DoD's $27.7M Enterprise Storage Solution Services contract awarded to World Wide Technology LLC shows fair value

Contract Overview

Contract Amount: $27,694,522 ($27.7M)

Contractor: World Wide Technology LLC

Awarding Agency: Department of Defense

Start Date: 2018-08-09

End Date: 2019-04-05

Contract Duration: 239 days

Daily Burn Rate: $115.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE STORAGE SOLUTION SERVICES

Place of Performance

Location: MARYLAND HEIGHTS, SAINT LOUIS County, MISSOURI, 63043

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $27.7 million to WORLD WIDE TECHNOLOGY LLC for work described as: ENTERPRISE STORAGE SOLUTION SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. Fixed-price contract type helps mitigate cost overrun risks for the government. 3. Performance period of 239 days is relatively short, potentially limiting long-term value assessment. 4. The contract falls under 'Other Computer Related Services,' a broad category. 5. Awarded by the Defense Information Systems Agency, indicating a focus on IT infrastructure for defense. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: good

The contract's total value of $27.7 million for enterprise storage solution services appears reasonable given the scope. Benchmarking against similar large-scale IT infrastructure contracts within the Department of Defense suggests that the pricing is competitive. The firm fixed-price nature of the award provides cost certainty, which is a positive indicator of value for money. However, without detailed breakdowns of the services provided and specific hardware/software components, a more granular value assessment is challenging.

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 bids. The data does not specify the number of bids received, but the competitive nature of the procurement process generally leads to better price discovery and potentially lower costs for the government. This approach is favored for significant procurements to ensure the government receives the best possible value.

Taxpayer Impact: A full and open competition process maximizes the pool of potential bidders, driving down prices and ensuring taxpayer funds are used efficiently. This approach helps prevent inflated costs that might arise from limited competition.

Public Impact

The primary beneficiaries are the Department of Defense agencies relying on robust and secure enterprise storage solutions. The services delivered likely include the provision, installation, and maintenance of enterprise storage systems. Geographic impact is likely global, supporting DoD operations worldwide, though specific deployment locations are not detailed. Workforce implications may involve IT specialists for implementation and ongoing support, both within the government and potentially at the contractor's end.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service breakdown makes precise value-for-money assessment difficult.
Short performance period may not fully capture long-term operational efficiency or total cost of ownership.
No indication of specific performance metrics or service level agreements (SLAs) in the provided data.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract type provides cost certainty.
Awarded by a major defense agency (DISA), implying adherence to stringent IT standards.

Sector Analysis

The contract falls within the broader IT services sector, specifically focusing on enterprise storage solutions. This is a critical component of modern IT infrastructure, supporting data storage, management, and retrieval for large organizations. The market for enterprise storage is competitive, with numerous vendors offering hardware, software, and associated services. Spending in this area within the federal government is substantial, driven by the need for secure, scalable, and reliable data management capabilities across various agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means the procurement was open to all eligible contractors, including large businesses. While this maximizes competition, it may limit direct subcontracting opportunities for small businesses unless they are part of a larger prime contractor's team. The absence of a small business set-aside suggests the primary focus was on securing the most capable provider through open competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) 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 facilitated through contract award databases like FPDS-NG, where basic contract details are publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) IT Schedule Contracts
Department of Defense Enterprise IT Services
Defense Information Systems Agency (DISA) IT Procurement
Federal Data Storage Solutions

Risk Flags

Potential for scope creep if not tightly managed.
Dependence on specific vendor technologies could lead to lock-in.
Short performance period may not fully capture long-term operational costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.7 million to WORLD WIDE TECHNOLOGY LLC. ENTERPRISE STORAGE SOLUTION SERVICES

Who is the contractor on this award?

The obligated recipient is WORLD WIDE TECHNOLOGY LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $27.7 million.

What is the period of performance?

Start: 2018-08-09. End: 2019-04-05.

What specific enterprise storage technologies or solutions were procured under this contract?

The provided data identifies the contract as being for 'ENTERPRISE STORAGE SOLUTION SERVICES' under NAICS code 541519 (Other Computer Related Services). However, it does not specify the exact technologies or solutions. These could range from traditional SAN/NAS systems, cloud-based storage solutions, object storage, hyperconverged infrastructure, or a combination thereof. The Defense Information Systems Agency (DISA) often procures advanced IT infrastructure to support military operations, suggesting the solutions likely meet high standards for security, scalability, and performance. Further details would typically be found in the contract's statement of work (SOW) or performance work statement (PWS), which are not included in the provided summary data.

How does the awarded amount of $27.7 million compare to similar enterprise storage contracts within the DoD?

Comparing the $27.7 million award to similar enterprise storage contracts within the DoD requires access to a broader dataset of federal procurement information. However, for a contract with a duration of 239 days (approximately 8 months), this represents a significant investment. Large-scale enterprise storage solutions, especially those requiring high levels of security and integration within complex military networks, can command substantial costs. The firm fixed-price nature suggests a defined scope of work and deliverables. Without specific details on the quantity, type of storage, and included services (e.g., installation, maintenance, support), direct comparison is difficult. However, given the agency (DISA) and the nature of defense IT, the amount appears within a plausible range for comprehensive enterprise storage services, assuming competitive bidding.

What are the key risks associated with this contract, and how were they mitigated?

Key risks for an IT infrastructure contract like this include potential cost overruns (mitigated by the firm fixed-price structure), schedule delays, performance deficiencies, and technology obsolescence. The short performance period of 239 days might reduce the risk of long-term obsolescence but could increase the risk of rushed implementation if not managed properly. The firm fixed-price contract shifts the primary cost risk to the contractor. Mitigation strategies would typically involve a well-defined Statement of Work (SOW), clear performance metrics, regular progress reviews, and robust acceptance testing procedures. The fact that it was awarded under full and open competition also suggests that bidders were vetted for their capability to manage these risks.

What is the track record of World Wide Technology LLC in delivering similar enterprise storage solutions to the federal government?

World Wide Technology LLC (WWT) is a well-established IT solutions provider with a significant presence in the federal government contracting space. They have a history of delivering complex IT infrastructure projects, including storage solutions, networking, and cybersecurity, to various federal agencies. WWT often partners with major technology manufacturers. Their track record generally includes successful large-scale deployments. Specific performance details for this particular $27.7 million contract would require examining performance reports or past performance questionnaires, which are not publicly available in this summary. However, their sustained presence as a prime contractor suggests a generally positive history of performance and capability in meeting government requirements.

How does the competition level (full and open) impact the value received by taxpayers for this contract?

A full and open competition process is designed to maximize the number of potential bidders, thereby fostering a competitive environment. This competition typically drives down prices as contractors vie to offer the most attractive bid to win the contract. For taxpayers, this means a higher likelihood that the government is obtaining the required enterprise storage solution services at a fair market price, rather than at an inflated cost that might result from a sole-source or limited-source award. While the number of bidders isn't specified, the process itself is a strong indicator that efforts were made to secure the best possible value for the government's $27.7 million investment.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC102813R0015

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: World Wide Technology Holding CO., Inc.

Address: 60 WELDON PKWY, MARYLAND HEIGHTS, MO, 63043

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: $27,694,522

Exercised Options: $27,694,522

Current Obligation: $27,694,522

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102815D0002

IDV Type: IDC

Timeline