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FTS Releases Virtual Data Center Services Contract RFP

GSA #9352

October 28, 1996
Contact: Bill Bearden
(202) 501-1231

GSA's Federal Systems and Integration Management Center (FEDSIM) and Federal Computer Acquisition Center (FEDCAC) have released a Request for Proposals (RFP) for a Virtual Data Center Services Contract. FEDSIM and FEDCAC are operating units of GSA's Federal Telecommunication Service. FEDSIM's Virtual Data Center Services Contract will meet the needs of agencies that elect to outsource data processing requirements to commercial concerns. This non-mandatory service will be available to all Federal agencies and state and local governments when consistent with regulations. Digital, Honeywell, IBM/IBM Compatible, and Unisys based mainframe processing services will be available under this contract.
Federal agencies currently spend about $2 billion dollars annually on data center operations. To reduce costs, OMB, in Bulletin 96-02 Consolidation of Federal Data Centers, called for agencies to "reduce the total number of Federal data centers, during the next 24 months" by "�concentrating their operations into a smaller number of physical locations." In support of this bulletin, FEDSIM launched this Government-wide initiative to provide agencies with a quick low-cost alternative for obtaining commercial data processing services.
FEDSIM and FEDCAC, working with the vendor community, crafted a contract that mimics the buying practices of commercial concerns. The vehicle is a multiple award, indefinite delivery indefinite quantity contract. Vendor technical responses to the RFP are due December 9, 1996. Cost responses are due December 16, 1996. FEDCAC plans to award the contract in April 1997. The estimated value of this 10-year contract could amount to between $2-and 3-billion. The benefits of this contract are:

_ acquisition cost avoidance because of one rather than many acquisitions;
_ volume driven competitive pricing;
_ quick access to tailored information processing services;
_ the virtual elimination of "just in case capacity" because of "just in time" upgrades available under this contract;
_ retention of agencies' data center identity and integrity; and
_ ability for agencies to relocate processing operation if a more responsive or better priced option is available.

The concept envisioned for this contract is best characterized as "Physical Consolidation/ Logical Separation." FEDSIM envisions commercial providers partitioning their large systems into domains to service agency requirements. Within an assigned partition, the ordering agency will operate its data processing operations as though it were a "standalone" facility. FEDSIM will:

_ issue task orders based on service bands that correlate to the agencies current or required operational environment; and
_ compete tasks among the winning vendors. FEDSIM reserves the right to direct tasks to a particular vendor when doing so is in the best interest of the government.

For additional information, please contract Jeanne Davis on (617) 860-7138. The solicitation is available via the Internet at

Last Reviewed 2010-04-30