DoD Awards $14.2M AWS Contract to Salient Federal-SGIS for Cloud Services
Contract Overview
Contract Amount: $14,225,339 ($14.2M)
Contractor: Salient Federal-Sgis Inc
Awarding Agency: Department of Defense
Start Date: 2024-09-05
End Date: 2026-09-04
Contract Duration: 729 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: JWCC AMAZON WEB SERVICES
Place of Performance
Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.2 million to SALIENT FEDERAL-SGIS INC for work described as: JWCC AMAZON WEB SERVICES Key points: 1. Significant award for cloud infrastructure services supporting defense counterintelligence. 2. Competition method indicates a broad market approach was utilized. 3. Potential for cost savings through efficient cloud resource management. 4. Sector focus on IT services within the Department of Defense.
Value Assessment
Rating: good
The contract value of $14.2M over two years appears reasonable for comprehensive cloud services. Benchmarking against similar large-scale AWS deployments for government agencies 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, suggesting a robust price discovery process. This method allows for the widest possible participation and competitive pricing.
Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for essential defense IT infrastructure.
Public Impact
Enhances national security through advanced cloud capabilities for the DCSA. Supports critical counterintelligence operations with scalable IT solutions. Potential for improved data security and accessibility for defense personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration and potential for follow-on work.
- Dependence on a single cloud provider (AWS).
Positive Signals
- Awarded under full and open competition.
- Supports critical national security functions.
- Utilizes a firm-fixed-price contract type.
Sector Analysis
This contract falls within the IT services sector, specifically cloud computing, which is a rapidly growing area of government spending. Benchmarks for similar large-scale cloud contracts are often in the tens to hundreds of millions annually.
Small Business Impact
While this specific award went to a large business (Salient Federal-SGIS), the full and open competition process allows for small businesses to potentially participate as subcontractors or in future related procurements.
Oversight & Accountability
The Department of Defense's contracting processes are subject to oversight from various bodies, including the Government Accountability Office (GAO) and congressional committees, ensuring accountability for awarded contracts.
Related Government Programs
- Other Computer Related Services
- Department of Defense Contracting
- Defense Counterintelligence and Security Agency Programs
Risk Flags
- Potential vendor lock-in with AWS.
- Cybersecurity risks inherent in cloud computing.
- Complexity of managing cloud costs at scale.
- Dependence on contractor performance for critical services.
Tags
other-computer-related-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.2 million to SALIENT FEDERAL-SGIS INC. JWCC AMAZON WEB SERVICES
Who is the contractor on this award?
The obligated recipient is SALIENT FEDERAL-SGIS 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 $14.2 million.
What is the period of performance?
Start: 2024-09-05. End: 2026-09-04.
What is the projected cost efficiency of utilizing AWS for these specific DCSA counterintelligence functions compared to on-premise solutions?
The cost efficiency is expected to stem from AWS's economies of scale, pay-as-you-go model, and reduced need for physical infrastructure maintenance. DCSA can scale resources up or down as needed, avoiding over-provisioning common in on-premise setups. This agility, coupled with AWS's continuous innovation in cost optimization tools, should lead to significant savings over the contract's lifespan.
What are the primary security risks associated with housing sensitive counterintelligence data on a commercial cloud platform like AWS?
Key risks include potential data breaches due to misconfigurations, unauthorized access, or sophisticated cyberattacks targeting the cloud environment. Ensuring robust access controls, encryption (at rest and in transit), and continuous monitoring is crucial. The DCSA must rely on AWS's security infrastructure and their own implementation of security best practices to mitigate these risks effectively.
How will the effectiveness of this AWS contract be measured to ensure it meets the DCSA's counterintelligence mission requirements?
Effectiveness will be measured through key performance indicators (KPIs) related to system availability, performance, security compliance, and the ability to support mission-critical applications. Regular performance reviews, user feedback, and audits will assess whether the cloud services are enabling faster data analysis, secure collaboration, and overall enhancement of counterintelligence operations.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HS002124R0010
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Skillstorm Commercial Services LLC
Address: 4000 LEGATO RD STE 600, FAIRFAX, VA, 22033
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,353,013
Exercised Options: $16,677,380
Current Obligation: $14,225,339
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $1,399,988
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0609S
IDV Type: FSS
Timeline
Start Date: 2024-09-05
Current End Date: 2026-09-04
Potential End Date: 2030-03-04 00:00:00
Last Modified: 2025-12-09
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