DoD's $32.4M IGF ESS Basic Storage Solution Services contract awarded to VION CORPORATION shows fair value with 3 bidders

Contract Overview

Contract Amount: $32,446,612 ($32.4M)

Contractor: Vion Corporation

Awarding Agency: Department of Defense

Start Date: 2014-10-01

End Date: 2015-02-07

Contract Duration: 129 days

Daily Burn Rate: $251.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CL::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 $32.4 million to VION CORPORATION for work described as: IGF::CL::IGF ESS BASIC STORAGE SOLUTION SERVICES Key points: 1. The contract value of $32.4 million for storage solution services appears reasonable given the scope and duration. 2. Full and open competition with three bidders suggests a healthy market response and potential for competitive pricing. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. Performance occurred over a short period (approx. 4 months), limiting long-term performance risk assessment. 5. The contract falls under 'Other Computer Related Services,' a broad category with diverse market dynamics. 6. Awarded as a delivery order, indicating it was part of a larger, potentially pre-competed, framework.

Value Assessment

Rating: fair

The contract value of $32.4 million for approximately four months of service appears within a reasonable range for enterprise storage solutions. Benchmarking against similar large-scale storage procurements is challenging without more detailed service specifications. However, the presence of three bidders in a full and open competition suggests that the pricing was likely competitive and offered fair value to the Department of Defense. The firm fixed-price nature of the award further supports value by capping the government's financial exposure.

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. Three bids were received, suggesting a moderate level of competition for this specific requirement. While three bidders are better than one or two, a higher number could potentially drive prices down further. The competition level here indicates that VION CORPORATION was selected from a pool of qualified vendors, implying a competitive process that likely resulted in a fair market price.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and encourages vendors to offer their best value propositions.

Public Impact

The Department of Defense benefits from enhanced data storage capabilities essential for its operations. The services delivered likely supported critical IT infrastructure for defense information systems. The contract's impact is primarily within the federal government's IT infrastructure, with limited direct public-facing services. Workforce implications are likely internal to VION CORPORATION and potentially DISA's IT support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited duration of the contract makes it difficult to assess long-term performance and reliability.
Specific details on the 'basic storage solution' are not provided, hindering a deeper technical assessment.
The contract was a delivery order, suggesting it might be part of a larger, potentially less competitive, IDIQ contract.

Positive Signals

Awarded under full and open competition, indicating a fair and accessible bidding process.
Firm fixed-price contract type minimizes the risk of cost overruns for the government.
The contractor, VION CORPORATION, was selected from three competitive bids.

Sector Analysis

This contract falls under the 'Other Computer Related Services' category (NAICS 541519), a broad sector encompassing IT consulting, system integration, and data processing. The federal IT services market is substantial, with agencies like the Department of Defense being major consumers. Contracts for storage solutions are critical for managing the vast amounts of data generated by defense operations. Comparable spending benchmarks would typically involve analyzing other large-scale enterprise storage procurements across federal agencies, considering factors like capacity, performance tiers, and service level agreements.

Small Business Impact

There is no indication that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. The award was made under full and open competition, and the contractor, VION CORPORATION, is likely a large business. Without specific subcontracting plans mandated or reported, the direct impact on the small business ecosystem for this particular contract is presumed to be minimal.

Oversight & Accountability

As a delivery order under a potentially larger contract, oversight would likely be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. The firm fixed-price nature provides a degree of financial oversight by capping costs. Transparency is generally maintained through contract award databases like FPDS. Specific Inspector General (IG) jurisdiction would depend on whether the contract was flagged for audit or investigation based on performance or financial concerns.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Enterprise Storage Solutions
Federal IT Infrastructure Procurement
Cloud and Data Storage Services Contracts

Risk Flags

Limited performance duration
Lack of detailed service scope
Potential for higher competition levels

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to VION CORPORATION. IGF::CL::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 $32.4 million.

What is the period of performance?

Start: 2014-10-01. End: 2015-02-07.

What was the specific nature of the 'basic storage solution services' provided under this contract?

The provided data indicates the contract was for 'IGF::CL::IGF ESS BASIC STORAGE SOLUTION SERVICES.' 'IGF' likely refers to the 'Information Technology Enterprise Solutions - Global Services' (ITES-GS) contract vehicle, a large indefinite-delivery/indefinite-quantity (IDIQ) contract managed by the U.S. Army. 'ESS' could stand for 'Enterprise Storage Solutions.' Therefore, this delivery order likely procured basic storage hardware, software, or related services as part of a broader enterprise storage strategy under the ITES-GS framework. The term 'basic' suggests it might cover foundational storage needs rather than highly specialized or advanced solutions, potentially including disk arrays, tape libraries, or associated management software and support.

How does the $32.4 million contract value compare to similar enterprise storage solutions procured by the DoD?

Comparing the $32.4 million value requires context on the duration and scope. This contract lasted approximately 4 months (October 2014 to February 2015). Annualized, this represents roughly $97.3 million per year. Enterprise storage solutions for the DoD can range significantly, from tens of millions for specific system upgrades to hundreds of millions or even billions for large-scale, multi-year enterprise-wide deployments. Given the relatively short duration and the 'basic' nature implied, this value appears substantial but not necessarily out of line for a significant component of enterprise storage infrastructure. However, without knowing the exact capacity, performance specifications, and included services (e.g., hardware, software licenses, maintenance, integration), a precise benchmark is difficult.

What are the potential risks associated with a firm fixed-price contract for storage solutions?

Firm fixed-price (FFP) contracts are generally favored for minimizing cost risk to the government. However, for complex IT solutions like storage, potential risks exist. If the scope of 'basic storage solution services' was not perfectly defined, the contractor might face challenges in meeting requirements within the fixed price, potentially leading to reduced quality or performance. Conversely, if the scope was underestimated by the government during solicitation, the contractor might deliver more than anticipated without additional compensation, which is less of a risk for the government but could strain contractor resources. The primary risk for the government with FFP is ensuring the defined scope accurately captures all necessary services and that the contractor has the capability to deliver it at the agreed-upon price without compromising quality.

What does the 'full and open competition' with three bidders imply about the contractor's selection and pricing?

The 'full and open competition' signifies that the solicitation was broadly advertised, allowing any responsible business to submit a proposal. Receiving three bids indicates a reasonable level of market interest and competition for this specific requirement. This suggests that VION CORPORATION was selected because its proposal offered the best value (considering price, technical approach, past performance, etc.) among the three competing offers. The presence of multiple bidders generally exerts downward pressure on pricing, as companies strive to be the most competitive. Therefore, the selection process likely resulted in a price that reflects a competitive market rate for the defined storage solution services.

How does this contract fit into the broader IT spending patterns of the Defense Information Systems Agency (DISA)?

This contract, awarded to VION CORPORATION for basic storage solution services, represents a component of DISA's overall IT spending. DISA is responsible for providing a wide range of IT services and infrastructure to the DoD. Storage solutions are a fundamental part of this infrastructure, essential for data management, cybersecurity, and operational readiness. Spending on storage can fluctuate based on technology refresh cycles, data growth, and evolving mission requirements. This $32.4 million contract, likely executed under a larger IDIQ vehicle like ITES-GS, fits into a pattern of ongoing investment in maintaining and upgrading the DoD's vast data storage capabilities. It reflects a specific need addressed within a broader strategic framework for IT modernization and sustainment.

What is the significance of this contract being a 'delivery order'?

The fact that this contract is a 'delivery order' is significant because it implies it was issued under a pre-existing, larger contract, most likely an Indefinite Delivery/Indefinite Quantity (IDIQ) contract. In this case, it's highly probable it was issued under the ITES-GS (Information Technology Enterprise Solutions - Global Services) IDIQ contract, which is a major vehicle for DISA and other DoD components. Delivery orders allow agencies to procure specific quantities of goods or services as needed, up to the ceiling of the parent IDIQ contract. This approach streamlines procurement for recurring or anticipated needs, often leveraging pre-negotiated terms and pricing. It means the competition for the underlying IDIQ contract likely occurred earlier, and this delivery order represents a specific task order awarded competitively or non-competitively under that framework.

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: $32,446,612

Exercised Options: $32,446,612

Current Obligation: $32,446,612

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101307D2009

IDV Type: IDC

Timeline