DOJ awards $11.46M to VION CORPORATION for IT services, with fixed price and economic adjustment

Contract Overview

Contract Amount: $11,457,951 ($11.5M)

Contractor: Vion Corporation

Awarding Agency: Department of Justice

Start Date: 2002-07-15

End Date: 2009-09-30

Contract Duration: 2,634 days

Daily Burn Rate: $4.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: IT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20007

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $11.5 million to VION CORPORATION for work described as: Key points: 1. Contract awarded to VION CORPORATION for $11.46 million. 2. Service type is IT, with a fixed price and economic price adjustment. 3. Contract duration is 2634 days. 4. Awarded by the Department of Justice. 5. Competition type is competitive delivery order.

Value Assessment

Rating: fair

The contract's fixed price with economic price adjustment suggests potential for cost increases over its long duration. Benchmarking against similar IT service contracts is difficult without specific service details, but the overall value is substantial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was a competitive delivery order, indicating some level of competition. However, the specific details of the competition and how price discovery was achieved are not provided, making a full assessment challenging.

Taxpayer Impact: The $11.46 million awarded represents taxpayer funds. The economic price adjustment clause introduces a risk of cost escalation beyond initial projections.

Public Impact

Taxpayers funded $11.46 million for IT services. The long contract duration (over 7 years) may impact the adoption of newer technologies. The Department of Justice utilized this contract for its IT needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to outdated technology.
Economic price adjustment clause introduces cost escalation risk.
Lack of detailed competition information hinders value assessment.

Positive Signals

Competitive delivery order suggests some market engagement.
Fixed price component provides a baseline cost control.

Sector Analysis

This contract falls within the Information Technology sector. Spending benchmarks for IT services vary widely based on scope, but a multi-year, multi-million dollar contract like this is significant for departmental IT infrastructure.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors.

Oversight & Accountability

The competitive delivery order mechanism suggests some level of oversight in the procurement process. However, further details on performance monitoring and accountability measures are needed for a comprehensive oversight assessment.

Related Government Programs

Department of Justice Contracting
Offices, Boards and Divisions Programs

Risk Flags

Potential for cost overruns due to economic price adjustment.
Risk of technology obsolescence given the long contract duration.
Lack of transparency regarding competition details.
Unclear impact of economic price adjustment on final cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $11.5 million to VION CORPORATION. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is VION CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2002-07-15. End: 2009-09-30.

What specific IT services were procured under this contract, and how did their scope align with the $11.46 million award?

The provided data does not specify the exact IT services. Understanding the scope is crucial for evaluating if the $11.46 million award represents good value. Without this detail, it's difficult to benchmark against industry standards or determine if the pricing was competitive for the services rendered.

What were the key factors driving the economic price adjustment, and what was the actual cost impact over the contract's duration?

The data indicates an 'Economic Price Adjustment' clause but doesn't detail the triggers or the actual cost increases realized. Understanding these factors is vital for assessing the true financial risk to taxpayers and whether the contract's flexibility led to unforeseen expenses beyond the initial fixed price.

How effective was the competitive delivery order process in ensuring the Department of Justice received optimal value and performance for its IT needs?

While a competitive delivery order implies multiple bids were considered, the effectiveness in securing optimal value and performance hinges on the specifics of the competition, the evaluation criteria, and the subsequent contract management. Without these details, it's challenging to definitively assess the effectiveness of this procurement method for the DOJ's IT requirements.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 2

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Contractor Details

Address: 1055 THOMAS JEFFERSON ST, WASHINGTON, DC, 98

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $11,457,951

Exercised Options: $11,457,951

Current Obligation: $11,457,951

Timeline