VA awards $43.4M storage contract to Fedstore Corp, replacing equipment across multiple facilities

Contract Overview

Contract Amount: $43,444,706 ($43.4M)

Contractor: Fedstore Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-18

End Date: 2029-09-17

Contract Duration: 1,825 days

Daily Burn Rate: $23.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: STRATEGIC ENTERPRISE STORAGE REQUIREMENT TO REPLACE STORAGE EQUIPMENT AT MULTIPLE VA FACILITIES.

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44106

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $43.4 million to FEDSTORE CORPORATION for work described as: STRATEGIC ENTERPRISE STORAGE REQUIREMENT TO REPLACE STORAGE EQUIPMENT AT MULTIPLE VA FACILITIES. Key points: 1. Contract aims to modernize critical storage infrastructure for Veterans Affairs. 2. Fedstore Corporation selected through full and open competition. 3. Potential for improved data accessibility and system reliability for VA. 4. Long-term contract duration suggests ongoing need for storage solutions. 5. Fixed-price contract type offers cost certainty for the government.

Value Assessment

Rating: good

The contract value of $43.4 million over five years for enterprise storage replacement appears reasonable given the scope of replacing equipment at multiple VA facilities. Benchmarking against similar large-scale IT infrastructure projects within federal agencies suggests this is within expected cost ranges. The firm fixed-price structure helps control overall expenditure, though the specific per-unit cost of storage solutions would require deeper analysis of the equipment specifications.

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, indicating that multiple vendors were likely solicited and allowed to bid. The presence of 5 bids suggests a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and ensure the government receives a good value for the storage solutions provided.

Taxpayer Impact: The competitive bidding process for this significant IT infrastructure award is beneficial for taxpayers, as it likely resulted in a lower overall price than a sole-source or limited competition award.

Public Impact

Veterans Affairs will benefit from modernized and reliable data storage infrastructure. Improved system performance and data accessibility for VA staff supporting veterans. Potential for enhanced cybersecurity and data resilience across VA facilities. The contract supports the IT services sector and potentially the workforce involved in deployment and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary storage solutions are mandated.
Risk of cost overruns if unforeseen technical challenges arise during implementation.
Dependence on Fedstore Corporation for critical storage infrastructure maintenance and upgrades.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract provides cost predictability.
Long-term duration suggests a stable, ongoing need met by this vendor.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on enterprise storage solutions. The market for data storage is vast and competitive, with numerous vendors offering hardware, software, and cloud-based solutions. The VA's requirement for physical storage equipment at multiple locations indicates a need for on-premises or hybrid solutions, a segment that continues to be significant despite the rise of cloud computing. Comparable spending benchmarks for large federal IT infrastructure procurements often run into tens or hundreds of millions of dollars.

Small Business Impact

While the contract was awarded to Fedstore Corporation, the provided data does not indicate if small businesses were specifically targeted for set-asides or if subcontracting opportunities are mandated. Further analysis would be needed to determine the extent of small business participation. Without specific set-aside provisions, the primary impact on the small business ecosystem would be through potential subcontracting roles, which are not detailed here.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. As a firm fixed-price contract, oversight will likely focus on delivery schedules, performance standards, and adherence to the contract terms. Transparency is generally maintained through federal procurement databases. The Inspector General's office within the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

VA IT Modernization Initiatives
Federal Data Center Consolidation
Enterprise IT Infrastructure Procurement
IT Services for Government Agencies

Risk Flags

Potential for vendor lock-in
Technical integration complexity
Long-term system scalability concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $43.4 million to FEDSTORE CORPORATION. STRATEGIC ENTERPRISE STORAGE REQUIREMENT TO REPLACE STORAGE EQUIPMENT AT MULTIPLE VA FACILITIES.

Who is the contractor on this award?

The obligated recipient is FEDSTORE CORPORATION.

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 $43.4 million.

What is the period of performance?

Start: 2024-09-18. End: 2029-09-17.

What is Fedstore Corporation's track record with large federal IT infrastructure contracts, particularly storage solutions?

Fedstore Corporation has a history of providing IT equipment and services to the federal government. While specific details on their track record with large-scale enterprise storage deployments for agencies like the VA are not immediately available in this summary, their selection through full and open competition suggests they met the technical and financial qualifications outlined in the solicitation. Further investigation into their past performance ratings, contract history with similar agencies, and any reported issues on previous large IT projects would provide a more comprehensive understanding of their capabilities and reliability in executing this significant contract.

How does the $43.4 million contract value compare to similar enterprise storage replacement projects at other federal agencies?

The $43.4 million contract value for enterprise storage replacement over five years is substantial and aligns with the scale of major IT infrastructure procurements in the federal government. Agencies like the Department of Defense or the General Services Administration often engage in similar large-scale hardware and infrastructure refresh projects that can range from tens to hundreds of millions of dollars. The VA's need to replace equipment at multiple facilities justifies a significant investment. Without specific details on the storage capacity, performance tiers, and included services, a precise per-unit comparison is difficult, but the overall value appears consistent with the scope of modernizing critical data storage for a large agency.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential technical integration challenges when replacing existing storage systems across multiple sites, the possibility of vendor lock-in if proprietary technologies are used, and ensuring the long-term scalability of the chosen solution. Mitigation strategies likely involve rigorous testing and validation phases, clear performance metrics in the contract, and potentially clauses that allow for future upgrades or transitions. The firm fixed-price nature of the contract also shifts some financial risk to the contractor, incentivizing them to manage implementation costs effectively. The VA's procurement process would have included risk assessments and requirements for contractor performance.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for money for this type of IT contract?

The 'full and open competition after exclusion of sources' method is generally considered a robust approach to ensuring value for money, especially for complex IT procurements. It allows all responsible sources to submit bids, fostering a competitive environment that drives down prices and encourages innovation. The 'exclusion of sources' aspect might imply that certain pre-qualified vendors or specific types of solutions were initially considered, but the overall intent is to maximize competition. With five bids received, as indicated, this method appears to have successfully attracted multiple vendors, increasing the likelihood that the VA secured competitive pricing and a solution that meets its technical requirements effectively.

What are the historical spending patterns for enterprise storage solutions within the Department of Veterans Affairs?

Historical spending patterns for enterprise storage within the VA would likely show a consistent need for significant investment in data management infrastructure, reflecting the agency's large operational footprint and the increasing volume of data generated. Prior contracts would have supported existing systems, and this new award signifies a strategic refresh or expansion. Analyzing past VA IT budgets and specific storage procurements would reveal trends in technology adoption, vendor relationships, and average contract values. This $43.4 million award suggests a substantial, planned investment rather than routine, incremental spending, indicating a focus on upgrading core capabilities.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 RESEARCH CT STE 450, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $46,747,254

Exercised Options: $43,444,706

Current Obligation: $43,444,706

Actual Outlays: $28,653,279

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: NNG15SD21B

IDV Type: GWAC

Timeline