NASA awards $12.4M for HPC cluster maintenance and upgrades, with 2 bids received
Contract Overview
Contract Amount: $12,441,080 ($12.4M)
Contractor: HPE Government, LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2008-04-21
End Date: 2011-05-23
Contract Duration: 1,127 days
Daily Burn Rate: $11.0K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: NASA NTR08 LUSTRE CLIN CONSISTING OF CONFIGURATION FOR ALTIX ICE 8200EX SYSTEM, HPC CLUSTERS, ALTIX XE STAND ALONE SYSTEMS, NEXIS9000 SYSTEMS, AND 3 YEARS OF FULLCARE WARRANTY, INCLUDING SEWPZ SURCHARGE. REFERENCE SEWP CONTRACT NNG07DA14B
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20904
State: Maryland Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $12.4 million to HPE GOVERNMENT, LLC for work described as: NASA NTR08 LUSTRE CLIN CONSISTING OF CONFIGURATION FOR ALTIX ICE 8200EX SYSTEM, HPC CLUSTERS, ALTIX XE STAND ALONE SYSTEMS, NEXIS9000 SYSTEMS, AND 3 YEARS OF FULLCARE WARRANTY, INCLUDING SEWPZ SURCHARGE. REFERENCE SEWP CONTRACT NNG07DA14B Key points: 1. Value for money appears fair given the specialized nature of high-performance computing (HPC) systems and warranty. 2. Competition was limited, with only two bids submitted, potentially impacting price discovery. 3. Risk indicators are moderate, primarily related to the specialized technical requirements and vendor lock-in for warranty services. 4. Performance context is tied to maintaining critical computing infrastructure for NASA's research and development. 5. Sector positioning is within the IT hardware and services sector, specifically supporting advanced computing needs.
Value Assessment
Rating: fair
The contract value of $12.4 million for a 3-year warranty and system configuration for HPC clusters seems within a reasonable range for specialized IT equipment maintenance. Benchmarking against similar large-scale HPC maintenance contracts is difficult without more specific details on the systems and services included. However, the inclusion of a full-care warranty suggests a comprehensive support package that justifies the expenditure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded as a competitive delivery order under the SEWP (Solutions for Enterprise-Wide Procurement) government-wide acquisition contract (GWAC). While SEWP generally promotes competition, the specific solicitation for this delivery order resulted in only two bids. This limited competition may suggest a niche market or specific technical requirements that narrowed the field of potential bidders.
Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the most competitive pricing achievable through broader market engagement. The limited number of offers suggests that the government may have paid a premium compared to a scenario with more robust competition.
Public Impact
NASA researchers and scientists benefit from the continued availability and performance of high-performance computing clusters. Essential services include maintenance, configuration, and warranty for critical IT infrastructure supporting advanced scientific endeavors. The geographic impact is primarily at NASA facilities where these HPC systems are deployed. Workforce implications include IT specialists responsible for maintaining and operating these complex systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could lead to higher costs for taxpayers.
- Reliance on a single vendor for warranty and support may create future lock-in.
- Specialized nature of HPC systems requires specific expertise, potentially limiting contractor pool.
Positive Signals
- Awarded under a government-wide acquisition contract (SEWP), which generally aims to streamline procurement.
- Firm Fixed Price contract type provides cost certainty for the government.
- Includes a full-care warranty, indicating comprehensive support and reduced risk of unexpected repair costs.
Sector Analysis
This contract falls within the Information Technology sector, specifically focusing on high-performance computing (HPC) hardware and maintenance. The HPC market is characterized by specialized vendors and significant investment in research and development. Comparable spending benchmarks would typically involve large-scale IT infrastructure procurements for research institutions or government agencies with substantial computational needs. The market size for HPC systems and associated services is substantial, driven by advancements in AI, data analytics, and scientific simulation.
Small Business Impact
There is no indication that this contract involved small business set-asides. The prime contractor, HPE GOVERNMENT, LLC, is a large business. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but large IT contracts often include provisions for small business participation.
Oversight & Accountability
The contract was awarded under the SEWP GWAC, which has its own oversight mechanisms. As a delivery order, it is subject to NASA's internal procurement oversight. Transparency is facilitated by the public availability of contract data. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to this contract.
Related Government Programs
- NASA Research and Development Contracts
- High-Performance Computing Procurement
- IT Hardware Maintenance Services
- Government-Wide Acquisition Contracts (GWACs)
- SEWP Contracts
Risk Flags
- Limited Competition
- Specialized Technology
- Potential Vendor Lock-in
Tags
it, nasa, maryland, competitive-delivery-order, large-contract, limited-competition, hpc, maintenance, warranty, firm-fixed-price, sewp
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $12.4 million to HPE GOVERNMENT, LLC. NASA NTR08 LUSTRE CLIN CONSISTING OF CONFIGURATION FOR ALTIX ICE 8200EX SYSTEM, HPC CLUSTERS, ALTIX XE STAND ALONE SYSTEMS, NEXIS9000 SYSTEMS, AND 3 YEARS OF FULLCARE WARRANTY, INCLUDING SEWPZ SURCHARGE. REFERENCE SEWP CONTRACT NNG07DA14B
Who is the contractor on this award?
The obligated recipient is HPE GOVERNMENT, LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $12.4 million.
What is the period of performance?
Start: 2008-04-21. End: 2011-05-23.
What is the track record of HPE GOVERNMENT, LLC in fulfilling similar high-performance computing maintenance contracts for NASA or other federal agencies?
HPE GOVERNMENT, LLC, as a major IT vendor, has a significant track record with federal agencies, including NASA. They are a primary provider of various computing hardware, including high-performance computing solutions. Analyzing their past performance on similar contracts would involve reviewing contract databases for awards related to HPC maintenance, warranty services, and system upgrades. Key metrics to examine would include on-time delivery, adherence to technical specifications, customer satisfaction ratings, and any past performance issues or disputes. Given their established presence, it's likely they have experience, but the specific success on comparable NASA HPC contracts would require deeper data analysis.
How does the pricing of this contract compare to other similar HPC maintenance and warranty contracts awarded by NASA or other agencies?
Direct price comparison is challenging without access to detailed pricing structures of comparable contracts and knowledge of the specific system configurations and service levels. However, the total award of $12.4 million over approximately three years suggests an average annual cost of roughly $4.1 million. This figure needs to be contextualized by the scale and complexity of the HPC systems being supported. Benchmarking against other large federal HPC procurements, particularly those involving comprehensive 'full-care' warranties, would be necessary. Factors like the number of nodes, processing power, specific software dependencies, and response time guarantees in the warranty significantly influence cost. A preliminary assessment suggests the price is substantial, as expected for specialized, high-end IT infrastructure support.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks include potential vendor lock-in due to the specialized nature of the HPC systems and the long-term warranty agreement, which could limit future competitive procurements. Technical risks involve the possibility of system failures or performance degradation that the warranty may not fully cover or that could impact NASA's research timelines. Another risk is the limited competition (two bidders), which could result in less favorable pricing. Mitigation strategies likely include clearly defined service level agreements (SLAs) within the contract, performance monitoring by NASA, and potentially building internal expertise to reduce long-term reliance on the vendor. The firm-fixed-price nature of the contract helps mitigate cost overrun risks for the government.
How effective is the SEWP GWAC in facilitating competition for specialized IT hardware and services like HPC systems?
The SEWP GWAC is designed to streamline IT procurement and offer a wide range of products and services, thereby promoting competition. However, its effectiveness can vary depending on the specific requirement. For highly specialized or niche requirements like advanced HPC systems, the pool of eligible vendors within SEWP might still be limited, as evidenced by the two bids in this case. While SEWP provides a framework, the actual competition level for individual delivery orders depends on market dynamics, the clarity of the solicitation, and the number of vendors capable of meeting the precise technical specifications. Thus, SEWP facilitates access but doesn't guarantee robust competition for every specialized item.
What is the historical spending pattern for NASA's high-performance computing infrastructure maintenance and support?
Historical spending on NASA's HPC infrastructure maintenance and support would likely show a consistent need for significant investment due to the rapid evolution of technology and the demanding nature of scientific research. Spending patterns would fluctuate based on upgrades, system refreshes, and the number of active HPC clusters. Analyzing past contracts would reveal trends in average contract values, the duration of support agreements, and the prevalence of firm-fixed-price versus other contract types. It's probable that NASA has maintained multi-million dollar annual budgets for HPC support, with significant portions allocated to hardware maintenance, software licensing, and specialized technical services, often through competitive solicitations under GWACs like SEWP or direct procurements.
Industry Classification
NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing
Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 0304293
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Silicon Graphics International Corp. (UEI: 841322394)
Address: 12200 PLUM ORCHARD DR STE G, SILVER SPRING, MD, 08
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,441,080
Exercised Options: $12,441,080
Current Obligation: $12,441,080
Parent Contract
Parent Award PIID: NNG07DA14B
IDV Type: GWAC
Timeline
Start Date: 2008-04-21
Current End Date: 2011-05-23
Potential End Date: 2011-05-23 00:00:00
Last Modified: 2014-03-21
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