Commerce Department's USPTO awards $267M IT contract to VION CORPORATION for managed services

Contract Overview

Contract Amount: $267,281,932 ($267.3M)

Contractor: Vion Corporation

Awarding Agency: Department of Commerce

Start Date: 2014-07-24

End Date: 2024-12-06

Contract Duration: 3,788 days

Daily Burn Rate: $70.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF STORAGE INFRASTRUCTURE MANAGED SERVICES (SIMS)

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $267.3 million to VION CORPORATION for work described as: IGF::OT::IGF STORAGE INFRASTRUCTURE MANAGED SERVICES (SIMS) Key points: 1. Contract value represents a significant investment in IT infrastructure management. 2. Full and open competition suggests a potentially competitive bidding process. 3. Long duration of the contract (10 years) may indicate a need for stable, long-term solutions. 4. Firm Fixed Price contract type aims to control costs and provide predictability. 5. The contract falls under the 'Computer and Software Stores' NAICS code, indicating IT hardware and software support. 6. Virginia is the primary state for contract performance, suggesting a concentration of IT operations there.

Value Assessment

Rating: good

The total contract value of $267.3 million over 10 years averages to approximately $26.7 million annually. Benchmarking this against similar large-scale IT managed services contracts for federal agencies is challenging without more specific service details. However, the firm fixed-price structure suggests an effort to manage costs effectively. The contract's duration implies a stable, ongoing need for these services, and the value appears consistent with the scale of IT operations for a major agency like the USPTO.

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 bids. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The data does not specify the number of bidders, but the 'full and open' designation is a positive indicator for robust competition.

Taxpayer Impact: A competitive bidding process like full and open competition is intended to ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among contractors.

Public Impact

The U.S. Patent and Trademark Office (USPTO) benefits from reliable IT infrastructure management. Services delivered likely include maintenance, support, and potentially upgrades for IT systems. The primary geographic impact is in Virginia, where the USPTO has significant operations. The contract supports IT professionals employed by VION CORPORATION and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) could lead to vendor lock-in and reduced flexibility for future technological shifts.
Firm Fixed Price contracts can sometimes incentivize contractors to cut corners on quality if not properly managed.
Reliance on a single vendor for critical IT infrastructure management poses a risk if the vendor experiences financial or operational difficulties.

Positive Signals

Full and open competition suggests a strong initial vetting of potential providers.
The firm fixed-price structure provides cost certainty for the agency.
The contract's long-term nature indicates a stable and ongoing need, suggesting the services are critical to USPTO operations.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on managed infrastructure services. The U.S. federal government is a major consumer of IT services, with significant spending allocated annually to software, hardware, and related support. Contracts like this are crucial for maintaining the operational backbone of agencies, enabling them to fulfill their missions. Comparable spending benchmarks would typically involve analyzing IT managed services contracts awarded to other large federal agencies for similar scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, there is potential for VION CORPORATION to engage small businesses as subcontractors. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is unclear. Future analysis could explore subcontracting reports to assess small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Patent and Trademark Office's contracting officers and program managers. The firm fixed-price nature provides some cost control. Transparency is generally facilitated through federal contract databases like FPDS. Accountability measures would be defined in the contract's statement of work and performance standards. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

USPTO IT Modernization
Federal Cloud Computing Strategy
IT Infrastructure Services
Managed Services Contracts
Department of Commerce IT Spending

Risk Flags

Long contract duration may not align with rapid technological advancements.
Potential for vendor lock-in over the 10-year period.
Firm Fixed Price may disincentivize innovation if not managed with performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $267.3 million to VION CORPORATION. IGF::OT::IGF STORAGE INFRASTRUCTURE MANAGED SERVICES (SIMS)

Who is the contractor on this award?

The obligated recipient is VION CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $267.3 million.

What is the period of performance?

Start: 2014-07-24. End: 2024-12-06.

What specific IT infrastructure components and services are covered under this $267 million contract?

The contract, identified as IGF::OT::IGF STORAGE INFRASTRUCTURE MANAGED SERVICES (SIMS), primarily focuses on managed services for storage infrastructure. While the specific components are not detailed in the provided data, this typically encompasses the management, maintenance, and support of data storage hardware (e.g., servers, SANs, NAS), associated software (e.g., operating systems, storage management tools), network connectivity, and potentially data backup and recovery solutions. The duration and value suggest a comprehensive scope, likely including hardware lifecycle management, performance monitoring, security patching, and incident response for the USPTO's critical data storage systems.

How does the annual cost of this contract compare to industry benchmarks for similar managed IT infrastructure services?

The total contract value of $267.3 million over approximately 10 years results in an average annual cost of roughly $26.7 million. Benchmarking this figure requires detailed knowledge of the specific services, Service Level Agreements (SLAs), and the scale of infrastructure managed. However, for a large federal agency like the USPTO, managing complex storage infrastructure, this annual figure appears within a reasonable range for comprehensive managed services. Industry benchmarks often vary widely based on factors like data volume, uptime requirements, security protocols, and the specific technologies deployed. Without a detailed scope of work and performance metrics, a precise comparison is difficult, but the cost seems commensurate with the potential scale of operations.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract to ensure VION CORPORATION meets performance expectations?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a managed IT infrastructure services contract of this magnitude and duration, robust KPIs and SLAs are essential. Typical metrics would likely include system availability (uptime percentages), response times for incident resolution, data backup success rates, performance thresholds (e.g., storage access speeds), and security compliance adherence. The effectiveness of VION CORPORATION's performance would be measured against these predefined standards, which are usually detailed in the contract's Statement of Work (SOW) and would dictate any potential penalties or incentives.

What is VION CORPORATION's track record with federal IT managed services contracts, particularly those of similar size and scope?

VION CORPORATION has been awarded this significant contract by the Department of Commerce's USPTO, indicating a level of trust and capability recognized by the agency. While the provided data doesn't detail their entire federal contract history, the award of a $267 million, 10-year managed services contract suggests they possess the capacity and experience to handle large-scale IT operations. Further investigation into federal procurement databases (like FPDS) would reveal the full extent of their federal contract portfolio, including past performance on similar IT infrastructure, storage management, or broader managed services contracts, and their performance ratings on those awards.

What are the potential risks associated with a 10-year firm-fixed-price contract for managed IT infrastructure, and how might they be mitigated?

A 10-year firm-fixed-price (FFP) contract for managed IT infrastructure presents several potential risks. Firstly, technological obsolescence is a significant concern; IT evolves rapidly, and a decade-long commitment to specific infrastructure could lead to outdated systems. Secondly, the FFP structure might incentivize the contractor to minimize costs, potentially impacting service quality or innovation if not carefully monitored. Thirdly, vendor lock-in can occur, making it difficult and costly to switch providers even if performance degrades or better solutions emerge. Mitigation strategies include incorporating flexibility clauses for technology refreshes, establishing stringent performance monitoring and regular reviews, defining clear exit strategies, and potentially including incentives for continuous improvement and adoption of new technologies within the contract framework.

Industry Classification

NAICS: Retail Trade › Electronics and Appliance Stores › Computer and Software Stores

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 196 VAN BUREN ST STE 300, HERNDON, VA, 20170

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $571,131,601

Exercised Options: $267,767,032

Current Obligation: $267,281,932

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $10,787,019

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0739M

IDV Type: FSS

Timeline