Agriculture Dept. Awards $15.6M for LTOP ICF Equipment, Second Year of Three-Year Contract

Contract Overview

Contract Amount: $15,606,306 ($15.6M)

Contractor: Vion Corporation

Awarding Agency: Department of Agriculture

Start Date: 2006-10-01

End Date: 2007-09-30

Contract Duration: 364 days

Daily Burn Rate: $42.9K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LTOP - ICF EQUIPMENT, 2ND YEAR OF A THREE YEAR CONTRACT

Place of Performance

Location: DENVER, JEFFERSON County, COLORADO, 80225

State: Colorado Government Spending

Plain-Language Summary

Department of Agriculture obligated $15.6 million to VION CORPORATION for work described as: LTOP - ICF EQUIPMENT, 2ND YEAR OF A THREE YEAR CONTRACT Key points: 1. Contract value: $15.6 million for the second year of a three-year deal. 2. Contractor: VION CORPORATION. 3. Agency: Department of Agriculture, Office of the Chief Financial Officer. 4. Contract type: Firm Fixed Price Delivery Order. 5. Location: Colorado.

Value Assessment

Rating: fair

The contract is a delivery order under a larger contract, making direct pricing comparisons difficult without knowing the base contract's terms. The firm fixed price suggests cost certainty, but the value is substantial for a single year's equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition method is not specified for this delivery order. If it was competed under a larger IDIQ, the initial competition dictates price discovery. If not, the lack of transparency raises concerns about achieving the best value.

Taxpayer Impact: The $15.6 million expenditure represents a significant taxpayer investment. Ensuring fair pricing and effective use of these funds is crucial for responsible fiscal management.

Public Impact

Taxpayers are funding essential equipment for the Department of Agriculture. The contract's duration and value indicate a significant commitment of federal resources. The specific nature of 'LTOP ICF EQUIPMENT' is unclear, impacting public understanding of the spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on competition for this specific delivery order.
Unspecified nature of 'LTOP ICF EQUIPMENT' hinders value assessment.

Positive Signals

Firm Fixed Price contract type provides cost predictability.
Contract is part of a multi-year strategy, suggesting planned resource allocation.

Sector Analysis

This contract falls under general government operations and IT/equipment procurement. Benchmarks for similar large-scale equipment purchases vary widely depending on the specific technology and agency needs.

Small Business Impact

There is no indication that small businesses were involved in this specific delivery order, either as prime contractors or subcontractors. Further analysis would be needed to determine the overall small business participation in the parent contract.

Oversight & Accountability

Oversight would typically be managed by the Department of Agriculture's Office of the Chief Financial Officer. The effectiveness of oversight depends on internal controls, performance monitoring, and audit processes.

Related Government Programs

Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Lack of detail on 'LTOP ICF EQUIPMENT'.
Unclear competition for the delivery order.
Potential for uncompetitive pricing if not properly competed.
Significant annual expenditure requires strong justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $15.6 million to VION CORPORATION. LTOP - ICF EQUIPMENT, 2ND YEAR OF A THREE YEAR CONTRACT

Who is the contractor on this award?

The obligated recipient is VION CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $15.6 million.

What is the period of performance?

Start: 2006-10-01. End: 2007-09-30.

What is the specific nature and purpose of 'LTOP ICF EQUIPMENT' to understand its necessity and value?

The acronym 'LTOP ICF EQUIPMENT' is not standard and requires clarification. Understanding the equipment's function, whether it's for IT infrastructure, operational support, or a specific program, is crucial for assessing its necessity and justifying the $15.6 million annual expenditure. Without this context, evaluating the true value for taxpayers is challenging.

What was the competitive process for this delivery order, and how was price reasonableness ensured?

The data indicates this is a delivery order, but the specific competition method is not detailed. If it was competed under a broader contract vehicle, the initial competition is key. However, for a significant award like $15.6 million, understanding if this order itself underwent a competitive process or if it was a sole-source award is vital for ensuring fair pricing and maximizing taxpayer value.

How does the annual cost of $15.6 million for this equipment align with industry benchmarks and the agency's overall budget for similar assets?

Benchmarking the $15.6 million annual cost requires detailed specifications of the 'LTOP ICF EQUIPMENT'. Without knowing if this represents hardware, software, maintenance, or a combination, direct comparison is difficult. Assessing this against industry standards for similar government or commercial procurements, and evaluating its proportion within the Agriculture Department's budget, would provide insight into its cost-effectiveness.

Contractor Details

Address: 1055 THOMAS JFFERSON ST NW, WASHINGTON, DC, 20007

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

Financial Breakdown

Contract Ceiling: $15,606,306

Exercised Options: $15,606,306

Current Obligation: $15,606,306

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F0739M

IDV Type: FSS

Timeline