DoD awards $12.8M for AWS Cloud Services to Amazon Web Services, Inc. through BPA Call
Contract Overview
Contract Amount: $12,842,209 ($12.8M)
Contractor: Amazon WEB Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-27
End Date: 2026-07-31
Contract Duration: 1,038 days
Daily Burn Rate: $12.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: AWS CLOUD SERVICES
Place of Performance
Location: SEATTLE, KING County, WASHINGTON, 98109
Plain-Language Summary
Department of Defense obligated $12.8 million to AMAZON WEB SERVICES, INC. for work described as: AWS CLOUD SERVICES Key points: 1. Significant contract value of $12.8 million for cloud services. 2. Sole vendor identified is Amazon Web Services, Inc. 3. Potential risk associated with single-vendor reliance. 4. Spending falls within the IT sector, specifically computing infrastructure.
Value Assessment
Rating: good
The contract value of $12.8 million for AWS cloud services appears reasonable given the scale and scope of cloud infrastructure provision. Benchmarking against similar large-scale cloud service contracts 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, indicating a competitive bidding process. However, the specific award mechanism (BPA Call) suggests it might be against an existing agreement, which could influence price discovery.
Taxpayer Impact: The use of a competitive process aims to ensure taxpayer funds are used efficiently for necessary cloud services.
Public Impact
Ensures continued access to critical cloud computing infrastructure for the Department of Defense. Supports ongoing operations and data processing needs of the Department of the Navy. Potential for future expansion or modification based on evolving requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single provider for critical infrastructure.
- Potential for price increases in future contract modifications or renewals.
Positive Signals
- Awarded under full and open competition.
- Long-term contract duration provides stability.
- Firm Fixed Price contract type offers cost predictability.
Sector Analysis
This contract falls under the IT sector, specifically for computing infrastructure providers, data processing, and web hosting. Spending in this area has seen significant growth as government agencies increasingly adopt cloud solutions for efficiency and scalability.
Small Business Impact
The contract was awarded to Amazon Web Services, Inc., a large business. There is no indication of small business participation in this specific award, which is common for large-scale cloud service contracts.
Oversight & Accountability
The contract is subject to standard government oversight for IT procurements. The use of a BPA Call implies adherence to pre-established terms and conditions, which should include oversight mechanisms.
Related Government Programs
- Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source vendor reliance
- Potential for vendor lock-in
- Security and data privacy concerns inherent in cloud computing
- Dependency on vendor's service availability and performance
Tags
computing-infrastructure-providers-data-, department-of-defense, wa, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to AMAZON WEB SERVICES, INC.. AWS CLOUD SERVICES
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2023-09-27. End: 2026-07-31.
What is the specific service level agreement (SLA) and performance metrics associated with these AWS cloud services, and how are they monitored?
The specific Service Level Agreement (SLA) and performance metrics are crucial for ensuring the effectiveness and reliability of the AWS cloud services. These typically include uptime guarantees, response times for support, and data retrieval speeds. Robust monitoring mechanisms, often involving both the vendor's reporting and independent government checks, are essential to verify compliance and identify any performance shortfalls, ensuring the Department of Defense receives the expected level of service and value for its investment.
How does the government plan to mitigate the risks associated with relying on a single cloud service provider for critical infrastructure?
Mitigating the risks of single-provider reliance often involves a multi-faceted strategy. This can include negotiating strong contract terms with clear exit strategies, maintaining multi-cloud capabilities or exploring hybrid cloud solutions for redundancy, and conducting regular security audits and compliance checks. Furthermore, fostering competition for future requirements and developing internal expertise to manage and potentially migrate services can reduce long-term dependency and enhance resilience against vendor-specific issues or market changes.
What is the long-term cost-effectiveness of this AWS contract compared to on-premises solutions or alternative cloud providers?
The long-term cost-effectiveness hinges on several factors beyond the initial contract value. While cloud services offer scalability and reduced upfront capital expenditure, ongoing operational costs, potential price escalations, and the total cost of ownership (TCO) over the contract's life must be considered. Comparing this to the TCO of maintaining on-premises infrastructure or the pricing structures of other cloud providers, including potential discounts for long-term commitments or specific service bundles, is vital for a comprehensive assessment of value.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $34,364,438
Exercised Options: $18,089,434
Current Obligation: $12,842,209
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600123A0005
IDV Type: BPA
Timeline
Start Date: 2023-09-27
Current End Date: 2026-07-31
Potential End Date: 2028-07-31 00:00:00
Last Modified: 2025-09-11
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