DoD's AESIP HUB cloud migration contract awarded to Carahsoft Technology Corp for over $85M

Contract Overview

Contract Amount: $85,555,552 ($85.6M)

Contractor: Carahsoft Technology Corp

Awarding Agency: Department of Defense

Start Date: 2018-09-25

End Date: 2022-01-03

Contract Duration: 1,196 days

Daily Burn Rate: $71.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AESIP HUB MIGRATING TO CLOUD AND REQUIRING CLOUD HOSTING SUPPORT SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $85.6 million to CARAHSOFT TECHNOLOGY CORP for work described as: AESIP HUB MIGRATING TO CLOUD AND REQUIRING CLOUD HOSTING SUPPORT SERVICES Key points: 1. Contract value of $85.5M for cloud hosting support services. 2. Awarded to Carahsoft Technology Corp, a major IT reseller. 3. Full and open competition was utilized for this award. 4. The contract duration spans over 3 years. 5. Services are for the Department of the Army's AESIP HUB. 6. This contract supports a cloud migration initiative.

Value Assessment

Rating: fair

The contract value of $85.5M for cloud hosting support services appears to be within a reasonable range for a large-scale government IT project of this nature. However, without specific details on the scope of services, performance metrics, and the exact cloud infrastructure utilized, a precise value-for-money assessment is challenging. Benchmarking against similar cloud migration and hosting contracts for large enterprise systems within the Department of Defense would provide a clearer picture of whether the pricing reflects competitive market rates and efficient resource utilization.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it was competed openly suggests a healthy level of market engagement. However, the number of bidders is not specified, which would provide further insight into the intensity of the competition and its potential impact on price discovery and innovation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality, as multiple vendors vie for the contract.

Public Impact

The Department of the Army benefits from enhanced cloud hosting capabilities for its AESIP HUB. This contract supports the modernization of critical IT infrastructure. The services delivered are essential for the operational efficiency of the AESIP HUB. The geographic impact is primarily within the Department of Defense's IT infrastructure, with potential implications for personnel managing these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific cloud technologies are mandated.
Reliance on a single contractor for critical cloud hosting services could pose a risk.
The complexity of cloud migration projects can introduce unforeseen technical challenges and cost overruns.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Supports a strategic initiative for cloud migration, indicating modernization efforts.
The contract is for essential IT infrastructure support services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on cloud computing and hosting services. The market for government cloud services is substantial and growing, driven by agencies seeking to modernize infrastructure, improve scalability, and enhance cybersecurity. Comparable spending benchmarks would involve analyzing other large-scale cloud migration and managed services contracts awarded by federal agencies, particularly within the defense sector, to assess pricing and scope.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large IT services contract, it is likely that the prime contractor, Carahsoft Technology Corp, may engage small businesses as subcontractors. However, without explicit subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem remains unclear. Further analysis would be needed to determine if subcontracting opportunities were prioritized or met.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures would be defined in the contract's performance work statement and terms. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

AESIP HUB
Cloud Hosting Services
Department of Defense IT Modernization
Army Enterprise Systems

Risk Flags

Potential for cost overruns in complex cloud migration projects.
Reliance on a single vendor for critical hosting services.
Ensuring adequate security and compliance in a cloud environment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.6 million to CARAHSOFT TECHNOLOGY CORP. AESIP HUB MIGRATING TO CLOUD AND REQUIRING CLOUD HOSTING SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CARAHSOFT TECHNOLOGY CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $85.6 million.

What is the period of performance?

Start: 2018-09-25. End: 2022-01-03.

What is the specific scope of cloud hosting support services being provided under this contract?

The contract data indicates that the services are for 'AESIP HUB MIGRATING TO CLOUD AND REQUIRING CLOUD HOSTING SUPPORT SERVICES.' While the exact technical specifications and service level agreements are not detailed in the provided summary, it implies comprehensive support for the migration and ongoing operation of the AESIP HUB within a cloud environment. This likely includes infrastructure management, security monitoring, performance optimization, and potentially data migration assistance. The specific cloud platform (e.g., AWS, Azure, Google Cloud) and the extent of managed services versus government-managed components would further define the scope. Without the full contract details, it's presumed to cover the necessary technical expertise and resources to ensure a successful transition and stable operation in the cloud.

How does the awarded amount of $85.5 million compare to similar cloud hosting contracts for large federal IT systems?

Benchmarking the $85.5 million award requires comparing it to contracts with similar scope, duration, and complexity within the federal government, particularly for large enterprise systems like the AESIP HUB. Large-scale cloud migration and managed hosting contracts can range significantly, often in the tens to hundreds of millions of dollars over their lifecycle. Factors influencing cost include the number of users, data volume, required uptime, security certifications (e.g., FedRAMP), and the specific cloud services utilized (IaaS, PaaS, SaaS). Given that this is a multi-year contract supporting a significant Department of Defense system, the $85.5 million figure appears plausible, but a detailed comparison with publicly available data on comparable contracts would be necessary to ascertain if it represents a competitive price point and good value for money.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided summary data does not explicitly list the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for cloud hosting support services, typical KPIs and SLAs would focus on aspects such as system availability (uptime), response times for issue resolution, performance metrics (e.g., latency, throughput), security incident response times, and data backup and recovery success rates. These metrics are crucial for ensuring the reliability and effectiveness of the cloud infrastructure supporting the AESIP HUB. The contracting officer's representative (COR) and the contractor would jointly monitor adherence to these agreed-upon performance standards throughout the contract's duration.

What is Carahsoft Technology Corp's track record with similar large-scale cloud migration or hosting contracts for the Department of Defense?

Carahsoft Technology Corp is a major government IT reseller and solutions provider, known for its extensive contract vehicles and partnerships with numerous technology vendors. While Carahsoft itself may not be the primary cloud service provider in all instances, it facilitates the procurement of these services for government agencies. Their track record with large-scale cloud contracts for the DoD would involve their success in delivering solutions from their vendor partners, managing complex procurement processes, and ensuring compliance with government regulations. They have been involved in numerous large federal IT procurements, including cloud services, often acting as the prime contract holder that enables access to specialized technologies and support from various manufacturers and service providers.

What is the historical spending pattern for AESIP HUB IT support services prior to this contract?

Historical spending data for the AESIP HUB's IT support services prior to this $85.5 million cloud hosting contract would provide valuable context for assessing its value and necessity. Analyzing previous contract awards for the AESIP HUB, including their scope, duration, and cost, would reveal trends in IT support expenditures. If previous spending was significantly lower, it might indicate an increase in scope, complexity, or a shift towards more comprehensive cloud services. Conversely, if historical spending was comparable or higher, it could suggest a continuation of established support levels. Understanding this historical context is essential for evaluating whether the current contract represents a cost-effective approach to meeting the AESIP HUB's evolving IT requirements.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12369 SUNRISE VALLEY DR,STE. D2, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $85,555,552

Exercised Options: $85,555,552

Current Obligation: $85,555,552

Actual Outlays: $2,600,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0010408AZF43

IDV Type: IDC

Timeline