DoD's $20.3M ESS Basic Storage Solution Services contract awarded to VION CORPORATION shows fair value with 3 bidders

Contract Overview

Contract Amount: $20,347,757 ($20.3M)

Contractor: Vion Corporation

Awarding Agency: Department of Defense

Start Date: 2013-10-01

End Date: 2014-02-07

Contract Duration: 129 days

Daily Burn Rate: $157.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF 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 $20.3 million to VION CORPORATION for work described as: IGF::OT::IGF ESS BASIC STORAGE SOLUTION SERVICES Key points: 1. The contract was awarded under full and open competition, indicating a competitive bidding process. 2. The fixed-price contract type helps manage cost certainty for the government. 3. The duration of 129 days suggests a focused, short-term service requirement. 4. The award was made by the Defense Information Systems Agency, a key IT provider for the DoD. 5. The contract falls under 'Other Computer Related Services', a broad category within IT. 6. The small business set-aside flag is false, suggesting no specific preference for small businesses in this award.

Value Assessment

Rating: fair

The contract's value of approximately $20.3 million for a 129-day period for ESS Basic Storage Solution Services appears reasonable given the limited duration. Benchmarking against similar, longer-term storage solution contracts is difficult due to the short timeframe. However, the fixed-price nature of the award provides cost predictability. The number of bidders (3) suggests a degree of market interest, which can contribute to fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit a bid. With three bidders participating, the competition level suggests that multiple vendors were interested in providing these services. This level of competition generally aids in price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Department of Defense benefits from enhanced basic storage solutions, crucial for its IT infrastructure. Essential IT services are delivered to support the operational needs of the Defense Information Systems Agency. The contract's performance is geographically centered in the District of Columbia. The contract likely supports a workforce skilled in IT services and storage solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short contract duration may limit long-term strategic planning for storage solutions.
Limited public information on specific performance metrics makes assessing effectiveness challenging.
The broad NAICS code 'Other Computer Related Services' could encompass a wide range of activities, making precise value assessment difficult.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Fixed-price contract type offers cost certainty.
Awarded to VION CORPORATION, suggesting established vendor relationships within the DoD.

Sector Analysis

The contract falls within the broader Information Technology sector, specifically under 'Other Computer Related Services' (NAICS 541519). This category encompasses a wide array of IT support and consulting services. The market for IT services, particularly for government agencies like the Department of Defense, is substantial and highly competitive. This contract represents a small portion of the overall federal IT spending, which often includes significant investments in storage, cloud computing, cybersecurity, and software development.

Small Business Impact

The contract was not set aside for small businesses, as indicated by the 'sb' flag being false. This means that both large and small businesses were eligible to compete. There is no explicit information provided regarding subcontracting plans for small businesses. The lack of a small business set-aside suggests that the primary focus was on securing the best value from the entire market, rather than specifically promoting small business participation for this particular requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Information Systems Agency (DISA) contracting officers and program managers. The Department of Defense has established Inspector General offices that can investigate potential fraud, waste, or abuse. Transparency is facilitated through contract award databases like FPDS, which provide basic details of the award. However, detailed performance reports or specific oversight mechanisms are not publicly detailed in the provided data.

Related Government Programs

DoD IT Infrastructure Modernization Programs
Defense Information Systems Agency (DISA) IT Services
Federal Cloud Computing Strategy Initiatives
Enterprise Storage Solutions Contracts

Risk Flags

Short contract duration may indicate a temporary solution or a need for further definition.
Limited public data on performance metrics hinders assessment of effectiveness.
NAICS code 'Other Computer Related Services' is broad, potentially obscuring specific service details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to VION CORPORATION. IGF::OT::IGF 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 $20.3 million.

What is the period of performance?

Start: 2013-10-01. End: 2014-02-07.

What is VION CORPORATION's track record with the Department of Defense?

VION CORPORATION has a history of receiving contracts from the Department of Defense. This specific award for ESS Basic Storage Solution Services is one instance. Analyzing their broader contract portfolio with DoD would involve reviewing past awards, performance evaluations (if publicly available), and the types of services they have provided. A deeper dive would reveal if they have consistently met performance expectations, managed budgets effectively, and adhered to contract terms across multiple engagements. Without access to detailed performance data or a broader contract history, it's difficult to definitively assess their overall track record beyond this single award.

How does the value of this contract compare to similar storage solution contracts?

Direct comparison of this $20.3 million contract is challenging due to its short duration of 129 days. Most enterprise storage solution contracts are multi-year agreements involving significant infrastructure deployment, maintenance, and support, often running into tens or hundreds of millions of dollars over several years. This contract appears to be for a specific, limited-scope service or solution rather than a comprehensive, long-term enterprise deployment. To benchmark effectively, one would need to find contracts with similar service scopes and durations, which are less common for large-scale storage solutions. The value seems proportionate for a short-term, focused service requirement.

What are the primary risks associated with this contract?

Key risks include potential performance issues if VION CORPORATION fails to deliver the specified storage solution services adequately within the short timeframe. Given the fixed-price nature, cost overruns are less likely for the government, but scope creep could become an issue if not managed tightly. Another risk is the potential for vendor lock-in if the solution implemented is proprietary and difficult to transition away from. Furthermore, the limited duration might indicate a temporary fix or a gap-filling measure, which could lead to recurring, short-term contracts rather than a stable, long-term solution, posing a risk to sustained operational capability.

How effective is the 'full and open competition' approach for IT services like this?

The 'full and open competition' approach is generally considered the most effective method for ensuring fair pricing and access to the widest range of innovative solutions for IT services. It allows all responsible vendors to participate, fostering a competitive environment that drives down costs and encourages high-quality service delivery. For a contract like this, it means the DoD likely received bids from multiple qualified providers, increasing the likelihood of selecting a vendor that offers the best combination of technical capability and price. The presence of three bidders suggests this approach was successful in attracting market interest.

What are the historical spending patterns for 'Other Computer Related Services' by DISA?

Historical spending patterns for 'Other Computer Related Services' (NAICS 541519) by the Defense Information Systems Agency (DISA) indicate a consistent and significant investment in a broad range of IT support. DISA, as a primary IT provider for the DoD, frequently procures services under this category, which can include everything from IT consulting and system integration to network support and data management. Analyzing past spending would likely reveal a trend of substantial annual expenditures, reflecting the agency's ongoing need for diverse IT expertise to maintain and modernize its complex infrastructure. This specific $20.3 million award fits within this broader pattern of consistent IT service procurement.

What is the significance of the 'firm fixed price' contract type in this context?

The 'firm fixed price' (FFP) contract type is significant because it places the primary risk of cost overruns on the contractor (VION CORPORATION) rather than the government. This provides the DoD with a high degree of cost certainty for the $20.3 million award. It incentivizes the contractor to manage its costs efficiently to maintain profitability. For IT services, especially those with well-defined scopes like basic storage solutions, FFP is often preferred to control budgets. However, it requires a very clear and detailed scope of work to avoid disputes or change orders, which could negate the cost certainty benefit.

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: $20,347,757

Exercised Options: $20,347,757

Current Obligation: $20,347,757

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101307D2009

IDV Type: IDC

Timeline