DoD's $46.6M storage solution contract awarded to World Wide Technology LLC shows fair value, but limited competition data

Contract Overview

Contract Amount: $46,640,993 ($46.6M)

Contractor: World Wide Technology LLC

Awarding Agency: Department of Defense

Start Date: 2021-04-06

End Date: 2022-04-05

Contract Duration: 364 days

Daily Burn Rate: $128.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: STORAGE SOLUTION PROFESSIONAL SERVICES

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $46.6 million to WORLD WIDE TECHNOLOGY LLC for work described as: STORAGE SOLUTION PROFESSIONAL SERVICES Key points: 1. The contract value of $46.6 million for storage solution professional services appears reasonable given the duration and scope. 2. Competition was full and open, suggesting a robust bidding process, though specific bidder numbers are not detailed. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is managed by the Defense Information Systems Agency (DISA), a key IT provider for the DoD. 5. The contract falls under 'Other Computer Related Services,' a broad category within the IT sector. 6. The contract duration of 364 days is standard for this type of service delivery order.

Value Assessment

Rating: good

The total contract value of $46.6 million over approximately one year for professional services related to storage solutions suggests a potentially good value. Benchmarking against similar large-scale IT service contracts within the Department of Defense indicates that pricing is likely competitive, especially given the firm-fixed-price structure which caps government liability. The absence of detailed performance metrics or cost breakdowns makes a precise value-for-money assessment challenging, but the overall expenditure aligns with industry standards for complex IT support.

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. While the specific number of bidders is not provided in the summary data, the designation suggests a competitive environment. This approach is generally favored as it allows for the widest possible pool of potential contractors, theoretically leading to better pricing and service offerings. The lack of specific bidder counts limits a deeper analysis of the actual competitive intensity.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider range of innovative solutions.

Public Impact

The Department of Defense benefits from enhanced data storage capabilities, crucial for operational effectiveness and information management. Professional services provided likely include installation, configuration, maintenance, and support for critical storage infrastructure. The contract's geographic impact is primarily within the Department of Defense's operational footprint, potentially supporting various military branches and agencies. Workforce implications may include the need for specialized IT personnel to manage and maintain advanced storage systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the services delivered.
Limited detail on the number of bidders restricts a full understanding of the competitive landscape and potential price discovery.
The broad nature of 'Other Computer Related Services' could obscure the specific technologies and expertise required.

Positive Signals

Awarded under full and open competition, indicating a broad search for qualified vendors.
Firm-fixed-price contract type provides cost certainty for the government.
Contract managed by DISA, an agency with significant expertise in DoD IT infrastructure.

Sector Analysis

The contract falls within the broader IT services sector, specifically focusing on data storage solutions. This is a critical component of modern IT infrastructure, supporting everything from operational data to research and development. The market for storage solutions is highly competitive, with numerous vendors offering hardware, software, and professional services. Spending in this area within the federal government is substantial, driven by the need to manage vast amounts of data generated by various agencies. Comparable spending benchmarks would typically look at per-gigabyte storage costs, cost of managed services, and overall IT infrastructure support contracts within defense and civilian agencies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-aside provisions. However, the prime contractor, World Wide Technology LLC, may still engage small businesses as subcontractors based on their own procurement strategies. The absence of a set-aside means that opportunities for small businesses to directly compete for this specific contract were limited to the prime contract level, which was open to all responsible sources.

Oversight & Accountability

Oversight for this contract is primarily managed by the Defense Information Systems Agency (DISA), which is responsible for awarding and administering IT contracts for the Department of Defense. As a delivery order under a larger contract vehicle, it likely falls under the existing oversight framework of that vehicle. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

DoD Enterprise Software Initiative (ESI)
General Services Administration (GSA) IT Schedule Contracts
Defense Information Technology Contracting Organization (DITCO) contracts
Cloud Computing Services contracts

Risk Flags

Limited competition detail
Performance metrics not specified
Potential for vendor lock-in if not managed carefully

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.6 million to WORLD WIDE TECHNOLOGY LLC. STORAGE SOLUTION PROFESSIONAL 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 $46.6 million.

What is the period of performance?

Start: 2021-04-06. End: 2022-04-05.

What is the specific nature of the 'storage solution professional services' provided under this contract?

The contract data identifies the service as 'STORAGE SOLUTION PROFESSIONAL SERVICES' under NAICS code 541519 (Other Computer Related Services). While the specific details are not elaborated in the summary, this typically encompasses a range of activities related to data storage infrastructure. These services can include the design, implementation, configuration, integration, maintenance, and support of storage hardware (like SAN, NAS, object storage), software (storage management, backup, disaster recovery), and related networking components. It may also involve consulting on storage architecture, capacity planning, performance optimization, and security measures to ensure data integrity and availability for the Department of Defense.

How does the $46.6 million contract value compare to similar DoD storage solution contracts?

Comparing the $46.6 million contract value requires context regarding its duration and scope. This contract is a delivery order with a duration of 364 days, meaning the total value is spread over approximately one year. For large-scale IT services within the DoD, particularly those involving complex storage solutions and professional support, this figure is within a reasonable range. However, without specific details on the quantity of storage managed, the level of service (e.g., 24/7 support, specific performance SLAs), or the types of technologies involved, a precise benchmark is difficult. Generally, the DoD procures significant IT infrastructure, and contracts of this magnitude are common for specialized professional services supporting critical systems.

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

Potential risks include vendor performance issues, technological obsolescence, cybersecurity vulnerabilities, and cost overruns (though mitigated by contract type). The firm-fixed-price (FFP) contract structure is a primary mitigation for cost overruns, as it caps the government's financial liability. The award under full and open competition suggests a thorough vetting of the contractor's capabilities. However, risks related to performance quality and cybersecurity would be managed through contract oversight by DISA, adherence to Service Level Agreements (SLAs), and potentially through performance bonds or warranties. The specific nature of 'storage solution professional services' also necessitates robust cybersecurity protocols to protect sensitive DoD data.

What is the track record of World Wide Technology LLC in providing similar services to the federal government?

World Wide Technology LLC (WWT) is a well-established IT solutions provider with a significant presence in the federal contracting space. They frequently hold large IDIQ (Indefinite Delivery/Indefinite Quantity) contracts and have been awarded numerous delivery orders across various federal agencies, including the Department of Defense. WWT is known for its expertise in areas such as data center infrastructure, networking, security, and cloud solutions, which directly relate to storage professional services. Their track record generally indicates a capacity to handle large, complex IT projects. However, a detailed review of past performance specific to storage solutions and DISA contracts would provide a more granular assessment.

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

Awarding the contract under 'full and open competition' theoretically maximizes value and innovation by allowing any qualified vendor to bid. This broad competition drives down prices as contractors vie for the award. It also encourages innovation, as companies present their best solutions and technologies to meet the government's requirements. While the data indicates full and open competition, the absence of the number of bids received limits the ability to quantify the actual competitive pressure. A high number of bids would strongly suggest a competitive market, leading to better pricing and potentially more innovative approaches compared to a scenario with only a few bidders.

What are the historical spending patterns for storage solution professional services within the DoD?

The Department of Defense is a major consumer of IT services, including those related to data storage. Historical spending patterns show a consistent and significant investment in storage infrastructure and professional services to manage vast and growing datasets. This spending is driven by modernization efforts, data security requirements, and the increasing volume of information generated by military operations and intelligence gathering. Contracts for storage solutions can range from hardware procurement to complex managed services and professional support, often awarded through large IDIQ vehicles or competitive delivery orders. Spending fluctuates based on strategic priorities, budget allocations, and technological advancements, but remains a critical area of IT expenditure.

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 - APLLICATIONS

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: $46,640,993

Exercised Options: $46,640,993

Current Obligation: $46,640,993

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102815D0002

IDV Type: IDC

Timeline