GSA awards $3.5M to VANA SOLUTIONS LLC for USMC warehouse modernization, focusing on IT systems design

Contract Overview

Contract Amount: $3,485,851 ($3.5M)

Contractor: Vana Solutions LLC

Awarding Agency: General Services Administration

Start Date: 2024-09-27

End Date: 2026-09-26

Contract Duration: 729 days

Daily Burn Rate: $4.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: VANA TO 18 USMC WAREHOUSE MODERNIZATION PROJECT

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $3.5 million to VANA SOLUTIONS LLC for work described as: VANA TO 18 USMC WAREHOUSE MODERNIZATION PROJECT Key points: 1. Contract value appears reasonable for a two-year IT modernization project. 2. Limited competition raises concerns about potential overpricing and reduced value. 3. Project duration of 729 days suggests a phased approach to modernization. 4. Focus on Computer Systems Design Services indicates a need for enhanced IT infrastructure. 5. Geographic focus on Virginia aligns with USMC operational needs. 6. The contract's reliance on labor hours may require close monitoring for efficiency.

Value Assessment

Rating: fair

The contract value of $3.5 million for a two-year IT modernization project for the USMC warehouse is within a typical range for such services. However, without more specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar IT modernization contracts for military logistics facilities would be necessary for a more robust comparison. The use of labor hours as the contract type (PT) can sometimes lead to cost overruns if not managed diligently, impacting the overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits the government's ability to explore multiple vendor offerings and potentially secure more competitive pricing. While sole-source awards can be justified in specific circumstances, the lack of competition here suggests that taxpayers may not have received the best possible price or value.

Taxpayer Impact: The absence of a competitive bidding process means taxpayers may have paid a premium for these services, as VANA SOLUTIONS LLC was the only provider considered.

Public Impact

The U.S. Marine Corps will benefit from modernized warehouse IT systems, potentially improving logistics and operational efficiency. Services delivered include computer systems design, crucial for updating aging infrastructure. The project's geographic impact is centered in Virginia, supporting a key military installation. Workforce implications are likely to involve IT specialists and project managers, both within the contractor and potentially government oversight roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Labor hour contract type necessitates strong oversight to prevent scope creep and ensure efficiency.
Lack of publicly available performance metrics makes it difficult to assess contractor effectiveness.
Limited information on the specific IT systems being modernized hinders a full understanding of the project's impact.

Positive Signals

Contract addresses a critical need for modernization within the USMC logistics infrastructure.
Awarding agency (GSA) is experienced in managing complex IT service contracts.
Project duration is clearly defined, allowing for structured planning and execution.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. The market for these services is robust, with numerous providers capable of undertaking such projects. However, government IT contracts often involve complex security and integration requirements. The value of this contract, approximately $3.5 million, is moderate within the broader federal IT spending landscape, which can range from small task orders to multi-billion dollar enterprise-wide solutions.

Small Business Impact

The contract indicates that small business participation was not a primary consideration, as the 'sb' (small business) flag is false and the contract was not set aside for small businesses. This suggests that larger, established firms were likely considered or that the specific requirements of the project did not lend themselves to a small business set-aside. There is no explicit mention of subcontracting plans for small businesses, which could limit opportunities for smaller players in this specific contract's ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), which has established procurement and contract management processes. Accountability measures would typically involve performance reviews, milestone tracking, and adherence to the Statement of Work. Transparency is somewhat limited due to the sole-source nature of the award and the lack of detailed public performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USMC Logistics Modernization Programs
GSA IT Services Contracts
Defense Department IT Infrastructure Upgrades
Federal Warehouse Management Systems

Risk Flags

Sole-source award
Labor-hour contract type
Lack of performance data

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.5 million to VANA SOLUTIONS LLC. VANA TO 18 USMC WAREHOUSE MODERNIZATION PROJECT

Who is the contractor on this award?

The obligated recipient is VANA SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-09-26.

What specific IT systems are being modernized under this contract, and what are the expected improvements in efficiency or capability for the USMC warehouse operations?

The provided data indicates the contract is for 'Computer Systems Design Services' for the 'VANA TO 18 USMC WAREHOUSE MODERNIZATION PROJECT.' While the specific IT systems are not detailed, this category typically encompasses the design, development, integration, and testing of computer hardware and software systems. For the USMC warehouse, this could involve upgrading inventory management systems, enhancing data processing capabilities, improving network infrastructure for real-time tracking, or implementing new security protocols. The expected improvements would likely focus on increased accuracy in inventory control, faster processing of goods, better data accessibility for decision-making, and potentially reduced operational costs through automation and streamlined workflows. Without a detailed Statement of Work or performance metrics, quantifying these improvements remains speculative.

Given the sole-source nature of this award, how can the GSA ensure that VANA SOLUTIONS LLC is providing services at a fair and reasonable price?

Ensuring fair and reasonable pricing for a sole-source contract requires robust internal GSA processes and potentially external validation. The GSA contracting officer must conduct a thorough price analysis, which may involve reviewing historical pricing data for similar services provided by VANA SOLUTIONS LLC or other contractors, analyzing the contractor's cost breakdown (if provided), and comparing proposed labor rates and material costs against market data or established government price lists. If the contractor is a commercial item provider, the government may request commercial sales data to establish a baseline. The GSA might also engage independent cost estimators or subject matter experts to validate the proposed costs. Documentation of this price analysis is critical for justifying the sole-source award and demonstrating due diligence in protecting taxpayer funds.

What is the track record of VANA SOLUTIONS LLC in performing similar IT modernization projects for government agencies, particularly within the Department of Defense?

Information regarding VANA SOLUTIONS LLC's specific track record on similar IT modernization projects, especially for the Department of Defense, is not detailed in the provided data. A comprehensive assessment would require accessing contract databases (like FPDS or SAM.gov) to review their past performance ratings, the types and values of previous contracts, and any reported issues or successes. Without this external data, it's difficult to gauge their experience level and reliability for this specific USMC project. Federal agencies typically conduct pre-award reviews of a contractor's past performance, which would inform the decision-making process for sole-source awards, but this information is not publicly accessible here.

How does the $3.5 million contract value compare to other federal spending on warehouse modernization or IT system design services for military branches?

The $3.5 million contract value for this two-year USMC warehouse modernization project is considered moderate within the broader context of federal IT spending. Large-scale IT modernization efforts for military branches can easily run into tens or hundreds of millions of dollars, encompassing enterprise-wide system overhauls, major software implementations, or significant hardware infrastructure upgrades. Smaller, targeted projects like this one, focused on specific facilities or system components, typically fall within the sub-million to few-million-dollar range. For instance, other warehouse modernization efforts might involve physical infrastructure upgrades (construction) alongside IT components, leading to higher overall costs. Similarly, complex software development or cybersecurity enhancements for critical defense systems would command significantly larger budgets. This contract appears to be a focused IT systems design effort rather than a comprehensive overhaul.

What are the potential risks associated with a labor-hour contract type for this project, and what mitigation strategies are in place?

A labor-hour (LH) contract type, like the one indicated (PT: LABOR HOURS), carries inherent risks, primarily the potential for cost overruns if the scope of work is not precisely defined or if the contractor's efficiency is low. The government pays for the time spent by the contractor's personnel at agreed-upon hourly rates, plus any direct costs. Risks include scope creep (uncontrolled expansion of work), inefficient labor utilization, and difficulty in accurately forecasting the total project cost upfront. Mitigation strategies employed by the GSA would typically involve establishing clear milestones, requiring detailed progress reports, closely monitoring labor hours charged against tasks, and potentially incorporating fixed-price components for well-defined deliverables. Strong project management and technical oversight from the government are crucial to manage these risks effectively and ensure the project stays within budget and on schedule.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFCA24R0055

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 3610 PENTAGON BLVD SUITE 110, BEAVERCREEK, OH, 45431

Business Categories: Category Business, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,993,862

Exercised Options: $3,993,862

Current Obligation: $3,485,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFCA19D0005

IDV Type: IDC

Timeline