DoD Awards $39M Cloud Contract to Amazon Web Services for Counterintelligence Support
Contract Overview
Contract Amount: $38,972,421 ($39.0M)
Contractor: Amazon WEB Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-07-15
End Date: 2026-07-14
Contract Duration: 729 days
Daily Burn Rate: $53.5K/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: AMAZON WEB SERVICES CLOUD REQUIREMENT
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $39.0 million to AMAZON WEB SERVICES, INC. for work described as: AMAZON WEB SERVICES CLOUD REQUIREMENT Key points: 1. Significant award for cloud computing infrastructure, data processing, and web hosting services. 2. Sole vendor identified as Amazon Web Services, Inc., raising questions about competition. 3. Contract duration of 729 days with a firm fixed price structure. 4. Focus on supporting the Defense Counterintelligence and Security Agency's critical functions.
Value Assessment
Rating: fair
The award amount of $38.97 million for cloud services appears within a reasonable range for large-scale government contracts of this nature. However, without specific performance metrics or detailed service breakdowns, a precise value assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may lead to less competitive pricing compared to a truly open solicitation, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for essential cloud infrastructure supporting national security functions. The limited competition raises concerns about whether the most cost-effective solution was secured.
Public Impact
Enhances critical data processing and cloud hosting capabilities for national security. Supports the operational needs of the Defense Counterintelligence and Security Agency. Potential for increased reliance on a single cloud service provider for sensitive data.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- Potential vendor lock-in.
- Reliance on a single provider for critical infrastructure.
Positive Signals
- Provides essential cloud services for a key agency.
- Firm fixed price contract offers budget predictability.
Sector Analysis
This contract falls within the IT sector, specifically cloud computing infrastructure. Government spending on cloud services has been steadily increasing as agencies modernize their IT systems. Benchmarks for similar large-scale cloud procurements vary widely based on service scope and duration.
Small Business Impact
The contract was awarded directly to Amazon Web Services, Inc., a large business. There is no indication of subcontracting opportunities for small businesses within this specific award notice.
Oversight & Accountability
The contract falls under the Department of Defense, which has established oversight mechanisms. However, the limited competition aspect warrants scrutiny to ensure accountability and value for taxpayer money.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Defense Contracting
- Defense Counterintelligence and Security Agency Programs
Risk Flags
- Limited competition may result in higher costs.
- Potential for vendor lock-in.
- Dependence on a single provider for critical infrastructure.
- Lack of transparency in the source exclusion process.
- Cybersecurity risks associated with centralized data storage.
Tags
computing-infrastructure-providers-data-, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.0 million to AMAZON WEB SERVICES, INC.. AMAZON WEB SERVICES CLOUD REQUIREMENT
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 Counterintelligence and Security Agency).
What is the total obligated amount?
The obligated amount is $39.0 million.
What is the period of performance?
Start: 2024-07-15. End: 2026-07-14.
What specific factors led to the exclusion of other sources, and were these justifications thoroughly documented and reviewed?
The exclusion of other sources typically requires a strong justification, such as a critical need for a specific vendor's unique capabilities or an urgent requirement that cannot be met through open competition. The contracting agency must provide detailed documentation supporting this decision, which is then subject to review by higher authorities or oversight bodies to ensure compliance with procurement regulations and prevent undue favoritism.
How will the agency ensure cost-effectiveness and prevent potential price increases in future contract renewals or expansions given the limited competition?
To ensure cost-effectiveness, the agency should conduct thorough market research for future procurements, explore options for phased competition, and negotiate favorable terms based on usage data and market trends. Implementing performance-based metrics tied to cost savings and regularly benchmarking against industry standards can also help mitigate price escalation risks associated with limited competition.
What measures are in place to mitigate risks associated with relying on a single cloud service provider for sensitive counterintelligence data?
Mitigation strategies include robust cybersecurity protocols, data encryption, strict access controls, and regular security audits. The agency should also have a comprehensive disaster recovery and business continuity plan, potentially including multi-cloud or hybrid cloud strategies for critical functions to avoid single points of failure and ensure data resilience.
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: $121,267,862
Exercised Options: $43,068,162
Current Obligation: $38,972,421
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC105023D0005
IDV Type: IDC
Timeline
Start Date: 2024-07-15
Current End Date: 2026-07-14
Potential End Date: 2029-01-14 00:00:00
Last Modified: 2026-01-12
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