DOJ's $12.3M server storage contract awarded to World Wide Technology LLC for 729 days

Contract Overview

Contract Amount: $12,330,283 ($12.3M)

Contractor: World Wide Technology LLC

Awarding Agency: Department of Justice

Start Date: 2024-04-22

End Date: 2026-04-21

Contract Duration: 729 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EOUSA SERVER SUPPORT SERVICES - CLEVERSAFE 100GB INCREMENTS

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63146

State: Missouri Government Spending

Plain-Language Summary

Department of Justice obligated $12.3 million to WORLD WIDE TECHNOLOGY LLC for work described as: EOUSA SERVER SUPPORT SERVICES - CLEVERSAFE 100GB INCREMENTS Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract is for server storage, a critical component of IT infrastructure. 3. Fixed-price contract type may limit cost overruns but could impact flexibility. 4. The contract duration of 729 days provides a stable period for service delivery. 5. Awarded to a single vendor, World Wide Technology LLC, for specific server storage needs. 6. The North American Industry Classification System (NAICS) code 541519 indicates a focus on other computer-related services.

Value Assessment

Rating: fair

Benchmarking the value for this specific server storage contract is challenging without detailed service level agreements and comparable market data for 100GB increments. The firm fixed-price nature suggests the government sought predictable costs. However, the total award amount of $12.3 million over two years warrants scrutiny to ensure it aligns with industry standards for similar storage solutions, considering factors like data transfer rates, redundancy, and support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the method of procurement suggests a robust market for these services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring the government receives the best possible value for its investment in IT infrastructure.

Public Impact

The Department of Justice benefits from enhanced server storage capacity, crucial for managing and accessing vast amounts of data. This contract supports the operational needs of the Offices, Boards and Divisions within the DOJ. The services delivered are essential for maintaining the functionality of the department's IT systems. Geographic impact is nationwide, as DOJ operates across the United States. Workforce implications are indirect, primarily supporting IT personnel responsible for managing the storage infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or service level agreements in the provided data makes it difficult to assess the quality and efficiency of the awarded storage.
The firm fixed-price contract, while offering cost certainty, might not be optimal if storage needs fluctuate significantly or require advanced, adaptable solutions.
Without knowing the number of bidders, it's hard to definitively gauge the intensity of competition and its impact on the final price.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a fair market price.
The firm fixed-price contract type provides cost predictability for the government, mitigating budget risks.
The contract duration of 729 days ensures continuity of essential IT services for the Department of Justice.

Sector Analysis

The IT services sector, particularly data storage solutions, is highly competitive and rapidly evolving. This contract falls within the 'Other Computer Related Services' category, which encompasses a broad range of IT support. The market for enterprise-level data storage is substantial, with numerous vendors offering solutions ranging from on-premises hardware to cloud-based services. Government spending in this area is consistent due to the ever-increasing data needs of federal agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The primary contractor, World Wide Technology LLC, is a large business, and its subcontracting plans, if any, would not be driven by a small business set-aside provision for this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) IT Schedule Contracts
Department of Defense (DoD) IT Procurement
Cloud Computing Services Contracts
Data Center Infrastructure Support

Risk Flags

Potential for cost inefficiencies if storage needs fluctuate significantly.
Risk of contractor underperformance if cost-cutting measures are implemented.
Limited flexibility for scope changes under a firm fixed-price agreement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $12.3 million to WORLD WIDE TECHNOLOGY LLC. EOUSA SERVER SUPPORT SERVICES - CLEVERSAFE 100GB INCREMENTS

Who is the contractor on this award?

The obligated recipient is WORLD WIDE TECHNOLOGY LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.3 million.

What is the period of performance?

Start: 2024-04-22. End: 2026-04-21.

What is the historical spending pattern for server storage services within the Department of Justice?

Analyzing historical spending patterns for server storage within the Department of Justice (DOJ) is crucial for understanding trends and identifying potential efficiencies. While specific historical data for this contract is not provided, federal agencies like the DOJ consistently invest significant resources in IT infrastructure, including data storage. Spending in this area is driven by increasing data volumes, evolving technological requirements, and the need for robust data security and accessibility. Agencies often utilize a mix of contract vehicles, including GSA schedules and direct procurements, to acquire storage solutions. Benchmarking current spending against past expenditures can reveal whether costs are escalating, stabilizing, or decreasing, and whether the agency is leveraging competitive procurements effectively to manage these costs over time. A detailed analysis would involve examining prior contracts for similar services, noting award amounts, contract types, and durations to establish a baseline for comparison.

How does the pricing of this contract compare to similar server storage contracts awarded by other federal agencies?

Comparing the pricing of this $12.3 million server storage contract to similar awards across federal agencies requires access to a broader dataset of IT procurements. Key comparison points would include the cost per 100GB increment, the type of storage (e.g., SAN, NAS, cloud-based), performance specifications (IOPS, throughput), and included support levels. Contracts awarded under full and open competition, like this one, generally provide a good basis for comparison, assuming similar scopes of work. However, variations in agency-specific requirements, negotiated discounts, and contract vehicles (e.g., GSA Schedules vs. direct procurements) can lead to price differences. Without specific performance metrics and detailed pricing breakdowns for comparable contracts, a precise benchmark is difficult. Generally, agencies aim for competitive pricing through multiple bids, and significant deviations from market averages could indicate either exceptional value or potential overspending.

What are the potential risks associated with a firm fixed-price contract for server storage?

A firm fixed-price (FFP) contract for server storage, while offering cost certainty, carries specific risks. The primary risk is that the contractor may face challenges in meeting the contracted terms if unforeseen technical issues arise or if the scope of work expands beyond initial expectations. If the contractor underestimated the complexity or cost of providing the storage solution, they might cut corners on quality or service to maintain profitability, potentially impacting performance or reliability. Conversely, if the government's needs change significantly, an FFP contract can be inflexible, requiring costly modifications or new contract actions. The government also bears the risk if the contractor's costs are lower than anticipated, as the FFP structure means the government pays the agreed-upon price regardless of the contractor's actual expenses. Effective oversight is crucial to ensure the contractor fulfills all obligations under the FFP terms.

What is the track record of World Wide Technology LLC in delivering IT infrastructure services to the federal government?

World Wide Technology LLC (WWT) has a significant track record as a major IT solutions provider and systems integrator for the federal government. They frequently appear as awardees on large federal contracts across various agencies, including the Department of Defense, civilian agencies, and intelligence community entities. WWT typically partners with numerous technology manufacturers to deliver comprehensive solutions encompassing hardware, software, and services. Their federal contract history often includes awards for networking, data center infrastructure, cybersecurity, and cloud solutions. While specific performance details for individual contracts are not always public, their consistent presence and substantial award values suggest a generally positive standing and capability in meeting federal IT requirements. Agencies often rely on past performance evaluations when making future award decisions.

How does the duration of this contract (729 days) align with typical federal IT infrastructure procurement cycles?

A contract duration of 729 days, approximately two years, is a common and reasonable timeframe for federal IT infrastructure procurements, particularly for hardware and associated services like server storage. This duration allows for stable service delivery and avoids the administrative burden of frequent re-procurements, while also providing flexibility to adapt to technological advancements. Shorter durations (e.g., one year) might be used for pilot projects or rapidly evolving technologies, whereas longer durations (e.g., five years) are often seen in larger, more complex system integrations or sustainment contracts, sometimes with option periods. A two-year term for server storage provides a balance, ensuring continuity of operations without locking the government into potentially outdated technology for an extended period. It also allows sufficient time for the contractor to establish and maintain the service effectively.

Industry Classification

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

Product/Service Code: IT AND TELECOM - IT MANAGEMENT

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: 1 WORLD WIDE WAY, SAINT LOUIS, MO, 63146

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,000,000

Exercised Options: $13,200,000

Current Obligation: $12,330,283

Actual Outlays: $9,649,515

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SC55B

IDV Type: GWAC

Timeline