DoD's $14M contract for ADP input/output devices awarded to AEON GROUP, LLC shows fair value

Contract Overview

Contract Amount: $12,905,117 ($12.9M)

Contractor: Aeon Group, LLC

Awarding Agency: Department of Defense

Start Date: 2004-04-01

End Date: 2006-12-31

Contract Duration: 1,004 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 200408!000117!9700!HQ0423!DEF FINANCE & ACTG SVC, COLUMBUS!HQ042304C0003 !A!N! !N! ! !20040401!20080401!140321691!140321691!140321691!N!THE AEON GROUP, LLC !5777 W CENTURY BLVD !LOS ANGELES !CA!90045!44000!037!06!LOS ANGELES !LOS ANGELES !CALIFORNIA!+000014899316!N!N!000015567632!7025!ADP INPUT/OUTPUT AND STORAGE DEVICES !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541512!A!A!3! ! ! ! ! !99990909!B!C!Y!A! !A!U!J!2!004!B! !A!N!Z! ! !N!B!Y!N! ! !Z! !A!A!00 !A!B!N! ! ! !Y! ! !0001! !

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43213

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $12.9 million to AEON GROUP, LLC for work described as: 200408!000117!9700!HQ0423!DEF FINANCE & ACTG SVC, COLUMBUS!HQ042304C0003 !A!N! !N! ! !20040401!20080401!140321691!140321691!140321691!N!THE AEON GROUP, LLC !5777 W CENTURY BLVD !LOS ANGELES !CA!90045!44000!037!06!LOS ANGELES !LOS … Key points: 1. Contract value of $14.03M for ADP input/output and storage devices. 2. Awarded to THE AEON GROUP, LLC, a small business. 3. Contract duration of 1004 days, from April 1, 2004, to December 31, 2006. 4. Procurement was conducted under full and open competition. 5. The contract type is Firm Fixed Price, indicating price certainty. 6. The primary NAICS code is 541512 (Computer Systems Design Services).

Value Assessment

Rating: fair

The contract value of approximately $14 million for ADP input/output and storage devices appears reasonable given the duration and scope. Without specific per-unit cost data or detailed market benchmarks for these types of devices during the 2004-2006 period, a precise value-for-money assessment is challenging. However, the firm fixed-price nature suggests that the government secured a defined cost for the goods and services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The data shows 4 bids were received, suggesting a healthy level of competition for this requirement. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition and multiple bids received indicate that taxpayer dollars were likely used efficiently, as the government benefited from market forces to secure the best possible pricing.

Public Impact

The Department of Defense benefits from the acquisition of essential ADP input/output and storage devices. These devices support critical functions within the Defense Finance and Accounting Service (DFAS). The contract supports the operational readiness and technological infrastructure of the U.S. military. The geographic impact is primarily within Ohio, where DFAS operates, and potentially extends to other DoD facilities utilizing these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for technology obsolescence given the contract's award date (2004).
Limited insight into specific performance metrics or service levels achieved.
The primary NAICS code (541512) is broad and may not fully capture the specific nature of the hardware provided.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor, THE AEON GROUP, LLC, is identified as a small business, potentially supporting small business goals.
Multiple bids received indicate market interest and potential for good value.

Sector Analysis

This contract falls within the broader IT hardware and services sector, specifically related to data storage and input/output devices. The market for such equipment is characterized by rapid technological advancement and competitive pricing. Benchmarking this contract's value against similar procurements from the mid-2000s would require access to historical pricing data for ADP equipment, which is not readily available in this dataset.

Small Business Impact

While THE AEON GROUP, LLC is listed as a small business, this contract was not specifically set aside for small businesses as it was awarded under full and open competition. The fact that a small business was the awardee in a competitive environment is a positive signal for the small business ecosystem, demonstrating their ability to compete and win against larger entities. There is no explicit information on subcontracting plans or performance within this data.

Oversight & Accountability

The contract was awarded by the Department of Defense, which has established oversight mechanisms including contract administration and potential audits. The firm fixed-price nature of the contract provides a degree of accountability regarding cost. Transparency is facilitated by the public nature of contract awards, though detailed performance reports are not included here. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

Department of Defense IT Procurement
ADP Equipment and Services
Computer Systems Design Services
Defense Finance and Accounting Service Contracts

Risk Flags

Contract awarded in 2004, potential for technology obsolescence.
Limited detail on specific device performance or technical specifications.
NAICS code is broad, may not fully represent the specific goods procured.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.9 million to AEON GROUP, LLC. 200408!000117!9700!HQ0423!DEF FINANCE & ACTG SVC, COLUMBUS!HQ042304C0003 !A!N! !N! ! !20040401!20080401!140321691!140321691!140321691!N!THE AEON GROUP, LLC !5777 W CENTURY BLVD !LOS ANGELES !CA!90045!44000!037!06!LOS ANGELES !LOS ANGELES !CALIFORNIA!+000014899316!N!N!000015567632!7025!ADP INPUT/OUTPUT AND STORAGE DEVICES !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541512!A!A!3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is AEON GROUP, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2004-04-01. End: 2006-12-31.

What was the specific type and quantity of ADP input/output and storage devices procured under this contract?

The provided data indicates the contract was for 'ADP INPUT/OUTPUT AND STORAGE DEVICES' under NAICS code 541512 (Computer Systems Design Services). However, the specific types, models, quantities, and technical specifications of the devices are not detailed in this summary. The contract value was $14,032,169.10, awarded on April 1, 2004, and ending December 31, 2006. Without a detailed statement of work or product list, it's impossible to ascertain the exact nature of the hardware procured.

How did the pricing of this contract compare to similar procurements during the 2004-2006 timeframe?

A direct comparison of pricing to similar procurements is challenging without access to a comprehensive database of historical IT hardware contracts from that specific period. The contract was awarded under full and open competition with four bids, suggesting competitive pricing. The firm fixed-price structure also implies a negotiated price that was deemed acceptable by both parties at the time of award. However, without specific unit costs or benchmark data for comparable devices (e.g., servers, storage arrays, I/O peripherals) from 2004-2006, a definitive statement on whether the pricing was above, below, or at market rates cannot be made.

What is the track record of THE AEON GROUP, LLC with federal contracts, particularly with the Department of Defense?

The provided data indicates that THE AEON GROUP, LLC was awarded this specific $14 million contract by the Department of Defense. This contract, valued at $14,032,169.10, ran from April 1, 2004, to December 31, 2006, for ADP input/output and storage devices. Further details on their contract history, past performance, or other awards with the DoD or other federal agencies are not available in this dataset. A comprehensive assessment would require searching federal procurement databases like FPDS or SAM.gov for their complete contract portfolio.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Contracts for hardware procurement typically focus on delivery timelines, product specifications, and warranty terms. While the contract was for ADP input/output and storage devices, details regarding performance metrics such as uptime, response times, or support responsiveness are not present. The firm fixed-price nature suggests that the primary performance expectation was the delivery of the specified goods by the agreed-upon deadline.

How has spending on ADP input/output and storage devices by the Department of Defense evolved since this contract was awarded?

Spending on ADP input/output and storage devices by the Department of Defense has likely evolved significantly since this contract, which was awarded in 2004 and completed in 2006. Technology in this sector advances rapidly, leading to shifts in demand towards newer, more efficient, and often more cost-effective solutions like solid-state drives (SSDs), cloud storage, and advanced networking equipment. DoD spending patterns would have adapted to these technological changes, potentially increasing investment in areas like cybersecurity, data analytics, and high-performance computing, while perhaps decreasing spending on older storage technologies. Overall IT budgets within the DoD have also fluctuated based on defense priorities and appropriations.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 5777 W CENTURY BLVD, LOS ANGELES, CA, 90045

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline