DoD's $43.8M IGF ESS Basic Storage Solution Services contract awarded to VION CORPORATION

Contract Overview

Contract Amount: $43,832,145 ($43.8M)

Contractor: Vion Corporation

Awarding Agency: Department of Defense

Start Date: 2014-02-08

End Date: 2015-02-07

Contract Duration: 364 days

Daily Burn Rate: $120.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::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 $43.8 million to VION CORPORATION for work described as: IGF::CT::IGF ESS BASIC STORAGE SOLUTION SERVICES Key points: 1. The contract value represents a significant investment in essential IT infrastructure for the Defense Information Systems Agency. 2. Competition dynamics for this contract are favorable, indicating potential for competitive pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance duration of one year provides a clear timeframe for service delivery and evaluation. 5. The contract falls under IT services, specifically computer-related services, a critical sector for defense operations. 6. The award was made via a delivery order, suggesting it was part of a larger existing framework.

Value Assessment

Rating: good

The total contract value of $43.8 million for a one-year period for storage solution services appears reasonable given the scope for a major defense agency. Benchmarking against similar large-scale IT infrastructure contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, as it shifts risk to the contractor. Without specific per-unit cost data or detailed service level agreements, a definitive value assessment is challenging, but the overall investment aligns with the critical nature of data storage for defense operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a healthy level of competition for this requirement. This competitive environment is generally conducive to achieving fair market prices and encouraging contractors to offer their best value propositions. The award process, being a delivery order, implies it was likely competed within an established contract vehicle, which can streamline procurement but may also influence the breadth of initial competition.

Taxpayer Impact: Full and open competition with multiple bidders is beneficial for taxpayers as it drives down prices through market forces and encourages efficient service delivery.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Information Systems Agency, which receives essential data storage capabilities. The services delivered are critical for maintaining the operational readiness and data integrity of defense systems. The geographic impact is centered in the District of Columbia, where the agency is located, but the data supported may have broader national implications. The contract supports the IT workforce within the contractor organization and potentially related IT service providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the solution is highly proprietary and difficult to migrate away from.
Dependence on a single vendor for critical storage infrastructure could pose a risk if the vendor experiences financial instability or service disruptions.
Ensuring ongoing compliance with evolving data security and privacy regulations for defense data.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type limits the government's exposure to cost increases.
The contract duration is relatively short (one year), allowing for periodic reassessment of needs and vendor performance.
The contractor, VION CORPORATION, is providing a fundamental IT service essential for agency operations.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on data storage solutions. The IT services market, particularly for government contracts, is highly competitive and constantly evolving. Defense agencies are significant consumers of IT services, investing heavily in infrastructure to support national security. Comparable spending benchmarks for large-scale storage solutions within the federal government can vary widely based on capacity, performance requirements, and service level agreements, but investments in the tens of millions are common for agencies of this size and scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on securing a large-scale storage solution through prime contracting, likely with larger, established IT service providers.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Information Systems Agency's contracting and program management offices. As a delivery order under a potentially larger contract vehicle, oversight might also involve the agency that awarded the base vehicle. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

DoD IT Infrastructure Modernization Programs
Defense Information Systems Agency (DISA) Enterprise Services
Federal Data Center Consolidation Initiative
Cloud Computing Services Contracts

Risk Flags

Potential for vendor lock-in
Reliance on a single vendor for critical infrastructure
Ensuring ongoing cybersecurity compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.8 million to VION CORPORATION. IGF::CT::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 $43.8 million.

What is the period of performance?

Start: 2014-02-08. End: 2015-02-07.

What is the track record of VION CORPORATION in delivering similar large-scale IT storage solutions to federal agencies?

Assessing VION CORPORATION's track record requires a review of their past performance on federal contracts, particularly those involving large-scale data storage, IT infrastructure, and services for defense agencies. Information on contract history, past performance evaluations, and any documented issues or successes would be crucial. While this specific award is for $43.8 million, understanding their experience with contracts of similar magnitude and complexity, and their ability to meet stringent security and performance requirements, is key to evaluating their capability for this IGF ESS Basic Storage Solution Services contract. A deeper dive into federal procurement databases and agency performance reports would provide more granular insights into their reliability and expertise in this domain.

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

Determining the per-unit cost benchmark for this contract is challenging without specific details on the storage capacity (e.g., terabytes, petabytes), performance metrics (e.g., IOPS, latency), and the service level agreements (SLAs) included. Federal procurement data often lacks granular per-unit cost breakdowns for complex IT solutions. However, comparing the total contract value ($43.8M) against the expected storage volume and service duration (1 year) to industry averages for enterprise storage solutions, or to similar contracts awarded by other federal agencies for comparable services, would be necessary. Given the 'basic' nature of the solution, it might be expected to be more cost-effective than high-performance or specialized storage, but the defense context implies robust security and reliability requirements that could increase costs.

What are the primary risks associated with relying on VION CORPORATION for these critical storage services?

The primary risks associated with relying on VION CORPORATION for critical storage services include potential vendor performance issues, such as service disruptions, data accessibility problems, or failure to meet uptime SLAs. There's also a risk of vendor lock-in if the storage solution is proprietary and difficult to integrate with other systems or migrate away from. Financial stability of the vendor is another consideration; a financially distressed vendor could impact long-term support and service continuity. Furthermore, ensuring continuous compliance with evolving cybersecurity mandates and data protection regulations within the Department of Defense is a critical risk area that requires ongoing vigilance from both the contractor and the agency.

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

The effectiveness of DISA in managing similar IT infrastructure contracts can be assessed by examining their historical contract performance data, audit reports from the Government Accountability Office (GAO) or the DoD Inspector General (IG), and program reviews. DISA manages a vast portfolio of complex IT contracts, and their effectiveness can vary. Factors to consider include their ability to define clear requirements, manage vendor performance against SLAs, control costs, and adapt to technological changes. Positive indicators might include successful large-scale deployments and high system availability, while negative indicators could involve cost overruns, schedule delays, or cybersecurity incidents linked to managed services. Benchmarking DISA's contract management practices against other federal agencies could also provide context.

What has been the historical spending trend for data storage solutions by the Department of Defense over the past five years?

Analyzing the historical spending trend for data storage solutions by the Department of Defense over the past five years would reveal patterns in investment, technology adoption (e.g., shift towards cloud, hybrid solutions), and major contract awards. This data is typically available through federal procurement databases like FPDS-NG or USAspending.gov. An increasing trend might indicate growing data volumes and modernization efforts, while a decrease could suggest consolidation, efficiency gains, or a shift in strategic priorities. Understanding this trend provides context for the $43.8 million awarded for the IGF ESS Basic Storage Solution Services, helping to determine if it aligns with overall DoD investment strategies in data management and infrastructure.

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, 20007

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

Financial Breakdown

Contract Ceiling: $43,832,145

Exercised Options: $43,832,145

Current Obligation: $43,832,145

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101307D2009

IDV Type: IDC

Timeline