USTRANSCOM Awards $32.6M Cloud Services Contract to Amazon Web Services
Contract Overview
Contract Amount: $32,624,490 ($32.6M)
Contractor: Amazon WEB Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-10-01
End Date: 2026-09-30
Contract Duration: 1,095 days
Daily Burn Rate: $29.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: USTRANSCOM CLOUD SERVICE OFFERING
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $32.6 million to AMAZON WEB SERVICES, INC. for work described as: USTRANSCOM CLOUD SERVICE OFFERING Key points: 1. Significant award for cloud infrastructure services to a major provider. 2. Competition was full and open after exclusion of sources, suggesting a deliberate process. 3. Risk appears moderate given the established provider and fixed-price contract. 4. Spending falls within the IT sector, specifically computing infrastructure and hosting.
Value Assessment
Rating: good
The $32.6 million award over three years for cloud services appears reasonable when benchmarked against similar large-scale government cloud contracts. The firm fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating that while some sources may have been initially excluded, the final award was competitively solicited. This method aims for best value and price discovery.
Taxpayer Impact: Taxpayers benefit from a competitive process that should drive value for essential cloud infrastructure services supporting USTRANSCOM operations.
Public Impact
Ensures critical cloud infrastructure for USTRANSCOM's logistical operations. Supports the Department of Defense's broader cloud adoption strategy. Provides a stable platform for data processing and hosting services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with a single cloud provider.
- Reliance on a single vendor for critical infrastructure.
Positive Signals
- Leverages established cloud infrastructure and services.
- Fixed-price contract offers budget predictability.
Sector Analysis
This contract falls under the IT sector, specifically computing infrastructure providers, data processing, and web hosting. Government spending in this area has been steadily increasing as agencies migrate to cloud-based solutions for efficiency and scalability.
Small Business Impact
The award was made to Amazon Web Services, a large business. There is no explicit indication of small business participation in this specific delivery order, which is common for large-scale cloud service contracts.
Oversight & Accountability
The contract was awarded by the Defense Information Systems Agency (DISA) for USTRANSCOM, indicating a level of inter-agency collaboration. Oversight will be crucial to ensure performance and adherence to terms.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential for vendor lock-in.
- Dependence on a single provider for critical infrastructure.
- Cybersecurity risks inherent in cloud computing.
- Ensuring compliance with evolving DoD security requirements.
Tags
computing-infrastructure-providers-data-, department-of-defense, il, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.6 million to AMAZON WEB SERVICES, INC.. USTRANSCOM CLOUD SERVICE OFFERING
Who is the contractor on this award?
The obligated recipient is AMAZON WEB SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $32.6 million.
What is the period of performance?
Start: 2023-10-01. End: 2026-09-30.
What is the specific nature of the 'exclusion of sources' in the full and open competition, and how did it impact the final pricing?
The 'exclusion of sources' likely refers to a pre-qualification or specific requirement that narrowed the initial pool of potential bidders. While the competition was ultimately full and open among the remaining eligible sources, understanding the criteria for exclusion is key. This process could influence price discovery by limiting the number of competitors, potentially impacting the final negotiated price compared to a broader, unrestricted competition.
What are the key performance indicators (KPIs) for this cloud service offering, and how will USTRANSCOM ensure service level agreement (SLA) compliance?
Key performance indicators for cloud services typically include uptime/availability, latency, security incident response times, and data retrieval speeds. USTRANSCOM will likely ensure SLA compliance through regular performance monitoring, automated reporting tools, and periodic reviews with Amazon Web Services. Contractual remedies for non-compliance, such as service credits or penalties, would also be stipulated.
How does this contract align with the Department of Defense's broader strategy for cloud computing and data security?
This contract aligns with the DoD's strategy to leverage cloud computing for enhanced mission capabilities, data analytics, and operational efficiency. By awarding to a major cloud service provider like AWS, USTRANSCOM benefits from advanced infrastructure and services. Ensuring compliance with stringent DoD data security mandates and implementing appropriate security controls within the AWS environment will be critical for alignment.
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 › IT AND TELECOM - COMPUTE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 410 TERRY AVE N, SEATTLE, WA, 98109
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,493,014
Exercised Options: $32,624,490
Current Obligation: $32,624,490
Actual Outlays: $2,660,198
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC105023D0005
IDV Type: IDC
Timeline
Start Date: 2023-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-08
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