DoD's $55M ESS Basic Storage Solution Services contract awarded to VION CORPORATION shows fair value with 3 bidders

Contract Overview

Contract Amount: $54,919,741 ($54.9M)

Contractor: Vion Corporation

Awarding Agency: Department of Defense

Start Date: 2011-02-08

End Date: 2012-02-07

Contract Duration: 364 days

Daily Burn Rate: $150.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ESS BASIC STORAGE SOLUTION SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $54.9 million to VION CORPORATION for work described as: ESS BASIC STORAGE SOLUTION SERVICES Key points: 1. The contract's value appears reasonable given the scope of storage solution services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of one year provides a defined period for service delivery. 5. The contract falls under IT services, specifically computer-related services. 6. Awarded by the Defense Information Systems Agency, indicating a focus on critical defense IT infrastructure.

Value Assessment

Rating: good

The contract value of approximately $55 million for a one-year period for storage solution services appears to be within a reasonable range for enterprise-level IT support. Benchmarking against similar large-scale storage contracts is challenging without more specific service details, but the fixed-price nature suggests the government secured a defined cost for the services. The presence of multiple bidders further supports the likelihood of a competitive and fair price being established.

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 bids. The fact that three bids were received suggests a healthy level of interest and competition for this requirement. This competitive environment generally allows for better price discovery and encourages contractors to offer their most competitive terms.

Taxpayer Impact: The competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It ensures that the government is not overpaying for essential storage services.

Public Impact

The Department of Defense benefits from enhanced and reliable data storage capabilities. Essential IT infrastructure support is provided to defense agencies, ensuring operational continuity. Services are delivered within the District of Columbia, impacting the local federal IT workforce. The contract supports the secure and efficient management of critical defense information.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the awarded solution becomes deeply integrated without clear exit strategies.
Ensuring the long-term scalability and adaptability of the storage solution to evolving DoD needs.
Monitoring service level agreement (SLA) adherence to guarantee performance and uptime.

Positive Signals

Awarded under full and open competition, indicating a robust and fair bidding process.
Fixed-price contract type helps control costs and manage budget predictability.
The contract is for a defined one-year period, allowing for reassessment of needs and potential re-competition.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on data storage solutions. The market for enterprise storage is characterized by major hardware and software vendors, as well as service providers offering managed solutions. Spending in this area is critical for government agencies to manage vast amounts of data, ensure accessibility, and maintain security. Comparable spending benchmarks would typically involve analyzing other large-scale storage procurements by federal agencies, often running into tens or hundreds of millions of dollars depending on scale and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless VION CORPORATION actively engages small businesses for subcontracting opportunities. Further analysis would be needed to determine if small business participation was encouraged or mandated through subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) to ensure compliance with terms and conditions. The fixed-price nature of the contract provides a degree of accountability by capping the government's financial exposure. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed oversight reports may not always be publicly accessible.

Related Government Programs

General Services Administration (GSA) IT Schedule Contracts
Department of Defense Enterprise IT Services
Cloud Storage Solutions
Data Center Operations Support

Risk Flags

Potential for scope creep if requirements are not tightly managed.
Dependency on contractor performance for critical data storage infrastructure.
Need for ongoing monitoring of service levels and technical support quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.9 million to VION CORPORATION. ESS BASIC STORAGE SOLUTION SERVICES

Who is the contractor on this award?

The obligated recipient is VION CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $54.9 million.

What is the period of performance?

Start: 2011-02-08. End: 2012-02-07.

What is the specific nature of the 'ESS Basic Storage Solution Services' and what are the key performance indicators (KPIs) associated with this contract?

The 'ESS Basic Storage Solution Services' likely refers to the provision, maintenance, and management of data storage infrastructure for the Department of Defense (DoD). This could encompass hardware (e.g., disk arrays, tape libraries), software (e.g., storage management tools, data deduplication), and associated services (e.g., installation, configuration, technical support, disaster recovery). Key performance indicators (KPIs) would typically include metrics such as storage capacity utilization, data access speed (latency), system uptime/availability (e.g., 99.99%), data backup and recovery success rates, and response times for technical support. While the contract award notice doesn't detail these specific KPIs, they are crucial for ensuring the service meets the DoD's operational requirements for data integrity and accessibility.

How does the awarded price of approximately $55 million compare to market rates for similar enterprise storage solutions over a one-year period?

Comparing the $55 million award to market rates for enterprise storage solutions over one year is complex without granular details on the scope of services, capacity, performance tiers, and specific technologies involved. However, for large federal agencies like the DoD, enterprise storage solutions can indeed cost tens of millions annually, especially when encompassing hardware, software licenses, maintenance, and managed services for potentially petabytes of data. The presence of three bidders under full and open competition suggests that VION CORPORATION's price was competitive within the market landscape for such a significant undertaking. To provide a precise benchmark, one would need to analyze recent large-scale storage procurements from other federal agencies or large commercial enterprises with similar data volumes and service level agreements.

What are the potential risks associated with a fixed-price contract for complex IT services like storage solutions?

While fixed-price contracts are generally favored for cost control, they can introduce risks for complex IT services. If the scope of work is not precisely defined or if unforeseen technical challenges arise during implementation or maintenance, the contractor (VION CORPORATION) might incur higher costs than anticipated. This could lead to pressure on service quality if the contractor seeks to cut corners to maintain profitability, or potentially result in requests for contract modifications or change orders, which could increase the overall cost to the government. Conversely, if the contractor significantly underestimates costs, they might face financial distress. For the government, the primary risk is receiving substandard services if the contractor struggles to meet the fixed price while maintaining quality.

What is VION CORPORATION's track record with the Department of Defense or other federal agencies for providing similar IT infrastructure services?

Information regarding VION CORPORATION's specific track record for providing similar IT infrastructure services to the DoD or other federal agencies is not detailed in the provided award data. A comprehensive assessment would require reviewing past performance evaluations, contract history databases (like FPDS or SAM.gov), and any available CPARS (Contractor Performance Assessment Reporting System) reports. Understanding their history with similar large-scale storage solutions, their performance on previous DoD contracts, and their financial stability would be crucial for evaluating their capability and reliability in fulfilling this $55 million contract effectively.

How does this contract align with the Defense Information Systems Agency's (DISA) broader IT modernization and data management strategies?

This contract for ESS Basic Storage Solution Services likely aligns with DISA's strategic goals of modernizing its IT infrastructure and enhancing data management capabilities. As the DoD generates vast amounts of data, robust, secure, and efficient storage solutions are fundamental. By procuring these services, DISA aims to ensure that critical defense information is stored, accessible, and protected according to stringent requirements. This could support initiatives related to cloud migration, data analytics, cybersecurity, and ensuring operational readiness across various defense missions. The contract's focus on basic storage suggests it addresses a foundational element of DISA's IT ecosystem.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC101306R2005

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1055 THOMAS JEFFERSON ST NW STE 406, WASHINGTON, DC, 98

Business Categories: Category Business, Small Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $54,919,741

Exercised Options: $54,919,741

Current Obligation: $54,919,741

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101307D2009

IDV Type: IDC

Timeline