Treasury's $51.8M Enterprise SAN Refresh contract awarded to MicroTechnologies LLC for IT services

Contract Overview

Contract Amount: $51,795,693 ($51.8M)

Contractor: Microtechnologies LLC

Awarding Agency: Department of the Treasury

Start Date: 2009-12-01

End Date: 2013-09-30

Contract Duration: 1,399 days

Daily Burn Rate: $37.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE SAN REFRESH (EST) CONTRACT

Place of Performance

Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430, UNITED STATES OF AMERICA

State: West Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $51.8 million to MICROTECHNOLOGIES LLC for work described as: ENTERPRISE SAN REFRESH (EST) CONTRACT Key points: 1. The contract's value of $51.8 million over nearly four years suggests a significant investment in critical IT infrastructure. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process to ensure fair pricing. 3. The firm-fixed-price contract type indicates that the contractor assumes the risk for cost overruns, which is generally favorable for the government. 4. The contract's duration of 1399 days (approximately 3.8 years) suggests a long-term need for the services provided. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad category of 'Other Computer Related Services,' requiring further detail on specific deliverables. 6. The contract was awarded to MicroTechnologies LLC, whose track record and past performance would be key indicators of value and risk. 7. The absence of small business set-aside flags suggests this was not specifically targeted to boost small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this $51.8 million contract requires more granular data on the specific services rendered and the scope of the 'Enterprise SAN Refresh.' Without details on the number of storage units refreshed, capacity upgrades, or service level agreements, direct comparison to similar contracts is challenging. However, the firm-fixed-price nature is a positive indicator, as it shifts cost risk to the contractor. The average annual value of approximately $13.6 million warrants scrutiny to ensure it aligns with market rates for enterprise storage solutions and associated services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was open, certain sources may have been excluded prior to the solicitation. This suggests a potentially broader initial pool of bidders than a sole-source award but might be less competitive than a truly unrestricted full and open competition. The number of bidders is not specified, but the 'full and open' designation generally aims to maximize competition.

Taxpayer Impact: A full and open competition, even with exclusions, is generally beneficial for taxpayers as it encourages multiple vendors to bid, driving down prices and improving the quality of services offered.

Public Impact

The Internal Revenue Service (IRS) is the primary beneficiary, receiving updated and potentially more efficient enterprise storage area network (SAN) infrastructure. This contract supports the IRS's critical IT operations, ensuring the availability and integrity of taxpayer data and essential government functions. The services delivered likely involve the procurement, installation, and configuration of new SAN hardware and software, along with potential data migration and decommissioning of old systems. The geographic impact is primarily within the IRS's operational footprint, likely concentrated where its data centers are located, with potential remote support implications. Workforce implications could include the need for specialized IT personnel within the IRS to manage the new infrastructure, or reliance on contractor personnel for implementation and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'refresh' scope makes it difficult to assess if the technology procured is current or if it represents a significant upgrade.
The exclusion of sources in the competition, even if followed by full and open competition, raises questions about the breadth of market engagement.
The contract duration of nearly four years could lead to technology obsolescence if not managed proactively with upgrade clauses or performance reviews.
Without performance metrics or outcome data, it's challenging to definitively assess the 'value-for-money' beyond the contract type.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process aimed at achieving competitive pricing.
The firm-fixed-price contract type transfers cost overrun risk to the contractor, which is a favorable structure for the government.
The contract supports essential IT infrastructure for the IRS, a critical government agency, suggesting a high priority and likely well-defined need.
The contract value, while substantial, is spread over a significant period, suggesting a planned and budgeted expenditure rather than an emergency purchase.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on data storage infrastructure. The Enterprise SAN Refresh (EST) contract addresses the critical need for robust and scalable storage solutions that underpin modern IT operations. The market for SAN solutions is competitive, with major hardware vendors and system integrators offering a range of products and services. Spending in this area is driven by increasing data volumes, the need for high availability, disaster recovery capabilities, and the lifecycle management of existing hardware. Comparable spending benchmarks would typically look at the cost per terabyte or cost per IOPS for similar enterprise-grade storage solutions.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This suggests that the primary focus was on obtaining the best solution and price from the broadest possible pool of qualified vendors, rather than specifically targeting small businesses. Consequently, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, MicroTechnologies LLC, may still choose to engage small businesses as subcontractors, depending on their own business strategy and the nature of the services required for the SAN refresh.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program/technical points of contact within the IRS. As a significant IT infrastructure contract, it likely falls under the purview of the Treasury Inspector General for Tax Administration (TIGTA) for audits and investigations related to waste, fraud, and abuse. Transparency would be enhanced through contract award databases like FPDS-NG, though detailed performance reports or internal oversight documentation are generally not publicly available. Accountability is primarily driven by the firm-fixed-price terms and the potential for contract termination or penalties if performance standards are not met.

Related Government Programs

IRS IT Infrastructure Modernization Programs
Federal Data Center Consolidation Initiative
Enterprise IT Services Contracts
Department of the Treasury IT Procurement
Large-Scale IT Hardware and Software Procurement

Risk Flags

Potential for technology obsolescence given contract duration.
Lack of detailed performance metrics in summary data.
Ambiguity in 'exclusion of sources' within competition type.
Need for further vetting of contractor's past performance on similar scale projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $51.8 million to MICROTECHNOLOGIES LLC. ENTERPRISE SAN REFRESH (EST) CONTRACT

Who is the contractor on this award?

The obligated recipient is MICROTECHNOLOGIES LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $51.8 million.

What is the period of performance?

Start: 2009-12-01. End: 2013-09-30.

What specific hardware and software components were included in the Enterprise SAN Refresh, and what was the rationale for selecting MicroTechnologies LLC?

The provided data does not specify the exact hardware and software components included in the Enterprise SAN Refresh (EST) contract. It falls under the NAICS code 541519 (Other Computer Related Services). The rationale for selecting MicroTechnologies LLC would stem from their proposal's technical merit, past performance, price, and adherence to solicitation requirements during the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process. Without access to the solicitation details and the source selection evaluation, the specific reasons for MicroTechnologies' award remain internal to the procurement process. Further investigation would require reviewing the contract award justification and potentially debriefing documents if available.

How does the $51.8 million contract value compare to industry benchmarks for similar enterprise SAN refresh projects?

Comparing the $51.8 million contract value to industry benchmarks for similar enterprise SAN refresh projects is challenging without specific details on the scope, scale, and technology involved. Key metrics for comparison would include the cost per terabyte of storage, cost per IOPS (Input/Output Operations Per Second), and the total capacity refreshed. The contract duration of nearly four years means the average annual spend is approximately $13.6 million. This figure needs to be contextualized against the number of data centers supported, the required uptime SLAs, and the specific vendor technologies deployed. General market trends indicate significant price variations based on performance tiers, features (e.g., deduplication, compression, encryption), and support levels. A detailed analysis would require benchmarking against contracts with similar technical specifications and service level agreements.

What were the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract, and how was performance measured?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for the Enterprise SAN Refresh (EST) contract. Typically, for IT infrastructure contracts of this nature, SLAs would focus on aspects like system uptime, data availability, response times for technical support, and performance metrics related to data transfer speeds and latency. Performance measurement would likely involve regular reporting by the contractor, audits by the government, and potentially user feedback. The firm-fixed-price nature suggests that meeting defined performance standards is a condition of payment, but the exact metrics and measurement methodologies are not publicly detailed in the summary data.

What is MicroTechnologies LLC's track record with similar large-scale IT infrastructure contracts, particularly with the IRS or other federal agencies?

Assessing MicroTechnologies LLC's track record requires accessing historical contract data beyond this single award. While this $51.8 million contract indicates their capability to handle large projects, their broader performance history with the IRS and other federal agencies is crucial. Key areas to examine would include their on-time delivery, adherence to budget (especially relevant for cost-reimbursable contracts, though this one is fixed-price), quality of deliverables, and any past performance issues or disputes. Information on their prior contracts, including their value, duration, and agency, would provide a more comprehensive view of their reliability and expertise in managing complex IT infrastructure refreshes.

Were there any identified risks or challenges during the procurement or execution of this contract, and how were they mitigated?

The provided data does not explicitly detail risks or challenges encountered during the procurement or execution of this specific contract. However, potential risks inherent in large IT infrastructure projects include technological obsolescence, integration issues with existing systems, vendor performance shortfalls, and cybersecurity vulnerabilities. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' aspect might suggest some pre-defined criteria or limitations that could pose procurement challenges. Mitigation strategies would typically involve thorough technical reviews, robust contract management, clear performance expectations, and contingency planning. The firm-fixed-price structure inherently mitigates financial risk for the government regarding cost overruns.

What is the historical spending trend for Enterprise SAN Refresh or similar IT infrastructure services at the IRS or the Department of the Treasury?

The provided data only details one specific contract ($51.8M for EST by MicroTechnologies LLC). To understand historical spending trends for Enterprise SAN Refresh or similar IT infrastructure services at the IRS or the Department of the Treasury, a broader analysis of federal procurement databases (like FPDS-NG) is necessary. This would involve querying for contracts under relevant NAICS codes (e.g., 541519, 541512, 541513) related to IT infrastructure, hardware, and services over multiple fiscal years. Analyzing these trends would reveal patterns in spending levels, types of services procured, major contractors, and the overall investment in IT infrastructure modernization within these agencies.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8330 BOONE BLVD STE 100, VIENNA, VA, 22182

Business Categories: 8(a) Program Participant, Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $52,845,139

Exercised Options: $52,645,135

Current Obligation: $51,795,693

Parent Contract

Parent Award PIID: NNG07DA47B

IDV Type: GWAC

Timeline