VA awards $327K for IBM storage system to I3 Federal LLC under full and open competition

Contract Overview

Contract Amount: $327,173 ($327.2K)

Contractor: I3 Federal LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-02-18

End Date: 2026-03-20

Contract Duration: 1,491 days

Daily Burn Rate: $219/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IBM FS 7200 STORAGE SYSTEM WITH IMPLEMENTATION AND MIGRATION

Place of Performance

Location: CLIFTON, FAIRFAX County, VIRGINIA, 20124

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $327,173.13 to I3 FEDERAL LLC for work described as: IBM FS 7200 STORAGE SYSTEM WITH IMPLEMENTATION AND MIGRATION Key points: 1. The contract value appears reasonable for a storage system implementation and migration. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of nearly 5 years warrants attention for potential scope creep or evolving needs. 4. This contract falls within the 'Other Computer Related Services' NAICS code, a broad category. 5. The award to I3 Federal LLC indicates a specific capability within the IT services sector. 6. The fixed-price contract type helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The award amount of $327,173.13 for an IBM FS 7200 storage system with implementation and migration seems within a reasonable range for such IT infrastructure projects. Benchmarking against similar federal contracts for storage solutions and associated services would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was intended to be open, there might have been specific reasons for excluding certain sources initially. However, the 'full and open' designation suggests that multiple bidders were likely considered. The level of competition, if robust, should have driven competitive pricing.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes a wider range of offers and can lead to more cost-effective solutions.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving updated storage infrastructure. The services delivered include the provision, implementation, and migration of an IBM FS 7200 storage system. The geographic impact is primarily within Virginia, where the VA's operations are likely centered. This contract supports IT infrastructure, indirectly benefiting VA staff and potentially veterans through improved system performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in with a specific storage system manufacturer.
The long contract duration could lead to technology obsolescence if not managed proactively.
Reliance on a single contractor for implementation and migration may limit flexibility.

Positive Signals

The use of full and open competition suggests a competitive process was followed.
The firm fixed-price contract type provides cost certainty for the government.
The contract is for a specific, necessary IT infrastructure upgrade.

Sector Analysis

This contract falls under the IT services sector, specifically focusing on computer hardware and related services. The market for enterprise storage solutions is competitive, with major players like IBM, Dell EMC, and NetApp. Federal spending in this area is substantial, driven by the need for secure, reliable, and high-performance data storage across various agencies. This contract represents a typical procurement for upgrading or maintaining critical data storage infrastructure.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor, I3 Federal LLC, is not explicitly identified as a small business in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified goods and services. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Infrastructure Modernization
Data Storage Solutions
Enterprise Storage Systems
Federal IT Procurement
Department of Veterans Affairs IT Spending

Risk Flags

Potential for technology obsolescence due to long contract duration.
Need to verify the justification for 'exclusion of sources' in competition.
Contract performance monitoring over the full 5-year term is critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $327,173.13 to I3 FEDERAL LLC. IBM FS 7200 STORAGE SYSTEM WITH IMPLEMENTATION AND MIGRATION

Who is the contractor on this award?

The obligated recipient is I3 FEDERAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $327,173.13.

What is the period of performance?

Start: 2022-02-18. End: 2026-03-20.

What is the track record of I3 Federal LLC in delivering similar IT infrastructure projects for the federal government?

A review of federal procurement data would be necessary to fully assess I3 Federal LLC's track record. Specifically, examining past contracts awarded to I3 Federal LLC for IT hardware, implementation, and migration services would reveal their performance history. Key indicators would include on-time delivery, adherence to budget, customer satisfaction ratings (if available), and any past performance issues or disputes. Understanding their experience with IBM storage systems would also be crucial. Without specific historical contract data for I3 Federal LLC, it is difficult to provide a detailed assessment of their capabilities and reliability for this specific type of project.

How does the awarded price compare to market rates for similar IBM FS 7200 storage systems and implementation services?

To benchmark the value, one would compare the $327,173.13 award to publicly available pricing for the IBM FS 7200 system and associated implementation/migration services. This would involve researching commercial price lists, consulting industry reports on storage hardware costs, and analyzing similar federal contract awards. Factors such as the specific configuration, storage capacity, warranty period, and the complexity of the migration would influence the price. Given the firm fixed-price nature, the VA has secured a defined cost, but a detailed market analysis is needed to confirm if it represents excellent value for money compared to commercial equivalents or other federal deals.

What are the potential risks associated with a nearly 5-year contract duration for storage system implementation?

A contract duration of approximately 5 years (February 2022 to March 2026) for a storage system implementation carries several potential risks. Firstly, technology obsolescence is a significant concern; storage technology evolves rapidly, and a system implemented early in the contract might be outdated by its end. Secondly, the long duration increases the risk of scope creep, where additional requirements or services are added over time, potentially increasing costs if not managed carefully. Thirdly, maintaining consistent performance and support over such an extended period requires robust vendor commitment and potential for service level agreement (SLA) adjustments. Finally, the VA might miss opportunities to leverage newer, more cost-effective technologies that emerge during the contract period.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method in ensuring competitive pricing for IT services?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance broad competition with specific needs. While 'full and open' suggests maximum participation, the 'exclusion of sources' clause indicates that certain potential bidders were intentionally not considered, perhaps due to specific technical requirements, security clearances, or prior relationships. If the exclusion criteria were narrowly defined and justified, this method can still foster significant competition among the remaining eligible sources, leading to competitive pricing. However, if the exclusion criteria were overly broad or poorly justified, it could limit the competitive landscape and potentially lead to higher prices than a truly unrestricted full and open competition.

What historical spending patterns exist for similar storage system procurements by the Department of Veterans Affairs?

Analyzing historical spending patterns for the VA's storage system procurements would involve reviewing past contracts for similar hardware (e.g., IBM storage), implementation services, and migration projects. This would reveal trends in contract values, durations, awardees, and competition levels. For instance, has the VA consistently used firm fixed-price contracts for storage? Have they previously awarded contracts of this duration? Are there specific vendors that frequently win these types of awards? Understanding these patterns can help contextualize the current $327K award, assess if it aligns with historical spending, and identify potential areas for cost savings or process improvements in future procurements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - STORAGE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12030 HENDERSON RD, CLIFTON, VA, 20124

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $327,173

Exercised Options: $327,173

Current Obligation: $327,173

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD31B

IDV Type: GWAC

Timeline