HHS Awards $2.4M Cloud Storage Contract to ZOLON PCS, LLC for OASH Data

Contract Overview

Contract Amount: $2,432,724 ($2.4M)

Contractor: Zolon PCS, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2024-06-17

End Date: 2026-06-16

Contract Duration: 729 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CONTRACTOR SUPPORT TO CONFIGURE ENTERPRISE STORAGE AS A SERVICE TO HOUSE ALL OASH DATA IN A FEDERAL CLOUD ENVIRONMENT

Place of Performance

Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.4 million to ZOLON PCS, LLC for work described as: CONTRACTOR SUPPORT TO CONFIGURE ENTERPRISE STORAGE AS A SERVICE TO HOUSE ALL OASH DATA IN A FEDERAL CLOUD ENVIRONMENT Key points: 1. Contract focuses on enterprise storage as a service in a federal cloud environment. 2. ZOLON PCS, LLC is the awardee for this 2-year contract. 3. The contract falls under 'Other Computer Related Services' (NAICS 541519). 4. This award aims to centralize OASH data within a secure federal cloud.

Value Assessment

Rating: good

The contract value of $2.43M for two years appears reasonable for enterprise cloud storage services. Benchmarking against similar federal cloud storage contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair market prices and good value for the government.

Taxpayer Impact: The use of a competitive process is likely to ensure taxpayer funds are used efficiently for essential data storage infrastructure.

Public Impact

Improved data accessibility and management for the Office of the Assistant Secretary for Administration (OASH). Enhanced data security and compliance through a federal cloud environment. Potential for cost savings through a consolidated storage solution. Modernization of IT infrastructure for HHS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential vendor lock-in with cloud storage solutions.
Data migration complexities and risks.
Ensuring ongoing cost-effectiveness of 'as-a-service' model.

Positive Signals

Leverages federal cloud for enhanced security.
Full and open competition promotes value.
Consolidates data for better management.

Sector Analysis

This contract falls within the IT services sector, specifically cloud computing and data storage. Federal spending in this area is substantial as agencies modernize infrastructure and adopt cloud-first strategies.

Small Business Impact

The awardee, ZOLON PCS, LLC, is not indicated as a small business in the provided data. Further analysis would be needed to determine if small business participation was considered or achieved through subcontracting.

Oversight & Accountability

The contract is managed by the Office of the Assistant Secretary for Administration (OASH) within HHS, indicating internal oversight. The BPA Call award mechanism suggests adherence to established procurement procedures.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Administration Programs

Risk Flags

Data migration risks.
Vendor lock-in.
Ensuring long-term cost-effectiveness.
Dependence on cloud provider's security posture.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.4 million to ZOLON PCS, LLC. CONTRACTOR SUPPORT TO CONFIGURE ENTERPRISE STORAGE AS A SERVICE TO HOUSE ALL OASH DATA IN A FEDERAL CLOUD ENVIRONMENT

Who is the contractor on this award?

The obligated recipient is ZOLON PCS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2024-06-17. End: 2026-06-16.

What is the projected cost savings or efficiency gain from consolidating OASH data into a federal cloud environment compared to the previous storage method?

The provided data does not specify projected cost savings or efficiency gains. A detailed cost-benefit analysis would be required to quantify these improvements. Factors such as reduced hardware maintenance, energy consumption, and improved IT staff allocation could contribute to savings, but these need to be explicitly measured against the 'as-a-service' costs.

What specific security measures and compliance standards are mandated for this federal cloud storage solution to protect sensitive OASH data?

The contract likely mandates adherence to federal security standards such as FedRAMP for cloud services and NIST guidelines for data protection. Specific measures would include encryption at rest and in transit, access controls, audit logging, and regular security assessments. The exact compliance requirements would be detailed in the contract's statement of work and security addenda.

How will the performance and availability of the enterprise storage as a service be monitored and guaranteed throughout the contract period?

Performance and availability are typically monitored through Service Level Agreements (SLAs) defined in the contract. These SLAs would specify uptime guarantees, response times for issues, and data retrieval speeds. The government would likely have mechanisms to track these metrics and hold the contractor accountable for meeting them, potentially with financial penalties for non-compliance.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75P00124Q00045

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 44345 PREMIER PLZ STE 120, ASHBURN, VA, 20147

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,432,724

Exercised Options: $2,432,724

Current Obligation: $2,432,724

Actual Outlays: $1,950,041

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75P00121A00014

IDV Type: BPA

Timeline