DoD's $57.8M IGF ESS Basic Storage Solution Services contract awarded to VION CORPORATION shows fair value

Contract Overview

Contract Amount: $57,831,829 ($57.8M)

Contractor: Vion Corporation

Awarding Agency: Department of Defense

Start Date: 2015-02-08

End Date: 2015-09-30

Contract Duration: 234 days

Daily Burn Rate: $247.1K/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 $57.8 million to VION CORPORATION for work described as: IGF::CL::IGF ESS BASIC STORAGE SOLUTION SERVICES Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. The fixed-price nature of the contract shifts performance risk to the contractor. 3. The contract duration of 234 days is relatively short, potentially limiting long-term risk exposure. 4. The award was made to VION CORPORATION, a contractor with a track record in IT services. 5. The contract falls under IT services, a broad category with significant government spending. 6. The contract was awarded as a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

The contract's value of $57.8 million for approximately 8 months of service appears within a reasonable range for large-scale IT infrastructure solutions. Benchmarking against similar large storage solution contracts is challenging without more specific service details. However, the firm fixed-price structure suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the price remains competitive.

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 offers. This typically leads to a more robust price discovery process as multiple vendors compete. The presence of 3 bidders suggests a reasonable level of competition for this type of specialized IT service.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring the government receives competitive rates for its procurements.

Public Impact

The Department of Defense benefits from enhanced data storage capabilities, crucial for its operations. This contract supports the delivery of essential IT infrastructure services for defense information systems. The primary geographic impact is within the District of Columbia, where the contract is registered. While specific workforce implications are not detailed, such contracts typically support IT professionals and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the solution becomes deeply integrated without clear exit strategies.
Scope creep could occur if the definition of 'basic storage solution services' is not precisely defined.
Reliance on a single contractor for critical storage infrastructure could pose a risk if performance degrades.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Awarded under full and open competition, indicating a competitive bidding process.
The contract is a delivery order, suggesting it's part of a pre-competed IDIQ vehicle, potentially streamlining future needs.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer-related services. The market for enterprise storage solutions is substantial, driven by the increasing volume of data generated by government agencies. Comparable spending benchmarks would typically involve analyzing other large-scale storage procurements by federal agencies, considering factors like capacity, performance, and service level agreements.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting plans for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless VION CORPORATION engages in significant small business subcontracting.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Information Systems Agency (DISA) and potentially the Department of Defense's Inspector General. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally facilitated through contract award databases like FPDS.

Related Government Programs

IT Infrastructure Services
Data Storage Solutions
Cloud Computing Services (if applicable)
Information Technology Professional Services

Risk Flags

Contract awarded as a Delivery Order, suggesting it's part of a larger IDIQ vehicle.
Specific performance metrics and service level agreements (SLAs) are not detailed in the provided data.
The exact nature of 'Basic Storage Solution Services' requires further definition for precise benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.8 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 $57.8 million.

What is the period of performance?

Start: 2015-02-08. End: 2015-09-30.

What is VION CORPORATION's track record with similar large-scale IT infrastructure contracts, particularly within the Department of Defense?

VION CORPORATION has a history of performing IT services for the federal government. Analyzing their past performance on contracts of similar size and scope, especially those involving data storage and network infrastructure for defense agencies, is crucial. A review of their contract history would reveal their ability to meet performance requirements, manage budgets, and adhere to delivery schedules. Past performance evaluations and any reported issues or successes on previous DoD contracts would provide significant insight into their reliability and capability for the IGF ESS Basic Storage Solution Services contract.

How does the $57.8 million price point compare to market rates for similar enterprise storage solutions during the 2015 contract period?

Determining the precise market rate comparison for this $57.8 million contract awarded in 2015 requires detailed knowledge of the specific storage technologies, capacities, and service-level agreements (SLAs) involved. Enterprise storage solutions can vary widely in cost based on factors like performance (IOPS, latency), capacity (terabytes/petabytes), redundancy, security features, and ongoing support. Without these specifics, a direct per-unit cost comparison is difficult. However, given the scale implied by the dollar amount, it suggests a significant enterprise-level deployment. Benchmarking against other large federal storage procurements from the same era, or consulting industry reports on enterprise storage pricing from 2015, would be necessary for a more accurate assessment of value for money.

What were the primary risks identified for this contract, and how were they mitigated?

Key risks for a contract of this nature typically include technical risks (e.g., integration challenges, performance issues, obsolescence), schedule risks (e.g., delays in delivery or implementation), and cost risks (though mitigated by the firm fixed-price structure). For this specific contract, potential risks might have involved ensuring compatibility with existing DoD networks and systems, meeting stringent security requirements, and managing the transition to the new storage solution. Mitigation strategies would likely have included detailed technical specifications, phased implementation plans, rigorous testing and validation protocols, and clear performance metrics defined in the contract. The firm fixed-price nature itself mitigates financial risk for the government.

How effective was the 'full and open competition' process in ensuring competitive pricing for this $57.8 million storage solution?

The 'full and open competition' award status is a strong indicator that the procurement process was designed to maximize competition. With 3 bidders participating, it suggests that the market had sufficient interest and capability to respond to the government's requirements. This level of competition generally pressures bidders to offer their most competitive pricing and terms to win the contract. While we don't have the specific bid amounts, the fact that it was competed openly and awarded suggests that the government likely received pricing that reflected market conditions and competitive pressures at the time of award in 2015.

What is the historical spending pattern for 'Other Computer Related Services' (NAICS 541519) within the Department of Defense?

The NAICS code 541519, 'Other Computer Related Services,' encompasses a wide array of IT services beyond software development or hardware maintenance, including IT consulting, data processing, and disaster recovery. Historical spending within the Department of Defense under this category is typically substantial, reflecting the vast and complex IT needs of the military. Analyzing historical data would likely show significant and often increasing annual expenditures as the DoD modernizes its systems, adopts new technologies, and manages its extensive data infrastructure. This specific contract represents one component of that larger spending trend.

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: $57,831,829

Exercised Options: $57,831,829

Current Obligation: $57,831,829

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC101307D2009

IDV Type: IDC

Timeline