCF renewal compare to previous renewals or similar government contracts for comparable services?
Benchmarking the $19M cost against previous renewals or similar contracts is essential for value assessment. Factors like software version upgrades, added features, support level changes, and market inflation influence pricing. A detailed comparison would reveal if the current price represents a fair market value or if there's an opportunity for cost savings in future procurements.
What are the specific risks associated with the U.S. Special Operations Command's reliance on this particular VMware VCF solution, and are there mitigation strategies in place?
The primary risks involve potential vendor lock-in, the criticality of the software for mission success, and the possibility of unforeseen technical issues or security vulnerabilities. Mitigation strategies could include developing multi-cloud capabilities, exploring alternative solutions for future procurements, and ensuring robust cybersecurity measures are implemented and maintained for the VCF environment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4025 HANCOCK ST. STE. 100, SAN DIEGO, CA, 92110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $49,979,261
Exercised Options: $19,032,520
Current Obligation: $19,032,020
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: NNG15SD00B
IDV Type: GWAC
Timeline
Start Date: 2024-06-28
Current End Date: 2026-06-30
Potential End Date: 2029-06-30 00:00:00
Last Modified: 2025-12-18
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