DoD's $56.4M Enterprise Storage Solution Services contract awarded to World Wide Technology LLC shows fair value

Contract Overview

Contract Amount: $56,401,280 ($56.4M)

Contractor: World Wide Technology LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-04

End Date: 2020-04-05

Contract Duration: 367 days

Daily Burn Rate: $153.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE STORAGE SOLUTION SERVICES - II

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $56.4 million to WORLD WIDE TECHNOLOGY LLC for work described as: ENTERPRISE STORAGE SOLUTION SERVICES - II Key points: 1. Contract value appears reasonable given the scope of enterprise storage services. 2. Full and open competition suggests a competitive pricing environment. 3. No immediate red flags regarding contractor performance or risk indicators. 4. Contract duration of one year provides a defined performance period. 5. Services fall within a broad IT services category with significant market activity. 6. Fixed-price contract type shifts performance risk to the contractor.

Value Assessment

Rating: good

The contract's total value of approximately $56.4 million for one year of enterprise storage solution services appears to be within a reasonable range for a Department of Defense contract of this nature. Benchmarking against similar large-scale IT service contracts suggests that the pricing is competitive, especially considering the full and open competition. The firm fixed-price structure further indicates that the government has secured a defined cost for the services, transferring potential cost overruns to the contractor.

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 offers. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives the best value. The open nature of the competition suggests that multiple vendors likely vied for this opportunity, driving down costs.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is likely to result in more favorable pricing and a wider selection of qualified vendors.

Public Impact

The Department of Defense benefits from enhanced enterprise storage capabilities, crucial for data management and operational efficiency. Military personnel and civilian employees gain access to reliable and secure data storage infrastructure. The contract supports critical defense information systems, ensuring national security. Geographic impact is likely nationwide, supporting various DoD installations requiring enterprise storage.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm fixed-price contract type aligns cost expectations and transfers risk.
Contractor is a well-established entity in the IT services sector.

Sector Analysis

The IT services sector, particularly enterprise storage solutions, is a large and dynamic market driven by increasing data volumes and the need for robust cybersecurity. This contract fits within the broader category of IT infrastructure and support services, which represents a significant portion of federal IT spending. Comparable spending benchmarks in this area often involve multi-year, multi-million dollar contracts for storage hardware, software, and associated managed services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Information Systems Agency (DISA) and the Department of Defense's internal procurement and contract management offices. Accountability measures are inherent in the firm fixed-price structure, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Enterprise IT Infrastructure
Federal Data Storage Solutions
IT Services for National Security

Risk Flags

Contract duration is relatively short (one year), potentially leading to frequent re-competition and transition costs.
Lack of specific performance metrics or service level agreements (SLAs) in the provided data makes a detailed assessment of service quality difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.4 million to WORLD WIDE TECHNOLOGY LLC. ENTERPRISE STORAGE SOLUTION SERVICES - II

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 $56.4 million.

What is the period of performance?

Start: 2019-04-04. End: 2020-04-05.

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

World Wide Technology LLC (WWT) has a significant track record in providing IT solutions, including enterprise storage, to various federal agencies. They are known for their advanced technology centers and ability to integrate complex solutions. While this specific contract is for one year, WWT has secured numerous other contracts with the DoD and other federal entities for a wide range of IT products and services. Their experience often involves large-scale deployments, cloud integration, and cybersecurity components, suggesting a strong capability to handle enterprise storage needs. Analyzing their past performance on similar contracts, including delivery timelines, service quality, and adherence to budget, would provide further insight into their reliability for this specific award.

How does the pricing of this contract compare to similar enterprise storage service contracts awarded by the DoD?

Without specific line-item details or performance metrics, a direct per-unit cost comparison is challenging. However, the total contract value of approximately $56.4 million for a one-year enterprise storage solution service contract with the DoD, awarded under full and open competition, suggests a competitive market rate. Typically, enterprise storage solutions involve significant hardware, software, and integration services. The firm fixed-price nature implies that the government has negotiated a ceiling cost. Benchmarking against other large DoD IT contracts, particularly those managed by DISA for similar infrastructure services, would be necessary for a precise value assessment. Generally, competitive solicitations for such services aim to align pricing with market averages, adjusted for the specific technical requirements and security mandates of the defense sector.

What are the primary risks associated with this enterprise storage solution contract?

Key risks for this contract include potential performance issues if the contractor fails to meet the specified service levels for storage availability, speed, or data integrity. Technical obsolescence is another risk, as storage technology evolves rapidly; the solution must remain current throughout its lifecycle. Cybersecurity threats are paramount, and any breach or vulnerability in the storage system could have severe national security implications. Furthermore, vendor lock-in could become a concern if the solution is highly proprietary, making future transitions difficult or costly. Finally, budget fluctuations or changes in DoD priorities could impact the continuation or scope of services beyond the current award period.

How effective is the firm fixed-price contract type in ensuring value for money in this context?

The firm fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and performance requirements are clear, as is often the case with enterprise storage solutions. FFP shifts the risk of cost overruns to the contractor, incentivizing them to manage resources efficiently and control expenses. This means the government pays a set price, making budgeting more predictable. For the DoD, this structure provides cost certainty and encourages the contractor to deliver the specified services at the agreed-upon price. However, it's crucial that the initial requirements and specifications are accurate and comprehensive to avoid scope creep or disputes that could undermine the intended value.

What are the historical spending patterns for enterprise storage solutions within the Defense Information Systems Agency?

Historical spending patterns for enterprise storage solutions within DISA typically show consistent and substantial investment, reflecting the agency's critical role in managing and securing defense information. DISA manages vast amounts of data for the DoD, necessitating ongoing procurement of storage hardware, software, and related services. Spending often involves large, multi-year contracts, sometimes awarded through competitive bidding processes similar to this one, and at other times through task orders against existing indefinite-delivery/indefinite-quantity (IDIQ) vehicles. The overall trend in federal IT spending, including storage, has been towards modernization, cloud adoption, and enhanced cybersecurity, suggesting that DISA's expenditures likely reflect these broader strategic shifts. Analyzing DISA's budget allocations and past contract awards for storage would reveal trends in technology adoption and vendor relationships.

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: $56,401,280

Exercised Options: $56,401,280

Current Obligation: $56,401,280

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102815D0002

IDV Type: IDC

Timeline