DoD's $58.4M ESS Basic Storage Solution Services contract awarded to VION CORPORATION shows fair value with 3 bidders

Contract Overview

Contract Amount: $58,441,783 ($58.4M)

Contractor: Vion Corporation

Awarding Agency: Department of Defense

Start Date: 2012-02-08

End Date: 2013-02-07

Contract Duration: 365 days

Daily Burn Rate: $160.1K/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, 20007

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $58.4 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 IT services provided. 2. A competitive bidding process with three offers suggests a healthy market for these services. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of one year provides a manageable timeframe for service delivery. 5. This contract falls within the broader category of IT support and infrastructure services for the Defense Department. 6. The award to VION CORPORATION indicates their capability in meeting the Defense Information Systems Agency's storage needs.

Value Assessment

Rating: good

The contract's total value of $58.4 million for a one-year period for ESS Basic Storage Solution Services appears to be within a reasonable range for large-scale IT infrastructure support. Benchmarking against similar contracts for storage solutions and related IT services would provide a more precise value-for-money assessment. However, the fixed-price nature of the award suggests that the government secured a defined cost for the services, which is a positive indicator of cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. The presence of multiple bidders indicates that the market for ESS Basic Storage Solution Services is sufficiently competitive. This level of competition generally leads to better pricing and service offerings as contractors vie for the award. The Defense Information Systems Agency leveraged this competition to select a vendor.

Taxpayer Impact: The full and open competition process ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

The primary beneficiaries are the Department of Defense agencies relying on the ESS Basic Storage Solution Services for their data storage needs. The services delivered are critical for maintaining the operational readiness and data integrity of defense systems. The contract's geographic impact is centered in Washington D.C., where the services are likely managed and supported. Workforce implications include the direct employment by VION CORPORATION and potential indirect employment in the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Reliance on a single vendor for critical storage infrastructure could pose a risk if performance issues arise.
Ensuring continued innovation and cost-effectiveness in future storage solutions will require ongoing market analysis.

Positive Signals

The fixed-price contract structure provides cost certainty for the government.
The competitive award process suggests a fair market price was achieved.
The contract supports essential IT infrastructure for national defense.

Sector Analysis

The IT services sector, particularly data storage solutions, is a critical component of modern infrastructure for government and commercial entities. The market is characterized by rapid technological advancements and a wide range of providers, from large corporations to specialized firms. Spending in this area is substantial across federal agencies, supporting everything from daily operations to advanced research and development. This contract represents a portion of the Defense Department's significant investment in maintaining robust and secure IT capabilities.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. While VION CORPORATION is the prime contractor, there is potential for small businesses to participate as subcontractors, depending on VION's subcontracting plan. The impact on the small business ecosystem would depend on the extent to which VION engages with small business partners for specialized services or components.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are embedded in the contract's terms and conditions, including performance standards and delivery schedules. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency IT Services
Department of Defense Cloud Computing Services
Federal Data Storage Solutions
IT Infrastructure Modernization Programs

Risk Flags

Potential for vendor lock-in
Reliance on single vendor for critical infrastructure
Technology obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.4 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 $58.4 million.

What is the period of performance?

Start: 2012-02-08. End: 2013-02-07.

What is VION CORPORATION's track record with the Department of Defense for similar IT services?

VION CORPORATION has a history of performing IT services for the Department of Defense. While this specific contract for ESS Basic Storage Solution Services was for a one-year term, the company's broader portfolio likely includes various IT support, infrastructure, and potentially storage-related contracts with DoD components. Analyzing past performance reviews, contract modifications, and any reported issues on previous DoD contracts would provide a clearer picture of their reliability and expertise. A review of their award history would indicate if they are a frequent or occasional contractor for the DoD, and the scale of their previous engagements.

How does the per-unit cost of this storage solution compare to market rates or similar government contracts?

Determining the precise per-unit cost for this contract is challenging without detailed breakdowns of storage capacity, performance tiers, and service levels. However, the total award of $58.4 million over a one-year period for 'ESS Basic Storage Solution Services' suggests a significant scale of operation. Benchmarking against industry standards for enterprise storage solutions, considering factors like cost per terabyte, IOPS (Input/Output Operations Per Second), and associated support services, would be necessary. Government-wide contract vehicles or publicly available pricing for similar large-scale storage procurements could offer comparative data points to assess if the pricing is competitive.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance deficiencies by the contractor, vendor lock-in for future storage needs, and the obsolescence of storage technology. Mitigation strategies are likely embedded within the contract itself. The fixed-price nature helps mitigate cost overrun risks. Performance standards and service level agreements (SLAs) provide a framework for monitoring and enforcing contractor performance. The relatively short one-year duration allows for re-evaluation and competitive re-procurement, reducing long-term vendor lock-in. The Defense Information Systems Agency would also have contingency plans for critical infrastructure failures.

How effective has the Defense Information Systems Agency (DISA) been in managing similar IT infrastructure contracts?

DISA is a major provider of IT services and infrastructure for the Department of Defense, managing a vast array of complex contracts. Their effectiveness in managing IT infrastructure contracts is generally considered robust, given the critical nature of their mission. However, like any large organization, they face challenges related to budget constraints, evolving technology, and contractor performance. Success metrics would include system uptime, data security compliance, and the ability to adapt to new technological requirements. Analyzing DISA's overall IT spending trends and contract success rates would provide context for this specific award.

What has been the historical spending pattern for ESS Basic Storage Solution Services by the Department of Defense?

Historical spending data for 'ESS Basic Storage Solution Services' specifically would require detailed analysis of past contract awards within the DoD. It's likely that the DoD has consistently invested in data storage solutions, with spending fluctuating based on technological upgrades, data growth, and evolving mission requirements. This $58.4 million contract represents a significant, but potentially recurring, investment. Understanding the trend of spending in this category over the past 5-10 years would reveal whether this award is an increase, decrease, or consistent level of investment in such services.

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: $58,441,783

Exercised Options: $58,441,783

Current Obligation: $58,441,783

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101307D2009

IDV Type: IDC

Timeline