DoD Awards $2.2M for C2SF Software to Amazon Web Services Under Full and Open Competition

Contract Overview

Contract Amount: $2,194,365 ($2.2M)

Contractor: Amazon WEB Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-01

End Date: 2026-07-31

Contract Duration: 729 days

Daily Burn Rate: $3.0K/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: COMMAND AND CONTROL SOFTWARE FACTORY (C2SF)

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $2.2 million to AMAZON WEB SERVICES, INC. for work described as: COMMAND AND CONTROL SOFTWARE FACTORY (C2SF) Key points: 1. Significant contract awarded to a major cloud provider, indicating reliance on established commercial solutions. 2. Full and open competition after exclusion of sources suggests a deliberate process to ensure fair pricing. 3. The contract's focus on Command and Control Software Factory (C2SF) highlights modernization efforts in defense IT. 4. The firm fixed price contract type aims to control costs and provide predictability for the government.

Value Assessment

Rating: good

The $2.2M award for C2SF software appears reasonable given the provider and scope. Benchmarking against similar cloud service contracts for specialized software development and hosting would provide further validation.

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 a competitive process was initiated but specific sources were initially excluded. This method aims to balance competition with specific requirements, potentially impacting price discovery.

Taxpayer Impact: The competitive award process is designed to secure fair market value, ultimately benefiting taxpayers by avoiding inflated costs for essential defense software capabilities.

Public Impact

Enhances critical Command and Control capabilities for the Department of Defense. Leverages commercial cloud infrastructure for agility and scalability in software development. Supports modernization of defense systems through advanced software solutions. Potential for improved operational effectiveness through enhanced C2 functionalities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential vendor lock-in with a major cloud provider.
Complexity of integrating C2SF with existing defense systems.
Ensuring long-term cost-effectiveness of cloud-based solutions.

Positive Signals

Utilizes a leading commercial cloud provider for advanced capabilities.
Firm fixed price contract provides cost certainty.
Awarded through a competitive process, suggesting value for money.

Sector Analysis

This contract falls within the IT sector, specifically focusing on cloud computing and software development for defense applications. Spending benchmarks for similar large-scale defense IT contracts often range from millions to billions, depending on scope and duration.

Small Business Impact

The contract was awarded to Amazon Web Services, Inc., a large business. There is no explicit indication of small business participation in this specific award, suggesting opportunities may lie in subcontracting roles.

Oversight & Accountability

The Department of Defense, through the Defense Information Systems Agency, is the awarding agency. Oversight will focus on contract performance, adherence to the firm fixed price, and delivery timelines to ensure accountability and effective use of funds.

Related Government Programs

Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Reliance on a single large cloud provider.
Potential for cost overruns in long-term cloud operations.
Integration challenges with legacy defense systems.
Cybersecurity risks associated with cloud-based defense software.
Ensuring continued innovation and avoiding vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.2 million to AMAZON WEB SERVICES, INC.. COMMAND AND CONTROL SOFTWARE FACTORY (C2SF)

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 $2.2 million.

What is the period of performance?

Start: 2024-08-01. End: 2026-07-31.

What is the specific definition of 'exclusion of sources' in this context and how did it impact the competitive landscape?

The 'exclusion of sources' likely refers to a pre-qualification or initial screening process where certain vendors were deemed ineligible or not considered for specific reasons, perhaps due to technical requirements or prior performance. This could limit the breadth of competition but is intended to ensure that participating vendors meet stringent criteria, potentially leading to a more focused and efficient selection process for the specific needs of the C2SF.

How will the long-term costs of cloud hosting and maintenance be managed under this contract?

While the initial award is for software development and delivery, the long-term costs of cloud hosting and maintenance will be a critical factor. The firm fixed price likely covers the initial period. Future costs will depend on usage, service level agreements, and potential follow-on contracts. Effective cost management will require ongoing monitoring of cloud resource consumption and negotiation of favorable terms for sustained operations.

What are the key performance indicators (KPIs) for the C2SF software to ensure its effectiveness in enhancing command and control?

Key performance indicators for the C2SF software would likely include metrics related to system uptime and availability, processing speed and latency for critical commands, data integrity and security, user interface responsiveness, and successful integration with other defense systems. Performance will be measured against defined operational requirements and mission success criteria to ensure the software effectively supports command and control functions.

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: $2,442,021

Exercised Options: $2,194,365

Current Obligation: $2,194,365

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC105023D0005

IDV Type: IDC

Timeline